MALAITA Provincial Executive is yet to clarify how it spent $2 million it illegally borrowed from businessman and executive member Alick Butala at an unbelievable 20 per cent interest rate.
This comes as the contract surrounding the controversial lending was made public
The contract was signed by the Malaita Provincial Secretary Jackson Gege, lender Alick Butala and witnessed by deputy premier Alick Maeaba.
It was signed on 25 July 2016.
The contract agreement covered three parts – Terms of the Agreement, General Rules of the Agreement and Condition of the Agreement.
The terms of the agreement are:
a. Malaita province to borrow an amount of $2, 000,000 (refer hereto as principal money) from Alick Butala, a private business owner.
b. The amount borrowed is valid only for three months for the month of August and September or for the 2nd quarter of the financial year 2016/2017.
c. Malaita Provincial Government to pay full amount of funds with interests of 20% upon the principal borrowed on 3rd quarter beginning the month of October or beginning 3rd quarter service grant.
d. The Malaita provincial government in failure to pay in time as specified in clause(c) of this contract will pay another 20% interest upon the first interest upon the first interest charged.
e. In a situation where Malaita Provincial Government is unable to pay the full amount of the borrowed funds plus the interest, it will convert its asset worth the remaining value to Alick Butala.
The general rules of the agreement are:
a. That the fund is only to use for the purposes that Malaita Government seeks the lender.
b. That both Malaita Provincial Government and the lender seek to serve their interests and not the interest of another third party in the agreement.
c. That both see no to explore each other but to the interest as content in this agreement and are binding to their application.
d. As both understand by content of this agreement that this is not a long term agreement but only for a short period of time as set by the condition in this agreement.
The conditions of the agreement are:
a. Funds borrowed are short time valid only for three months from July to October.
b. 20% interest is applied to the principal borrowed valid for the three month or 2nd quarter.
c. Another 20% shall be applied for late payment.
d. Failure to pay in full amount lender shall hold on or claim a provincial asset worth the remaining value.
When provincial member for Ward 1 Malcolm Moli sighted the contract, he filed a motion of no confidence in Premier Peter Ramohia.
But the motion was defeated when tabled and debated in the provincial assembly chamber.
Mr Butala during the debate told the assembly he lent the $2 million with a good heart to help the province meets its service to the people.
Premier Ramohia has not answered his phone when comments for this story were sought.
Concerned Malaitans have been demanding the provincial executive to explain how it spent the $2 million.
This was in light of revelations that on 25 July and 25 August this year, the provincial executive borrowed a further $200,000 from another executive member.
Documents also revealed that on the 8th of September, it borrowed a further $100, 000 from Aligegeo School with an additional $25,000 from one of the executive members as well.
By BIRIAU W. SAENI
In Auki
