Local authorities in Karluway District have been accused of misappropriating funds intended for scholarships and community development allegedly provided by a foreign mining dealer operating in the district.
The investor, identified as Mr. Hungchi Choi, a Korean national, is reportedly conducting mining activities legally in Maryland County. He is said to possess valid documentation, including a dealer's license from the Ministry of Mines and Energy, as well as work and resident permits issued by the Ministry of Justice.
Documents obtained by this paper reportedly show receipts totaling more than L$700,000, allegedly paid to district and town authorities. The payments were said to be earmarked for scholarship support and other development initiatives within the district.
According to information from an internal source, scholarship funds were handed over to district authorities but were later allegedly misused. The source claims the authorities later promised to refund the money following an internal inquiry among themselves.
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In a related development, Mr. Choi and his team have reportedly been barred from accessing the Karluway bushes, particularly the Gedebo belt, where mining operations were ongoing. Reports further allege that his mining machine, equipment, and personal belongings were seized by local authorities.
Confirming part of the allegations, Karluway Statutory District Superintendent Peter T. Kuma, Sr. acknowledged that the investor donated US$400 as scholarship support, along with building materials intended for community development.
However, Superintendent Kuma said the cash and materials were received in December 2025 by the District Assistant Superintendent for Development, Moses Derrick.
According to Superintendent Kuma, Derrick allegedly used the money and materials for personal purposes. He said the issue was later uncovered internally, and Hon. Derrick reportedly pledged to refund both the cash and the donated items.
The Superintendent further disclosed that, since December, the District Development Officer has failed to submit any report accounting for the donated funds and materials.
The allegations have raised concerns about possible violations of a foreign investor's rights, the alleged diversion of community resources, and potential abuse of public authority at the district level.
This paper has obtained copies of documents supporting the claims and is actively investigating the matter. Efforts to obtain comments from the accused officials are ongoing.
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Moses Derrick was contacted for comment but was reportedly out of network coverage at the time of publication.
This is a developing story.
