Speech by Prime Minister Peter O'Neill at a Brisbane business luncheon, Friday, September 9, 2011

Thank you, Sir Rabbie Namaliu, Frank Kramer and your team from Kramer Ausenco and Norton Rose for organising this business luncheon.

I am honoured to have been asked to address this gathering of very important investment friends and development partners of Papua New Guinea today.

I see among you the who's who of PNG's mining and petroleum investment sector and I am proud.

It gives me an added pleasure, on this occasion, to be able to talk to you as the new executive head of a new government PNG's elected leaders created over a month ago. In fact, today marks the 38^th day of the new government's existence in office.

I know you are all eager to hear what I have to say about my government's attitude to foreign investment in PNG under my watch over the next few months and beyond.

I know you have questions to ask in light of some early ministerial pronouncements with respect to equity participation and ownership issues in PNG's mining and hydrocarbon sectors in particular.

Let me say that I am here to put your questions and your curiosity to rest so that we can all move ahead to higher levels of understanding, progress and achievement hand in hand.

 

CHANGE OF GOVERNMENT

 

First of all though, it is only fair that I make a brief mention of the change of government and leadership in Papua New Guinea on August 02.

We changed the Somare-led government because it needed to be changed. That government lost focus on assertive and decisive political and government leadership.

 Worse, it lost focus on the nation's budgeted national development and public investment programmes.

For seven months, since the beginning of the year, but more so in the five months, that my predecessor had left the leadership of the nation to an Acting Prime Minister, uncertainty reigned.   Chaos was not too far away.

Political instability crept in. Corruption and misappropriation of hundreds of millions of Kina for budgeted national development and public investment programmes became the order of the day.

Our situation was not helped when a small group of Ministers closely linked to Sir Michael Somare and the National Alliance Party became reckless and did as they pleased in the Grand Chief's prolonged absence on account of his illness.

The government of Papua New Guinea had effectively been "hijacked" by this small group of  Ministers, who used and abused the serious illness of the then Prime Minister to subvert the parliamentary and cabinet processes and abuse public funds and property.

Public money became ring-fenced by these Ministers and used or abused as they pleased for programmes outside of those approved under this year's national budget.

Unstable political and government leadership mixed with reckless management of the nation's public finances was recipe for irreparable national dysfunction of major proportions.

In a nutshell, the former government led by Grand Chief Sir Michael Somare and his  hand-picked former Acting Prime Minister Sam Abal had to be changed to save our nation from becoming  the "Dysfunctional Blob" that our friends from this side of the Coral Sea love to describe us.

My friends, 70 Members from both sides of the political divide in Papua New Guinea's 109-Member Parliament could not have been wrong when they overwhelmingly voted to "correct a correctable" political and government leadership impasse in our country.

That impasse was undoubtedly starting to harm our national integrity, development and services delivery and importantly, investor confidence.

 Under our system of government, Prime Ministers are chosen and removed by the National Parliament. The Head of State has no role, no reserve powers.

 We used the inherent lawmaking authority of our Legislature as one of three arms of government within a democratic framework to underpin the parliamentary change of government.

The process is being tested in the courts. We uphold the rule of law and we respect our legal, and our constitutional processes. It is a pity the former government did not do so. Had it done so the events I have outlined would not have been necessary.

Let me summarise the position. I lead a properly constituted government; it has a strong and coherent parliamentary majority. And its blends experience, competence, and integrity, with youth and enthusiasm.

It is probably the most experienced and qualified, and broadly based and representative, government in our history as a nation.

Early indications are that most Papua New Guineans are happy with the change of leadership and government.

We have moved swiftly to complete a number of unfinished legislative businesses of Parliament and are functioning assertively and decisively to cleanse the system of corrupt elements.

My government has already established an investigative team to probe various financial abuses including the disappearance of millions Kina of PNG's development budget for 2011 in the first quarter of this year.

 

 CHALLENGES AND MOVING FORWARD

 

Let me move on to some of the challenges - and opportunities - we face as a government.

 One of my first challenges as Prime Minister is to address corruption and the abuse of public money.

In the short term we have appointed an investigator to quickly examine suspicious financial transactions that occurred outside the proper processes during the final months of the last government.

But in the medium term we will do what should have been done years ago - establish a well-resourced Independent Commission against Corruption. That was one of the first commitments of my new government.

 The best way to wage war against corruption is to significantly increase the prospects of detection, and successful prosecution. That is what the new commission will be charged with doing.

The current system is simply not working. It has not been working for years.

My government faces enormous challenges in improving basic service delivery, and in rebuilding and expanding vital national infrastructure - such as roads ports and electricity.

This is the infrastructure you and other investors need to effectively develop our vast

mineral, oil and gas resources in particular.

Money is not really the problem. The capacity to spend it effectively is.

We have serious public sector capacity and delivering problems. Devolving delivery to local communities, and using the resources of our churches and NGO's , is helping to improve service delivery.

But there is a long way to go. Time is not on our side. The national elections are less than a year away, but we will use every day between now and then to try and address some of these great challenges.

 

INVESTOR CONFIDENCE

 

Let me now turn to the issues you all want to hear about today. Papua New Guinea needs foreign investment dollars.

I say this without a shadow of doubt and with all sincerity.  I am realistic enough to also say that wanting foreign investment and expecting it on a golden platter is not a one way street.  Yes, it's a two-way street. We give to you as well as you give us.

In the first few days of coming into office, a number of statements pertaining to the various equity and ownership positions were made by a number of my ministers.

Let me reassure you that the goal-posts have not been shifted and relocated.

The playing field remains the same and shall be maintained that way for the foreseeable future.

In the mining industry, the applicable law provides for 30% equity for PNG to take up in any new mining project.

Similarly, the equity position provided by the PNG Oil and Gas Act provides a 22.5% equity stake for PNG.

 The PNG government, affected provincial governments and landowner communities share these equity and other benefits provided under the respective applicable laws.  

If local interests demand higher equity position for landowners and provincial governments, the onus is on the National Government to resolve such demand from our equity position as stipulated by the Mining and Oil and Gas Acts respectively.

We can also make adjustments under the applicable tax regimes to reward provinces that host these multi-billion dollar mining and petroleum projects with some percentage of tax benefits derived from these projects.

The most-important agenda of my government, with respect to the mining and petroleum industries, is to create an enabling environment within which projects can be developed peacefully  and benefits and multiplier business opportunities derived thereof are shared fairly among all stakeholders.

There is no need at the present time to destabilise mining and petroleum industry developers and investors with a law designed to compromise or reduce their present respective equity position.

The applicable laws have not changed. Changes may and will occur in the future but they will have to be driven by a win-win formula for all stakeholders in a predicable manner.  

These changes – when they are desired and when they do occur - will take place with and after comprehensive dialogue and discussion with you and with all other affected parties including landowners in Papua New Guinea.

Let me also reassure you that my government is about being inclusive right across the board on all matters of national affairs.

And that includes all aspects of the foreign investment and natural resource extraction industries sectors in PNG.

My government is not about creating sovereign risks for my nation's foreign investment and development potential.

My government is not about making life difficult for foreign investors, especially those that have invested millions of dollars in speculative exploration and later to develop and underpin emerging world class mining and hydrocarbon industries in PNG.

My government respects the principle of finders keep and finders share. That is the spirit within which we will, and we shall all operate under my watch.

 I have cautioned, and will caution again, my ministers and State-owned corporations, involved in the mining and hydrocarbon industry, to desist promptly from giving misleading signals to the foreign investment sector.

It is not my government's position to create insecurity, political risk or threaten foreign investment with expropriation. Some of these negative signals have been made since my government took office.  

I will vigorously investigate this deception targeted at the progress of the two multi-billion dollar LNG projects and take corrective action in the coming days.     

Let me reiterate in the strongest terms that I lead an inclusive and consultative government that will not fall back on the bad habits of governments that have been in power previously in PNG.

I am serious about the bigger interests of the nation - not corruption and vindictive personalised agenda of my ministers or persons who seek to actively use my ministers to further their deceptive agenda in the mining and petroleum industries in particular.

 

MINING SECTOR

 

We have world class gold, copper and nickel resources.

Ok Tedi gold and copper mine has been a mainstay of the PNG economy since independence.

Lihir gold mine has been a strong performer for our economy.

Wafi gold prospect has the resource potential to be the biggest gold and copper mine in the Southern Hemisphere.

This will further boost the PNG economy in the next 20 years. It will be a significant contributor to the government's coffers in the future.

Ramu nickel mine adds significant weight to the mineral resource boom now taking place in PNG. 

 

HYDROCARBON SECTOR

 

The two multi-billion dollar LNG projects – PNG LNG being developed by a consortium led by ExxonMobil and Oil Search Limited and Gulf LNG, being established by InterOil Corporation and its partners – both world class projects.

 These are projects with potential to create revenue in-flows for PNG like never before.

On August 9, I stated in my initial policy statement that every effort will be made by my government to assist these two projects to meet their initial production timelines in 2014.

My position has not changed.

I will ensure there are no political and bureaucratic interference in their progress.

All dealings with regard to these two projects shall be transparent and predictable. The importance of these two projects can neither be overstated nor understated.

To give these projects the prominence they deserve, I will dedicate a senior member of my staff in the coming days as a direct link in my office, whose job it will be to actively liaise directly with the responsible ministry, department and LNG Facilitation Office to ensure this two projects are not hampered in their progress by political and bureaucratic nepotism.

The PNG LNG project needs all the help that my government can give, and we shall do that as a matter of priority, to address all outstanding landowner issues and resolve them so that there are no further delays in progressing this project to production.

Similarly, my government will not tolerate any interference designed to delay progress of the Gulf LNG project. Gulf LNG is nearing a Final Invest Decision by the end of this year and all assistance will be given by my government to fulfil all their requirements to arrive at FID.

I want to see these two projects developed together.

 

RESPECTING FOREIGN INVESTMENT

 

In concluding, my government respects the commitment of foreign investment companies that have stayed loyal to PNG in both the good and bad economic times PNG has face since the early 1990s.

We welcome new foreign investment initiatives in our booming mining and petroleum sectors.

However, we would like to see that new investors and returning investors respect those that are already operating in PNG. We would like to see that potential investors come through the front door with their goodies.

 In all sincerity, the last thing we all want is to destabilise existing well-meaning investors who have long-haul interests and commitment as PNG's development partners.

My government believes in being predictable and forthright in our dealings with all foreign investors in our nation's various natural resource sectors.

Papua New Guinea community celebrates Independence Day in Toowoomba

Members of USQ's PNG community are inviting the Toowoomba community in Australia to celebrate their Independence Day this Saturday 10 September.
The day will commence at 11am, and will showcase PNG culture through dance, song and a variety of cultural displays.
Coordinator of the event, USQ PNG Students Association President, Matthew Igo Ball, said the day was an opportunity to celebrate the country's successes.
"PNG's Independence is a big part of the country's history and although they are still doing it tough back home, we are here at university because we want to better, not only ourselves but also our country,' Matthew said.
"Independence is a time to reflect how far we have come as a country and also as individuals."

Matthew said they are expecting PNG students from USQ and local boarding schools to attend the day, and were welcoming anyone who loves PNG or wants to learn more about its culture to attend.
"We are expecting PNG students from USQ, students from local boarding schools, the general PNG community residing in Toowoomba, a number of expatriates, and many PNG students and community members from Brisbane to attend on the day,"he said.
"Currently there are over 30 PNG students on-campus at Toowoomba. The general public are invited to the event, it is open to anyone who is from PNG, has been to PNG, knows a PNG, or wants to learn more about PNG."
"It will be a fun day for everyone."
WHAT: PNG 36th Independence Celebrations 
WHEN: 11- 2 on Saturday, 10 September 2011 
WHERE: USQ Quadrangle, USQ West Street Toowoomba 
COST: Free

Contact Details:
Connie-Louise Rego, USQ Media, +61 7 4631 2977

Sepik people slam removal

THE people of East Sepik are disappointed that Sir Michael Somare has been unceremoniously dismissed as their representative in parliament, The National reports.
And they warned that such decisions against the people of East Sepik through their leader could have serious consequences.
East Sepik Parents Advocacy Forum chairman George Numbasa said more than 60% of Sepiks supported the government's policies but the attack on Sir Michael had created a dent in their confidence.
Hurung Holdings Ltd chairman Louis Koinduo said his people of Yangoru were not happy with the continuous intimidation of the Sepik people.
Youth leader David Ulga said the action would create disharmony among citizens.

East Sepik Province people urged to unite

THE people of East Sepik have been urged to unite to demonstrate that it is the people who brought Sir Michael Somare into parliament and not any political party, Valentine Kambori says, The National reports.
Kambori, a tribal leader of the Sausse tribe in Wewak, said in a statement that the announcement by the speaker in parliament to dismiss Sir Michael, should prompt all Sepik people to unite and tell Papua New Guinea that it was not the National Alliance or the Pangu Pati or any political party which brought Sir Michael to parliament.
"Sir Michael Somare's election to parliament since 1968 is the collective will and mandate of the Sepik people as ordained and bestowed by the forefathers of the Sepik people after World War 2 restoration when two prominent chiefs Sir Peter Simogun and Thomas Yawiga called on the Sepik people to unanimously vote young Michael Somare to take the place of the white man Frank Martin who was then the regional member," he said.
Kambori said the Speaker could use the technicalities of law to remove Sir Michael but the Sepik people would return him.
"I challenge the government to issue the writs next week and the Sepik people will return him again to parliament.
"The founding father of this nation is our paramount chief and he remains with our forefathers mandate until that mandate is passed on and I call upon all Sepik people throughout PNG and the province to unite to prove that Sir Michael is not dead and we will return him unopposed to prove our point.
"It must be known by Papua New Guinea that you do not remove our leader on technicalities in parliament especially the founding father.
"The Sepik leader is only removed at the ballot box by the will and mandate of the Sepik people," Kambori said.

Polye faction calls for National Alliance executives' resignation

THE Polye faction of the National Alliance party in government yesterday called for the resignation of the
national executives of the party, The National reports.
Flanked by provincial party executives and 11 of the expelled MPs yesterday Polye called for the resignation of the national executives for "bringing the party to disrepute and for making ill-informed decisions to serve the interest of a few people".
He said the party executives were supporting a few corrupt members and not addressing important issues.
He said the party MPs with him in the Peter O'Neill-led government were "founders" of the NA which should have suspended Arthur Somare, Patrick Pruaitch, Sam Abal and Paul Teinsten because of their leadership conduct which he claimed were contrary to the party constitution and policies.
"The action to terminate the 20 members was a slap in the face of the people of PNG and, therefore, I call on the executives and the members implicated to resign," he said.
Polye said his group was committed to addressing corruption and transparency and those members in the opposition who wanted to fight corruption should cross over and join them.
He said the split in the NA camp started some years back as all activities and conduct of business were not in the best interest of the party and in
accordance with the policies and constitution of the party but for the benefit of a privileged few.
He said some decisions made by Grand Chief Sir Michael Somare had contributed to the downfall of the party.,
Polye said regular dialogue was being maintained with the  NA MPs in the opposition to unite the party and contest in next year's elections.
Meanwhile, five deputy presidents of the NA party, James Kond, highlands; Douglas Tomurisa, southern; John Tuka, islands; and council members John Tiberame and Charles Synell, islands have called
on the party's national executives to convene a special council meeting to address the issues.
They said the national executives did not have the power to terminate the members and that the resolution to expel 20 MPs did not follow the party constitution.
Spokesman Kond said a few issues such as the Special Supreme Court reference, the full-page advertorial by the NA president Simon Kaiwi and the decision to expel the 20 MPs should be addressed at the meeting.
He said the council should decide such penalties and not the national executives.
The group said the council recognised Polye as the  party leader after the party caucus in Banz.
Terence Perene and Gerry Eremoge NA chairman of Southern and Eastern Highlands committed their support for Polye.
They said Polye was the duly elected party leader during the absence of Sir Michael and the expulsion notice was misleading and not in the best interest to the party.

Philemon: NRL bid a waste of time, money

By JEFFREY ELAPA

THE K20 million allocated for the National Rugby League Bid is a waste of time and money, Public Service Minister Bart Philemon says, The National reports.
Philemon made the comment after the Pacific Games 2015 Authority Bill was passed in parliament on Tuesday, with 76 MPs voting for it.
Philemon said the NRL Bid was a failure while the Pacific Games was being neglected by the government.
He said PNG had bid in 2009 to host the 2015 Pacific Games and had assured the Games Council and the PNG Games Council that it would make available US$92.5 million for it.
He said the games was contested by more than 15 Pacific islands countries every four years.
He blamed the Somare government for failing to pass the bill and make budget allocation to prepare for the Games, which is expected to cost about K300 million.
Philemon said sport was important in uniting the country as evident during the 1991 South Pacific Games held at the then Waigani Stadium in Port Moresby.
He said the country had only three years to prepare and the onus was on the government to start now with the first budget allocation to be included in the 2011 supplementary budget.
He said a contract was already in place with the Pacific Games body, the PNG sport council and the government and that must be addressed by the government with the passing of the bill.

National Alliance split

By JEFFREY ELAPA

THE National Alliance party, Papua New Guinea's biggest political party, is in a crisis following the sacking of 20 parliamentarians who crossed the floor to join the new government, The National reports.
The party's national executives met on Tuesday after the sacking of their ailing parliamentary leader Grand Chief Sir Michael Somare and decided to expel all 20 MPs including Speaker Jeffery Nape and Finance and Treasury Minister Don Polye for "conducts prejudicial to the interest of the party".
The party, which ruled for nine consecutive years, is now split 20/21.
NA president Simon Kaiwi explained at a press conference that the actions were taken following the dumping of Sir Michael Somare, first as prime minister on Aug 2 and, on Tuesday, as regional member for East Sepik.
Kaiwi said the defectors had, by their decision, shown disrespect for the party, its leadership and constitution.
The NA group in government has until Sept 28, under the rules of the party, to appeal the decision.
Polye responded yesterday by calling on the national executives of the party to convene an urgent NA council meeting to discuss the issue.
He also called on the NA executive members to resign.
The national executive comprised Kaiwi, general secretary Stephen Pokawin, public officer Joyce Grant, treasurer Thomas Bullen and the parliamentary leader of the party.
The leadership post had become a contentious issue also with the executives claiming Sir Michael was still leader while other regional presidents and the defecting MPs claiming Polye was now the new leader.
Polye insisted yesterday he was the duly elected party leader and would remain in that position because he still had most of the NA MPs on his side.
He was proposed and accepted as the leader during the party caucus meeting in Minj last month.
Polye said he and his group had taken the decision they did because corruption and leadership issues were repeatedly ignored in the past.
The expulsion of Sir Michael as East Sepik MP was by operation of the law and not the work of any member of NA, he said.
 
SACKED MPs
1. Jeffery Nape – Parliament Speaker             
    (Sinasina-Yongomugl)
2. Don Polye – Treasurer (Kandep)
3. Ano Pala – Foreign Affairs (Rigo)
4. Mark Maipakai – Labour &
    Industrial Relations (Kikori)
5. Charles Abel – Commerce, Industry
    & Trade (Alotau)
6. Lucas Dekena – Lands & Physical
    Planning (Gumine),
7. Andrew Mald – Community
    Development (Moresby Northeast)
8. Sai Beseo – Correctional Services
    (Kainantu)
9. Sali Subam – Sports (South Fly)
10. David Arore – Higher Education,
      Science & Technology (Ijivitari)
11. Peter Humphreys – Governor
      (West New Britain)
12. Leo Dion – Governor (East
      New Britain)
13. John Luke Critten – Governor
      (Milne Bay)
14. Michael Sapau – Milne Bay
      (Manus)
15. Alphonse Moroi – Governor
      (Central)
16. James Gau – Governor (Madang,
      Raicoast MP)
17. Mathew Poiya – MP (Goilala)
18. Pitom Bombom – MP (Kerema)
19. Buka G Malai – MP (Madang)
20. Yawa Silupa – MP (Lufa)

Viewers decry MPs lack of respect

PEOPLE watching the live broadcast of the parliamentary sitting on Kundu 2 Television yesterday described the parliament as a "kindergarten", The National reports.
Two viewers said the leaders had shown no respect for parliament and turned it into a playground for a kindergarten.
Herman Paul, who watched the live broadcast yesterday afternoon at his house at Tarangau, in Mt Hagen, Western Highlands, said he could not understand why parliamentarians, especially those on the opposition, kept interrupting Speaker Jeffery Nape.
He said parliament "belongs to the six million people of this nation, the MPs are only their representatives and they must show their respect for the people of this nation".
Paul said the leaders must show respect for the house and follow standing orders.
Another viewer, Joejoe Miugle appealed to leaders to use their common sense and show respect for parliament.

Groups arrive early to see parliament sit

By JULIA DAIA BORE

THE corner of Goodwit Road and John Guise Drive, in Waigani, converging onto the turn off into the National Parliament house was yesterday packed with people and traffic from about noon to 2pm, The National reports.
Police controlled traffic and people started moving around outside the National Library and National Archives buildings from 8am, although parliament was scheduled to begin at 2pm to discuss among other things a proposed law on women's reserved seats.
Women in PNG coloured outfits — meri blouses and T-shirts — were seated or standing in groups and their leaders advising them that only their spokeswomen would go for the sitting.
Closer to the roundabout, an even bigger crowd, including children, were assembled with their leaders briefing them on loudspeakers about the issues to be dealt with in parliament.
The traffic between 1pm and 2pm was heavy along roads into the National Parliament house.
Meanwhile, the bill to reserve the 22 parliamentary seats went through a second reading yesterday in parliament.

Provincial seats returned

By JEFFREY ELAPA

THE parliament has voted to return the provincial electoral seats during the 2012 general election with the blessing of 73 MPs yesterday, The National reports.
Parliament had decided a few years ago that all provincial seats were to be abolished by 2012 and to increase the open seats to 120 from 89 but parliament yesterday unanimously voted to keep all provincial seats when the bill went through the second reading. 
The final reading is expected after two months and this might bring more debates in parliament.
Prime Minister Peter O'Neill said it was an important bill as the constitutional amendment would ensure that provincial electorates were permanently re-instated.
He said by committing the bill and holding two separate votes, parliament changed the commencement date of the constitutional amendment.
He said instead of provincial electorates been removed at the 2007 election, they would be removed when advised by the prime minister and by recommitting the law, a constitutional crisis was avoided.
However, he said the job of returning provincial electorates was not yet complete and in order to finish the job, parliament needed to pass the amendment. Only after the passage of the law, will the law be returned to its original format and provincial electorates will be permanently reinstated.
He said provincial government served an important function in the decentralised system and that the provincial government system allowed rural people to become involved in decision-making.
O'Neill said the effect of the amendment was to reinstate all references to provincial electorates back into the constitution and ensure the constitution was the same way our founding fathers had intended.
The parliament also passed the 2015 South Pacific games Bill which will establish the 2015 Pacific Games authority to oversee and prepare for the games. The games is expected to cost around K300 million.

National Alliance in crisis

THE National Alliance executive was in a crisis conference last night as its former leader was dismissed from parliament by the speaker who is a member of the party, The National reports.
The ouster of Grand Chief Sir Michael Somare as prime minister was supported by new NA leader Don Polye, and the declaration of a vacancy was by Speaker Jeffery Nape.
The party is expected to make a major announcement today on the proceedings of the one-day parliament sitting yesterday.
The party executives were last night seeking legal opinion on whether what transpired was right by law and complied with the standing orders of parliament.
NA president Simon Kaiwi said last night: "The decision that the speaker has taken is a big constitutional issue and an issue with standing orders of parliament.
"I do not think it is correct but we are seeking legal opinion before we tell the people of PNG.
"He (Sir Michael) has met the legal requirement. He presented himself to parliament yesterday. Then, he is dismissed.
"It is a big shock to us.
"They are treating him like somebody who just came in yesterday."
Kaiwi's dilemma had worsened since half of his NA members are with the government that ousted Sir Michael as prime minister and MP.

Speaker’s decision shocks opposition

By ISAAC NICHOLAS

FORMER government frontbenchers expressed shock over the decision to remove the nation's "founding father" by Parliament Speaker Jeffrey Nape yesterday, The National reports.
The group was in the middle of a joint media conference when a tearful Dame Carol Kidu arrived to announce that Sir Michael had been removed.
Madang MP Sir Arnold Amet, East Sepik Governor Peter Wararu, Angoram MP Arthur Somare, Aitape-Lumi MP Patrick Pruaitch, Kompiam-Ambum MP John Pundari and Nipa-Kutubu MP Philemon Embel expressed shock and anger.
Sir Arnold indicated that he would institute a contempt of court action against Nape, claiming that the speaker was trying to legitimise the illegal takeover of a legitimate government on Aug 2.
Nape's announcement yesterday was contrary to the advice given by  the clerk to parliament, Don Pandan, who yesterday advised lawyers for Sir Michael, Posman Kua Aisi Lawyers, that Sir Michael would avoid being absent from three consecutive meetings of parliament if he attended yesterday's session.
Pandan, in a letter dated Sept 6, 2011, stated; "I confirm that my records constituting the minutes of proceedings of the parliament, as required by Standing Orders 30 for 2011, show that Sir Michael has been absent for only the June and August 2011 meetings of parliament. He was granted leave by parliament for the May 2011 meeting.
"I confirm that when Sir Michael attends today's (yesterday) meeting of parliament, he will avoid being absent for three consecutive meetings of parliament, thus, being disqualified as the member of parliament for the East Sepik regional seat, pursuant to the requirements of section 104(2) d) of the Constitution."
Angoram MP Arthur Somare promised to bring his father to parliament during the Sept 20 sitting and challenged government leaders to try to stop him.
He said the significant issue was that they wanted the Grand Chief to come and present himself in parliament to preserve the East Sepik regional seat.
He said the people of East Sepik had given Sir Michael their mandate for 45 years and he had an unbroken record of holding the parliamentary seat for an extended period of time.
He said to witness his arrival in parliament yesterday was heartening.
"If he has missed three consecutive meetings, he will be disqualified and leave the seat vacant," Somare said.
He said the speaker had recognised and welcomed back the Grand Chief to parliament.
"We feel confident that there is no vacancy in the East Sepik provincial seat because the custodian of records is the clerk of parliament."
Wabag MP Sam Abal said the actions of the speaker showed that power-hungry leaders were trying to destroy a man who had served the country for 45 years.
East Sepik Governor Peter Wararu said it was a sad day for the people of East Sepik that the founding father of the nation had been treated in such a way.
"Today, they had confirmed that their real motive is to remove the Grand Chief as East Sepik regional MP during this urgent recall of parliament.
"Addressing outstanding issues was just a cover-up," Wararu said.

Grand Chief sacked

SPEAKER Jeffrey Nape yesterday declared a vacancy in the East Sepik provincial seat, removing Grand Chief Sir Michael Somare from the parliamentary seat he has never been voted out of since 1968, The National reports.
In a move sure to shock PNG, Nape declared at about 4 pm that there was a vacancy in the East Sepik provincial seat. Parliament then voted on voices to dismiss Sir Michael.
Sir Michael, who had earlier been wheeled into the chamber in a wheelchair, and the opposition MPs were absent when the announcement was made.
The opposition and the National Alliance executive later expressed shock and said it was the work of power-hungry politicians.
Reading from an extensive legal brief he obtained from Twivey Lawyers, Nape told parliament that the power to declare a vacancy in both the office of the prime minister or the office of a member of parliament was vested in the speaker.
Nape further declared that his actions and the procedures of parliament, including the election of the prime minister, were non-justiceable, that is, they could not be challenged in a court of law.
Using parliamentary privilege, Nape discussed at great length the powers, functions and procedures of parliament in the event of a vacancy in the office of the prime minister, the subject of the reference now before the Supreme Court. Nape is named as the second intervenor in the reference.
The move now automatically creates a vacancy in the office Sir Michael had held as prime minister prior to his hospitalisation and this may have a bearing on the Supreme Court reference challenging the validity of the new government of Prime Minister Peter O'Neill.
Sir Michael, who made the trip home from Singapore on Sunday to be present at yesterday's sitting in order to avoid being automatically disqualified, was told he was disqualified anyway.
In a letter to Sir Michael's lawyers, Nape claimed that parliament's grant of leave for Sir Michael from the May sitting of parliament was defective and that he had already absented himself from three consecutive parliament sittings by the Aug 2 sitting.
The speaker said Sir Michael had been away for too long "without excuse", stating that no official statement for the long absence had been received from himself or the acting prime minister at the time.
Nape said: "There is nothing specifically provided in the Constitution, or the Prime Minister and NEC Act 2002 or the PNG Parliamentary Standing Orders for the procedure to be followed where a prime minister is absent without excuse for a prolonged period.
"Where there is a gap in procedure, there is, however, provision in the standing orders for a remedy, which is that pursuant to the functions and duties of his office under Order 284(1) in any matter that is not provided for in the standing orders, the speaker shall decide.
"It is then the speaker's role to determine what procedure should take place when a prime minister is absent from duties for an extended period without proper excuse.
"Further, the general provisions of the Constitution and the standing orders that govern the role, functions and the powers of the speaker clearly are wide enough to allow the speaker to determine the appropriate authority to declare a vacancy in the office of the prime minister and that appropriate authority to declare the vacancy is the speaker."

SP Brewery opens new warehouse

  SP Brewery chairman Joe Tauvasa (right) and general manager Stan Joyce unveil the plaque for the K8.6m warehouse in Gordon tonightnight.-Nationalpic by AURI EVA

While all attention was focused on Parliament, SP Brewery tonight night opened its K8.6 million warehouse at Gordon in a quite ceremony.

Chairman Joe Tauvasa said SP had embarked on an investment of K91m for both the Lae and Gordon breweries.

"The company's three-year investment plan has resulted in the latest technology to be installed in both breweries," he said.

"The upgrade of the current operations and ex pansion of the brewery capabilities is world-class and will provide us the extra capability to meet market demand and growth.

"This structure is part of that investment."

Sir Michael Somare should pay his own medical bills: Sir Mekere

 Moresby North-West MP and Minister for Public Enterprises Sir Mekere Morauta said today that he was personally shocked to learn that the Government had been paying Sir Michael Somare's medical expenses and the cost of keeping his entourage in Singapore.

Sir Mekere said that the report in The National on September 5 that the State had paid more than K3.7 million, K2.7 million of which was for "minders and visitors", is simply outrageous.

"I am not being mean or discourteous," he said.

"I wish The Chief a speedy recovery. 

"I am delighted that he appears to be well enough to have come home.

"But private medical expenses are private medical expenses. 

"All Members of Parliament have access to medical insurance, and none of us should expect the State to pay our private bills."

Sir Mekere said that this was a typical example of the way the Somare family had abused public money. 

"They seem to have no sense of the differentiation between public and private," he said.

"When Bart Philemon and I were in the Opposition, we frequently pointed this out, criticising the aerial PMV Falcon jet, for example, and the manner in which the Somare family abused the privileges of Mirigini House and the office of the Prime Minister.

"In a statement to the Parliament on May 8, 2010, I challenged then Prime Minister Somare 'to appoint an independent auditor to compute what I cost the nation as PM and what he has cost the nation.

"But I can make a pretty good guess:  what the nation spent on my behalf in three years would be less than three months expenditure on the current PM'.

"I made that statement without realising the full extent of the abuse of public resources by the Somare family. 

"When I became the Minister for Public Enterprises, I discovered that the Somare Government owed Air Niugini K30 million for the operation of the aerial PMV.

"The Falcon had clearly been going up and down to Singapore, to Fiji for golf, to Wewak for parties, wherever the family wanted it to go – but they never paid the bill.  "So when Air Niugini agreed to buy the Falcon from the Government, this unpaid bill of K30 million had to be deducted from the purchase price."

Sir Mekere said that the fact was many months ago Sir Michael took leave, appointed an acting Prime Minister, and went to Singapore for medical treatment. 

"He did not fall sick whilst on duty travel," he said.

"He gave up the position of Prime Minister but still took a whole entourage with him – family members, protocol officers, and police officers – for him to lie in a hospital bed.  "And it was presumed the people of Papua New Guinea would foot the bill.  "Meantime his chosen appointee Hon Sam Abal ran up a bill of hundreds of thousands of kina staying in a Port Moresby hotel instead of his own home. 

"Who paid for this, I wonder?"

Sir Mekere said that when he was the Prime Minister, he regularly went to Brisbane for medical check-ups. 

"Not once did the State pay for my ticket, for my wife's ticket, for my medical bills, nor for my accommodation," he said.

"They were private visits for personal reasons. 

"It is common sense that a Prime Minister should expect to pay for such trips and for his own medical treatment himself."

Sir Mekere said that the report in The National noted that the Prime Minister's Department did 'not have any allowances within its budget for the medical expenses of the Prime Minister'.

 "So who approved this expenditure?" Sir Mekere asked. 

"That is a breach of the Financial Management Act and whoever approved the expenditure should be held accountable."

Sir Mekere said that the Somare family should re-pay the State all the medical expenses and costs associated with their recent stay in Singapore. 

"It is an insult to Papua New Guineans that government money has been used to pay these costs," he said.

"Our own health services are so run down; they are not staffed properly; people are dying daily for want of drugs, of equipment that works, and of accurate diagnosis.  "Every day we hear of a Papua New Guinean family fund-raising to send a family member overseas for medical treatment that is not available here. 

"These people don't have a government department that forks out millions for them.

"Please Sir Michael, have some decency and assure the nation that you will pay for your own medical expenses.

"Having a clear conscience in this regard will give you peace of mind and help your recovery."

Basil hits back at Abal

NATIONAL Planning and Monitoring Minister Sam Basil has described as irresponsible and unbecoming comments by parliamentarians determined to usurp power by using Sir Michael Somare, The National reports.

"I can't believe former acting prime minister and Member for Wabag Sam Abal would sink so low as to verbally place the Grand Chief on a collision course on the floor of parliament by suggesting that Sir Michael would take the Prime Minister's seat in parliament," he said.
"Firstly, there is only one head of the legislature, which is the Speaker of the National Parliament, Jeffery Nape.
"Sam Abal was there when the new Prime Minister Peter O'Neill was elected in parliament. The instruments of appointment were signed by the Governor-General Sir Michael Ogio.
"Why has Abal, knowing all this, attempted to direct Sir Michael to a chair already occupied by O'Neill?
"That is pre-emptor of the Supreme Court case and should amount to contempt both of
the court and of the national parliament," Basil said.
"What I fail to understand is just what sort of family, friends and associates would drag a weak, struggling, old man who many respect as the founding father of the nation in their political power games.
"Why can't they all appreciate that whatever the Supreme Court ruling is, the bottom line is that 70 MPs against 24 voted in O'Neill as the new prime minister on Aug 2 in parliament and will do so again if required."
Basil intends to refer Abal to the Parliamentary Privileges Committee for his comments on the chair to be occupied by Sir Michael.
He said the comments threatened the decorum and dignity of parliament.

Locals attack MP and escort

DEFENCE Minister Guma Wau was reportedly attacked by a group of disgruntled people of his Dagle tribe, in Ke­rowagi district, Chimbu, last week, The National reports.
Several government vehicles, including police land cruisers, were smashed while escorting Gau.
He was allegedly distributing funds to people in the upper Dagle area a week ago.
Reports from Wau's tribe said his own people at Moroma village complained that he had overlooked them and was distributing cash to others.
Angry villagers attacked Wau and people he was travelling with, resulting in several vehicles having their windscreens smashed.
The Kerowagi MP was not hurt but remained tight-lipped over the incident.
Chimbu provincial police commander John Kale confirmed the incident but did not give any details.

Basil hits back at Abal

NATIONAL Planning and Monitoring Minister Sam Basil has described as irresponsible and unbecoming comments by parliamentarians determined to usurp power by using Sir Michael Somare, The National reports.
"I can't believe former acting prime minister and Member for Wabag Sam Abal would sink so low as to verbally place the Grand Chief on a collision course on the floor of parliament by suggesting that Sir Michael would take the Prime Minister's seat in parliament," he said.
"Firstly, there is only one head of the legislature, which is the Speaker of the National Parliament, Jeffery Nape.
"Sam Abal was there when the new Prime Minister Peter O'Neill was elected in parliament. The instruments of appointment were signed by the Governor-General Sir Michael Ogio.
"Why has Abal, knowing all this, attempted to direct Sir Michael to a chair already occupied by O'Neill?
"That is pre-emptor of the Supreme Court case and should amount to contempt both of
the court and of the national parliament," Basil said.
"What I fail to understand is just what sort of family, friends and associates would drag a weak, struggling, old man who many respect as the founding father of the nation in their political power games.
"Why can't they all appreciate that whatever the Supreme Court ruling is, the bottom line is that 70 MPs against 24 voted in O'Neill as the new prime minister on Aug 2 in parliament and will do so again if required."
Basil intends to refer Abal to the Parliamentary Privileges Committee for his comments on the chair to be occupied by Sir Michael.
He said the comments threatened the decorum and dignity of parliament.

Protesters told to stay away

POLICE will be out in full force today to ensure the parliament session is free from trouble, The National reports.
NCD-Central commander Fred Sheekiot yesterday said police had received information there were "certain groups of people who want to disrupt parliament sitting today".
He said the government must carry on its business in parliament as usual.
NCD metropolitan commander Supt Joseph Tondop said no member of the public, including non-governmental organisations (NGOs) "are permitted in the vicinity of parliament without good reason".
"We will not tolerate any NGO groups who hold rallies in the vicinity of parliament," Tondop said.

Government to push women’s bill

By SHIRLYN BELDEN

THE Equality and Participation Bill will be tabled in parliament today, The National reports.
Prime Minister Peter O'Neill yesterday said the reserved seats bill was a priority agenda item of government.
He told a National Council of Women gathering at the Sir John Guise Stadium in Port Moresby that it was imperative the reserved seats bill was presented in parliament for debate and voted on as soon as possible.
O'Neill said the participation of women in parliament was an important issue that had remained outstanding.
"Since coming into office, our go­vernment has seen this as an important outstanding issue,'' he said.
"That is why we are recalling parliament to seriously commence the process of legislating to include women as equal partners in the highest decision-making arena."
Women had been pressing the go­vernment to reserve 25 seats for women in the Papua New Guinea parliament.
Acknowledging the previous go­vernment for accepting the bill, he said there was no clear reason why the item had not been debated as yet.
O'Neill said his government was prepared to make women's representation in parliament a reality.
He said participation of women in the PNG parliament was low compared to other nations in the Pacific.
"There is only one woman MP, which means that our statistics of female participation is 0.9%, a shocking indicator, clearly contradicting our Constitution and the various government development goals," he said.
 "PNG is one of the only 12 countries to have 0.9 to zero per cent of women representation in parliament,"he said.
"We are rated as 136 out of 144 countries for having less than 1% of women in parliament.
"This is a shocking indication of our lack of real action to the commitments we have stated to our people in the Constitution and various development goals."
National Women Council president Scholla Kakas said women must have reserved seats in parliament.
 "It is high time for women to have a place in parliament," she said.
"Recognise us as human beings and give us the political recognition, equality and justice for the benefit of all Papua New Guineans."
Representatives from women groups and councils in Papua, Momase, highlands and the New Guinea Islands regions gathered to lobby for the bill.
Parliament has been recalled today to debate several bills including the Equality and Participation Bill.

Somare’s bill put at K3.7 million

FIVE-year-old Iluh Kara, dressed in her mother's Manus traditional bilas, was at the Jackson
International Airport yesterday morning to welcome home her bubu and East Sepik regional MP Grand Chief Sir Michael Somare. Iluh presented Sir Michael with a basket. Iluh's dad is the son of Sir Michael's only sister, Rosa.  – Nationalpic by EKAR KEAPU

THE state has paid K3.7 million to keep Grand Chief Sir Michael Somare in Singapore's Raffles Hospital and for related costs, The National reports.
The actual hospital bill is less than K1 million but travel and accommodation expenses and sustenance allowances for his family, minders and visitors blew up the amount to K3,718,981.82.
An amount of K67,703.52 was still outstanding as of Aug 29.
All the expenses was borne by the Prime Minister's Department, which does not have any allowances within its budget for the medical expenses of the prime minister, deputy prime minister and other ministers of government, department sources said.
Sources also said Prime Minister Peter O'Neill had directed his department to transfer all future expenses to parliament and to have parliament reimburse the department's expenses so far.
At any time, there had always been three security officers and a protocol officer in attendance at the hospital as well as Lady Veronica, press secretary and daughter Betha Somare and personal assistant Seki Karingal. All their expenses were met by the department.
This came to light as the Grand Chief jetted in on an Air Niugini commercial flight from Singapore yesterday morning to an emotional welcome at the Jackson International Airport.
It was important that Sir Michael was in the country to attend tomorrow's sitting of parliament. To miss it would mean his third consecutive absence, rendering Sir Michael an automatic disqualification as the regional parliamentary representative of East Sepik.
The Grand Chief spoke briefly upon his arrival yesterday, looking frail but walking without assistance.
Scores of people, including Governor-General Sir Michael Ogio, who broke with protocol to be pre­sent personally to meet Sir Michael, wept openly when they saw the former prime minister who had been in a Singapore hospital for the past four months.
Sir Michael greeted the airport crowd and spoke briefly on health care, clearly avoiding the events of Aug 2 and the election of O'Neill as prime minister.
"The days ahead of us are tough but I am one of those who have proven to be a fighter and to make things work," Sir Michael said.
A strategy meeting is expected to be held by the Somare camp today for tomorrow's parliament meeting.
The topic of where Sir Michael would sit would feature prominently with expectations that he would attempt to occupy the prime minister's chair.

PNG exposed as 'dysfunctional blob'

By PHILIP DORLING

PAPUA NEW GUINEA is trapped in ''Ponzi politics'' being practised by deeply corrupt politicians who have enriched themselves on resource revenue and Australian aid , according to US diplomatic reports.

Australian government officials are reported as saying generational change in PNG politics following the departure of founding father and former prime minister Sir Michael Somare was a ''false hope'', and the PNG government was a ''totally dysfunctional blob''.

The damning assessments of political and economic life in Australia's nearest neighbour are contained in confidential US embassy cables leaked to WikiLeaks.

In a November 2008 briefing, the US embassy in Port Moresby noted that resource revenues and Australian aid have served ''more to enrich the political elite than to provide social services or infrastructure. There are no large-scale local businessmen, but numerous politicians are relatively well off.''

PNG is Australia's largest recipient of foreign aid and in 2011-12 will receive more than $480 million from the country.

Anxious to avoid diplomatic offence, Australian government ministers and officials rarely talk openly about corruption and maladministration in PNG, preferring to speak of ''strengthening governance'' and helping ''institution building''.

However, the leaked cables from the US embassy in Port Moresby provide grim assessments of PNG's chaotic political system and failing public administration. In May 2007, in a cable titled ''Ponzi politics'', the US embassy presented a damning pen picture of PNG politics.

''Steeped in traditional magic and innocent of modern economies, PNG's citizens prove easy marks for Ponzi schemes which proliferate throughout the country,'' the embassy said. ''Now it's election time … and the politicians are dusting off their bottles of snake oil. Viewed from afar, or from a national perspective, it's an appalling spectacle of disregard for governance.''

It went on: ''If all politics is local, politics in PNG - with 830 languages, myriad cultures and thousands of clans - is Tip O'Neil (sic) on steroids … Though this government, and the current crop of leaders on the national scene, have presided over a steady, nationwide deterioration of services - closure of health centres and schools, collapse of effective policing and a steady rise in violent crime - little mention of this can be expected during the campaign to come.''

In the run up to the 2007 election, the US embassy reported that ''the pork has hit the fan'' as Sir Michael reallocated ministerial portfolios. One promoted minister was described as ''the government's chief bagman for the corrupt forestry industry''. A former health minister was ''mostly remembered for his insistence that he was just a politician and therefore could not be held responsible for the fact that the country's hospitals had run out of medicines while his ministry was still flush with cash''.

The report gave a damning judgment on the Somare administration's commitment to law and order: ''The single most pressing problem facing PNG is the almost total collapse of the police force. So it is doubly disappointing that the effective [Police Minister Bire] Kimisopa was pushed aside. The portfolio has little control over expenditure. But his focus likely discomforted Somare and his cronies for the same reasons they worked to scuttle a large-scale Australian package which threatened to dramatically improve police performance.''

The leaked US cables are ambiguous about Sir Michael's financial interests and their effect on political decisions and public policy. However, they noted a ''strange'' shift in PNG government policy that potentially increased its financial exposure in legal action being taken by Bougainville residents against company Bougainville Copper. ''Given the way things are done here, the general suspicion is that PM Somare has been given a financial incentive to reverse the previous government's position on the case. Certainly, it would be very typical of Melanesia if what the government saw as in its nation's interest also redounded to the individual benefit of its leadership. It is worthy of note that Paul Nero (sic, Nerau), a plaintiff and the current PNG [consul-general] in Brisbane, is very much a Somare man.''

The US cables confirm that, privately, Australian officials have no illusions about the state of the PNG government. After a mid-2007 discussion on political and economic developments with Australian high commission staff in Port Moresby, the US embassy reported: ''One Australian analyst described generational change as a 'false hope', while other Australian officers described the PNG public service as a 'totally dysfunctional blob' that is great at planning but appalling at implementation.''

Speaking to the US embassy in September 2009, the then opposition leader and former prime minister Sir Mekere Morauta lamented the collapse of effective government decision-making.

''AusAID is out of control,'' he said. ''I don't mean that Australia is being naughty. What I mean is that, out of desperation over lack of government direction, they are funding projects of their own choosing. The government cannot truly be said to be in charge of how and where foreign assistance is spent.''

However, as an example of poorly planned Australian assistance, Sir Mekere cited money spent on infrastructure projects such as road-building, new schools and hospitals.

''Our problem is not a need for new infrastructure. At this point, we cannot even maintain the infrastructure we have.''

Following a long illness Sir Michael was removed from office, though he is still protesting that his ousting has been illegal. Peter O'Neill, who had served as treasurer in the Somare government, was elected Prime Minister by a parliamentary vote on August 2. He has declared his desire to ''restore open, honest governance''.

Somare arrives back in Port Moresby

Caption: Sir Michael waves to the crowd before boarding his car. He is flanked by Valentine Kambori (left), Tony Aimo (behind him) and Sam Abal.-Picture by EKAR KEAPU

GRAND Chief Sir Michael Somare arrived at Jackson Airport in Port Moresby today from Singapore after being hospitalised there for more than four months.

Among those at the airport to meet Sir Michael were the vice regal Sir Michael Ogio, MPs Sam Abal, Sir Arnold Amet, Patrick Pruaitch, Gabriel Kapris, Dame Carol Kidu, Tony Aimo, James Marape, John Pudari, Peter Wararu, Paru Aihi, Andrew Kumbakor, Timothy Bonga plus former departmental heads Margaret Elias and Vincent Kambori.

Also present were the Sepik council of chiefs led by their president Eric Wangehau.

Medical society disassociates itself from Mola report

By MALUM NALU

The PNG Medical Society has disassociated itself from "unprofessional actions" of its treasurer Prof Glen Mola in making allegations against former society president Dr Mathias Sapuri.

This follows the publication of a leaked report in The National last Friday in which Mola claimed that Sapuri had misused almost K1 million during his tenure as president.

Mola, however, said at the weekend that he did not know how The National obtained an advance copy of his treasurer's report.

"I wish to make it clear that I did not send a copy of my treasurer's report to The National," he said.

"I do not know where The National got a copy of the report. 

"My report should have been treated as confidential by members of the Medical Society until it is presented to the annual general meeting of the society on Sept 7 in Kimbe. 

"At the AGM, members will have an opportunity to consider the report and vote on either accepting or rejecting it, and also make any recommendations as to what action – if any - to take as a result of it.

"I note also that Dr Sapuri is reported as stating that 'legal action would be sought against Mola if the allegations were found to be false'. 

"In fact no 'allegations' are made in my report; my report only contains statements of fact."

Society president Prof Nakapi Tefuarani said today that neither he nor his executive sanctioned and approved Mola's report.

"In fact," he said, "the official decision and plan reached during the executive meeting was for Dr Mola to present his 2010-2011 financial report at the annual general meeting in Kimbe this year.

"He was warned not to publicise the allegations he had conjured against Dr Sapuri.

"The past president, Dr Mathias Sapuri, was asked and will present his exit report at the society's AGM in Kimbe in 2011 and treasurer Prof Glen Mola is expected to present the financial report covering Sept 2010 to Sept 2011.

"However, despite being told by the current president and his executive to be more professional towards the former president, Prof Glen Mola has unilaterally opted to pursue this in a manner that of a personal vendetta."

Tefurani said his executive would raise Mola's actions at this week's Medical Symposium in Kimbe for appropriate decision and action.

He assured all members, supporters and donors that his executive would continue to manage administer the affairs of the society with "due diligence".

Leave East Sepik provincial government matter to the court, says Chief Justice

By JULIA DAIA BORE

THE Supreme Court at Waigani has called on people not to interfere with the proceedings of the East Sepik provincial government executive council's reference, The National reports.
"We express our concerns in the strongest terms possible," Chief Justice Sir Salamo Injia said yesterday before ending the second day of the reference hearing at Waigani.
He said he was speaking on behalf of the five-judge Supreme Court panel hearing the matter.
The panel consists of Sir Salamo, Deputy Chief Justice Gibbs Salika, senior judges Bernard Sakora, Nicholas Kirriwom and Les Gavara-Nanu.
Sir Salamo said: "We ask the media, the interested public and all interested parties to leave the courts to deal with this matter."
He said the panel agreed to express their concerns about public interest and events as they were unfolding outside the courthouse and as reported by the media.
"There should not be any form of interference from anybody on the matters before this court."
He called on the media to report about the public involvement of the reference court matter "with care, responsibility and fairness".
He said the media's reporting of the public involvement of matters before the court could amount to interfering with the proceedings.
"Nothing should be repeated from the public and any interested parties by the media ... that amounts to interference with issues being dealt with by the courts," he cautioned.
Sir Salamo said this did not mean the court was interferring with the freedom of the press.
"The media is free to report on issues, but there are limitations to do so," he said in reference to on-going events outside the Waigani Court main gates.

Tkatchenko denies receiving funds from NCDC

PNG Gardener Justin Tkatchenko has denied allegations that he has received millions of kina from the National Capital District Commission through his association with NCD Governor Powes Parkop, The National reports.
The alleged financial benefits were contained in a purported internal audit report circulated on the internet via the pngexposed.com blog.
Tkatchenko told a day-long media conference, organised by NCDC at the Bluff Inn Hotel outside Port Moresby on Wednesday, that the K3 million he was paid last year were "for projects that were carried out through cooperation between the public and private sectors".
"The projects were not to create revenue but a service to the people," Tkatchenko said in the presence of Parkop and other senior City Hall officials.
He also gave a power-point presentation on the NCDC mini parks and courts, water fountain, water slide and zoo and animal farm projects that the internet report had cited in its alleged audit report.
According to the internet audit report, no quotation was provided for any of the projects and there was no tender advertised or accepted.
It claimed all the payments were made out to Kitoro No.33 Ltd and PNG Gardener.
A company search listed the directors of Kitoro No.33 as Justin Wayne Tkatchenko and Catherine Jane Tkatchenko.
Its sole shareholder was Catherine Jane Tkatchenko, who was also listed as the secretary.
Both companies share the same office space on the fifth floor of Defens Haus in downtown Port Moresby.
However, Tkatchenko denied receiving the K3 million as claimed.
Parkop, on the other hand, said he had no common interest with Tkatchenko and his companies.
He said he only knew the PNG Gardener when Tkatchenko won the parks and garden outsourcing contract.
"Neither of my immediate family is interested in Tkatchenko's family and his businesses."

Doctor charged with stealing

By JUNIOR UKAHA

A SENIOR doctor in charge of the Department of Health was arrested and charged by police yesterday with misappropriation, The National reports.
Dr Esorom Daoni, 43, from Babagi village, Gazelle, East New Britain, was arrested and charged by members of the fraud squad with one count of misappropriation.
Director of fraud squad Chief Insp Timothy Gitua said, between last December and January, Daoni "on numerous occasions during his leave went to the Queen Emma Lodge in Kokopo and withdrew money totalling K12,892 belonging to the department held in the company's account".
He said the money was excess payment that was left after a conference was held last year by doctors at the lodge.
Gitua said Daoni somehow managed to convince the management at the lodge and withdrew the funds.
He said police started their investigation in April after former health secretary Dr Clement Malau laid a complaint with the office of the fraud squad alleging that the accused had withdrawn the funds from the company's account without the approval of the department.
Gitua said his men picked up the accused on Wednesday night in his home and questioned him the next day, resulting in his arrest.
Gitua said Daoni was out on K1,000 bail sanctioned by the office of the metropolitan superintendent yesterday afternoon.
He said the accused would appear at the Waigani Committal Court today for his first mention.

Report claims Sapuri misused K1 million

By MALUM NALU
FORMER PNG Medical Society (PNGMS) president Dr Mathias Sapuri has been alleged to have misused society funds totalling almost K1 million, The National reports.
Society treasurer and medical doctor Prof Glen Mola, in a no-holds barred report to be presented at the PNG Medical Symposium in Kimbe, West New Britain, next week, said it would be up to the symposium to decide on what course of action to take against Sapuri for unaccounted funds totalling K820,614.
This includes Sapuri's withdrawal of K100,000 from the society's account in Wewak in August last year, a day after he was replaced by Prof Nakapi Tefuarani.
Sapuri, when contacted yesterday, said the allegations were "highly defamatory" and that he would be presenting a fully-audited reported for 2009-10 at the symposium next week.
He said legal action would be sought against Mola if the allegations were found to be "false".
"This is all being cooked up," Sapuri said.
"These people are trying to smear my reputation."
 Sapuri sent an email to Mola earlier this week expressing his concern about the information being released.
"I must say that I am disappointed with your approach regarding this matter," he told Mola.
"I wrote to the president (Tefuarani) requesting that I present the full financial report and the audit at the Kimbe annual general meeting (AGM).
"I am advised that I will do so by presenting my exit report as the former president together with the above.
"I will not disseminate my report as you have done but will present in person at the AGM.
"All the members should hear the other side of the story."
Mola said in the report that over the past three years, the executive of the PNGMS had spent budgets totalling more than K1 million; but for some K820,614, it was not clear from the cheque butts, and other records, who was the actual beneficiary of these monies — there were no records of payees on the society's cheque book butts.
"We have not been able to obtain any records of acquittal of these monies," he said.
"At a face-to-face meeting between the current executive and Sapuri on Jan 7, he (Sapuri) made a commitment to supply acquittal details for all the cash monies that he had withdrawn from the society's bank accounts by the middle of January.
"This has not occurred. 
"The accountant who has been engaged by PNGMS since 2007 — RAM Business consultants, Rex Paki — met with the president and treasurer on Feb 4 and brought draft financial statements for our perusal. 
"The problem with all financial statements of the society  — since RAM business consultants have been the society accountant —  is that there are no details of payees recorded; that is, there are no details as to who actually receives the monies for things like medical symposium expenses, accommodation, hire, meeting expenses, fund raising expenses, rental, allowances, consultancy fees. 
"The executive sought a legal opinion from Greg Sheppard of Young and Williams Lawyers as to the legal status of this withdrawal.
"Sheppard responded on May 11 to say 'Sapuri should be referred to the police for criminal investigation and prosecution for committing fraud and stealing offences under the Criminal Code':
"The president has indicated that he will seek the views of the members of the society at the AGM with regards what course of action should be taken.
"In addition, when the new executive took over on Sept 1, 2010, society admin officer Ms Rose Solien informed the executive that Dr Sapuri had taken all the members' subscriptions amounting to approximately K90, 000 – 100,000.
"This money has never been deposited into the society account.
"The treasurer also wrote to accountant Rex Paki on March 28, 2011,  requesting information with regards the acquittal of these cash withdrawals.
"Neither party has responded to these written requests."

Namah urges family not to rush Sir Michael

By JUNIOR UKAHA

Deputy Prime Minister Belden Namah has called on the so mare family and parliamentarians from the former government not to "pressure" the Grand Chief into making "rushed decisions", The National reports.
Namah said in reaction to The National's front page story yesterday on a signed statement from Sir Michael Somare sent by his daughter Betha, saying he was still the legally elected prime minister.
In a media conference in Port Moresby yesterday, Namah said the Grand Chief should not be forced to return from Singapore where he is recovering from an open heart surgery and two corrective operations.
"The Grand Chief must be allowed to fully recover at his own time without being hassled by family members and close associates to make decisions," Namah said.
He claimed that last week Sir Michael had been hassled over the national radio to declare that he wanted to cele­brate the 36th Independence anniversary in the country.
Namah said while the nation continued to pray for the Grand Chief's speedy recovery, "that process should not be circumvented by individuals and groups who have sinister motives and vested interests".
Namah, whose go­vernment took power on Aug 2, said Sir Michael's health was far more important than him returning home to celebrate independence on Sept 16.
"Arthur and Betha, including the remnants of the previous government, must respect Sir Michael and must not use the media for trial," he said.
He said in the case Sir Michael decided to come back to the country earlier than advised by his doctors, "the government will appoint three independent medical practitioners to confirm as to whether he is fit to travel as a former prime minister and the Grand Chief of the country".
Namah, who is speaking on behalf of Prime Minister Peter O'Neill who is in Fiji, said even if Sir Michael was ushered to Papua New Guinea, "there is no guarantee that he will have the numbers to govern the country". 
Namah said the people of PNG had spoken through parliament and his government "is legitimate".
"We will not be distracted by remnants of the former regime who cannot accept the fact that there is a new government," he said.

Grand Chief returns

By JULIA DAIA BORE

SIR Michael Somare will arrive in Port Moresby on Sunday from Singapore after a four-month ab­sence from Papua New Guinea, his son and Angoram MP Arthur Somare said yesterday, The National reports.
The Grand Chief's travel was necessary following the recall of parliament on Sept 6, Somare said.
Sir Michael's absence from parliament on Tuesday would be his third since he was hospitalised in Singapore, automatically disqualifying him from office as the parliamentary member for East Sepik by operation of law.
This would also have a bearing on the constitutional reference before the Supreme Court challenging the legitimacy of the new government headed by Prime Minister Peter O'Neill.
Somare said: "Rather than run the risk (of being disqua­lified), we have appealed and he has agreed to make, if you like, the treacherous journey to PNG.
"The flight might be a bit risky but he will, most likely, be accompanied by an Air Niugini doctor.
"He has also been cleared by his physician in Singapore, Dr Chan, to travel."
Somare said all necessary medical clearance was in order and Sir Michael was fit and well to leave Singapore tomorrow, and arriving in Port Moresby on Sunday morning.
Somare emphasised that there would be no official welcome for the Grand Chief on his return.
Yesterday, Deputy Prime Minister Belden Namah called on the Somare family to stop forcing the Grand Chief to make the trip if he was still unwell, saying, if necessary, he would ask doctors to clear him to travel.
Standing orders dictated that a member's presence will be determined by his physical presence in the chamber in order to appear on the roll of the clerk of parliament.
Sir Michael would return to Singapore after he was registered as having attended this session.

Wartoto’s bail challenge quashed

By SAMUEL RAITANO

THE Waigani District Court yesterday threw out an application by the prosecution to cancel Kokopo businessman Eremas Wartoto's bail, The National reports.
The application was thrown out because there was no evidence supporting the bid to revoke the police bail of K5,000.
The prosecutor in charge of the matter made two separate submissions in court.
The first was to have the hearing adjourned to Sept 30 and that was granted by the court.
However, the second application to revoke Wartoto's bail with conditions imposed on him was not entertained.
In the submission, the prosecutor said senior officers at the Boroko police station had allowed Wartoto bail while overlooking the informant's request to have the bail refused in order for Wartoto to apply for it in court.
The court was told there were other charges to follow those already laid against the defendant.
Wartoto has been charged with two counts of misappropriation allegedly committed in 2009.
It was indicated that several charges for alleged offences committed in 2010 and this year would follow.
The prosecution sought to have Wartoto's passport surrendered to court.
The court was asked that if it decided not to revoke bail, an additional bail be imposed on Wartoto.
Wartoto's lawyer, Alfred Manase of Manase and Company Lawyers, argued that there was no evidence to substantiate the assumptions by the prosecution.
Manase said his client had cooperated with police by attending interviews.
He said police had the power to grant bail to defendants charged with misappropriation.
Manase said Wartoto needed his passport to travel overseas to oversee business interests.
He said Wartoto had businesses in the country
and "such a man will not simply run and hide from justice".
"He is a local businessman and should be supported to continue business to help the country," Manase said.
He said interviews in relation to the issue in court were complete.
After hearing the arguments, magistrate Cosmas Bidar ruled the right to bail was a constitutional right and unless there was new evidence or a change of circumstances, Wartoto's bail of K5,000 would be extended.
"Because the defendant is a businessman and needs to travel, no orders will be made in respect to his passport," Bidar ruled.
Wartoto, from Raburua Village, in Gazelle district, East New Britain, is alleged to have dishonestly put to use monies belonging to the State on separate occasions in 2009.
It is alleged that between Jan 30 and June 3, 2009, Wartoto, being the director and principal signatory to the Sarakolok West Transport Ltd's account, dishonestly applied to his and others' use K6,791,408.20.
The money was drawn from the company's ANZ account number 12621572 in Kokopo.
And, on Oct 14, 2009, in Kokopo, the defendant is alleged to have put to his
and others' use K1,197,483.80 drawn from the same
company's Westpac bank account number 600017950.
The monies allegedly belonged to the State.
Manase told the court that Sarakolok West Transport was Wartoto's  private company, had been contracted by Kerevat National High School and had been entitled to about
K8 million.
Wartoto's lawyer said the allegations of misappropriation that was raised from transactions made on these payments would be challenged in a proper court hearing.
The matter will be heard on Sept 30.

Huge turnout at court premises

THE Waigani Court House was heavily manned by police and security guards yesterday for the hearing of the East Sepik provincial government's special Supreme Court Reference, The National reports.
The main gates were locked, while police and court security guards allowed those with genuine reasons to enter the gates from at 1.30pm.
Groups holding anti-East Sepik banners were told to move away from the court gates.
Although they were told to leave the area, people, especially women, were seen sitting in groups opposite the court gates in front of the National Library.
"Wararu mas go bek lo ples blo em na givim sevis lo ol pipol blo em. Ol no votim em lo kam kot na westim taim (Wararu should go back home and deliver basic services to his people. They did not give him the mandate to waste time in court," Apo Mathew from Goroka said.
Activist Noel Anjo said there would be a peaceful sit-in protest soon to persuade the East Sepik government to withdraw the refe­rence.

ESP court challenge a priority, say judges

By JULIA DAIA BORE

THE East Sepik provincial executive council's Supreme Court Reference challenging the constitutional validity of the formation of the O'Neill led government will take precedence over all other court proceedings dealing with issues of similar nature in the National and Supreme courts, The National reports.
This was one of two immediate decisions handed down yesterday by the Supreme Court bench of five senior judges at the Waigani Supreme Court.
The decision was made following intensive discussions relating to another court matter afoot in the Supreme Court in the form of a summons.
That matter relates to similar issues in another Supreme Court proceeding raised by former acting judge Nemo Yalo and which is at the directional hearing stages.
It relates to the constitutionality of the appointment of Sir Arnold Amet as attorney-general in the previous government.
Yalo is questioning the constitutionality in the processes used in the appointment and subsequent swearing into office of Sir Arnold.
Justice Bernard Sakora asked the lawyers present at the ESP executive council reference for their thoughts on the issue.
He said he was of the opinion that the issues of pre-Aug 2, had to be dealt with before the current proceedings.
John Gawi, for the se­venth intervener, the National Alliance Inc, said Sir Arnold was no longer the attorney-general neither was Sam Abal the acting prime minister.

Somare: I am still PM

GRAND Chief Sir Michael Somare said from Singapore yesterday that "there has never been a vacancy in the position of prime minister", The National reports.
In a media statement, he said: "Let me be clear. I am ready, willing and able to complete my term as the only legally elected prime minister of Papua New Guinea."
The signed statement, his first since he was hospitalised in April, was e-mailed by daughter Betha Somare to the media.
Prime Minister Peter O'Neill responded last night by saying there was no vacancy to be filled by Sir Michael.
He said: "We welcome the news that the Grand Chief has recovered sufficiently to travel. As a citizen, he is free to travel as and when he pleases and we will accord him the respect he deserves.
"In so far as government is concerned, parliament has spoken overwhelmingly against his (Sir Michael's) government and elected in a new government.
"As he has demonstrated, many times in the past, we expect him to respect the clear mandate of parliament."
Sir Michael's statement read in part: "Sections 142-145 of the Papua New Guinea Constitution are very clear about the election and removal of a prime minister. 
"There has never been any vacancy in the position of prime minister. 
"As elected representatives, we must uphold the Constitution of Papua New Guinea and respect the independent role of the Supreme Court and, therefore, not pre-empt any judgment.   
"O'Neill should know that the East Sepik provincial government is acting fully within its rights to file a Supreme Court reference under section 19 of the Constitution by questioning the legitimacy of the election.
"If O'Neill thinks that his election is legitimate, he should not feel threatened by the actions of the East Sepik provincial government. 
"The Supreme Court reference raises legitimate questions and has a right to be heard."
Sir Michael further said the prime minister's recent claims that no law was broken by parliament might invite contempt of the Supreme Court as the very matter of whether or not laws were broken was before the court.