Locals: Two paid for same contract

By JAMES APA GUMUNO
THE Highlands Highway Landowners Association has called on Works Secretary Joel Luma to explain why he paid two contractors for the same contract.
Association spokesman Kinstone Womai said Mori Resource Limited had been engaged through a minor brief by Luma in 2009 to carry out a verification exercise on the Highlands Highway.
Womai produced a copy of the minor brief showing the contract was signed between Luma and Wera Mori, the principal of Mori Resource Ltd on March 19, 2009, to carry a verification exercise under the Highlands Highway Rehabilitation Programme using Global Positioning System technology for a contract worth K288, 875.40.
He said on the same contract, number MB 03/2009, Land Mark Valuers was taken on board by Mori Resource Limited as a sub-contractor.
But Womai said when it came to payment, the Works Department paid the two contractors separately for the same contract instead of Mori Resource paying Land Mark Valuers.
According to a letter written by former works first assistant secretary – operation Vusela Gopave and addressed to secretary of Personnel Management, dated Nov 20, 2009, Gopave recommended for the suspension of Luma for his handling the Highlands Highway road project.
In his 10-page letter Gopave attached copies of cheque payments made to the two contractors.
According to the letter, the initial amount of K288,875.40 was paid to Mori Resource Ltd on March 17, 2009, (Chq No: 523126) from an invoice number EMR 02/09, dated March 5, 2009.
It was paid out from the Chimbu Restoration vote.
Gopave said other payments made to Mori and Land Mark Valuers in 2009 on the same contract include :
l On May 5, Mori was paid K586,200 (Cheque – 528710):
l June 19 – K270,152.15 (633187);
l July 17 – K560 (533526);
l Aug 7 – K296,000 (533718);
l Sept 4 – K261,536 (539003);
l Oct 15 – K447,000 (539080); and,
l The last payment was done on Oct 26 – K386,700 (539537).
He said K2,537,023.75 had been paid to Mori Resource.
He said other payments made by the Works Department in 2009 to Land Mark Valuers on the same contract.
Gopave said they were:
l On March 5 – K249,802 (Cheque 523125);
l May 1 – K286,000 (528709);
l June 17, the contractor was paid twice for the same invoice number 68, The amounts received were K165,800 (Cheque 533181) and K300,000 (533182);
l July 17 – K154,000 (533716);
l Sep 4 – K385,000 (539081);
l Sept 18 – K176,000 (539107);
l Sept 30 – K176,000 (539348);
l Oct 12 – K151,500 – (539534); and
l Nov 2  – K176,000 (539642).
Gopave said K2,219,382 had been paid to Manevi Gene, the principal of Land Mark Valuers.
Womai said the report showed a contract valued at K288,875.40 had turned into millions of kina.
He asked Luma to explain why he overpaid the contractor and its sub-contractor K4,467, 530.35 more than the contract value signed for.
Womai said if an investigation team needed help and information, he could be contacted on 7330 6251.