There is a Damming Report on Massive Corruption, inside Kumul Petroleum Holding. A confidential report to the Minister for Petroleum Hon Kerega Kua by way of the letter leaked to sound of a warning bell for widespread misuse, abuse and misappropriation of public resources inside this important State Institution.
Call for the Minister or Petroleum and Prime Minister to act swiftly to remove t entire Board to instil its credibility see attachment below for details.

Department of Petroleum & Energy
P.O. Box 1993
Port Moresby
National Capital District

Attention: Honourable Kerenga Kua

28 June 2019

Dear Sir,


Firstly, Honourable Minister, congratulations on being appointed with a Ministerial Portfolio for Petroleum and we gladly welcome the change that you and Prime Minister, Honourable James Marape, will bring to our country.

We would like to bring to your attention the need to remove the Board and Executive Management of Kumul Petroleum Holdings Limited.

It is said that power corrupts, and absolute power corrupts absolutely. Over the last few years, the Board and Executive Management have chosen to forget the 8million stakeholders they represent as the National Oil Company ignoring good corporate governance, discounting the integrity of the positions they hold, to ensure that they and their cohorts benefit financially as much as they can at the expense of the 8 million stakeholders of this great country. It is rot and decay of those entrusted in managing this company which no longer can be condoned and ignored.

Examples of the illicit behaviour of the Board and Executive Management needing further investigation include:

Offering of Contracts–There have been a number of contracts approved and offered to third parties due to Nepotism, Conflict of Interest whereby the Chief Financial Officer / Financial Controller and the Chief Legal Officer who are custodians of chairing and approving contracts have blatantly misused their positions to approve contracts for the benefit of those who are in some way associated with them or are known to be their cohorts. For example: -

The Chief Legal Officer - Mr Rogen Wato who earns K825,000 per annum continues to approve and renew the contract of his wife’s business to provide flowers to the company without declaring that it is a conflict of interest;

The Chief Financial Officer – Mr Greg Heaney engages his known associates to do his work from which is blatant total disregard for good governance, integrity and honesty;

The Managing Director - Mr Wapu Sonk who earns K3.5m per annum engages a number of his cohorts or so-called consultants who add little or no value to the business and yet get paid in excess of what a normal consultant would get without actually adding value to the company and provide change.
They have also approved and paid numerous consultants or so-called consultant who have added little or no value at all to Kumul Petroleum Holdings Limited but walked away with millions with nothing to show for it.

Training & Development of National Staff – There has been none or lack of training and development from the perspective of employing expatriate staff who have not imparted any of their knowledge and experience to National Staff as part of the requirement or condition based on their work permits. They either do the work themselves without involving nationals or use work that is done by capable nationals to make themselves look as if they are capable of doing a job that can be done by qualified Nationals.

Papua LNG Bonus Payment – a Bonus payment was paid for the Board and Executive Management and Expatriate Staff to the sum of K1.5m without applying proper taxation laws and done outside the proper financial process and controls in of the company. This was initiated by the Board and Executive Management and executed by Chief Financial Officer / Financial Controller

Papua LNG Financing – The Engagement of Lazard Pty Ltd and Helmsley Capital Pty Limited in regards to the Papua LNG Financing by Wapu Sonk, Rogen Wato and Greg Heaney with a cost of K12.3m (AU$5.2m) already spent without working in proper consultation with the Department of Treasury and Finance and also Bank of Papua New Guinea in order to source financing for the Papua LNG Project and create escrow accounts without the knowledge of these departments and proper approvals from Bank of Papua New Guinea. They have also gone ahead without the approval from the State of Papua New Guinea from which should be the nominee when entering into significant financing arrangements that would affect the country and the company. A similar arrangement was done without proper consultation when the UBS loan was taken out in order to finance the PNGLNG Project.

Expatriate Staff & Consultants Costs - The following expatriate employees and consultants need to be removed in order for public money to be saved. Since their recruitment there has been no skill set passed onto National Employees yet they cost the company K9.76m (AU$4.1m) per annum and engage other consultants who act as middlemen to get their share in the payment. Employees who also act as Consultants on a whole cost the company K24.4m per annum (AU$10.3m) and the break up is below.

Greg Heaney – Chief Financial Officer - K2.09m;
Arthur Alexander – HR Advisor - K987,000;
Brian Rapson – Strategic Advisor - K1.76m;
Peter Dighton – Legal Advisor - K1.48m;
John Bennett – Chief Operating Officer - K2.2m; and
Wilson Lee - Technical Readiness Manager – K1.22m.

We hope and anticipate an investigation and inquiry into all these matters raised and more to unravel the gross misuse of public money belonging to the State and the eight million people of Papua New Guinea.A restructure to the company’s Board and Executive Management will once again bring about good corporate governance, integrity and honesty of the Board and the Executive Management which the company previously had under your leadership as Board Chairman of Kroton.

Yours faithfully,
Kumul Petroleum Holdings Limited

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