Deregisterd firm was paid K2 million

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A DEREGISTERED company was paid K2 million for road maintenance work by the Sepik Highway, Roads, Bridges Maintenance and Other Infrastructure trust, the Public Accounts Committee reported to Parliament.
The committee discovered that although Greenhill Investment company was registered in November 1992 and deregistered in January 2001, it was paid K2,001,222 between 2002 and 2004 for road maintenance work.
Procurement processes were apparently not followed but despite this, three payments amounting to K881,590 were made to Greenhill Investments for the Sepik Highway road construction project.
Following this payment, the Provincial Supply & Tenders Board agreed to a contract with Greenhill Investment and the balance of K1,119,632 of the K2,001,222 appears to have been paid upon approval.
“Both the committee and the Auditor-General found great difficulty in tracing details of the payments due to a lack of any records at all,” the PAC reports.
“No attempt at all has been made by the Finance  Department (or any one else) to bring any accountability to this transaction.
“How contracts can be given for such large amounts of public money (well over the limit prescribed by the Public Finance (Management) Act for the calling of tenders) and how contracts can  be given to an apparently non-existent company without any control from the Finance Department or the trustees is beyond the understanding of this committee.”
The committee concluded that the trustees, the provincial government and the Finance Department failed completely in their duties to properly monitor, control or in any way carry out their obligations to properly manage the expenditure of public monies.