FM100 - News
WARI VELE WASTE 14 MILLION KINA 27 Mar 2013
Housing Minister Paul Isikiel today came out publicly highlighting some of the reason for the delay in the completion of the housing project meant for the National Nurses Association at Gerehu Stage 3 B 2. The project commenced in 2008 from a 15 million kina funding sourced through the Accounting Framework Standard with the Department of Finance known as the Gerehu 3B2 Housing pilot project, executed under the then Housing Minister Andrew Kumbakor and Board Chairman Francis Tanga. Three builders back then won the bid and awarded contract to construct the 80 houses including Tawap Kamen Investment Limited with a contract value of 3 million kina for 18 houses, Wari Vele Agencies with a contract value of 6 million kina for 40 houses and Kawjo Construction with a contract value of 3 million kina for 22 houses for the PNG Nurses Association. However, the in Parliament today Minister Isikiel revealed that Wari Vele Agencies asked for additional 8 million kina as variations and costs to complete the contract, with a PIP funds sourced out and Wari Vele was paid 8 million kina. The Housing Minister further revealed that in 2009, one of the three contractors, Kwajo failed to complete the 22 houses and the Board than approved Roadstoa Ltd to complete the remaining work. Roadstoa completed the job as required for the Nurses Association but NHC still owes then in excess of 5 million kina for additional costs and variations. Mr Isikiel further revealed that despite receiving a large chunk of the project budget totaling 14 million kina plus, Wari Vele construction did not complete their prescribed contract as outlined and awarded through CSTB to build 40 houses. Instead the housing Minister revealed that Wari Vele abandoned the job incomplete and the Board was forced to engage Niugini Builders who completed the job but NHC now owes them some money to date. The management has filed legal proceedings against Wari Vele to recover these monies through the normal court process and the matter is still on foot.




















