Contractors query funds

 THREE companies contracted to build classrooms and staff quarters at schools in Madang claimed that they have not been paid for their work.

They want an investigation into the funding of the Rural Education Service Infrastructure (RESI) allocated to the province in 2009.

Bonny Pongo of Hans Contractors said the Madang provincial government paid less than what had been agreed to build staff houses and double-classrooms.

“We were to be paid K250,000 for a multi-purpose double-classroom and K140,000 for a staff house,” he said.

“But the provincial government reduced the price to K100,000 for a multi-purpose double-classroom and K80,000 for the staff houses. They advised us to use cheap materials to build.”

He said a 10% goods and services tax was deducted from both payments.

Pongo said they owed huge sums of money to their suppliers.

Director of Works Hood Kasas said the funding was coordinated at the national level and he could not do anything about the issue. 

He referred all questions to provincial administrator Bernard Lange who could not be reached for a comments. Ivan Danny of Dan Builders, who is building classrooms at Rai Coast, said he had to borrow K30,000 from a local coffee buyer to complete the project.

Tyran Osera said he was still owed K459,000 for the school building he built in Sumkar district, north coast of Madang.