THE Opposition has called for the sidelining of Minister Paul Tiensten and an investigation into an allege K13 million fraud within the National Planning and Rural Development Department.

Deputy opposition leader Bart Philemon called on Prime Minister Sir Michael Somare to investigate the alleged K13 million fraud. The Opposition claims the money was siphoned out through ghost projects and contracts by private firms and individuals who colluded with the Department.

These are alleged to have included:

• A company Kandrian Ltd was awarded K6 million for Kandrian district hospital project on June 3, 2009, without any calls for public tender. The company was registered on the date the contract was awarded which is also the date the bids were closed (without being open for public tender). Since the contract was signed on June 26, nearly a year ago, no work has started; and
• The purchase of a Kandrian district vessel for K6.5 million through Sarakolok West Transport by the department using cheque no.40607, serial no.239661 last Dec 4.

Philemon, in a statement directed to Somare, said this case strikes at the heart of good governance and it was another echo of what National Alliance governors in Islands region have raised concerns about.

He said similar transactions had drawn the ire of East New Britain Governor Leo Dion and West New Britain Governor Peter Humphreys, who backed by governors from Manus and Bougainville regional MP had attempted to sack minister Paul Tiensten from NA party.

Philemon said this allegations involved funding of K7 million of work on Kerevat National High School with media reports last week indicated that the school faced possible closure despite funding released to do this job as it was not done.

“The prime minister cannot tolerate or sweep these allegations under the carpet and claim to run a coalition Government on principles of good governance.”