DDA in trouble over contract
By KARO JESSE
THE Kerowagi development authority (KDDA) in Chimbu has been restrained from taking possession of its newly-constructed administration building over contract agreement issues.
This was the order made by Deputy Chief Justice Ambeng Kandakasi in the Waigani National Court on Wednesday.
Construction company Cinderrella Ltd filed an urgent application seeking restraining orders to stop the Kerowagi DDA from opening and occupying the building.
Cinderrella Ltd managing director Pora Loma, through his lawyer, informed the court that the DDA still has an outstanding payment of K2 million for the construction of the new building.
Loma’s lawyer informed the court that Kerowagi MP Bari Palma, as the chairman of the DDA, and his district administrator James Kowane, had entered into a contract agreement with Loma for the reconstruction of the building.
The court was told that Loma’s company was assigned by the KDDA to carry out maintenance at the old district building.
However, on inspection, Loma found that maintenance would only add weigh on the old building which had a chance it would collapse due to its water-logged location.
So Loma proposed the reconstruction of a new building and a contract agreement of K2.7 million was signed for work.
The agreement was signed in Sept 14, 2018, and the building was completed last October.
Loma’s lawyer argued that KDDA paid only K765,000 of the total cost and the rest was met by Loma.
The interim injunction order remains until the matter returns to court on Aug 10, and parties were directed to have the matter settled before then.
Failure on settlement would mean parties return with a draft for mediation – as ordered by the court.
2 comments
This is a typical example of poor Projects and or Contracts Management by Clients (KDDA) representative on the project regarding Project Cost Control. If a Project Budget is locked in for the project in the first place then why should a completed project not paid off unless otherwise. In such cases the responsible officers (Projects/Contract Managers and the finance officers (accountants/accounts clerks) should be banned from such job responsibilities. To prevent such future situations all Projects/Contract Managers and Finance Officers responsible for any project MUST SIGN OATH before they take charge of any project including PROJECTS COST CONTROL so they would take the roles more seriously knowing that they will or can loose their jobs if they do not control the funds for the projects prudently. PROJECTS AND CONTRACTS MANAGEMENT roles should be now recognized as a Profession under Oath by respective Professional Associations just like Accountants and Lawyers so any responsible officer who fails to ensure funds are properly spent for the intended projects should be stripped off the profession. This will help fight any form of Project Funds miss management (not paying contractors dues and or paying in full uncompleted projects). Food for Thought.
The contract has to be upheld because it was/is a legal document signed and agreed by both parties. In this case the Contractor has the upper hand but what I am stunned at is the amount of money that was entered into. K2.7 million is a lot of money and its being consumed by one building is something ridiculous. I am not sure about the length, width and the breadth of the building but K2.7 million is excessive. It is hope that the cost was not inflated. If I were the judge, I would dig everything up and ask the concerned party to justify with evidence the cost before the substantive matter is heard (if this is allowable in law and/or if the judge has any jurisdiction to do so.)
If my assumption is true then this is one of the ways politicians have robbed our beloved nation and its people and now small people cannot cope with the ever increasing living cost. It is directly affecting the small people…
we need someone who will champion the change in the country, who loves nothing but justice, hates nothing but injustice, one who loves his country patriotically and aims to improve its economical state of this nation.
God bless PNG
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