PM: Police to investigate allegations against MRDC

Posted on The National

PRIME Minister James Marape, pictured, says the allegations of fraud against the management of the Mineral Resource Development Corporation have been referred to the police.
He said he had received letters carrying the same allegations and had furnished a report to the police to investigate.
Marape said while the allegations of fraud were serious, it was now a police the matter and therefore they (police) needed to be allowed to do their job without political interferences and directives.
The prime minister said he had also written to MRDC to give a full audited report of their finances to his office.
Marape said he would table a full report of what the police were doing and a full response from MRDC in Parliament next month.
He said MRDC was a public entity that held trust funds on behalf of resource landowners and those funds needed to be managed well.
Marape said he would also look at the possibility of reforming MRDC if that was warranted.
He understood that MRDC had made some investments which would also be looked at before arriving at any decision.
Marape said he would look at the recommendation by Sir Mekere Morauta who wanted the landowners to be allowed to manage their own funds like the Lihir landowners.
He said the Government would look at MRDC in totality assess its value and whether the country, particularly the landowners were better served maintaining the corporation or seeking other means to reach the same goal.
The prime minister was responding to a series of questions without notice from the Member for Moresby North-West Sir Mekere, who alleged that more than K110 million of landowners’ funds had been misused by the MRDC management and wanted to know what action the prime minister would take. Sir Mekere said according to credible sources, there were serious cases of fraud, misappropriation, abuse of office and breach of trust by MRDC in its management of landowner trust funds.
He said the allegations related to: K10 million of Petroleum Resources Gobe landowner trust funds which was used by MRDC without the approval of its board; a K100 million grant given by the state to Petroleum Resources Kutubu (PRK), Star Mountain landowners and the Fly River government to be spent on projects chosen by these entities was diverted by MRDC for other purposes; and allegations concerning the initial investment appraisal of the Star Mountain Hilton Hotel in which the cost was overestimated, suggesting leakage and corruption.

Go to this link for more: https://www.thenational.com.pg/pm-police-to-investigate-allegations-against-mrdc/