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Baing welcomes investigation of his ‘payout’

MARKHAM MP Andrew Baing says there is “nothing sinister” about the K18 million paid to construction company Coecon Limited “because the Prime Minister instructed it’’.
He said this during a press conference on Friday at Parliament House.
He also expressed frustration at Speaker Jeffery Nape for denying him the opportunity to make a personal explanation on the payment in question since Tuesday. This was after the Prime Minister announced on Monday that a full investigation would be conducted into the payment made by Mr Baing in 2002 to Coecon while he was the Fisheries Minister.
Mr Baing said Sir Michael had “a short memory about the particular payout’’.
“And that is, prime ministerial direction from none other than Prime Minister Somare prompted this judgement debt to be settled by the state,” he said.
He said on July 4, 2002, National Court Judge Justice Ambeng Kandakasi ruled in favour of Coecon and ordered the state to pay the company K18,740,108.60. This was after the company took the state to court claiming damages for breach of contract on the part of the state after the parties entered into a contract for the construction of sites for National Fisheries Authority surveillance project for Kavieng and Green River respectively.
Mr Baing said the Fisheries board minutes showed that on December 3, 2002, there was a meeting between Chief Secretary’s office, Attorney-General, Prime Minister’s Department, and the NFA during which a directive was instructed by the Prime Minister (written direction by then Acting PM Dr Allan Marat and a verbal directive from Sir Michael ) through the PM’s chief secretary instructing the NFA to settle the judgement debt.
“Let me make it perfectly clear that the money was not paid direct to Coecon as implied but to the receiver manager (Coecon) KPMG due to the company’s insolvency state. That is a legal requirement for such payments,” Mr Baing said.

PNG Post Courier 28 June 2005