No illegal dealing in Lae Port operator contract: Report
An investigation into awarding of an operator contract to an international company for the Lae Port in Morobe Province has cleared PNG Ports Corporation of any corrupt dealings.
The Minister for State Enterprises William Duma, said PNG Ports Corporation Probity Report has cleared the corporation of allegations of corruption made by the media.
"The report is conclusive; it clears PNG Ports of any impropriety in the process of selecting a terminal operator in 2015."
Mr Duma said that immediately following the allegations by the Australian Broadcasting Corporation (ABC News) and the Organised Crime and Corruption Reporting Project (OCCRP), which states that “an Australian entrepreneur bribed PNG ports officials to help a multinational company win lucrative contracts”, PNG Ports instituted an internal probity review.
The probity review examined and reported on the process leading up to the appointment of International Container Terminal Services Inc. (ICTSI) of the Philippines as terminal operator.
The process consisted of an Expression of Interest Phase and a Request for Proposal Phase, followed by technical and financial assessments and the development of a final shortlist.
International law firm Norton Rose Fulbright was appointed Independent Probity Adviser, and provided independent advice and audits of each phase.
Mr Duma said PNG Ports Probity Report established that the allegations relating to transactions involving former officials of PNG Ports are external to PNG Ports and do not relate to the company's operating account and internal processes and procedures.
"Specifically, an internal review of PNG Ports accounts and records categorically reveals no transaction between PNG Ports and Coral Seas Planning Consultants," Mr Duma said.
He also pointed out that the Terminal Operator appointment is part of a very significant PNG Ports redevelopment plan supported by the Australian Infrastructure Financing Facility for the Pacific.
PNG Ports has begun developing an Anti-Corruption Framework and has reviewed its procurement policy. It is also developing an audit plan for a probity review of the procurement of existing contracts.