13 Jun 2011

PNG union threatens action over pension abuse

4:34 am on 13 June 2011

A Papua New Guinea union is threatening legal action over the apparently illegal use of superannuation funds.

The PNG Maritime and Transport Workers Union says it'll stage a nationwide stop work unless the government returns the 51 million US dollars, which was illegally borrowed from the National Superannuation Fund.

Three senior cabinet ministers were involved but the union says it needs to be a collective decision by the full cabinet.

The President of the union, John Mahuk, says the Prime Minister has confirmed the move was illegal and is working to refund the money.

"There was no decision made by cabinet. The decision was forged by only three ministers and not the full cabinet. To get endorsement for that 125 million Kina, you should get the full endorsement by the parliament, not only three people to post for the fund. So that's where the problem is now."

John Mahuk says the Ombudsman's Commission is investigating the three ministers involved in disbursing the money from Nasfund.