Senior Gov’t Minister grabs $30million, the new twist in disbursements of shipping grants

 

A senior government minister allegedly raked in as much as $30 million in commissions from the controversial shipping grants in the three years to 2017, estimates based on disbursements of the grants, show

Insiders say the estimates are based on the commission of $500,000 per application approved by the Shipping Grants Committee based in the Ministry of Infrastructure Development (MID).

They say the new twist in paying the commissions is that it is no longer paid directly as cash to the beneficiary as was the case in the past.

Instead, the commissions are built into quotes or proforma invoices provided by the supplier.

In this case, the Minister in question would contact the supplier with instruction that the quotes in term of price include the commission of $500,000 per approved application.

It is estimated that the Minister allegedly received $10 million in commissions each year – in 2015, 2016 and again this year.

According to published records, total funds disbursed last year were $78.5 million, with MPs receiving the lion share of the grants on behalf of their Constituencies.

These allocations were intended to help Members of Parliament buy their Constituency ships (as shown below).

Many have already received their share of last year’s grants but are yet to buy their boats.

Some have since applied to replenish the amount they applied for. Five Constituencies shared some $23.5 million to buy ships in 2016, according to the table produced above.

A further $10.5 million were given to seven MPs who opted to buy machines instead of ships for their Constituencies.

Total shipping grants this year were never published because it was shrouded in secrecy and controversy.