The National Executive Council recently approved audit report on the use and management of Community Mine Continuation Agreement (CMCA) AND Non-CMCA Trust Funds administered by
the Chairperson and Board of Trustees.
Prime Minister James Marape said Cabinet has approved for the Chairperson and Board of Trustees to settle contractors’ valid and legitimate total claims of K217, 216, 951.00 as cleared by
the Audit Process and recommended for payment.
The National Executive Council approved that the cleared projects for funding under non-CMCA Trust Funds be settled in instalments according to the initial contractual agreements based on the
status of the projects.
Cabinet also approved for further audit to be carried out on the other paid and implemented projects that have not been reviewed as part of the special audit due to resources and time limitations.
Approval was also given for 27 contractual payments that have been flagged by the audit based on documented evidences as fraudulent payments aided by official corruption to be referred to Office of the National Fraud and Anti-Corruption Directorate for confirmation of the fraud and official corruption, and appropriate criminal charges are made.
Cabinet approved the new proposed guidelines for the utilization of the equity funds remaining in the CMCA and Non-CMCA Trust Accounts and approved all other recommendations in Part A and Part B of the Special Audit Report.
Prime Minister Marape said Cabinet noted the rescission of NEC Decision No. 181/2017 will allow both CMCA and Non-CMCA Trust Accounts to be retained, but management of the Trust Accounts shall be in line with the improved guidelines recommended for approval in paragraph 6 of this statement.
The Prime Minister said Cabinet approved to rescind NEC Decision No. 181/2017, which directed that after NEC’s acceptance of the Special Audit Report findings and payment of vetted claims, the credit balances currently sitting in both CMCA and Non-CMCA Trust Accounts be transferred to Mineral Resource Ok Tedi No. 2 Limited (MROT2) and Mineral Resources CMCA Holding Ltd (MRCMCAH) and directed that a representative of the Auditor General be included in the Board of Trustee.