Inquiry told of insurance, operation hiccups

By LESLIE OMARO
BETWEEN 2004 and Feb 2 this year when the mv Rabaul Queen sank, seven ships operated by Peter Sharp’s shipping companies had run aground or suffered engine problems, a commission of inquiry has been told.
Three of the ships – mv Kokopo Queen, mv Kuanua and the ill-fated mv Rabaul Queen – suffered mishaps at least twice.
Evidence provided to the commission inquiring into the accident last Friday revealed that insurance procedures were not strictly adhered to in insuring the mv Rabaul Queen.
The inter-island ferry sank in rough seas off Finschhafen carrying more than 460 passengers, according to passenger manifests given to the commission by Sharp last week. Official figures stated that only 237 people were rescued.
The commission headed by Justice Warwick Andrew ended its Port Moresby sitting last Friday. It will this week be in Lae.
The insurance officers who appeared before the commission to give evidence were QBE Insurance operations manager Bruce Avenell, Pacific Assurance Group Ltd marine underwriting manager Martin Sengele, PAGL chief executive officer Paul Affleck and AON Risks Services general manager George Lifu.
PAGL marine underwriting manager Martin Sengele admitted they never made any inspection of the mv Rabaul Queen prior to agreeing to insure it.
Sengele also admitted that from the time the PAGL was approached to insure the vessel and the time it sank, there was never any condition and valuation report prepared on behalf of the company.
Sengele agreed to suggestions by the lawyer assisting the commission Mal Varitimos that the PAGL accepted the risk without actually doing any assessment or survey of the vessel.
Affleck also admitted that prior to the Feb 2 disaster, the PAGL did not have copies of the survey certificate, load line certificate, tonnage certificate, certificate of registry, class certificate and safe manning certificate.
AON Risks Services general manager George Lifu told the commission that he had nothing to do with the insurance of the mv Rabaul Queen since 2006.
Lifu said AON had been acting as brokers for Sharp’s companies for a number of years.