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MRDC MD terminated

October 13, 2011 Leave a comment Go to comments

By Aaron English

Acting Prime Minister, Belden Namah has terminated Mineral Resource Development Corporation Managing Director, Augustine Mano. And a submission is being prepared to go before Cabinet, for an investigation into allegations the MRA is squandering landowner monies.

Among the issues, the controversial 4 mile Casino development, which has come to a standstill, while another venture, the purchase of 50 percent shares in Hevi Lift, the equivalent of 15 million Kina, came at a cost of 70 million.With the submission for an investigation, to go before Cabinet, Mr Namah says its only right Mr Mano is not in office.

Meantime, General Manager Investments at the Mineral Resources Development Corporation, Clifford Kasi, will be acting Managing Director.

His appointment however, comes amid some concerns, since he  too is implicated in allegations the MRDC has been squandering landowner funds. But Acting Prime Minister, Belden Namah, says with terminated Managing Director, Augustine Mano, out of the way, plans for an investigation won’t be hindered. He assures anyone implicated will be dealt with.
  1. October 13, 2011 at 11:53 am

    It is timely that such action is taken to ensure government agency or corporate entities such as the MRDC complies with regulations and procedures to ensure all financial, administrative and operational functions are implemented within government or statutory laws.

    On the other end, one should also question why Prime Minister Peter O’Neil was not investigated at the first place. The NPF saga is still hanging over his head as Prime Minister. This also raises questions whether Jimmy Maladina will be investifgated together with the Prime Minister.

    The NPF thing needs to be cleared. Both and others linked to them have been implicated. If Prime Minister O’Neil sets the precedence and clears his name, it will be a demonstration of a true leader in the history of PNG. It will be a show of maintaining his credibility and at the same time reinforcing the current investigations done by the NEC appointed team of investigators.

  2. Landlord
    March 23, 2012 at 9:25 am

    More details have emerged into the allegations of MRDC Managing Director, Mr Augustine Mano,s illegal activities in siphoning landowner’s money into dubious investment under pretext of good investment policy.

    The latest is an independent report dated 10/10/11 from Deloitte to the Prime Minister’s Department denying that they provided any expert valuation for MRDC to buy share on behalf of the landowners. Instead, Deloitte advised that from their preliminary assessment the PNG Helilif operation was in serious financial trouble and advised the managing director for a more detailed valuation before any investment decision was made.

    They report that by going ahead against their advice, the landowners have now lost 50% of their investment. Hence, the net asset value after only less than 12 months of investment is K75 million obviously less than what the Managing Director has let us to believe. It further states that the company is operating on overdraft facility-which means that no dividend is payable to landowners any soon or least not within 10 years. It would have been much wiser and less riskier to purchase shares in BSP, Oil search, Lihir or West New Britain Oil Palm through POMSX or even buy treasury Bills that would easily make K5-7million a year immediately upon investment.

    Mr Mano mislead the public and the Government by claiming that Deloitte provided expert valuation and recommendation for millions of landowner money to be used to buy 50% share of PNG Helilift operations.

    In another leak out of MRDC and available for the NEC, it is now revealed that most of this money came from loan against Future generation Trust Fund (FGTF) and Community Infrastructure Development Trust Fund (CITF) and Westpac Loan. According to MRDC’s own investment policy or guidelines this is reported as ILLEGAL. For those landowners unaware, leaked internal documents show respective landowner company contributions as follows:

    Company/Equity/Loan FGTF/Loan CITF/Westpac/Loan/Total investment
    PRK (Kutubu)/K4million/K10million/- /K4million/K18million
    PRG (Gobe)/K2million/- /K10million/K5million/k17million
    PRM (Moran)/K2million/K10million/-/K3million/K15million
    MRSM (Star MountainsK12million/- /K3million /K15million

    The Prime Minister must act. Why is he preaching about good governance and yet still standing by corrupt leaders like the Mr Mano. Where are the so called landowner leaders of Kutubu, Moran, Gobe and Star Mountains? Why are you remaining silent and allowing your people’s money to be corrupted in this way?

    Concerned Landowner
    Port Moresby

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