Authority disputes spending

THE 30 per cent Moran development levy paid to the Moran Special Purpose Authority (SPA), through a revised memorandum of agreement between the Southern Highlands government in 2005, is legally binding.
A legal brief from the Department of Petroleum’s legal division to the acting secretary Lohial Nuau (based on three legal opinions from the Office of the State Solicitor) stated that a revised Moran development agreement was self-executing and bind all parties.
The brief was made in response to a letter to the Department of Petroleum by the Hela government led by Governor Philip Undialu last month (Augt 5) advising the department to release 10 per cent of the development levy of Moran to the provincial government.
The governor further provided a breakup of the K20 million to be made to different sectors, including paying K10 million to Diro Gas and Power Company Ltd for the Port Moresby gas plant investment, K6million to Moran Development Corporation to build the Homa-Tari road, K2million to the Moran SPA to build its office and K2 million to Homa Pawa People’s Association for a Moran MoA review.
However, legal advice to the secretary indicated that it was illegal for such transaction be made as the MoA signed between the Southern Highlands government and Moran SPA for a 70-30 per cent split was legally binding and still in force.
The brief from legal counsel James Palma dated Aug 27 stated that according to legal advice sought from the State Solicitor’s Office, the funds could not be transferred under any circumstance to any person or organisation until after a review was done.
Despite the legal advice, Nuau wrote to the Department of Finance to release the funds held in the trust account as per the allocations by the Hela government.
Moran Central landowner leaders led by Tony Kila, Moran SPA chairman Gibson Tiki and executive manager Danny Tandape said in a media conference that the proposed diversion of funds was illegal and they would refer Nuau and Undialu to the Fraud and Anti-Corruption Directorate as their action deemed illegal and an act of corruption.