Singapore Court stops PNGSDP from drawing money

PRIME Minister Peter O’Neill has welcomed a ruling by a Singapore Court judge stopping the PNG Sustainable Development Program (PNGSDP) from drawing money from the long term fund to pay for its operational expenditure. The court also directed the PNGSDP to make available its accounts for the State to examine in two weeks.

"The long term fund is meant to be drawn down for the development of Western Province and its people. These funds are not there to be drawn down to pay for the upkeep of a few individuals," the PM said in a statement yesterday. "As a Government, we have said all along that PNGSDP is not above the law and must play by the rules. This decision by the court in Singapore confirms our position."

The judge handed down the decision on Monday in the presence of Attorney General Ano Pala, who flew to Singapore to attend the proceedings. The State had gone to court after Sir Mekere Morauta amended the PNGSDP Memorandum of Articles in an attempt to remove Government representations on the Board of PNGSDP. Sir Mekere’s move was seen as illegal and an attempt to shield his board from transparency and accountability.

The court ruled that PNGSDP and its officers be restrained from effecting any changes to its Memorandum and Articles and to the composition of its Board of Directors until the disposal of the main action (in Suit No. 795 of 2014) or until further order.

It also ruled that PNGSDP furnish the State with copies of PNGSDP’s management accounts, copies of the reports given by its portfolio managers, consolidated statement of assets and liabilities, copies of the management accounts, reports and consolidated statement for the period ending 30 September 2014 to be provided by 17 October 2014.

The court also ordered PNGSDP that, until the hearing of the State’s application for leave to appeal, it is restrained from disposing of the assets in its long term fund, save to the extent that such disposals are effected by any fund manager in the normal course and for the purpose of managing the assets of the fund.

The judge also indicated to PNGSDP that it should not take more than two weeks to call a board of directors’ meeting to determine the conditions for the State’s inspection of PNGSDP’s books of accounts, accounting records and other records, and to respond substantively to our request in this regard.

PNG Today / Post Courier