The PNG Power Board has reinstated the suspended Chief Executive Officer of PNG Power Ltd, John Tangit.
He will resume duties on Monday, May 12, 2014.
The decision was made during a special Board meeting held on Monday May 5, after carefully assessing the company’s current situation the board decided to reinstate Mr Tangit.
The allegation of misconduct in office against Mr Tangit was generally viewed as honoring the contractual commitments of the previous Board and Management.
The allegations did not point to Mr. Tangit benefiting directly in cash or kind from any of the decisions he made.
There were also certain allegations about double payments made to contractors and purchase of equipment for the company without proper processes etc.
These allegations against Mr Tangit show that there is failure in the control system which the Board is taking steps to address.
The board has further resolved to allow the independent investigation to continue on the allegations against Mr. Tangit because this will expose the weakness in the procurement, payment and finance management processes.
As a way forward, the Board and Management have agreed to have a PPL Strategic Planning workshop to look at the Key areas including the following:
1. Procurement: In an organisation if key components of the procurement process are not working as intended and therefore we have an impact on the organisation and there would be inefficient use of capital/wastage; Inability/difficulty in tracking the status of capital projects, Project overruns, unauthorised purchases and increased risk of fraud.
2. Revenue Recognition: If Reconciliation, Monitoring and validation of sales and receipts have a problem and that has the risk of under billing; increased risk of uncollected receivables and revenue recognized incorrectly.
3. Information Technology Control and Centralised Systems: Increased in the level of manual procedures increases the risk of material misstatement and asset management and maintenance programs. Thus increasing a lot of legacy issues around poor and aging infrastructure. All activities should be integrated, procurement, finance, project, revenue, assets and maintenance.
4. Skills, Culture and Work Ethics: Adequately skilled and motivated staff is required to improve the quality and productivity of all key business processes. Identifying training gaps and upskilling our work force is very crucial.
A team of external people will be selected to provide support in developing the above and other strategies to bring PPL back on track.
The Board takes this opportunity to thank the Acting Chief Executive Office, Chris Bais who has done a tremendous job during the period of Mr Tangit’s suspension
PNG Power Ltd