K10.2mil too much for a company

IT was shocking to have read in the news about Prime Minister James Marape, and the National Executive Council’s decision to approve a K10.2 million contract to a PNG firm to work on the cure of the coronavirus.
It is something that is unprecedented, a government regime signing a multimillion-kina deal with a team of scientists led by a PNG chemist, for a task that even the best brains in the world are working on.
There is no doubt that PNG chemists will one day come up with the wonder drug that may be used as a remedy against a virus.
PNG chemists such as Dr Topul Rali, Dr Clement Waine and Dr Stewart Wossa are among scientists who have worked on related research topics which considered the use of substances in PNG’s backyard in treating diseases in plants and human beings.
However, Marape’s decision to fund this new firm is not good and raises a lot of questions especially when K10.2 million was given to a firm that is just over a month old.
K10.2 million is a lot of money.
Not even an existing SME in PNG gets that kind of money from the National Development Bank or the Government easily.
The last time a government department gave that kind of money to a firm was deemed a scandal that landed a minister in prison and the firm owner fighting a long battle in the courts.
It would have seemed more sensible if K1.2 million kina or less was given to the new firm and upon its report about the progress of work, then another K100,000 or so can be given periodically.
That would have been the better strategy for Marape and the NEC to take.
Even postgraduate students in PNG who are doing a lot of research on different themes are looking for funding and possibly some of that K10.2 million can go into financing their research.
I am aware of the fact that Google’s first financier gave them much less, about US$30,000 (K105,000) to kick start their work.
Marape and the NEC should draw up a process where such money is contracted to local firms who have good proposals.
We hope what they have done does not set a precedence for any local firm that promises a cure for a disease to easily gain that much money upon pitching the concept to a prime minister and the NEC.
Again, K10.2 million is a lot of money to give to a local firm that has no track record.

PNG Man