By GEORGINA MICHAEL
THE Opposition has called for a commission of inquiry into the sale of shares held by the Motor Vehicle Insurance Limited (MVIL) in the Bank South Pacific (BSP).
Sinasina–Yonggamugl MP Kerenga Kua said the explanation by State Enterprises Minister William on the legality of the sale was “totally unacceptable”.
Mr Kua said a commission of Inquiry must be established by Prime Minister James Marape to investigate the “illegal” sale of shares by the state-owned MVIL.
“Hon. Duma has deliberately missed the point on whether his conduct is criminal in nature as the allegation is a crime is made publicly and he must address the legality of is actions.
“To act like a shareholder and to claim dividends from a company without ever beneficially owning any shares in that company in that company is a crime.
“It must be made clear whether the state-owned shares in MVIL is in its on beneficial interest or as a trustee on behalf of the member of the trust. And so, in the meantime the state cannot act like a beneficial shareholder and claim dividends for its own benefit from MVIL.”
Mr Kua also called on the banks to freeze the proceeds of the sale, which must not be spent on any state sponsored activities as envisaged by Minister Duma.
“I call up on BSP, if it is the banker, or other bankers to immediately freeze the accounts when the proceed of the sale are banked.”
He added that MVIL did not conduct a proper due diligence before declaring its profits and the payment of dividends.
“There are a number of factors that MVIL must consider before declaring any dividends and also no clearance of solvency was done.”
Mr Kua said company directors and others involved in the decision to sell the shares must ensure that MVIL was solvent otherwise they would be liable for the transaction.
“MVIL’s risks will not be co-shared with other large insurances companies as it has been operating as a standalone insurance for a long time and that increases the risk profile of MVIL,” he said.
“The sale of MVIL shares to MRDC is considered to be an unfair concentration of national wealth as MRDC is predominately owned by a few resource provinces.
“How can you call that a fair and inequitable distribution of national wealth as it is one of our National Goals and directive Principals in the constitution when it comes to exploitation of natural resources in the country,
“I call upon all responsible institutions like the Ombudsman Commission, the Independent Commission Against Corruption (ICAC) and the police to investigate this matter.
He added that the Ombudsman Commission had powers under section 27of the constitution to direct BSP to freeze the accounts where the proceeds of sales were parked pending a final resolution of the issue.
“I call on both the Securities Commission and the Port Moresby Stock Exchange to investigate this matter as a possible fraudulent transection.”
Opposition Leader Douglas Tomuriesa, in supporting Mr Kua’s statement, said: “I call upon the Prime Minister James Marape to come up with the inquiry and it must be established immediately because we ae talking about motor vehicles money here.”