Probe finds K5.3mil missing

National, Normal
Source:

The National, Friday16th November, 2012

By MOUA OMOA
AN independent investigation by the Finance Department has found the misuse and misappropriation of K5.3 million in district services improvement programme funds in the Yangoru-Saussia electorate, East Sepik, between January and June.
That was highlighted yesterday by the member and Minister for Trade, Commerce and Industry, Richard Maru, in Port Moresby.
Maru said he asked for an investigation into the DSIP funds after there were numerous public complaints of malpractice and corruption.
“The investigation found serious breaches of the Finance Management Act where the payments approved by the former administration were without authority or any record keeping,” he said.
“There was purchase of motor vehicles without tenders and DSIP funds were used to fund suppliers whose services were not approved by the Yangoru-Saussia joint district planning and budget priority committee.”
Maru said even after the Ombudsman Commission froze expenditure in June, Yangoru-Saussia electorate funds were still being used. 
“This is only the tip of the iceberg.
“In six months, K5,352,905.55 was potentially misused, misappropriated and stolen.”
Maru said the sad thing was his people were still suffering from  lack of basic services, including having no road access, the district’s health centre in ruins, the police barracks in a state of disrepair and all government services at a standstill because money had been depleted.
The report has been sent to the chairman of Taskforce Sweep, Sam Koim, to investigate.
“I want the investigations to be fast-tracked.
“I have requested the Sweep team to use the Proceeds of Crimes Act to recover funds from more than 43 suppliers implicated in the report because the district has no funds,” Maru said.
“The people should be thankful to God for the  leadership change during the electionp.
“That has enabled us to discover the alleged misappropriation and stealing of millions of kina in Yangoru-Saussia funds.”