LEGALITY OF ROAD PROJECT QUESTIONED

By Vickey Baunke, EHP

Kainantu MP William Hagahuno has clarified that a stop work notice issued by the Kainantu DDA follows a breach to the Tax Credit Scheme guidelines in the awarding of contracts made by the Mining company.

Mr Hagahuno gave this response during a press conference with the media in Kainantu recently when asked on the Konkua to Bilimoya K23m road project funded through the Tax Credit Scheme.

Mr Hagahuno clarified that the awarding of contract should not have been done by the Mining company as it is not the responsibility of the mine. He said while he supported the project which would benefit the impact areas after many years it is also a life time opportunity that should be done with quality and standards.

He explained that the funding source of K24m through the Tax Credit Scheme is a national government funding made available to the country as a whole through K92 mine and similar to other mining projects like Pogera and Oktedi.

He said the policy allows for 50% of the tax from the mine to be spent on the National government while 50% to be spent within the Provincial government as government funding.

Since the establishment of the mine in an MOU with the first developer, Highlands Pacific, the Konkua to Billimoiya Road was an obligation of the mine to ensure maintenance and up to the current developer K92 mine.

However, Mr Hagahuno said the mine has to come out clear on if the current work is under its obligation after several attempts for meetings with the KDDA been unsuccessful for clarification purposes.

The member said the Tax Credit Scheme funded Road Project is a first of its kind impact project carried out by the K92 mine and as the DDA concerned who will also be responsible for maintenance of the district road to be included in the process.