The National,Friday 09th December 2011
THE K20 million spent on the Gumini-Karamui Road in Chimbu province will be investigated by the Department of Works, Minister Francis Awesa said.
Awesa said two contractors had been paid K10 million each to carry out works on the road.
He said the first company known as Sky Developer had no machinery and was awarded the K10 million contract, of which K4 million was paid to them for cutting down trees.
He said the second company known as OSIS was also paid K10 million even when it lacked the capacity to build the road.
He was responding to questions from Chimbu Governor Fr John Garia on why work on the road was not completed after contractors been paid.
Awesa said the funds were never held by the department of works as it should but controlled by the departments of planning and finance.
He said payments were made to the two companies by the departments.
“The K20 million has been wasted on two companies that do not have the capacity and I will institute an investigation into how the funds were used and how the tender and procurement process were followed and how the contract was awarded to the companies and will inform the parliament when the investigation is completed.”