New Ireland Governor Sir Julius Chan is disappointed that the National Executive Council has decided to transfer funds from the Lihir Royalty Government directly into the Kavieng and Namatanai District Development Authorities.
Sir Julius said the provincial government will pursue the legality of the NEC’s decision to discontinue the transfer of the Lihir Royalty Government funds to the provincial government account.
The Governor alleged that Ian Ling Stuckey and Walter Schaubelt used their powers as ministers in the current government to influence the NEC decision.
He said according to a 2018 ruling by the Supreme Court, it ordered that the funds be paid directly into the New Ireland Provincial Government account.
The ruling says the two Districts were not signatories to the MOA and therefore had no standing to challenge the terms of the MOA.
The Lihir MOA says that the National Government would pay 50% royalties to the Provincial Government of which 20% each to be spent on projects and programs for the two districts.
Sir Julius said the provincial government has done that in the past 10 years without bias or favour.
The New Ireland Provincial government said with the payments in the District development treasury accounts, tertiary students and parents who have depended on the funds under the provincial subsidized fee policy will be greatly affected.