Managing Director of IPBC, Glenn Blake Terminated.

Former Managing Director of IPBC Glenn Blake terminated
The Minister for Public Enterprises Rt Hon Sir Mekere Morauta announced
today that NEC had terminated Mr Glenn Blake as Managing Director of the
Independent Public Business Corporation (IPBC) for misconduct in office.

“Mr Blake was paying himself millions of kina a year illegally. His contract
had not been approved by the Salaries and Conditions Monitoring Committee.
This breach constitutes misconduct in office under the law.”

“Mr Blake also illegally invested K31 million in Lehman Brothers just before it
became insolvent during the Global Financial Crisis. All the money has been
lost. The investment was made without the prior approval of the IPBC Board.
I find it difficult to believe however that the former Minister Arthur Somare
was not aware of this illegal investment.”

“The Auditor General reported this illegal investment in the 2010 Audit Report
but the former Minister chose not to table it in Parliament. The Auditor
General also made the correct observation that the investment was made
without any apparent assessment of risk.”

Sir Mekere said that it was frightening that so much public money had been in
the hands of a minister and managing director who displayed so little regard for
their responsibilities to the nation in handling public money.

Sir Mekere continued: “The operations of IPBC under Arthur Somare and
Glenn Blake operated under a thick veil of secrecy. The amendments to the
IPBC Act that Arthur championed stripped IPBC of transparency and
accountability. It is my job to restore open honest governance to the operations
of IPBC. This commitment has already been made to the people of Papua New
Guinea by the Prime Minister and I am determined to play my part to achieve
this goal.”

Sir Mekere said that legal advice has been sought to see whether any of the
monies illegally paid to or invested by Mr Blake could be recovered.
Mekere Morauta KCMG MP         (Minister for Public Enterprises)


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