The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 1 August 1998Vol. 68 No. 8

cyclone aid cash

p. 56 · Read in the full issue

Mitchell looks at cyclone aid cash

THE Cook Islands’ fiscal ombudsman, PERC, is to take a very close look at how officials have spent money intended for the reconstruction of four northern islands struck by Cyclone Martin in November.

Public Expenditure Review Committee chairman Mike Mitchell says “there’s been some concern expressed in some quarters that money has been

improperly deployed.”

At the last count, $1.2 million had been allo cated for the northern islands project this year.

That amount is made up of money loaned by the Government from ADB and grants from China, the United Nations and NZODA. It represents about a quarter of the total available that’s to be spread out over a number of years.

A source close to the reconstruction project says concerns have been raised over how much is being spent by the National Disaster Management Committee on “‘research’, ‘critical paths’ and meetings etcetera.”

“Problems emerging are: who is paying for the Disaster Management Committee and staff, what expertise do they have,” said the source who pointed out that once aid money hits Cook Islands shores it becomes public money. The four islands being reconstructed are Manihiki, which suffered the most damage, Rakahanga, Pukapuka and Nassau. PERC’s investigation won’t include the tens of thousands raised through a number of pub lic appeals in the Cooks and overseas. Despite concerns over the distribution of publicly raised funds, particularly in New Zealand, Mike Mitchell says he can’t see how this would fall into the responsibility of PERC. ■