Use of K16m queried

THE Hagen City Authority has called for an investigation into the “disappearance” of K16 million paid by the Treasury Department to the Hagen Urban LLG several years ago.
City authority chief executive officer Leo Noki said the funds were paid to the LLG after it successfully prosecuted the National Housing Corporation for non-payment of land rates.
He said the funds were allocated to upgrade and improve facilities in Mt Hagen.
“However, there is no tangible evidence of the expenditure of the K16 million in Mt Hagen,” Noki told The National yesterday.
“So far, the funds have not been acquitted or accounted for as required under the Public Finance Management Act.”
Noki said when the city authority was established early this year, they had inquired about the use of the K16m but did not receive any explanation from the city manager Pious Pim.
He said the city authority also queried the city management on the collection and use of municipal rates and taxes but also received a negative response from Pim.
He said although the authority did not have legal control over the city management, it had signed an agreement with the Hagen Urban LLG and the Hagen Rural LLG to work together to develop the city and the district.
“But the city management had refused to cooperate and work with the city authority,” he said.
“The urban LLG comes under the Western Highlands administration but we (city authority) are concerned about how it has been managed and how it has spent the money it collects from the rates and taxes.
“The city management does not have the capability and capacity to collect rates and taxes.
“Therefore, it is incompetent and incapable of providing efficient services to the residents and business houses in Mt Hagen.”
He said the city was littered with garbage and filth because of these issues.
“City manager Pious Pim cannot blame anyone but himself for creating this mess,” Noki said.
Pim said he didn’t have access to funds to pay workers to clean the city as the LLG’s bank account had been frozen since February on orders from the city authority.
“I need money to get fuel for the tractors, the slashers to cut grass at the oval, fuel for lawn mowers, dump trucks to collect rubbish, pay employees and for our operational costs,” Pim told The National on Tuesday.
He said despite a National Court decision on Nov 7 to reopen the bank account within 48 hours, he was still not able to access the funds because two of the signatories were reluctant to sign the cheques.
But Noki disputed the claim and said the city authority had abided by the court order and allowed the LLG to operate without interference and collect city rates and taxes.
“Pim is misleading the people of Mt Hagen as he has access to the funds,” Noki said.
“We have followed the National Court order but he has not brought any cheques to us to sign.
“Furthermore, the city manager runs a payroll of more than K40,000 per fortnight for a workforce of almost 100 staff, which includes cleaners and rules inspectors.
“But rubbish is piling up each day.
“He has access to all the equipment, workers and resources but his incompetent management is the cause of the current problems.”