30 Apr 2014

PNG opposition lays complaint against PM over generators purchase

6:51 pm on 30 April 2014

Papua New Guinea's opposition leader has laid a police complaint against Prime Minister Peter O'Neill's move to purchase two generators last December.

Belden Namah has written to the Director of Fraud & Anti-Corruption Directorate, alleging the 17 million US dollar purchase of the generators from an Israeli company, LR Group, did not follow proper procedure.

Mr Namah claims that a formal cabinet submission and invoices for the purchase were not issued until two months after the transaction took place.

He says the purchase was made soon after the Prime Minister gave a directive to the acting Treasurer, without proper cost and benefit analysis.

"It has never been budgeted for in 2013. But this is a direction by the Prime Minister to (the acting treasurer) Dairi Vele. Dairi Vele acts on it and within 72 hours the funds are transferred out of the country without having expert opinion on the suitability of those generators. Two 15 megawatt generators for 50 million kina."

Belden Namah