Call to audit fund
The National, Friday 14th of February, 2014
AN independent audit will be carried out on the use of K8.7 million from a dividend trust fund for the people of Western to buy a landing barge for South Fly district.
Prime Minister Peter O’Neill revealed this in Parliament this week after concerns were raised by South Fly MP, Aide Ganisi, who found out that the barge only cost K3 million and was a second-hand.
The K8.272 million was paid from the Non-Community Mine Continuation Agreement funds managed by the Department of Mining.
Ganasi told parliament he had information that the barge was purchased from Korea for US$900,000 (more than K3 million) and not K8.272 million as reported and that it was a second-hand vessel.
“If due diligence was done by the department and the Central Supply and Tenders Board, they would have known that the contractor doesn’t construct boats,” he said.
Ganasi raised the concern over the use of the K8.7m with Mining Minister, Byron Chan last November from which the Non-CMCA funds was used to buy the barge.
He said Chan told him that once the barge was purchased it would be owned by certain organisations and individuals.
and individuals and not the people of South Fly.
He asked O’Neill to set up an independent commission of inquiry to investigate the matter.
He asked O’Neill to include in the terms of reference of the proposed inquiry to investigate the K500 million in the Non-CMCA account to ensure payments to certain politicians complied with procedures under the trust deed.
Ganasi said that the funds were not for development but as compensation by Ok Tedi Limited to the people for the damages to their environment and loss of livelihood.
O’Neill told Ganasi that he was not aware of the matter and asked him to provide more details.
O’Neill said: “I will ask the department and every person involved in this transaction to provide me a detailed report and I will provide to the MP so that our people of South Fly are aware.
“That boat costs over K8.2million and you are saying it’s a second hand boat. It is a concern because somebody along the way has not done his or her job and we need to get to the bottom of it.”