Justice delayed is justice denied
Sir Julius Chan |
By HENZY YAKHAM
The Government of Prime Minister Peter O’Neill has
adopted a hardline approach against corruption and crime in general since
assuming office after the 2012 general elections.
With the zero tolerance on crime in any form or shape,
Mr O’Neill has also has also announced 2013 as the year of implementation.
The tough government stance to rid crime and subsequent
legislation of tougher penalties by parliament has received overwhelming public
support.
While the Government is taking most appropriate action
to address crime, there exits complacency in certain State law enforcement agencies.
A classical case is the apparent inaction or lack of it
involving misuse of millions of kina in the New Ireland province between 2002-
2007.
The Ombudsman Commission, Police Fraud Squad, Public Employees
Association and other State agencies have conducted their own investigations.
During 2010, the long arm of the law was catching up
with certain individuals who are alleged to have unjustly enriched themselves
under an illegal political pyramid structure that existed between 2002 and 2007
within the New Ireland Provincial Government.
Long awaited, but a much-welcomed move fully supported
by majority law abiding New Ireland
people and their leaders, police fraud squad officers started charging
individuals with offences ranging from stealing under false pretence,
misappropriation and fraud.
During 2010, police charged eight individuals with one
of them facing two charges.
The arrests were first of more expected, and was a
follow-up action on the recommendations of an audit investigations carried out
by RAM Business Consultants into the financial dealings of the New Ireland
Provincial Government between 2002-2007.
That investigation revealed instances of systemic and
blatant abuse of financial and administrative process, gross misuse and
misappropriation of public funds totalling more than K64 million during the
five years.
The investigation report confirmed the existence of an
illegal financial and administrative system, known as the “Lemus Structure”.
The report said Lemus structure was a political network
and did not come within the formal government framework, thus its involvement
in conducting government business was illegal.
“There existed a chaotic
and unstructured administrative system famously called the Lemus structure
which not only conflicted with established systems and structure of Government,
but also promoted and environment of cronyism and lack of accountability and
transparent,” the report highlighted.
“It appears the
established systems of governance were deliberately manipulated to suit vested
political interest. The Provincial Government completely disregarded the public
service machinery of New Ireland Province in policy formulation, strategic
planning and budgeting as well as programme implementation,” it added.
The report highlighted that public service delivery
system was highly politicised and made totally inefficient and ineffective.
The province’s annually provincial budgets were
prepared outside of the Provincial Government machinery with no inputs from
professional, experienced and career public servants.
It also established that there were enough evidences
for both former and serving politicians and public servants to be charged with criminal
offences as well as leadership and public service disciplinary charges.
On September 9 2009, the investigation report was
tabled in the New Ireland Provincial Assembly by Governor Sir Julius Chan.
Sir Julius called for a comprehensive probe by the
Ombudsman Commission (OC) into the leadership culture under the previous regime.
The report made strong recommendations for
appropriate criminal, civil and leadership action against the former Governor and
former Provincial Administrator.
Powers and functions of the public servants were
performed at the Governor’s office. As a result, most public servants remain
idle for the whole five years, but were still on full pay.
The report referred to a Provincial Executive Council
(PEC) decision No: 11/2002 which directed the then PA to withdraw all lawfully
delegated financial powers from all public servants except the First Secretary
to the Governor’s office.
Since the date of that PEC decision all requisitions
for expenditure for Public Investment Programme (PIP) were initiated at the
Governor’s office.
The First Secretary signed as Section 32 officer while
the PA signed as Financial Delegate for claims to be committed and payments
made.
Financial powers were vested with the PA as the Chief
Accounting Officer thus the direction from PEC was an unlawful act. The PA
should have refused to accept the PEC direction or could have advised the PEC
that the direction was unlawful.
The report also stated that funds for PIP had no proper
project appraisals. Projects were not monitored and valued.
“It was apparent that
under the pretext of project funding, public funds were disbursed without much
regard for the requirements of the land principles of transparency and
accountability creating an environment of fraudulent acts and cronyism,” the
RAMS report stressed.
Capital assets such as motor vehicles, out boat motors,
water tanks, generator sets, office equipment including computers and
accessories, were bought under the PIP and given to individuals and groups
without proper assets register and record.
An amount of K100,000 was expended annually from the
PIP funds for a Mansava Oval Redevelopment Project. Payments were made to
suppliers and individuals in relation to this project. In 2004 two political
staff members received cash advances totalling K85,500 to carry out community
development forums.
There were no proper acquittals and reports of the
exact work done.
The report also highlighted discrepancies in the Tender
Process. The New Ireland Provincial Supply and Tender Board did not meet
between 2002-2007. There were not many minutes and tender documents available
to indicate otherwise. Yet between 2003-2004 fixed assets to the value of
K4,029,603 including motor vehicles, boats, engines and water tanks were
bought.
These were also highlighted in a separate report by the
Auditor General’s office.
Also in 2004, road works projects costing of K2,005,808
were awarded to contractors without following tender processes.
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