It has been alleged that the newly-elected Member for Moresby North-East and Minister for Housing, John Kaupa, misused funds intended to build the Moresby North-East electorate office.
Former MP Labi Amaiu claimed that Kaupa allegedly used the funds to pay for cleaning services and family vehicles.
Amaiu added that the Amaiu Haus was his own initiative and they have been seeking funds to build it.
However, he claimed that Kaupa had allegedly used up the funds for his own benefits.
Loop PNG is aware, from reliable sources, of payments being made to various entities, mostly for cleaning services.
As per a bank statement, only K5 million is left in the Moresby North-East District Operating Account from the initial K10.9 million.
However, Kaupa told this newsroom that the funds were being diverted to the Six-Mile market project.
The K20 million project was being built by Phoenix Ltd.
When asked about the tender process, Kaupa said the decision to engage Phoenix was done by the National Capital District Commission board.
Phoenix had been contracted in most of the contract jobs in Port Moresby.
Kaupa further clarified that the Moresby Northeast District Development Authority Board made the decision to divert the funds after the Bank declined to provide loan to build the Amaiu Haus. This was due to the land title being under the Amaiu Foundation Incorporation and not Moresby North-East electorate.
He claimed that Amaiu, whilst an MP, transferred the title from Moresby North-East to Amaiu Foundation Incorporation.
Kaupa further reiterated that he had written to the Ombudsman Commission clarifying the diversion of the special funding that was allegedly budgeted for the development of an office complex on land portion 30, section 26.
He explained further that the development authority board, in agreement with NCDC, has resolved to divert the funding to the development of the Six-Mile market because the land title is under a private entity.
(Moresby North-East MP, John Kaupa, left, and former MP Labi Amaiu)