ILLEGAL AND FRAUDULENT SALE OF PUBLIC OFFICES

Mr. Speaker
My Questions are directed to the Minister for Public Service as it relates to public service neglect and also in breach of Office Allocation Committee procedures and Minister for Finance to note as it relates to abuse of CSTB process and Minister for Housing to take note.
SALE OF NHC PROVINCIAL OFFICES WITHOUT BOARD AND GOVERNMENT APPROVAL
The provision of housing and shelter is a national function. Housing is a service that is provided to the people of PNG through the operations of 22 provincial offices with staff paid by NHC.
The National Housing Corporation is a state entity established to provide housing to citizens of PNG or those approved persons or entities gazetted as such by Minister for Housing. Also any houses or public offices that are to be sold by NHC must be approved by the NHC Board and gazetted. Further, any offices used by NHC comes under the ambit of Government Office Allocation Committee to rent or sublease or to sell and if necessary to put out on public tender.
Further, housing is a national function under the Organic Law on Provincial and Local Level Government. Any decision to open a office, close a office or tranfer or delegate housing to a province would require consultation with DPM, Department of Provincial Affairs under the Organic Law on Provincial and Local Level Governments.

Mr. Speaker
My Questions relate to sale of provincial housing office including the land to foreigners and private entities without due process.
1. Is the Minister aware of any delegation of housing powers to certain provinces such as New Ireland, Morobe, Milne Bay, East and West Sepik provincial governments?
2. Could the Minister confirm if the Government Office Allocation Committee approve the sale of public office space and building occupied by NHC and other government agencies in those provinces?
3. The NHC sold the Kavieng Office and Shed , formally occupied by Department of Urban Development and Water Board to a Mr. Pico Sition for K60, 000. The office is in prime location in Kavieng . A Tenant (Gash Timbers) who had lease over the Shed has taken the matter to court stating the sale price of both the shed and offices are lower than what they pay annually .

Mr. Speaker
4. Are you aware that the Managing Director of NHC has signed two offer letters dated 12 May 2017 to Le Barc Ltd for sale of Wewak land and office for K600, 000 and also on the same day to Maosen Investments Ltd for K700, 000?
5. Then on 2 June 2017, the Managing Director without any reason for reducing the sale price, executed a Contract of Sale for K300, 000 each. However, it was unusual that instead of paying the K300, 000 as per the Contract of Sale , Maosen Ltd paid K400, 000 as full and final payment for the Wewak land and office and without relevant approval. Why was this important state land and office put on public tender as it exceeded the K500,000 limit of NHC Board.
6. In early June 2017, the Manus Provincial Administration wanted to purchase the Governors and Administrators residence and other NHC houses occupied by their staff. The Provincial Administrator was advised that only the Official Residence should be transferred so that they can undertake renovations and maintenance. The sale of other houses should not proceed but arrangements made for the Provincial Administration to renovate the houses and until NHC build new houses in Manus, the old houses will be transferred.
Without valuation and advise, the NHC Managing Director travelled to Manus and instead of finalising sale of K564,000 on Governors residence Managing Director signed Offer Letters to dispose 11 more houses against advice. Whether the properties were valued is not known but Manus Provincial Administration paid some K900, 000.

Mr. Speaker,
7. Interestingly, the funds were cleared by the banks on 4th July 2017 and some of the monies was used to pay more than K100, 000 for the hire car the Managing Director was using, K50, 000 for security provided to his family in Lae and also a new Vehicle for his official use. Was the diversion of most the funds to pay his own emoluments approved by SCMC and DPM when employed in acting capacity?
8. Also, NHC subleased part of land at the Tokarara Head Office for monthly rentals to Desh Besh and Gaukara Constructions for storage of heavy machinery and containers. However , NHC has surrendered the Title to Registrar of Titles to issue individual Titles to private business within State institution. Is it legal for the NHC Managing Director and Registrar of Titles to subdivide state office lease to non citizens ?

Mr. Speaker
9. The Department of Justice and Attorney General wrote to NHC to use the land that comprises the official residence of the Resident Judge, Principal Magistrate and the Public Prosecutor in Goroka to build a National Court complex and law officers accommodation. The EH Provincial Administration and NHC agreed. However, in May 2017, certain officers and the Managing Director of NHC decided to sell the Judges Official residence to one Raphael Appa for K200,000. The said land and properties are in prime administration area and is the Minister aware whether the Office Allocation Committee has approved a land required for court premises and accommodation sold cheaply to private individuals
10. Has the Office Allocation Committee or NHC identified a suitable land and premises to construct the new National Court complex including staff accommodation and also where will the Resident Judge live as the residence has been sold off.

Mr. Speaker
11. Could you inform the House as to why offices used by public authorities like NHC, Public solicitor and Water Board and required for future Public Purpose is being sold to unappeoved persons as per the NHC Act ?
12.Has the DPM and Department of Provincial Affairs and affected provincial government informed of the closure of provincial offices so functions can revert to the provinces.
13. Has DPM been informed of tbe shutdown of functions in the provinces and the positions abolished and staff retrenched or are staff still on full pay without operating from DPM approved work locations?
14. The NHC did not have a permanent Managing Director since 2008 and what is the Ministry doing to review the structure and the operations of the organization.
Thank you.