Network of government officials and outsiders targeting shipping grants

 

 

A network of senior government officials and outsiders similar to the group involved in the recent $10 million scandal within the Ministry of Health and Medical Services is allegedly operating within the Ministry of Infrastructure Development (MID), it was claimed yesterday.

The group is targeting the shipping grants, whose allocation this year is said to be around $78 million.

Headed by an MID director, the group is seeking $7 million from this year’s allocation.

Its application was lodged two months ago before applications for this year closed in February, the sources said.

“Unless there is intervention to stop the payment, the group is certain to get its application through. Don’t forget, this is an inside group,” one source told Island Sun on the weekend.

The group allegedly milked some $5 million from the 2016 shipping grants.

Among projects being funded by the grant, is the purchase of a small fishing vessel for $1.5 million.

A local businessman initially bought the vessel from Australia.

But the money was never spent as intended, the source said.

The shipowner was paid a mere $400,000 as a down payment, with assurance that his outstanding payment would be covered by new funding being applied for.

According to the source, the group used the money on all manner of things including buying building materials for a house being completed in West Honiara.

The house is said to be owned by the MID director who heads the network.

Today, the businessman is still owed $1.1 million, which the sources said would come out of the $7 million the group has applied for this year.

It is understood that with its MID connection, the group tried to force the local businessman to sign off the bill of sale for the vessel but he refused, telling the group that unless his outstanding payment is settled, there would be no sale.

It is also understood that the group is using the bill of sale to legitimatise its shipping grants application for this year.