Shitsu_Tonka
26th Oct 2006, 00:42
http://www.theaustralian.news.com.au/story/0,20867,20627914-23349,00.html
THE government-owned Airservices Australia has said it regrets making more than $2 million in irregular payments in Solomon Islands at the request of local government officials, who were also given cash advances on company credit cards.
A report by the Solomons Auditor-General into the series of more than 300 payments has reportedly concluded Honiara could take legal action against Australia as a result.
News of the report could prove uncomfortable for John Howard, who leaves today for the South Pacific Forum in Fiji, which will also be attended by his Solomons counterpart Manasseh Sogavare.
Airservices Australia spokesman Terry O'Connor said the company regretted the payments, which were made between 1999 and 2003 to a number of third parties nominated by senior Solomons government officials.
"With the benefit of hindsight, those payments should not have been made, but the Airservices staff at the time believed they were authorised (to do so) by the correct officials," Mr O'Connor said. "OK, the management of the contract wasn't necessarily up to standard. We believe we have changed those processes.
Airservices has a contract to provide high-level air traffic control services for aircraft flying over the Pacific nation.
The fees collected from these airlines are forwarded to a specified Solomon Islands government bank account.
At the request of government officials, however, Airservices agreed to transfer about a fifth of these payments to third parties, including individuals and other government bank accounts. Airservices credit cards were also used to provide cash advances to ministers, with the company reimbursing itself from the balance of the fee revenue it collected.
A report from the Australian National Audit Office last week found the payments were outside the terms of the contract but that Airservices had not made them to seek any commercial benefit.
A separate investigation by the Australian Federal Police found no evidence of criminal activity.
The entire Airservices management board had changed in the years since the final payment, Mr O'Connor said.
Australians in 'fraud' report
Dan Box and Darren Willsher
October 26, 2006
SOLOMON Islands is investigating whether two Australians should face trial for possible fraud linked to $2 million in irregular payments made by the Australian government-owned company Airservices Australia.
The two are Hugh Ritchie, managing director of Aviation Consultants International and Grant Annals, who held the position of director-general civil aviation in the Solomons during the period of the payments. Neither man could be contacted last night.
Other potential suspects include a former permanent secretary to the Solomon Islands Government, who requested a $22,000 payment from Airservices to buy a second-hand Suzuki Vitara for his department's minister. The car was later seen being driven by the secretary's family and subsequently disappeared.
Other money from Airservices has been linked to payments for maintenance work at five of the Islands' airfields, years after the airfields in question had closed.
These suspected frauds are detailed in a report by the Solomon Islands Auditor-General, tabled in the country's parliament this month, which details how Airservices made a total of more than $2 million in payments at the request of senior government officials in the years 1998-2005. This money was "either paid to individuals (in cash) or transferred to bank accounts either within the Solomon Islands or overseas," the report said.
"This resulted in these funds being widely abused, resulting in suspected fraud and misuse of public monies."
Any investigation into the actions of Australian nationals will be uncomfortable for the Government, after Prime Minister John Howard told Pacific leaders in Fiji this week they had to stamp out corruption if they were to continue receiving aid money.
The Auditor-General's report also suggests that Solomon Islands consider legal action against Airservices, saying it "may have a claim" for losses incurred as a result of the more than 300 payments made by the company.
Airservices has a contract to provide high-level air-traffic control services for the Pacific nation. Fees collected from airlines for this work should have been forwarded to a specified Solomon Islands government bank account.
At the request of government officials, however, Airservices agreed to transfer about a fifth of these payments to third parties without obtaining formal permission to do so.
Permanent Secretary for the Solomon Islands Department of Communications, Aviation and Meteorology, Nairy Alamo, said her Government was investigating the role of Mr Ritchie and Grant. The pair are alleged to have systematically diverted hundreds of thousands of dollars from Airservices.
"These funds were being mismanaged during a period where the government institutions were not functioning well," she said.
THE government-owned Airservices Australia has said it regrets making more than $2 million in irregular payments in Solomon Islands at the request of local government officials, who were also given cash advances on company credit cards.
A report by the Solomons Auditor-General into the series of more than 300 payments has reportedly concluded Honiara could take legal action against Australia as a result.
News of the report could prove uncomfortable for John Howard, who leaves today for the South Pacific Forum in Fiji, which will also be attended by his Solomons counterpart Manasseh Sogavare.
Airservices Australia spokesman Terry O'Connor said the company regretted the payments, which were made between 1999 and 2003 to a number of third parties nominated by senior Solomons government officials.
"With the benefit of hindsight, those payments should not have been made, but the Airservices staff at the time believed they were authorised (to do so) by the correct officials," Mr O'Connor said. "OK, the management of the contract wasn't necessarily up to standard. We believe we have changed those processes.
Airservices has a contract to provide high-level air traffic control services for aircraft flying over the Pacific nation.
The fees collected from these airlines are forwarded to a specified Solomon Islands government bank account.
At the request of government officials, however, Airservices agreed to transfer about a fifth of these payments to third parties, including individuals and other government bank accounts. Airservices credit cards were also used to provide cash advances to ministers, with the company reimbursing itself from the balance of the fee revenue it collected.
A report from the Australian National Audit Office last week found the payments were outside the terms of the contract but that Airservices had not made them to seek any commercial benefit.
A separate investigation by the Australian Federal Police found no evidence of criminal activity.
The entire Airservices management board had changed in the years since the final payment, Mr O'Connor said.
Australians in 'fraud' report
Dan Box and Darren Willsher
October 26, 2006
SOLOMON Islands is investigating whether two Australians should face trial for possible fraud linked to $2 million in irregular payments made by the Australian government-owned company Airservices Australia.
The two are Hugh Ritchie, managing director of Aviation Consultants International and Grant Annals, who held the position of director-general civil aviation in the Solomons during the period of the payments. Neither man could be contacted last night.
Other potential suspects include a former permanent secretary to the Solomon Islands Government, who requested a $22,000 payment from Airservices to buy a second-hand Suzuki Vitara for his department's minister. The car was later seen being driven by the secretary's family and subsequently disappeared.
Other money from Airservices has been linked to payments for maintenance work at five of the Islands' airfields, years after the airfields in question had closed.
These suspected frauds are detailed in a report by the Solomon Islands Auditor-General, tabled in the country's parliament this month, which details how Airservices made a total of more than $2 million in payments at the request of senior government officials in the years 1998-2005. This money was "either paid to individuals (in cash) or transferred to bank accounts either within the Solomon Islands or overseas," the report said.
"This resulted in these funds being widely abused, resulting in suspected fraud and misuse of public monies."
Any investigation into the actions of Australian nationals will be uncomfortable for the Government, after Prime Minister John Howard told Pacific leaders in Fiji this week they had to stamp out corruption if they were to continue receiving aid money.
The Auditor-General's report also suggests that Solomon Islands consider legal action against Airservices, saying it "may have a claim" for losses incurred as a result of the more than 300 payments made by the company.
Airservices has a contract to provide high-level air-traffic control services for the Pacific nation. Fees collected from airlines for this work should have been forwarded to a specified Solomon Islands government bank account.
At the request of government officials, however, Airservices agreed to transfer about a fifth of these payments to third parties without obtaining formal permission to do so.
Permanent Secretary for the Solomon Islands Department of Communications, Aviation and Meteorology, Nairy Alamo, said her Government was investigating the role of Mr Ritchie and Grant. The pair are alleged to have systematically diverted hundreds of thousands of dollars from Airservices.
"These funds were being mismanaged during a period where the government institutions were not functioning well," she said.