A $3.7 MILLION payment government made to owners of Sun Express was financial support towards the business.
That was according to Special Secretary to Prime Minister Rence Sore.
He was responding to public criticisms and concern about the controversial payment.
Mr Sore said the payment does not covers the costs of damage to the boat incurred by criminals who attacked the boat at Mbike at Mbike island in December last year.
“The cost of damage is paid by the insurer who is responsible for those kind of costs,” Mr Sore stated.
“We don’t comment on the $1.3 million paid by QBE (Insurer) as damage costs to the company, because it’s not our money,” he added.
It’s understood owners of Sun Express also received $1.3 in insurance payment for the damages the boat incurred during the attack.
Government paid the company the $3.7 million on 26 June 2015.
Mr Sore said the $3.7 million was paid to cover hire of the boat and government contribution to supporting the business to grow, seeing that it is locally owned.
“It excludes the cost of damage,” he said.
However, the Opposition office has slammed the explanation, describing it as funny and a joke to the nation.
An Opposition spokesperson stated that Prime Ministers’ Office (PMO) cannot look for excuses to justify unauthorised payments.
“How can they prove the payment was legitimate when their trip to Mbike has nothing to do with government businesses?” a spokesman for the Opposition asked.
“Government hasn’t yet formed when they took the trip, so that is a private trip, therefore tax payers money not compels to meet these expenses,” he added.
The spokesman added PMO must provide breakdown of the actual costs of boat hiring and goodwill support for the private business, so that people could see to prove their credibility as honest leaders to lead this country.
“What is so special about this private business supported by the government while a lot of similar local businesses never get assistance from the government?” The opposition spokesman asked.
He said the government must come out clear and explain to these local business owners why they never receive million dollar support for similar services like ASL is providing.
“They must explain to the people how legitimate is their trip for government to meet, because anybody can demand the government to pay for their private trip, similar to what these people did.
“What policy is government applying here to support this business with million dollars? Is this because the business owner relates to one of the ministers?
“Government’s actions here are suspicious when applying policies that are fraudulent in nature, and also their actions demand explanation to justify the legality of this payment.”
According to official documents released from the Ministry of Finance, the Accounting General’s office attempted to formalise the payment in legal terms with the Financial Management Act 2013.
The document reveals Cabinet decision is a policy directive to “reimburse a shipping service operator for damages incurred during the normal course of meeting their contractual obligations (Shipping services) to the government”.
Hence, this is contradicted to claims made by Mr Sore that the $3.7 million excludes damages incurred during the hiring of the boat.
By AATAI JOHN
