Insurance cover mix-up spelt out

 By HELEN REI
PNG Power Ltd has admitted there was a misunderstanding in the handling of a staff insurance scheme that workers are protesting about.
General manager human resources Luke Ambu admitted that conclusions were drawn based on the manner and the timing in which the insurance cover issue was dealt with. It led to accusations made against acting board chairman, Robert Bradshaw.

Ambu, a member of the company executive management team, said correct processes were followed to engage the Pacific Assurance Group to provide cover for the PPL
staff.
He said there were two sets of contracts – the Marsh insurance cover for the executive management team and board, and PAG for general and contract staff.
The insurance cover for the management team and board of K500,000 is within the Independent Public Business Corporation  Act, he said.
The K1.4 million PAG contract for general and contract staff however was well over the mark and required approval from IPBC.
Ambu said while the PAG contract was awaiting approval by the IPBC board, the PPL board suspended its chief executive officer John Tangit over fraud allegations.
He said the board then appointed chief financial officer Brendan Raftery as acting CEO.  The series of events that followed led to the misunderstanding, Ambu said.
PPL acting chairman Robert Bradshaw in response to the claims, said he had done nothing wrong.
Bradshaw said proper procedures were followed in awarding of the PAG contract.
He said Ambu had proposed the medical insurance cover for the 1,300 employees below mid-management level. The board approved the concept in October last year.
“The board’s duty to the people of PNG is to always act in the best interest of PPL,” he said.
It is understood that the board and management met yesterday to discuss issues raised in a petition by the PPL workers.