THE State and the Education Department have been ordered by the National Court last Tuesday to pay K19 million in damages to Finance Corporation Ltd (Fincorp).
This follows a decision by the Education secretary Dr Uke Kombra to cease obtaining of loans by teachers from Fincorp in 2018.
It is obvious that this decision not only affected Fincorp but also teachers who wanted to get loans.
PNG Teachers Association and Teaching Service Commission were in fact against this decision by the secretary.
It’s obvious that even in a situation where the secretary was in breach of the contract, K19 million in damages awarded to Fincorp would be too excessive.
All in all, it comes back to bad decision making by the Education secretary.