Tom Rangip and Pacific Paradise Foods unlawfully paid K14.85 million

PNG EXPOSED

The Commission of Inquiry into the Finance Department investigated payments totaling K14,850,105 made to Tom Rangip and his company, Pacific Paradise Foods,  for food that was supposedly supplied to PNG Defence Force soldiers based at military barracks around the country.
The Commission concluded: “PPC’s claim for the supply of food to the PNGDF was fraudulent in nature [and] based on falsified invoices. Goods claimed as supplied were either not supplied at all or was short supplied”.
Think about what that K14.85 million could have achieved if it had been spent on our hospitals or refurbishing a police station? Instead it was stolen from the people of PNG by Tony Rangip.
The Commission of Inquiry is not the only body to have uncovered this fraud. An earlier, investigation conducted by the Financial Inspection Services division of the Department of Treasury and Planning (as it was then) also found that claims by Rangip for payment were completely flawed.
That inquiry found:
  • Rules on tender procedures, consideration of tenders and awarding of contract were not followed
  • Defence Tenders Board exceeded the limits of its financial delegation
  • Twice, PPC was awarded supply contracts although it had no financial capacity, facilities and experience in servicing large volume transactions
  • Most payments to PPC appear to have been fraudulent and based on fictitious supplies
  • Goods covered by a K5,390,855.99 claim under 9 invoices appear not to have been supplied
  • Clear suggestions of corrupt practices done in connivance with senior officers of the Department (of Defence) and the Force
An Audit Report compiled by the Auditor General’s office in 1999 also found gross irregularities and concluded that K7,597,782.16 worth of invoices should be disputed.
Despite all these many failings and the two separate earlier investigations which each found serious malparactice, Mr Rangip and his company were able to continue to steal and no action has been taken to recover the monies.
The Commission of Inquiry found that certain Solicitors General have been grossly negligent in protecting the State’s interests in this matter.
Read the Commissions findings on Tom Rangip Here

Comments

  1. AnonymousJuly 8, 2010 at 8:00 AM

    The company is called Pacific Paradise Corporation. Not Pacific Paradise Foods.

    ReplyDelete

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