Signs of corruption looming in Govt

A CONFIDENTIAL government document was leaked and is now going viral on social media and attests corruption in the Government under Prime Minister James Marape.
A letter written to Marape by Peter Graham, chairman and acting managing director of Kumul Minerals Holdings Ltd stated that he was resigning following the undue influence by government agents in circumventing due process to appoint political cronies.
He told Marape in the letter that the manner in which appointments were made had not complied with the Kumuls Minerals Authorisation Act in terms of both appointment process and the qualification of directors.
This in short is corruption, nothing more.
Cronyism is the first move in setting up the pieces on the board of grand corruption.
It enables politicians to access and control state resources to buy political support to stay in power. The practice is also known as clientelism.
Politicians in governments since independence have been abusing their patronage power to appoint cronies to directorship on the boards of state-owned enterprises, departments and statutory organisations.
This is not to say all board of directors appointed are bad but while some are good people appointed on merit, the so-called political appointees are the cronies of the ministers and influential political lobbyists.
The cronies then use their position of power/influence in design contracts and outsource projects/businesses to their contacts in creating a stream of money flowing from the proceeds and kickbacks to buy political support.
Not long ago in Kumul Telikom Holdings Ltd two chairmen resigned one after the other within a span of three months.
This is just the tip of the iceberg of cronyism and political appointments happening across many state-owned enterprises and government-controlled entities.
Some of the corporate heads are exponential business leaders widely acclaimed and respected in the region.
Their leaving reflects very badly on the government.
A while ago just within Marape’s 17 months in office business and investor confidence in the country was declining and now is the issue of sustainable leadership and business continuity.
Graham worked tirelessly in putting in place a corporate structure and established a number of subsidiary companies under the holding company so the KMHL held interests in significant mining projects.
Subsidiaries such as Kumul Minerals Ok Tedi Ltd will hold the state’s 67 per cent interest in Ok Tedi Mining Ltd; Kumul Minerals Porgera Ltd will hold any interest that the state may acquire in Porgera; and Kumul Minerals Exploration Ltd will hold investments in exploration.
Two notable facts from these developments are:

•  GRAHAM is leaving right on the eve of the resumed talks between Barrick Niugini Ltd and the Government throwing the spanner into the works; and,
•  THE Government is sneaking its people into the KMHL board and other key sectors that leads to the purses strings right before an impending vote-of-no-confidence

David Lepi