NEW REVELATIONS INTO THE NASFUND COVERUP

PNG Blogs, the political activist, whistle blowing online corruption watchdog website has been keenly following the NASFUND illegal loan scandal. Here is an excerpt:

“Papua New Guinea I have been waiting for Rod Mitchell to respond to my last revelation on the illegal bond issue but he has decided to go into hiding. This revelation I note has been supported and corroborated by newspaper reports by independent journalists reported on this site.

Someone has aptly picked up what actually happened in the political realm, when Ministers Arthur Somare, Tiensten, Tammur and one other approached the Prime Minister and gagged him from going public about Rod Mitchell forging his signature. The moneys were already released by Rod in an illegal bond issue. They tried to cover it all up from media attention.

The questions still remain what happened to those funds? Who got them? Did the Pollies pocket any? If it is an illegal bond issue, is the State obliged to repay the moneys? ( It appears the State is not liable to repay the moneys to Nasfund). This leaves the Nasfund out of pocket to the tune of K125 Million.

The question is did the Board of Nasfund approve this bond issue? Where are the Board papers? How can the Board approve a bond issue that is outside the Public Finance Management System, outside the Central Bank requirements, and outside the Department of Treasury processes as sanctioned by the State Solicitor, and finally approved by Cabinet?

How can the Board of Nasfund ever deem this a legitimate investment? The answer is- They cannot.”

Read More Here

8 thoughts on “NEW REVELATIONS INTO THE NASFUND COVERUP

  1. Money and power really are triggers for evil practices.The CEOs and the members(hoarders-ops!) of the Board of NASFUND should know that fund is not theirs to do as they see fit;and to give it to whoever comes to them with tales of making lots and lots more money.
    Some poor Papua New Guinean is working their guts out and putting that little bit in for a rainny day.By the way who will benefit from what you are doing now??surely the contributing members will not benfit.It will go to you and the other evil people who are involved.How absurd can you lot become!!

    1. Goes to show that all our so call Leaders and their cronies are just low IQ as well as EQ……….PNG will never get ahead and the right things are never done for the common good of ordinary people…………where is the common sense………..eish.

  2. Seriously………how can a person take more and more and never be satisfied? It goes to show how pathetically greedy and self-centered an “already big stomach” can be.

    1. Alice,our people are given next to nothing for their fortnightly salary.Port Moresby’s shops have sky rocketed the prices of food and not to mention house/flats rates.The present (hoarding) members of Parliament do they see our suffering?What is the present basic minium wage for work force of our nation?
      The CEo of NASFUND and the Board members can not just do as they see fit with our hard earned miserably money that we put aside for a rainny day.If the allegations are true about what they have done then I am disgusted !

      1. Kokopo District SCITB – A Cash Cow

        I agree with you all. Question is: Who is Rod Mitchell? Does PNG need him? I do not think so. There are so many young and energetic PNGians who can and have proven their wealth of knowledge and skills who are available and can manage large corpoartions. Ian Tarutia and Leon Baskin are fine examples. Mr Tarutia must now relieve Rod Mitchel and run the show. I have a little bit of knowledge into the issue and this what I have to say. ” The whole saga was a scam to swindle funds and was fraudulant”.

        Background

        Let me throw some light over the recent Kokopo Sovereign Community Infrastructure Treasury Bill (SCITB) saga that has now risen into the lime light. Originally the K125 Million was taken out by the PNG Govt as a loan and NASFUND as the financier.
        Originally the funds was supposed to have funded the District water supply drawn from the Warangoi River, treated and stored somewhere in the Malakuna No4 village and then reticulated to all the lower areas in the Kokopo District including the islands of Duke of York. The bulk of the K125 million (K80 Million or so) was to have been used for the ground works for this major district impact project. The water project was planned for a period of 10-15 years with the Provincial Govt supposedly to have taken over in its development budget from the second year onwards. This project was presented by an independent Consultant\Contractor to the Kokopo District JDP&BPC at Ganai in December 2009 and was approved.

        Contracts

        However, due to some “regulations” so to speak, in regard to the SCITB, it has been heavily iterated that this SCITB arrangement is immune from the Financial Management Act (FMA) and thus bypasses the Central Tenders Board and therefore the issuance of contracts was ambiguous as to whether it remains the prerogative of the Member for Kokopo or whether it lies with the financier (CEO of NASFUND). It had been established that a newly registered company and has ill experiences in the building and construction and civil works field, Nuigini Asset Management Ltd (NAM), had been appointed and is currently conducting its operations in Kokopo. To date it’s unclear who issued the contract and what criteria were followed. In fact the original contractor who produced the Kokopo Main Water Supply Plan which was used to secure the funds has been sidelined. He is no longer in the picture or province.
        The contractor (NAM) tended to be purchasing materials from non local suppliers where supplies were shipped in from Lae and Port Moresby. The materials are also available in the Province but were overlooked as business had to be given to their own kind.
        I live in Kokopo and work with the local authorities and I know that what has been delivered by this company is substandard in regards to the road projects in the Butuwin-Gunanba and the Ralubang-Ganai roads. The tuffa tanks are still on the grounds and are collecting dust and have not been erected and we do not really need these tanks as its usefulness depends on the rain. All year round we are still carrying buckets and water containers to the nearest water hole to fetch water. The tanks have not impacted our livelihood one bit. The main water supply would have made a big difference and is currently still a dream.
        It is common knowledge in the district that there’s no scope of works for the projects the member for Kokopo and NAM is conducting and no independent body to oversee to ensure quality is maintained and also to ensure value for money.
        It seemed that the Member for Kokopo and the NAM had sanctioned these projects and not the local authorities who represent the needs and interests of the local populace, the ones who put him where he is now.
        The whole project concept was that a financier was engaged and involved in the disbursement of funds. He is an expatriate and based in Port Moresby. The main contractor is NAM managed by an expatriate who has a sales background. These arrangements were put in as conditions by the Funder NASFUND. The Local MP Mr. Tamur did not have any choice and that was the reason he did not use the established govt system.

        Change of Scope of Works

        I believe that the original scope of works for the main water supply which was used to draw the K125 million has now changed. The contractor has now changed the scope to install smaller plastic water tanks in the villages surrounding Kokopo town. The road works have stopped due to the contractor’s capacity deficiencies. The bitumen on the Ralubang-Ganai road is peeling off and to date no one is working on the main water supply which is the main objective of the K125 million. The changing of the scope in itself is illegal and the all the perpetrators must be prosecuted.

        Provincial and District Administration

        The member for Kokopo should have known better and used the very system and mechanism in place on the ground. These state agencies are responsive to him to manage the funds and would have managed and appropriated the funds to much needed projects that will benefit the inhabitants of the district and or the province in the long run.
        However the district administration although involved initially to formulate the project plan and submission for the SCITB funds again was sidelined and the advices were continuously ignored when the funds became available. In fact the Kokopo District Administration was told to stay out of it as they had nothing to do with it.
        I support the move by the Governor of ENBP in his endeavors to scrutinize the deal. The people of Kokopo cannot be taken for a joyride and it’s about time someone in the hierarchy of the Provincial government puts an end to these sinister practices. The Provincial Administration under Mr. Leo Dion should now be asking the following question:

        • Is the SCITB funding arrangement immune to FMA or not?
        • Who is responsible for issuing contracts?
        • Who are the supervisors of each project?
        • Why was the local authorities told to stay out of the project?
        • At the end of each project, who are they handing over the project to for sustainment?
        • Why has the original Water Supply Scope of Works changed and who authorized its deviation?
        • Although the main water supply project had been sanctioned by the Kokopo District JDP&BPC why has the scope changed? And are the other smaller projects being undertaken by NAM been sanctioned by the Kokopo District JDP&BPC?
        • Why did the member for Kokopo allow the funds to be managed by a contractor and not the provincial and district administration?

        Please remember that we the Tolais are not ignorant but we believe in transparency, accountability and good governance. The funding is welcomed but the Member for Kokopo must always know that we do not need corrupt leaders in Kokopo and in the Province. The K125 million was for the people of Kopex and not for you and your cronies to be used as your cash cow. Be reminded that 2012 is just around the corner.

        ToBaras

      2. Its these kind of things and many others that makes want to become a terrorist or assasine I am sick and tired of this crap and how its allowed to go on without any recourse in justice and law.

      1. Sadjkah,
        You are what PNG need low dose of or you are what PNG need less of!!
        Cant you contribute meaningfully to all the disussion before your two sentence rubblish.Come on,get real and be a man/someone!Papua New Guinea want /need men/women with backbones. Where are you in the big picture of things??Come on, get up,and be real..

        Raise up and be counted,dont be nobody but be a somebody.PNG needs every manpower it needs,right now we are in the pig sty and we are squirming in all areas of NEEDS,because of some idiot who does not think that what he does has dire rippling consequences.We are made poorer becuase of the likes of CEOs and board members of Nasfund : and may I make a mention of the parliamentarians who you and I elected.Dont be a lame duck but do something better/good for yourself then look esle where where you can contribute.How about it?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s