PEA wants action on K125mil deal

National, Normal

The National – Thursday, June 16, 2011

THE Public Employees Association has called on the government to deal with people, including ministers, involved in the K125 million SCITB Nasfund Kokopo investment.
President Michael Malabag said in a statement yesterday the association was aware the central bank was carrying out its own investigations into the transaction and would deal with the licensed financial entities, including National Superannuation Fund (Nasfund) and National Capital Ltd (NCL).
“It appears that the board of Nasfund and NCL have erred in deciding to invest in the sovereign community infrastructure treasury bill (SCITB),” Malabag said.
“It appears there has been a lack of due care and responsibility by management and the boards of these two licensed entities in their decision to invest in the SCITB.”
Malabag said the decision to engage in the transaction that was not budgeted for and to be funded by way of a loan from Nasfund should have been cause for concern for the boards and management of Nasfund and NCL.
He said other people involved in advising the two licensed entities to decide to undertake this transaction needed to be taken to task to explain why anomalies laymen could see did not appear to be of any concern by the board and management.
Malabag said the involvement of government through the three ministers “raises issues of concern that the commitment outside of the budget was pushed through without following normal budget processes and must be a case for the Ombudsman Commission”.
“I know that the Bank of PNG is carrying investigations and I strongly urge the government to deal with other parties involved in the transaction,” he said.
“The monies belong to the workers who work long and hard only to be spent in investments that can be seen as questionable.
“I further encourage all union affiliates of the PNG Trade Union Congress, especially in the transport sector not to take any action on the matter until such time relevant authorities such as BPNG reveal details of the investigations,”  Malabag said.