THE Managing Director of Maraghoto Holdings Company Limited, Dr Richard Pauku has denied any ‘conflict of interest’ after receiving several assistances under the Economic Stimulus Package (ESP).
The recently released audit report conducted by Office of Auditor General is concerned with the evaluations on the ESP that were conducted by a consultant who was a member of the Technical Committee and who also received money from the ESP.
The evaluation of the ESP commenced in September 2021 after a pilot survey in July 2021.
Up to 16 youths were co-funded by the Solomon Islands Government and the Asian Development Bank (ADB) to take part in the evaluation work which commenced in Honiara and Auki through the form of a household survey.
The evaluation covered the ESP grant recipients and also included interviews conducted with some non-recipients.
Work also started in Isabel Province at the same time and then in the rest of Guadalcanal, Choiseul and Western Provinces the following month. The Ministry of Commerce, Industry, Labor and Immigration (MCILI) managed the evaluation work.
Subsequently, the Ministry of Finance and Treasury (MOFT) completed 10 separate evaluation reports on the ESP but these reports have still not been made public despite the government having advised in August 2022 that the reports were nearing completion and would be released to the public.
The audit report by the Office of the Auditor General says the consultant received payment for services as a consultant to the Technical Committee for running the evaluation program, a grant for an agricultural business owned and also rent relief for a tenant.
“It is difficult to see how someone who received over half a million dollars from the ESP could be perceived as a suitably independent person to evaluate the ESP,” the AOG Audit Report says.
However, Dr Pauku has denied any conflict of interest as a professional person engaged by the government and who applied on behalf of his company to get funding under the ESP during the post COVID-19 period.
He said he was part of the Government’s Technical Committee as representative of the private sector.
“We are responsible for refining the applications before recommending to the Oversight Committee for approval.
“Our boss is Dr Samson Viulu,” Dr Pauku said.
Dr Pauku said when the Maraghoto application reached the Technical Committee, he had to excused himself as part of any normal process.
He said his company only received $160,000 for ngali nuts.
“They gave us $200,000 each and taxed me $40,000. So, they paid me $160,000,” Dr Pauku said.
Dr Pauku said currently, his company paused for work due to the ngali nut season going down.
“I am currently focusing on construction work on my building at Lunga,” he said.
Further to that, Dr Pauku said his company was removed from the Company Haus registry because his accountant did not pay up the annual returns.
“It is totally different thing for the person to accuse me of taking money without doing anything. That is a wild accusation,” he said.
For the evaluations of the ESP, Dr Pauku said he was contracted by ADB as a second local counterpart to a boss based in Australia to do the work of the Solomon Islands Government.
He said his contract is different from Maraghoto company.
“I don’t see any conflict of interest because consultancy is separate from ESP.
“The Government recommended me because I did some initial work with ADB,” he said.
On the rent relief for a tenant, Dr Pauku said TJ Holdings has rented his property to run a pub.
He said TJ Holdings applied and got the rental relief under the ESP and that was paid directly to the landlord.
Dr Pauku said everyone is entitled to their opinion.
“You can see what is the truth, but somebody will say no.
“So, it is up to the person’s opinions. No perception that you are wrong to argue over it,” he said.
Dr Pauku graduated with a PhD in James Cook University in Australia in 2005.
His thesis is ‘Domestication of indigenous fruit and nut trees for agroforestry in the Solomon Islands.”
By EDDIE OSIFELO
Solomon Star, Honiara