Committee to probe state firm

PARLIAMENT’S Public Accounts Committee will hold a public inquiry into the Kumul Petroleum Holdings Ltd (KPHL) today, according to chairman Sir John Pundari.
Sir John told The National yesterday that the inquiry would be aired live.
Police fraud squad members, the Ombudsman, and officers from the Public Prosecutor’s Office have been invited to attend.
He said the committee had issued a “notice to produce” to KPHL to provide information on the aggravated income generated from the 500-plus shipments made since the start of the PNG LNG project and the first shipment in May 2014.
He said at that time the committee had also asked KPHL to provide information regarding:

• How much has been made so far in the export of liquefied natural gas;
• how much of that money had been given to the State and landowners;
• how much has been given to the provincial government in the affected areas for development and infrastructure; and,
• How much was used for KPHL’s operation cost.

Sir John said the people had the right to know how much was made from the shipments of LNG and where the proceeds went to.
The first “notice to produce” was issued to KPHL on July 10, with a deadline of two weeks. The deadline was later extended to Aug 7.
However, KPHL board chairman Andrew Baing at that time issued a statement saying KPHL was not subjected to the Public Finances (Management) Act and was not answerable to the PAC.
The committee later issued a second notice to KPHL on Sept 19.
The inquiry will be held at the State Function Room in Parliament from today to Friday.