Mori orders audit after claims of abuse of funds

By HELEN TARAWA
Minister for Commerce and Industry Wera Mori has directed an audit of the department’s finances following allegations of mismanagement and abuse of funds to the tune of about K2.3 million.
Mori told The National yesterday that he was aware of the allegations and had directed an audit into the department’s finances and would comment further after the report had been released.
According to sources in the department, funds allocated for major projects including the Pacific Maritime Industrial Zone, Simbu Limestone Project in Chuave and Sepik Special Economic Zone/Sepik plains were used on non-project related issues.
The sources alleged that from October 2017, funds were approved and payments were done to a certain family company (named).
It is alleged that on Oct 18, 2017, a payment of K5609.70 was followed on Oct 20 by another payment of K18,000.
It is also alleged that certain payments were authoritised prior to the closing of public accounts in 2018.
Information gathered from the Integrated Finance Management System (IFMS) indicated that 130 requisitions totalling K2.3 million were raised and payments made.
A total of 71 requisitions for payment of goods and services were made, including payments to a ticketing company (named) while over K540,000 was processed and paid in cash.
Meanwhile, an Investment Promotion Authority company extract indicated that payments were made and there was evidence of various payments made within November and December 2018.
Mori had written to Commissioner of Police Gari Baki on February 11 last year requesting an investigation into the management and affairs of the Commerce and Industry Department.
Commissioner Baki was not available for comment.
Questions were also sent yesterday to Prime Minister Peter O’Neill but no response had been received when this edition went to press.