Friday, March 12, 2010

Gas project 'enormous challenge'

BEING a massive project in a small economy, the PNG liquefied natural gas concern has become an enormous challenge.

And the usual trouble with a big resource project for a small economy is that if the revenue is not carefully managed, the project could end up giving very little to boost the domestic economy’s growth, Roger Donnelly, chief economist of EFIC said on Wednesday.

The International Monetary Fund (IMF) has estimated that the project would increase gross domestic product (GDP) by 15% to 20% and the national income by 6%.

Mr Donnelly was speaking in  Port Moresby during the economic outlook seminar.

The event is  part of a series of activities marking the Australia week 2010.

Also present was Bank of PNG Governor Loi Bakani and Australian High Commissioner to PNG Ian Kemish.

Mr Donnelly, who claimed to have been watching the changes in the PNG economy over a decade, said PNG’s record showed it did not have a good track record for growth despite having some of the biggest resource projects.

“Now, there is no reason in principle why resource wealth should keep you poor,” he said this as he acknowledged that the PNG Government was aware of those issues and responded with the medium-term fiscal strategy.

During his opening remarks, Mr Kemish called on the Australian government to keep attuned to the changes that were happening in PNG especially in line with the many resource projects.

He said the societies of both countries changed over time but while they evolved, it was important to maintain the relationship between them.

“This is a good time at the time when Australian businesses are showing interest for PNG particularly the State of Queensland … the contacts on both sides are also positive.”

Mr Kemish said Australia would support PNG and restated the A$500 million (K1,213 million) loan from EFIC announced last December towards the costs of the US$15 billion (K40 billion) LNG project.

Digicel offers cheap handset

DIGICEL PNG has introduced another model of its Coral cell phone brand into the PNG market.

In a statement, Digicel said the latest Coral 640 (picture) , now selling at K49, was a new line of sleek cell phone handsets accessible to all consumers exclusive to Digicel.

Digicel chief executive officer John Mangos said: “Digicel strives to provide innovative and better products and services that encourage affordable and effective communication for all.

“Cheaper phones and call rates now mean that more people will enjoy the true beauty of affordable communications both within the country and overseas.

“With the introduction of the Coral range of handsets, we take communications a stage further, thus making cell phone technology even more accessible to the most ordinary Papua New Guinean back in the village.”

He said Digicel would continue to bring the best communications in terms of better coverage, new products and services to the most remote parts of PNG.

Coral 640 is available in a combination of glossy-black and maroon colours.

Papua New Guinea Parliament votes itself into irrelevancy

From PAUL OATES

The Papua New Guinea Parliament in its one-sided vote on the Moti Report has now voted themselves into irrelevance, virtually becoming Somare's proverbial rubber stamp.

 In an action reminiscent of the outstation clerk (Kuskus) stamping outgoing letters, one can easily imagine the so called 'Father of the Nation', mentally ticking off the dismissed issues.
Commission of Inquiry, (Kilim wanpela), Moti Report, ('Kilim tupela'), Taiwan millions, ('Kilim tripela') , Kapis escape assisted ('Kilim popela'), Parliamentary democracy, ('Kilim paipela'), etc.
Somare's father, presumably a bastion of the law, must have said to a young Somare, "Michael, whatever you start, make sure you finish it!".
Pastaim igat wanpla tisa,
Itok, "Nau mi lukim ples klia,
Bai mi baim ol lain,
Na stap longpla taim."
Tasol husat igiaman yumi a?


Dying kicks of Papua New Guinea democracy


From PAUL OATES

The last dying kicks of PNG democracy are effectively being stamped out before our very eyes.

Those of us who have seen a young country on the edge of becoming great can only to shake our heads in disbelief. There is now no effective way of stopping the inevitable takeover of a dictator except by force. Who would have thought that in our own lifetime, we who have helped people come out of the Stone Age to enjoy the benefits of a modern way of life have now left them to be sidelined and almost totally ignored by their own leaders?

Australia will rue the day it sat on its hands and did nothing to help the PNG people prevent this from happening. DFAT, AusAID, their antecedents and all the Australian governments since the Second World War ended have effectively put their heads in the sand and ignored reality. Millions of words and thousands of reports that have kept Australian public servants in Canberra in permanent work for decades and yet have been as much use as the proverbial 'tits on a bull'. Millions of dollars in overseas aid have effectively been wasted on programs that have no long term ongoing planning and are merely window dressing and an excuse for almost total ineptitude and moribund inaction.

What does it take to get results out of Canberra? Clearly nothing. Its not possible to motivate a force field that exists on another planet.

No wonder the Indonesian President yesterday felt compelled to lecture our politicians as they sat in Parliament on matters affecting our own region. He at least can see that our leaders haven't got a clue about what to do.

Thursday, March 11, 2010

Why is Somare fearing the Moti Report?


From PAUL OATES

Why is Somare is reacting so badly to the tabling of the Moti Report in the PNG Parliament?
Here is an extract from page 84 of the Moti Report prepared by: Chairman and Commissioner Honourable Chief Justice Gibbs Salika, CSM, OBE, Supreme Court Judge, of Papua New Guinea, General (rtd) Anthony Huai, CBE, Deputy Chairman and Commissioner, and Mr Daniel Liosi, Commissioner 13 December 2006 to 16th March 2007.
"We recommend the following persons be investigated and charged for conspiracy: Prime Minister Somare, Chief Secretary Joshua Kalinoe, Chief of Staff Leonard Louma, Director General of OSCA, Joseph Assaigo, Defence Force Chief of Staff and acting Commander, Colonel Tom Ur, Barney Rongap, Colonel Viagi Oala, Joint Operations Commander Chester Berobero, Lt Col. Ron Hosea, Mr Job Kasa, Executive Officer to Mr Kalinoe."
It all comes down to who do the people of PNG trust? Their Chief Justice at the time or the current PM?
Who is prepared to make a stand for justice in today's PNG? It's finally time to sort out who will defend PNG against those who seek to destroy the very fabric of the PNG nation.

PM hits back

House rejects OC's Moti report

By ISAAC NICHOLAS

PARLIAMENT yesterday voted to reject the Ombudsman Commission's report on the Julian Moti Affair after Prime Minister Sir Michael Somare delivered a scathing attack on the commission, The National reports.
The Prime Minister described the report as stupid and disappointing, and accused the commission of sneaking it through the "back door" into the office of the Speaker and onto the floor of Parliament.
Sir Michael hit back yesterday at the report, tabled in Parliament last week under the Government's nose, which recommended criminal investigations by police against the Prime Minister and former deputy prime minister Don Polye.
Sir Michael said the contents of the report "speak very poorly of the integrity and objectivity of the Ombudsman Commission in the conduct of its duties".
"It provided no concrete evidence and yet made very damaging claims against me,"the Prime Minister said.
"Despite its bold claims on page 40 that its findings were based on 'hard evidence', the Ombudsman Commission provided none.
"Its arguments to justify its findings remind me of a spider's web. The web is full of holes and gaps although it is specifically woven to try and trap something," Sir Michael said.
He said the Ombudsman Commission relied heavily on the word of one person whose account had been denied and disputed by everyone.
"Let me make this statement once more. I did not give any directions for Moti to be flown by Defence Force aircraft to the Solomon Islands," the Prime Minister said.
"I helped bring about the birth of Papua New Guinea and I will always act in the best interest of the people of this country.
"Reading through the report, there is no direct evidence that I, as the Prime Minister, gave directions for Moti to be flown to the Solomon Islands by the PNG Defence Force using the Casa aircraft.
"The imputation by the Ombudsman Commission report that this was so is clearly not based on evidence. There is simply no evidence linking me to the actual evacuation of Moti and the modus operandi of the evacuation."
He said the "circumstantial" evidence which the Ombudsman Commission relied on to make its findings, deals with purported communication between the late Barney Rongap and the late Joseph Asaigo and Leonard Louma - for Moti to be allowed to go to the Solomon Islands - not for Moti to be airlifted by a PNGDF aircraft to Munda on Oct 10, 2006.
"Therefore, finding No.12, that 'direction to transport Moti to Solomon Islands came from the Prime Minister' was not based on any evidence and is untenable."
He said of the eight recommendations, one said that the commissioner of police should conduct investigation for possible breaches of the Criminal Code by Government officials including the Prime Minister and then deputy prime minister Don Polye.
"Unfortunately, the Ombudsman Commission did not give any reasons at all for this very damaging recommendation," Sir Michael said.
"It did not indicate, for example, which part of the Criminal Code Act I, as the Prime Minister or the then deputy prime minister, may have breached.
"This, therefore, rendered this part of the report and recommendation useless and futile," Sir Michael said.

'OC report sneaked into Parliament'

PRIME Minister Sir Michael Somare has accused the Ombudsman Commission of acting above the law in sneaking into Parliament the Julian Moti report, The National reports.
"It is arguable that the report was improperly tabled in Parliament in contravention to section 220 of the Constitution," Sir Michael said in a speech to Parliament.
Sir Michael said the procedures for tabling an Ombudsman Commission report to Parliament are set out in section 220.
"Basically, any report must be tabled through the Head of State acting on advice from the National Executive Council.
"In my view, this report did not follow the prescribed procedures and was sneaked in through the back door," he said.
"It is an abuse of Parliament privilege.
"For an organisation that is supposed to conduct itself within the laws, the Ombudsman Commission had again shown itself to be above the law."
Sir Michael, in concluding his statement, said the proceedings in the supreme court of Queensland and the subsequent judgment on the Moti issue was very instructive.
"I urge honourable Members of this House to familiarise themselves with the documents tendered in that court and the ruling by Brisbane supreme court Justice Debra Mullins.
"Suffice to say, Papua New Guinea was unwittingly drawn into the Moti issue by agents of another government trying to carry out a political plan contrived by their government to discredit Moti.
"The lesson here is our law enforcement agents must act independently and not allow themselves to be dictated to by outsiders," Sir Michael said.

Indon president starts 2-day visit

INDONESIAN president Susilo Bambang Yudhoyono arrives in Port Moresby this
afternoon from Australia where he called for regional cooperation yesterday in tackling the problem of people smuggling, The National reports.
Yudhoyono and his delegation of nearly 200 are due to arrive in three aircraft at 3pm today for the two-day visit which includes a courtesy call on Governor-General Sir Paulias Matane and bilateral talks with Prime Minister Sir Michael Somare.
Australian media reported yesterday that Australia and Indonesia had agreed to work more closely on combating human smuggling and terrorism and would upgrade annual talks between leaders and officials to a level enjoyed by Australia's closest ally, the US.
The Indonesian embassy in Port Moresby said the delegation included Australian-educated foreign minister Marty Natelegawa, 12 government ministers, three members of parliament and six governors.
Human smuggling has been a major concern in PNG in recent months, although
PNG-Indonesia border issues may feature prominently also in talks in Papua New Guinea, observers noted yesterday.
"Australia, as a destination country and Indonesia, as a transit country, cannot resolve this issue by ourselves," Yudhoyono said earlier at a Canberra news conference with prime minister Kevin Rudd.
"This framework would include arrangements on temporary transit in Indonesia and how they will be relocated."
Australia has seen an increase in refugees arriving by boat in the past year, most of them reaching Australian waters via Indonesia. More than 20 boats have arrived so far this year, including a vessel intercepted yesterday, Australian media reported.
Rudd welcomed Indonesia's plan to introduce a law this year to criminalise the smuggling of human beings as part of efforts to combat transnational crime.
Indonesia has worked closely with Australia to combat the terrorist threat posed by groups linked to al-Qaeda, and the two leaders pledged to enhance action to combat militants.
"Indonesian successes in disrupting and dismantling terrorist networks and in the arrest of terrorist leaders have dealt a significant blow to the threat of terrorism in the region," Rudd said.
Sources said broader cooperation with PNG was due to increase as Waigani upgrades its relationship with Indonesia to include annual talks between leaders, ministers and military and law enforcement officials.
Talks are also likely to touch on how countries could work closely on climate change and regional stability through groups such as Asean where Indonesia is supporting PNG's moves to become a full member.
Indonesia, the world's most-populous Muslim nation and the world's third-largest democracy, is PNG's nearest Asian neighbour, sharing the common land border at the province of Papua.
Sir Michael will receive president Yudhoyono on arrival at Jackson International Airport where there will be a guard of honour. At 4.30pm, he will call on Sir Paulias.
The bilateral talks with Sir Michael will start at 9am tomorrow followed by signing of MoUs and a media conference before the delegation leaves on a six-hour flight to Jakarta.

LNG money seen to influence rates

Final financing deal to determine how much dollars to stay in local economy

By SHEILA LASIBORI

THE finalisation of financing arrangements with lenders towards the PNG liquefied natural gas (LNG) project is spreading some cloud over how the interest rates are going to perform in the coming years, The National reports.

This is because the final agreement will determine how much of the money lent would be retained in the local economy and how much would go back overseas.

If more dollars from the borrowings are retained in the local banking system, the play of the existing rate would be affected.

Generally, however, when the project gets underway, the rates will increase, according to Paul Crimmins, the head of Westpac’s relationship banking.

He said until financial close happens, it was yet to know what would be the internal contracts awarded to domestic and foreign companies on the US$15 billion (K40 billion) LNG project which was a US dollar denominated project.

These was part of the discussions during yesterday’s economic outlook seminar, part of a series of events marking Australian week cerebrations held at the Australian High Commission in Port Moresby.

Bank of PNG Governor Loi Bakani said: “Basically it comes down to the flows in and out of the country.

“At this stage, the financial close coming up … we are not yet able to get a clear indication of what contracts will be done locally and those in US dollars done overseas.”

He also said there were exemptions given to companies under the project.

“That is, where most of the transaction is going to take place,” he said.

ANZ’s Jim Yap said it all depended on the currencies’ strengths, when at the moment, the Australian dollar was floating on a high rate.

“Taking that into account, whilst the kina may have the ability to appreciate because the demand of the currency gets higher in view of the PNG LNG project … so there is an underlying demand, but in terms of cross currency exchange rate, it may be a bit of a challenge.”

Mr Bakani also said there was a working group putting together a submission for the proposed offshore sovereign wealth fund.

The submission is expected to be presented to the National Executive Council (NEC) in June.

“Once that is in place, that will take care of Government inflows,” he said, adding the inflows will be such that not everything will come into the country all at once.

Wednesday, March 10, 2010

Ombudsman loses powers

MPs vote 83-0 to remove watchdog inquiry rights

 

PARLIAMENT has taken the first steps to weaken the powers of the Ombudsman Commission, and establishing a parliamentary Ombudsman committee that will have powers to make inquiries of its own, The National reports..

Parliament voted 83-0 to amend section 27(4) of the Constitution to remove the powers of the Ombudsman in issuing directives to ministers and heads of departments.

Section 27(4) allows the Ombudsman to issue directives to prevent payments out of public funds, or trips by MPs, or other actions by these office holders if it (the commission) feels impropriety is involved.

For example, the commission has, in the past, used this provision to stop MPs taking overseas trips when it felt the trips were a waste of public funds.

The commission had also used this provision to prevent cheques issued by the Finance Department if it felt the motives were political.

The commission had, in the past, used this provision to block the release of electoral development fund cheques for MPs close to the 2002 and 2007 general elections.

The commission also froze the RESI funds last year using this provision after allegations emerged that millions of kina were misappropriated and given away without following proper procurement processes.

Some MPs themselves had gone to the media to complain about this misuse of RESI funds, particularly in Kerevat and Aiyura national high schools. But these MPs did not oppose the bill.

The amendments were introduced as private business motion by Esa’ala MP Moses Maladina.

Mr Maladina said section 27(4) had been used by the Ombudsman Commission on numerous occasions to stop the issuing of cheques, thus, preventing the implementation of Government policies and initiatives.

“We want to make it very clear for the purposes of Hansard that the action of the Ombudsman in issuing such directives using section 27(4) is wrong.”

Mr Maladina said from time to time, the Ombudsman had also utilised section 27(4) in issuing directives to airlines in an attempt to prevent leaders travelling to conduct their duties.

He said on many occasions, there had been public physical confrontations between officers of the Ombudsman and leaders at the international terminal.

He said it was not the intention of Parliament for the Ombudsman to utilise section 27(4) to confront leaders in this manner.

On the Ombudsman committee, Mr Maladina said the committee’s responsibilities were to address Ombudsman reports presented in Parliament and function like the Public Accounts Committee.

“Where the PAC deals with financial issues, the Ombudsman committee should deal with administrative issues.

“If, for example, lives are lost because of lack of medicine at the Port Moresby General Hospital and because people are turned away due to lack of beds, despite allocations of millions of kina in the health budget, it could be an issue which this committee can make a parliamentary inquiry,” Mr Maladina said.

 

House favours bill to have separate judges

THE National and Supreme courts will have separate judges sitting on benches of the two high courts, The National reports.

Parliament gave its first approval with an 85-0 vote for the bill relating to the appointment of separate and distinct judges to sit on the Supreme Court and National Court separately.

The amendments, tabled by Esa’ala MP Moses Maladina, stated that unlike other jurisdictions, “in PNG we have both judges presiding over both the National and Supreme courts”.

“This is not only inconvenient but also gives rise to the issue of capacity.

“We have come to a stage where the population has increased and are at a stage of development now where we require a separate and distinct Supreme Court with fulltime judges and a separate and

distinct National Court with

its own judges,” he said.

Mr Maladina said the amendments had been made in consultation with the Attorney-General and with the Chief Justice.

He said this was also in line with the law and justice sector white paper that was approved by Parliament.

In the law and justice white paper, the recommendation made by the Chief Justice and the judiciary was the creation of a permanent Supreme Court with the best judges appointed fulltime to that court.

The amended section 161 provided that the Supreme Court will not have fewer than five judges and those judges will be chosen from among the National Court judges.

Mr Maladina said section 164 of the Constitution also provided for the increase in the number of judges from 20 to not more than 40.

 

LNG 'landowners' protest for funds

DISGRUNTLED people, claiming to be landowners of the LNG project areas in the Southern Highlands province, fronted up yesterday at the Finance and Treasury office in Port Moresby and demanded quick payment of outstanding landowner funds, The National reports.

They printed placards stating that the operations of the multi-billion kina project would cease if their demands were not met by the Government.

The groups, claiming to be landowners of Hides, Angore, East Mananda, Juha, Moran and Kutubu threatened that the LNG project may not proceed if the Government failed to fast track the release of the funds.

They said the funds they claimed were the memorandum of agreement (MoA) funds, special segment grants (SSG) and other grants which they claimed was  promised to them by the Government.

Also, another disgruntled group gathered outside the office of the Department of Petroleum and Energy in Konedobu, demanding similar MoA and SSG payments.

Group spokesman, Adam Liyako, who claimed to be a landowner of Moran pipeline area, said the Government had promised them after the Kokopo forum last year that the payment of the funds would be made to all incorporated landowner groups (ILGs) but the Government had failed to honour its commitments to this stage.

He said the landowners had been living on hired vehicles and money in the city since last year and could not pay them off.

Mr Liyako said the fault lay with the Government to bring them to Port Moresby at the first place to attend the BSA forums and keep them waiting in vain without releasing the funds promised in them.

The spokesman said many of the landowners had passed away while waiting for the funds.

He called on the Government to fast track the payment if it wished to proceed with the project in their province.

 

Monday, March 08, 2010

Mystery woman rape under probe



POLICE in the National Capital District are investigating the alleged rape of Helen Mark Kuipa (pictured), the mystery woman “lawyer” who was caught on Saturday evening, The National reports.

National Capital District Metropolitan Commander Chief Superintendent Fred Yakasa confirmed yesterday that Helen has laid a complaint for rape, and this was being investigated.

The complaint for rape was registered at Boroko Sexual offences Unit.

Helen was allegedly raped while being held and questioned over her involvement in the Jan 12 break out at the Bomana Maximum Security prison. She was allegedly raped by a policeman.

Helen, who had been on the run and hiding in the city since the Jan 12 escape, was caught on Saturday evening at the Talai Settlement.

Police say her involvement in the escape of the 12 prisoners, including the notorious William Kapris, was central to its success. She was described as a key player in the whole operation.

She was cooperating well with police interrogations, and Yakasa had described her testimony as fitting the pieces to a jigsaw puzzle. But he was visibly angry when news emerged that the woman was raped by a policeman.

Chief Supt Yakasa said police investigations into the alleged rape had begun.

He said it was the work of one or two ‘rotten’ officers that give a bad name to Police and the force has no place for such officers.

“This cannot be tolerated. No prisoner or suspect should be attacked in this manner. This is the last thing you expect from a law enforcement officer. If the allegations are confirmed, the officer or officers will be hauled up to face the law,” Mr Yakasa said.

Helen Mark Kuipa, 26, of Kupalis village in Wabag, Enga province has been charged with one count of aiding the escape of a prisoner, breaching section 138(a) of the Criminal Code (chapter 262). She faces 14 other charges. She is expected to appear in court today.

The police Major Organised Crime Investigating –MOCIT Team is expected to continue their interrogation of Helen after that.

Prime Minister welcomes probe

PRIME Minister Sir Michael Somare has welcomed the Ombudsman Commission's initiative to investigate any leaders who has breached their roles and responsibilities, The National reports.

"In this instance, the Ombudsman chose to revisit the issue of Julian Moti's departure from PNG on a Defence Force aircraft," Sir Michael said in a statement yesterday.

"I had assumed that the Ombudsman report would be based on hard facts but, sadly, falls far short of this and relies on hearsay evidence.

"A number of serious irregularities were found in the establishment of the board of inquiry into the Moti affair and, on legal advice, Defence Minister Bob Dadae took note of the findings and decided not to pursue the matter," Sir Michael said.

He said the Ombudsman pursued the matter regardless of the flaws identified with the findings of the inquiry and the outcome of the Queensland supreme court hearings.

"I find the conduct of the Ombudsman Commission to be calculating, mischievous and lacking in transparency.

"Furthermore, I am surprised that the Ombudsman has called on the police to further investigate my role as prime minister in the use of a Defence Force aircraft to take Moti to the Solomon Islands.

"The Ombudsman, however, did not give any reasons for this damaging recommendation," Sir Michael said.

"I wish to state categorically that the findings of the Ombudsman are all based on circumstantial evidence.

"I call upon the Ombudsman to come clear on what offence under the Criminal Act they will use for possible prosecution against me.

"Without this, the motive of the Ombudsman Commission appears to be sinister and reflected a lack of objectivity and fairness in dealing with the matter at hand," he said.

 

 

 

K15 million road rehab launched

TRANSPORT, Works and Civil Aviation Minister Don Polye has launched the K15 million road upgrading and sealing project from 4-Mile to Mawan in Madang province  funded by the National Government, The National reports.

Mr Polye described the road improvement as an impact project that the local people must make use of to improve their lives by getting involved in agriculture, tourism, technical skills training and other life-improving ventures.

He was speaking at the project launching ceremony at Bau Vocational Centre in Madang on Saturday when the centre marked its 45th anniversary.

The new Transgogol High School and portable sawmill for Bau were also launched.

“This road is not just a road. It has meaning. It is to serve you the people.

“Link this road with economic initiatives,” Mr Polye said, adding that the 19.4km section being improved was part of the alternate national highway that would link the coast with the LNG project in the Highlands via Baiyer River.

Prime Minister Sir Michael Somare, who also attended the ceremony, backed the minister by saying that the alternate highway was needed to ease the burden on the Highlands Highway.

Sir Michael described the Highlands Highway as a colonial infrastructure that was not meant to handle the heavy traffic volume it carries today.

The road upgrading and sealing will be carried out by Lae-based national contractor, R & Sons Construction Ltd.

Managing director Thomas Ponah Pisimi, in thanking the national government for recognising local contractors, said they planned to deliver the project on time and meet government requirements.

He said R&Sons had delivered projects in Morobe and other parts of the mainland and they were pleased to be given another chance to improve roads in Madang.

The project launch was attended by government coalition heavies led by Sir Michael, Treasurer Patrick Pruaitch, Fisheries Minister Ben Semri, Madang Governor Sir Arnold Amet, Madang MP Buka Malai and senior public servants.

The road, high school and vocational centre projects were initiatives of Madang Open MP Buka Malai who expressed gratitude to the government for the funding support.

Mr Pruaitch launched the Transgogol High School while Sir Michael did the honours on the portable sawmill.

Mr Pruaitch also announced that the government allocated K1 million each to Transgogol High and Bau Vocational Centre.

 

OTML land men aquire Australia hotel

Brisbane's Quality Inn Airport Heritage is worth A$9.25m

LANDOWNERS at the Ok Tedi mine in Western province have acquired a hotel in Brisbane, Australia, for A$9.25 million (K22.95 million), The National reports.

This latest acquisition of the four-and-a-half star hotel brings to total value of K56 million in assets currently owned by the 5,000-plus landowners in the 12 mining villages.

The purchase of the Quality Inn Airport Heritage hotel has been made possible through royalty proceeds from Ok Tedi Mining Ltd (OTML) paid to the Ok Tedi Royalty Investment Trust (Royalty Trust).

The Royalty Trust is one of several landowner trusts that OTML administers for the mine- impacted communities.

The Royalty Trust operates to invest funds from the royalties that are paid monthly by OTML in investments which provide a good rate of return and capital.

The hotel has 40 deluxe and executive suites and is located centrally between Brisbane city and the airport, located about seven minutes drive to either location.

It has fully air-conditioned rooms with cable television, internet access, mini bars and private balconies.

Trust administrator of the Royalty Trust Aubrey De Souza said the hotel was acquired after a vigorous due diligence process.

“The hotel is performing really well … it is having nearly 90% to 100% occupancy every weekday,” he said.

He said the acquisition of the hotel was done as a result of a strategic plan approved three years ago by the trustees of the Royalty Trust to diversify the Royalty Trust’s investments in a balanced portfolio mainly in property, shares and cash in PNG and overseas.

“We thought it would fit our strategic plan for our properties to be also offshore.

“So that is why we were looking for properties in Australia and we bought that hotel,” Mr De Souza said.

“The strategic plan is that by 2013, which is the scheduled mine closure date, we are targeting to have K100 million worth of investments,” he added.

Currently, the 12 mining villages have properties in Port Moresby worth more than K20 million.

They also have shares in companies listed on the Port Moresby Stock Exchange worth K3 million and also on the Australian Stock Exchange (A$3 million or K7 million).

They also have a twin otter aircraft, leased to Airlines PNG.

 “We are expecting higher returns from those investments. And we are securing these monies for the landowners’ future and that’s our plan,” he said. 

Mr De Souza added that the Royalty Trust was a model for other trusts in PNG to follow.

Power returned to the people

The restoration of fairness and general social wellbeing in Papua New Guinea

By JOHN FOWKE

Even if 2012’s election sees a really dedicated reformist group in the lead, a compromise will already have been made. Fence-sitting parties must be promised inducements to join in coalition, so forming a majority. Inducements shaped in a mould formed by tradition, but a mould filled with the spurious metal of personal greed and opportunism. An alloy entirely lacking in idealism or care for the future, devoid also of that most essential ingredient, the principle of separation of powers.

Here is hegemony. Here are opportunities for men who, though well-educated, possess little understanding of the outside world or care for principles of probity and transparency in public life. Such men, once elected, adopt lordly guise, endowed with the means to dispense largesse in the name of “electoral development funds.” Funds provided as of right with sketchy supporting budgets and plans. Funds dispensed without reference to relevant government managers and technocrats, completely sidelining these in task-related lines of control and technical expertise. Hungry for personal wealth and the adulation of their own clansmen, a great number of today’s MPs are in the game entirely for themselves.

It was not until the end of WW2 that Papua New Guinea began to understand anything of the rest of the world; its material and social substance; its history, its systems of law and its main preoccupations. Some peripheral inland areas remained un-contacted by exploratory patrols until as late as 1960.

Then in a dozen years beginning with the compilation of the first national electoral rolls, the first national election which followed in 1964, and ending in full independence in September 1975, this tribally-constituted society took a huge and unprecedented leap. Ancient tradition and custom was the underlying basis for belief and lifestyle everywhere. Full independence and emergence onto the world stage as an independent nation-state was rejoiced in, but it created opportunities and empowerment for a privileged few who have led the new nation along a steady downward path in terms of the health, wealth and the wellbeing of many.

As years pass, the people, once joyous in their new, enhanced free status, have become dissatisfied, perplexed and justifiably cynical regarding their leadership. They don’t know where their power has gone. There was never any social dichotomy based on variances in wealth, opportunity or the ownership of land and resources. No class of hereditary aristocrats, landowners and priests with an interest in suppressing a lower order existed. All were landowners; all had a voice in communal affairs within the admittedly small clan-based societies in which they lived. Because of this happy circumstance there was no need for party-based politics here. PNG’s society identifies with its land and the burial-places of its ancestors; not with a class system and associated iniquities and privileges. A regional representative system would have fitted well, but did not arise. The established party-system floats on society’s surface like a film of oil in a pond. No-one understands it except its managers and the MPs themselves. To these the system represents a collection of opportunistic clubs endowed with the potential to move a man from an ordinary social background to an environment where wealth and influence are easily appropriated by one who is both manipulative and socially adept.

As it stands today PNG is in a state of rolling social/civil crisis. The rule of law is almost entirely absent; there is no firm hand upon the steering-wheel; the arrival of predicted vast returns from the newly-sanctioned gas resource projects will only increase pressure and disorder and discontent within this society. A society which already has great difficulty in managing and accounting for the rents it receives from extractive industries already established. There is no evidence that the situation will be abated, let alone rectified under the present leadership, and little reason to expect the current style and substance of administration to alter even though names change after the election to come.

How may PNG engender the rise of a sympathetic, socially-conscious, “structured-to-fill-real-needs” sort of political regime? A fairer and more open regime where the basic needs of society are met and the rule of law is re-established? Attempts to persuade politicians unilaterally to improve existing practice and systems in any dramatic way will meet resistance. A revolution or a coup is unlikely in the near to mid- future and in any case will only produce more of the same; more gravy for the already well-fed. Papua New Guineans from all walks of life ponder this question and shake their heads.

But there is a way. A way which is potentially non-confrontational and entirely constitutional, and one which will need little if any re-jigging of current legislation.

Soon after the end of WW2, the Australians initiated a system of Local Government Councils. Tentative at first, the system was accepted by the people and began to be expanded. Valuable as a means to steer society into the ways of western-style democracy, the LGC system as it was called-(today the Local Level Government or LLG system) - replaced the existing didactic, paternal connection between society and government where each village possessed an appointed official, effectively the go-between and enforcer-of-orders as handed down by the powerful District Officer and his subordinates.

The dawn of the councils in the early 1950s introduced the concept of communal elections and the secret ballot. The councils were designed to arise in such a form as would be easy for the people to identify with. Here was to be a meeting-place where the community’s concerns and needs, once examined and agreed might then be sent upstairs to the mighty “gavman” for action or advice. It was hoped that the people would take ownership of this system and the empowering ideal it was based on, and largely-speaking they did.

From the start it was expected that LGCs would take responsibility for maintenance of minor public infrastructure; feeder roads, bridges, communal market-places and medical aid-post- buildings. Recognising that the electorates were not in a position to support such activities from their own meagre resources, the LGCs were provided with the necessary training, the needed funds, and help in planning by the central government via the various District Offices. Through the formative years of the 1960s and early 70s the desired path was followed. In 2010 there are 300 or so LLGs, but almost all are moribund. Only those centred upon urban areas where land-rates and service charges levied by the organisations themselves provide cash-flow, continue as communal service-providers. The rest of the LLGs, the rural majority, have been intentionally deprived of support by the evolving party-based system of national government. They have been side-lined as a political force.

Rural councils, without the means to collect any but a derisory level of income from within their constituencies are toothless tigers. Rural councillors live much as faithful old dogs do; lying in the shade, only stirring to snarl and snap when something threatens the wellbeing of the community. And yet these men command great community respect, for they have been chosen on this basis alone; on the basis of respect and not in any expectation of pork-barrelling or clan-related favours for votes. Community support for the councils as institutions also remains high, for their potential is well-understood. By their very nature the councils, through the various wards, are in touch with the whole community, 24/7. This cannot by any means be said of the MPs, or of the national or provincial public service. Councillors within their wards mimic the function and influence of old-time traditional leaders within the circle of a group of closely-related clans, but in addition they constitute a potential direct link with the seat of power. A link which if activated would connect the grass-roots with the highest authority in the land.

The majority of PNG’s growing population are rural subsistence-farmers. Most live within existing, established council wards. Many wards maintain on their own initiative, community youth groups. This is a reflection of the concern with which a great many mature citizens view the rise of a-social, even hard-line anti-social sentiment among young and virile rural males. Boys who see before them a pointless life of idleness and frustration, deprived of education and opportunity, and at the same time deprived of the purpose and sense of worth derived in the past by young initiated warriors ,valued by all, entrusted with each clan’s physical security in time of trouble. Under the LLGs, despite the lack of support from national entities, youths are in touch with their councillor and vice-versa. This is but one example of the huge social-development-related networking potential which the existing, constitutionally-established web of LLGs represents.

The LLGs provide this society with a potentially reliable, very valuable socio-political building block. A foundation upon which a thoughtful and well-prepared national reform group could build a new, fair and happy Papua New Guinea.

But any resurrection of the LLGs within such a set of plans will restore them in a very different image to that which they presented in the past. Today there will be no tip-trucks; no quarries; no road-building or building-maintenance teams; no council workshops or savings-bank agencies or post-office and telephone services. The supply of civic services will continue to be handled by the relevant government authorities. The newly-revived LLGs will carry out a different but far more important range of duties, for they, the councillors, the presidents and their clerks with their records of meetings and transactions and correspondence, these will become quality-controllers for state-funded service-delivery, for public infrastructure maintenance and renewal, and for the proper function of rural schools, health centres, policing and village court activities. All these services are currently in a state of decay due to neglect and lack of leadership.

Each rural LLG will be provided with one suitable, reliable vehicle complete with driver, fuel and all r&m costs met from the funds controlled by the relevant MP. Under strict LLG control the vehicle will be available to convey health department officials and materials, school inspectors, magistrates inspecting village court records and performance, and as and when urgently needed, to transport the ill and injured to the nearest hospital. Where visits from departmental executives or inspectors are perceived to be needed by councillors the LLG will request these, officially, and negative responses citing lack of transport will be forcefully rejected with reference to availability of the LLG’s vehicle.

During the course of each month the LLG vehicle will be available to carry groups of councillors on official, regularly-scheduled inspections of the various wards with special reference to roads, bridges, schools, medical aid posts, village courts and any rural police-posts or other government institutions present which provide services within the LLG area.

Prior to each monthly council meeting each councillor will prepare a summary report of affairs, needs and problems within his ward and these will be tabled for discussion and action. The MP representing the council area or his delegate must also be present to note matters raised each month.

Before the end of each quarter the Council President must cause a summary of needs, problems and matters for attention by government departments and agencies to be made, and discuss this summary with the area’s MP who must then accompany the President and others to meet the Governor to present the summary and to negotiate solutions and rectification of shortcomings.

Where it is impossible to resolve matters at provincial level the MP will take the relevant matter with supporting background documents to Waigani where he will do his best to ensure that satisfactory outcomes are procured.

Made newly-relevant in society and enjoying increased prestige the councillors will play an essential part in leading a renewal of the services which rural people are entitled to expect from government. They will play a very important role in the restoration of fairness and full equity in society and national wealth for the mass of the nation’s people. The people will become empowered in a way they have never known. An overly-large, costly and often-recalcitrant public service will be forced to perform to expectation. For his part, the wise MP will see that times are changing irrevocably, and that to retain his seat and associated privileges it will be essential to fulfil to expectation the role as newly designed for him. The penalty for reluctance being that his term in parliament will be limited; cut short at the next election. Compliance and fulfilment of expectations, however, will ensure his return regardless of adherence to one or another political party.

The number of parties will fall and those which remain will do so because they represent valid points affecting sections of the community as well as broad ideals in respect of the progress of the nation. Whilst parliament and cabinet as such will continue to rule and direct the nation as empowered, the resurrection of the LLGs as pictured here will usher in a dynamic and progressive era for PNG society at large.

  • John Fowke has spent most of the past 50 years living and working in rural Papua New Guinea

Coffee-growing in PNG for well-meaning international consultants.

By JOHN FOWKE

 

Most of what the nation’s academically-trained extensionists and researchers plus allegedly PNG-experienced Australian planners believe and tell us is not relevant to the village coffee grower today. 

The growers’ main problems today are social and infrastructural ones.

 Generational changes in attitude; ever-worsening road access to marketplaces; first- and second-generation coffee garden-owners who are old and tired; a large majority of youngsters who are not interested in active involvement.

These are the major problems which culminate in a reluctance to re-plant a national tree-stock which is well past its prime.

The 1950’s/’60s/70’s trees are like their owners- they are tired and old and they have only another 10 years or so of life left to them.

Massive replanting, replanting done by individual growers, is the only answer to the immediate problem.

It’s a question of re-energising society at large -   it’s a massive social problem, not a technical one.

The arrival of coffee together with roads, airstrips and the “gavman” in the Highlands some 65 years ago precipitated a social revolution and great excitement and interest in new things- it was a watershed in PNG history- nothing since has provided so much stimulation and excitement and, importantly, physical activity and commitment.

Today coffee is just something that’s always been there.

 And our small coffee growers, the backbone of an industry in which they produce 90% of the total coffee crop are subsistence farmers, not small businessmen.

Not people who live, eat, sleep and dream of their business like dairy-farmers or vegetable farmers in other lands where farming is industrialised, part of a sophisticated capital-based system of production.

 This needs to be made plain to all who blame the various extension agencies for declining production.

The problem is not the lack of advice.

It’s the lack of energy among the grower population.

Same story with cocoa, copra, rubber.

All the same thing.

Ageing growers, lazy or disinterested young and lack of reliable access to markets.

 The much-heralded funding soon to be provided to the industry by the World Bank is to be tied to improved marketing of small-holder coffee via certification as Fairtrade or Utz Kape or any of a number of fringe marketing organisations set up in coffee consuming countries.

 This with the object of gaining a premium for programme participants.

Not primarily for expansion of the yield from existing coffee lands, but for the improvement of returns as an incentive for growers to keep growing coffee.

 This is seen as the key to ensuring the longevity and communal value of the industry.

As far as this goes it’s fine, but such a big sum as is being provided will far more than cover the sort of programme, I believe the concerned consultants to be planning.

And more importantly, the all-important question of re-planting gets only a vague mention.

Replanting of the 1950's /1960's/1970's coffee-gardens is absolutely crucial to the ongoing health of the coffee industry.

Not repeated renovation pruning of the already aged trees.

Renovation pruning of the present tree-stock, which is 90% senile, is like dressing an old man in new overalls and expecting him to swing a pick and shovel like a young man again.

 It’s a complete waste of time, money and energy.

All the old coffee in PNG desperately needs to be replaced- and this is very simple- but growers must be persuaded to it – and this is the hard part- this is what all the planners and pollies forget- its not the agencies’ fault that the crop hasn’t grown over the past 20 years- it’s the fault of the growers themselves……laik bilong ol bai inap, em bai namba bilong kopi bai I moa iet….getting the growers to do anything is hard because those who are not “lapun nogut olgeta” are mostly disinclined because their kids will not help them -  they say “ Maski, ol yangpela lain ol no inap halivim wok na lukautim gut kopi, olsem na mipla ol lapun les pinis.”

This is what the industry is looking at - willingness of growers – not the ability of the agencies.

Planting and re-planting and looking after coffee is so simple and so much a part of Highlands culture now that it really doesn’t need advisers or extension specialists at all…what it needs is either a big kick in half-a-million backsides or some very persuasive talking by someone with the charisma of the late Sir Iambakey Okuk.

As for better marketing strategies as an incentive, this is valuable and should be proceeded with.

However, all concerned must clearly understand that they are only fiddling at the edges of a big, well-controlled machine.

A machine powered by the needs and greed of six multinational coffee-roasters and brand-owners and their agencies who, since the lapse of the ICA in the ‘eighties, have gathered for their sector more than 80% of the total value of packed, processed coffee sold around the world.

Growers and exporters and internal service-providers within growing countries such as PNG share between them only 10% of the gross value of their crop as a consumer product in the wealthy parts of the world.

One cannot but remain very sceptical when one knows that the certifying agencies and associated roasters and major charities which retail the certified coffee product are simply part of this huge, selfish complex.

 These self-proclaimed do-gooder organisations justify their existence by squeezing out a relatively tiny benefit to farmers whilst selling their fair-trade or organic or bird-friendly or rainforest-grown certified product in the top range of retail prices around the world.

A certified farmer in isolated Okapa in the Eastern Highlands of PNG will get the benefit of about 40 toea per kilo of green-bean equivalent compared with what he might get from a non-certified buyer.

 Even this small advantage does not hold true much of the time for reason of local market variances and factors such as roadway collapses and so-on.

His product will be sold FOB by the PNG-based certified exporting agency at a premium of some 50 to 60 toea per kilo green bean, above the ruling average FOB for the relevant grade.

Thus where the average FOB lies at around K7.00 per kilo, the certified exporter will receive a bonus of 50 to 60 toea above this to pass down to the farmer via the certified miller.

Once received, say in Melbourne, and roasted and packaged under the name of a well-known international charity, the final product will be retailed for as much as AUD 40.00 per kilo.

Who is pulling whose leg with all this feel-good stuff about helping the impoverished farmers of the tropical world?

CIC and the growers should make themselves aware of the reality of the coffee-trade, world-wide, and the part played in it by the certifying and fair-trade movement.

Then consideration should be given to using as much as is necessary of the WB project funds towards replanting PNG’s existing coffee-lands with new seedlings, as a main objective.

  • John Fowke has spent most of the past 50 years living and working in rural Papua New Guinea

 

More investment in tourism promotion urged

By DOREEN POLOH WAIM

 

A TOUR operator from East Sepik province has called on the Tourism Promotion Authority to invest more in industry promotion.

Julie Kenni runs a motel called the Sepik Village Tours at the Angoram station that organises village tours.

But over the years, the number of foreign tourists to her area had significantly dropped, she said.

Mrs Kenni said PNG had a lot to offer in terms of tourism because of the vast diversity of culture and traditions.

She believed the country’s tourism sector could be one of the major contributors to the economy if the Government could assist in terms of investing more into the promotion of the industry.

Mrs Kenni has been in the business for more than 30 years, through which she supported her family.

Apart from providing village tours, Mrs Kenni said she also had a gift shop that sold handicrafts, artifacts and bilums which she bought from local women.

Through this, she could help support her surrounding communities, she said.

Mrs Kenni believed there were  similar businesses operating in isolation.

 

European Union rules to benefit Papua New Guinea tuna sector

PNG can now export to EU markets fish caught anywhere, says Pokajam

 

By SHEILA LASIBORI

 

THE inclusion of PNG on European Union (EU) competent authorisation list of the illegal unreported and unregulated (IUU) regulation 1005/2008 is a boost to the country’s fish exports to EU markets, The National reports.

Prior to this official inclusion last Feb 4 (2010), under the then Cotonu Agreement, PNG (and others) could only export to EU markets duty-free on fish caught only in archipelagic and territorial waters,  Na- tional Fisheries Authority (NFA) managing director Sylvester Pokajam  said.

With the inclusion, PNG can now export to EU markets fish caught anywhere in the world and not just restricted to archipelagic and territorial waters, he said.

Archipelagic waters are those internally-owned by sovereign nations such as ownership of land, while territorial waters are those located 12 nautical miles from archipelagic waters to the start of the 200 nautical mile exclusive economic zone (EEZ). 

The economic partnership agreement (EPA) currently being negotiated replaces Cotonu Agreement and the interim EPA (IEPA) was signed by PNG last July.

Fiji signed the same document recently.

The IEPA also gave rise to PNG’s authorised status pertaining to the IUU regulation which came into effect last Jan 1.

“After we signed that agreement, we are now qualified to export globally-sourced fish as long as it qualifies the IUU regulation and the sanitary and phytosanitary (SPS),” he said.

The IUU regulation aims to improve traceability of all fishery products traded with the EU markets.

And for every EU-market destined canned fish and loins exports, copies of the documentation of the IEPA must accompany the catch (authorisation) certificate.

Head of the EU delegation to PNG Ambassador Aldo Dell’ariccia had said what now stood to be done by third countries including PNG was to validate the catch certification for products exported to the EU as long as the products came from catches that complied with conservation and management measures.

According to Mr Pokajam, the certificate would be issued only for the fish that was processed and not necessarily for every catch by fishing vessels.

He said this was the latest change by EU which he supported.