Internal conflict delays funds

PNG Power Ltd (PPL) says infighting among the Arona Valley Development Authority (AVDA) board and management over the years had led to delays in accessing their developmental funds.
Managing director Flagon Bekker said this in response to queries from The National following a petition given to the PPL team in Yonki, Eastern Highlands, on Tuesday from the AVDA board airing their grievances with respect to the administration of their development assistance package.
He said the memorandum of agreement (MoA) governing the disbursement and the management of the development assistance package had expired and all the parties were aware that PNG Power was in the process of renewing it.
The purpose of the petition to the State was for PPL to release the 2014-2018 development assistance package grants withheld for the respective years and to review the MoA. However, Bekker said the grievances AVDA raised, particularly in relation to PNG Power’s delay tactics to disburse development assistance package funding was a matter of perception and not based on facts.
“The AVDA board and management team infighting have led to years of delays in accessing the development assistance package,” he said.
“The last official drawdown of the development assistance package to AVDA was in 2017. There have been no drawdowns under normal process since.”
Bekker noted that earlier this year, PNG Power supported the election process of the AVDA board following a court order.
“Their board is now elected and in a position to operate, however the MoA has expired and there is currently no binding agreement until a new agreement is signed,” Bekker said.
“It is healthy for terms of this MoA or any contract for that matter, to be reviewed in earnest to ensure clarity in obligations on either party.
“AVDA represents the interests of former landowners that were displaced,” Bekker said.
“Historically, MOAs with AVDA and PNG Power are for five-year terms.
“The last MOA expired in 2019 and due to AVDA’s own internal issues, this could not be renewed as they did not have a board in place.”