Milne Bay provincial government queries outstanding K42 million from KCH

Milne Bay Governor Gordon Wesley has assured legal proceedings remain on the cards should the National Government continue to stall the release of outstanding warrants and long-overdue oil palm shares owed to the province.

Addressing a recent Provincial Assembly, a visibly frustrated Governor Wesley revealed that Milne Bay is currently owed up to 30 percent of its total budgetary allocation each year, supposedly because of this shortfall.

"About 30 percent—would you believe? 30 percent," Wesley told the Assembly. "How many years has the National Government failed to give us 100 percent funding? It’s a shame. It’s just shameful."

The governor said these unissued warrants are not mere requests but rightful funds that the provincial administration continues to follow up on.

"We will definitely be fighting for what is rightfully owed," he said. "If we have to take it to court, we will take it to court."

The 30% funding shortfall has become a burden for the provincial government, leading to the stagnation of critical infrastructure projects and social programs.

This is about a decade-old debt regarding oil palm share payments. These funds have reportedly been held in trust by the Kumul Consolidated Holdings [KCH] for over 10 years, despite repeated calls for its release by successive provincial leaders.

Wesley said the goverment owes Milne Bay K52 million in total debt from the Oil Palm Shares. So far, only K10m had been released to them since 2022 with a remaining balance of K42m to date.

Prime Minister James Marape had acknowledged the K52 million debt in 2022 and assured its release, however Governor Wesley said the province is still waiting.