Audit finds misuse of K17mil

By JUNIOR UKAHA
A K17 million debt, gross mismanagement of funds and questionable sales of assets are some of the findings listed in an audit report into the affairs of the Lae City Council.
The final report on the audit, which began on August, was made public last Friday by Lae MP John Rosso during a media conference.
The audit was conducted by auditors from the Department of Provincial and Local Level Government Affairs after Rosso had asked them to check the council’s books.
This follows numerous allegations against the management and operations of the municipal authority.
Rosso presented a summary of the report to the media, describing it as “a damning report.”
“There is a lot of sensitive information in this report,” he said.
“It is quite a damming report.
“A lot of people have been named in this report.
“There is K17million in outstanding debts to service providers, staff salaries and superannuation have not been paid properly, nepotism and favouritism in awarding contracts, reckless spending of council funds and questionable sales of council properties and land.”
Rosso said this had been going on for the past 10 years but the Morobe administration, the mother agency, did nothing to fix it.
He said similar audit reports produced in 2011-2013, 2014 and 2015 highlighted the same issues but no action was taken to address them.
“I will make certain that they address it this time,” he said.
“Hopefully we can do that in the next six months.
“I have no personal grudges against anyone, but I just want the council up and running effectively.”
Rosso said a committee comprising officials from the provincial government and the DPLLG would deliberate on the findings and recommendations of the report.
He said one of the recommendations was to have those implicated in corrupt practices with regards to the council’s affairs referred to the police fraud squad for investigation.