By Tony Stone
Mineral Resources Development Company (MRDC) has begun investigations into allegations of corruption by the management of its subsidiary Mineral Resources Star Mountains (MRSM).
MRDC’s action was in response to a PNG Echo story exposing alleged financial mismanagement of MRSM companies which include Fubilan Catering Service (FCS), the Tabubil caterer that provides meals for the now 100% state-owned Ok Tedi Mining Limited.
MRDC Managing Director, Augustine Mano, replied to PNG Echo’s allegations in an email, this week:
We have taken the allegations (raised by PNG Echo) seriously and are taking appropriate action to address the issues. We have engaged KPMG to audit FCS accounts and (are) also doing our own investigations..
CEO Mano added that the task would be a challenge for MRDC who could only act within its jurisdiction.
Mr Mano’s assurances notwithstanding, it is the information of PNG Echo that auditing of MRSM accounts is habitually late.