Board welcomes clearing of transaction

THE board of Petroleum Resources Gobe (PRG) has welcomed the decision of the National Fraud and Anti-Corruption Directorate clearing of any criminality a financial transaction that took place in 2018.
“For two years, falsehoods and innuendo spread through social media caused so much stress and tension among landowners,” chairman Mathew Sisimolu said.
“All these will now be put to rest with the closure of this case by the police.”
In late 2018, a complaint was laid against the Minerals Resources Development Company (MRDC) managing director Augustine Mano and his management alleging fraud and conspiracy to defraud the PRG and Gobe landowners of funds held by PRG.
It was alleged that K32 million was fraudulently applied by the MRDC management to the benefit of two other MRDC affiliate companies.
The PRG board was made aware of these allegations in early 2019 and informed police that they would cooperate with any investigation.
The PRG board also sought and obtained independent legal advice on the transaction and took the position that it was commercial in nature and was fully repaid with interest.
The boards of MRDC and Petroleum Resources Kutubu, the other party to the transaction, took legal advice and resolved that the transaction was commercial and the funds borrowed were repaid.