AusAID fat-cats

Millions wasted on ‘briefcase’ advisers

 

AUSTRALIA’S foreign aid programme, which also includes Papua New Guinea, is under siege after revelations that tens of millions of dollars are being wasted on huge salaries for consultants and rich contracts for private firms, Australian newspapers reported yesterday, The National reports.

An extensive investigation by the newspapers had uncovered what they termed “a lucrative foreign aid industry” and raising questions about the Australian government’s decision to double funding to more than A$8 billion (K18.69 billion) a year.

The damning publications come on a day when the high-level review of the Australia-PNG Development Cooperation Treaty was publicly released in Canberra, slamming the A$414 million (K967.5 million) programme, claiming that A$100 million (K233.6 million) was being paid to a handful of firms – but delivering little.

The latest developments confirms Foreign Affairs Minister Sam Abal’s worst fears expressed early this year when he called for an overhaul of  the annual aid to PNG, saying he believed too much money was wasted on costly consultants.

Yesterday, the newspapers – The Courier-Mail, Daily Telegraph, The Adelaide Advertiser and The Herald Sun – reported that aid experts were questioning the size of contracts paid to “briefcase” advisers who fly into poor countries, including PNG, Timor-Leste, Vanuatu, the Solomon Islands and Tonga.

The newspapers’ investigation reveal:

• Just five firms – led by Coffey, GRM and Cardno ACIL – secured A$1 billion (K2.46 billion) in AusAID contracts;
• More than a dozen aid consultants earn more than prime minister Kevin Rudd and fly around the Pacific advising on everything from “gender integration” to sport, transport, energy and justice;
• Millions of dollars are being diverted to questionable aid programmes, including A$12 million (K30.38 million) to research the giant panda in China and A$13 million to redevelop a single school in Nauru;
• nAusAID, the agency in charge of foreign aid, is investigating a small number of cases of fraud and is about to undergo significant restructuring; and
• Millions are being spent by the AFL, girl guides, ACTU and other community groups on “selling” a pro-aid message to the public.

The newspapers named one highly-paid consultant in PNG as John Dinsdale, a former clerk of a court in Melbourne.

He is paid more than A$500,000 a year, tax-free, as PNG law and justice adviser.

Executive Gerald Gahima, a former justice in his native Rwanda, is no stranger to controversy. In February 2004, he suddenly left Rwanda amid questions about personal debts of US$S600, 000.

The US state department cited allegations of misuse of office in personal bank transactions against Gahima. Four years later, in February 2008, he was made “senior justice adviser” to Timor-Leste on a two-year A$757,960 tax-free contract, paid by Australian taxpayers.

Nikhil Desai, whose glamour address is listed as 6850 Melrose Drive, Los Angeles, was appointed as Vanuatu energy adviser on a two-year contract valued at A$746,730.

Around the Pacific Rim, questions are being asked as to why consultants, such as Peter Kelly, who is paid A$433,000 a year to supervise Vanuatu’s small road system, are paid so much. Partly it is because Australia has signed up to the so-called millennium development goals, which includes a commitment to gender equalisation.

That explained why Susan Ferguson earns A$293,423 tax-free a year as “gender integration adviser” to PNG, the newspapers said.

“The review into the flagship PNG programme is particularly embarrassing – and raises serious questions over the value of pumping billions of dollars into fragile states.

“The former Howard government tightened aid to PNG in 2005 after it received secret intelligence of scams involving senior members of the then PNG administration.”

They reported that AusAID will pour A$415 million into PNG next year but the review –  conducted by three independent experts Stephen Howes, from the Australian National University, Dr Eric Kwa from the University of PNG and Canadian Soe Lin – is scathing of the present scheme.

 They found tens of millions of dollars was “wasted” on consultants and glossy reports. Money also props up bureaucracies instead of buying life saving medicines and equipment.

The review team found Australia’s financial support was “being spread too thinly” across a raft of areas – including health, education, transport, law and justice and tackling HIV/AIDS.

The review has criticised the amounts being spent on highly-paid advisers and called for a shake-up in how the PNG scheme is managed. It did identify some positive outcomes – particularly in health programmes run by churches and other non-governmental organisations.

It wants a stronger focus on this sort of programme – and, yesterday, Australian foreign minister Stephen Smith backed changes in the aid programme when he announced the public release of the treaty review in Canberra.

“Advisers have been a feature of Australian aid over many years and, while we do not intend to pre-judge the outcome of the (PNG) review, it may be that there is an over-reliance on advisers in some countries,” Smith’s spokesperson said.

In a media statement, the minister said: “Under the Rudd government, the proportion of foreign aid spent on technical assistance is already significantly lower than it has been previously.

“During the Howard government, average spending on technical assistance was 41.8% of the foreign aid budget. It peaked at 47.4% in 2004.

“During the Rudd government, average spending on technical assistance has been 34.5%.”

 

 

The lid is lifted on Australia's foreign aid programme

From PAUL OATES

In a Special Report in today's Courier Mail on Australian foreign aid, some of our overseas aid were listed in detail.
The report claimed that around a quarter of our aid to Papua New Guinea is paid to a handful of firms who in practice deliver little of substance.
Under the heading 'Pacific nations outraged by huge salaries paid for advisors', examples include a former clerk of a Melbourne court who now receives $500,000 a year, tax free, as the law and justice adviser to PNG.
Under the 'Millennium Development Goals', a female adviser is paid $293,423 tax free a year as a 'gender integration adviser' to PNG.
It was reported that the newly appointed head of AusAID, Peter Baxter, has 'vowed to crack down on highly paid consultants as part of a broader restructuring of the foreign aid programme'.
Other references to PNG include:
- over 12.5 million for private rental accommodation contracts in Port Moresby.
- three quarters of a million dollars paid to the Media Council of PNG for a 'new funding agreement'.
- an independent review of the PNG/Australia treaty found 'millions of dollars being "wasted" on consultants and glossy reports'. Australia's financial support was "being spread too thinly" across areas including health, education, transport, law and justice and HIV/AIDS.
- Health programs run by non government agencies and churches received a tick of approval however.
"It may be that there is an over reliance on advisers in some countries," Australia's Foreign Affairs Minister is quoted as saying.
So what about introducing outcomes based auditing into our Foreign aid programs? I searched and searched the report but couldn't find any reference that might be even slightly construed as approaching anywhere near that revolutionary concept.
_________________________________
Tens of millions in foreign aid wasted on salaries and commissions

  Steve Lewis and Nic Christensen
  From: The Courier-Mail
  May 24, 2010 12:00AM

AUSTRALIA'S foreign aid program is under siege after revelations tens of millions of dollars are being wasted on huge salaries for consultants and rich contracts for private firms.
An extensive investigation has uncovered a lucrative foreign aid "industry", raising questions about the Rudd Government's decision to double annual spending to more than $8 billion.
And a high-level review has slammed the $414 million program in Papua New Guinea, claiming $100 million is being paid to a handful of firms - but delivering little.
Aid experts also have questioned the size of contracts paid to "briefcase" advisers who fly in to poor countries, including East Timor, Vanuatu, Solomon Islands and Tonga.
The Courier-Mail's extensive investigation can reveal:
. A small clutch of five firms have secured $1 billion in contracts.
. More than a dozen aid consultants are earning more than Prime Minister Kevin Rudd, flying around the Pacific to advise on everything from "gender integration" to sport, transport, energy and justice.
. Millions of dollars are being diverted to aid programs including $12 million to research the giant panda in China and $13 million to redevelop a single school in Nauru.
. AusAID, the agency in charge of foreign aid, is investigating allegations of fraud - and is about to undergo a significant restructuring.
. And millions of dollars are being spent by the AFL, Girl Guides, ACTU and other community groups "selling" a pro-aid message to the public.
The review is embarrassing for the Government - and raises serious questions about the value of pumping billions of dollars into fragile states.
__________
On pages 4 and 5 of the same paper there are some further details:
Foreign Spending as at December 31, 2009 was quoted as:
1. Major five consultancies                    $955,090,376
2. Government payments                   $759,912,587
3. Corporations                                   $537,205,016
4. Non Government organisations    $225,700,306
5. Major charities                                $213,056,756
6. Universities                                      $ 85,942,386
7. Smaller consulting firms                 $ 78,514,144
8. Advisors                                          $ 24,271,03

Big five Australian contractors

Total value of current contracts as of Dec 31, 2009:
1. Coffey International                        $310,079,609
2. Cardno Acil Pty Ltd                       $302,413,369
3. GRM International                         $266,538,015
4. GHD Pty Ltd                                  $ 54,534,579
5. Sinclair Knigh Merz                      $ 21,704,802

Keeping district and people lost

By JAMES WANJIK

GOVERNMENT is of the people by the people for the people.
 It is a trite principle in democracies.
In Wosera, East Sepik province,  this principle is remote.
Since 1997 people have faced politically-motivated pain.
Their elected representatives since 1997 had no impact.
Till Wosera leaders see light of truth Wosera and her people will be lost.
To win Wosera people need change.
Change in leadership and governance at Wosera.
Without such change Wosera people will be ever more turned into human workhorses and buffalos carrying among others cocoa bean bags over long distances to bring in foreign exchage for leaders and bureaucrats to squander out of greed.
 So bad it is that the trunk road from Patigo to Nungwaia has deteriorated so bad that now only well equiped and fitted four wheel drive vehicle can make the road.

Papua New Guinea Parliament now irrelevant

From PAUL OATES

A recent editorial in a Papua New Guinea newspaper highlighted how the increase in the Somare ministry from 28 to 32 has effectively created a quorum that could govern PNG in its own right.
 With 32 ministers and a Speaker, the required number of 33 or a quorum is achieved.
The Speaker could merely in future convene the ministry and have them pass laws without having any Opposition or other members available.
The Somare government has therefore finally reduced the PNG Parliament to a toothless and silent rubber stamp.
 The current government has in effect, voted their fellow non government members into irrelevance.
Opposition members might just as well install cardboard cut-outs in their seats in Parliament or become computer images of virtual reality.
What happens when all members of Parliament other than the current government ministers are excluded from the Parliament for example?
 If there were to be a lock out of Opposition members or those members were in some way delayed from attending a sitting, the Somare/Temu government has now become a law unto itself.
There is now, no effective way of holding the Somare government accountable either in or out of the Haus Tambaran.
With one vote, PNG has entered an entirely new phase of non-representative Parliamentary government.
The next step and final step is full blown dictatorship.
But wait, could there be light at the end of the tunnel?
When the two new governors of the two new districts Jiwaka and Hela, arrive in the House in 2012, the numbers required for a quorum will be altered.
But then the creation or yet another ministry could always fix that minor hiccup.
 So will the 20 new seats reserved for women alter the balance?
Not if they are to have 'appointed' members as occupants.
If the new female members are to be appointed by the government, this will deliver the final death blow to the last vestiges of PNG democracy.
So will these expensive machinations by the Somare government, worth millions of kina, produce a recipe for any better performance in a government that has presided over an almost total collapse of services and infrastructure.
Not by one iota.
_________________________________________________________

Editorial from today's The National

Cabinet alone can convene a parliamentary session

PARLIAMENT last week passed an amendment to the Organic Law on the number of ministers to allow the prime minister to increase their number by four from the present 28 (27 ministers and the prime minister) to 32.
In so doing, Parliament unwittingly gave the executive government the right to convene Parliament with only the speaker present.
Parliament's present quorum is 33.
By increasing cabinet numbers from 28 to 32, Parliament has virtually given the executive government the mandate to convene a parliamentary session on its own with only the speaker present and no other member.
Now, one might argue that such a situation is absurd and, in any case, no business could get done because of other requirements such as the number of members required to pass important legislations, but there is always a danger inherent as we shall see shortly.
Earlier last week, we raised the issue in this space about the independence of the three arms of government - executive, legislature and judiciary - and the need to ensure such independence is never undermined.
We raised the concern that Parliament is presently at risk of becoming a mere rubber stamp of the executive government.
To our mind, the vote to increase the number of ministries adds to this risk as it will erode the independence of the legislature (Parliament) further.
Look at the manner parliamentary business is conducted these days.
On most days, the business of Parliament is carried on voices. For those unfamiliar with parliamentary procedures, this means that the speaker asks the chamber whether they support or oppose an issue under discussion and invites members, who support it, to say "ayes" and those who do not to say "no".
The speaker is able to tell from the number of voices whether the "ayes" or the "noes" have it. Most days, this is how business is conducted.
Were this principle applied in a Parliament sitting, which had only ministers in attendance, it would be perfectly okay since every minister is a Member of Parliament. Every matter decided would be within the norms, practices and procedures of Parliament.
This means that the executive government could make a decision at cabinet level and then ratify it in Parliament without any other Member of Parliament participating.
Quite apart from the important issue about this being "another job for the boys", as the opposition claimed and the matter of the extra cost to the nation, by this amendment, Parliament has made it possible for the executive government to constitute the legislature as well.
Unwittingly, or perhaps by design in some circles, Parliament has undermined itself and removed its independence.
While this might sound far fetched at the moment, and in practice might never happen, the grave concern is that if such a situation was ever contemplated by this or future governments, it is now legally possible.
All the more reason why the size of Parliament needs to be expanded beyond 109 by the inclusion of the two governors for the Jiwaka and Hela provinces in 2012 and by the 20 reserved seats for women.
The other concerns, which have already been raised by the opposition, is the extra cost to the nation and the matter of jobs for the boys.
The list of jobs by the opposition is that there are 28 ministers (soon to be raised to 32), 12 vice-ministers, 19 permanent parliamentary committees and 14 parliamentary referral committees. This totals 73 which also constitute a three-quarter majority of Parliament, the number required to pass amendments to the Constitution. The additional four ministers are extras.
In the area of costs, K14.9 million is presently spent on the existing 26 ministries excluding the prime minister and deputy prime minister who, together, cost K3 million. The four new ministries are expected to cost an additional K2.8 million. This is a sizeable amount of money.
The question that must be asked is: What other sectors of this country need further ministerial rule?
The further question that must be asked is: "Are all the present ministries performing to expectations and producing results such so that more ministries can be expected to boost the productivity factor and, hence, be considered positive for the country overhaul?
If the answers to these questions are in the affirmative then, we suppose, the country can foot the bill as we can expect to gain something. If not, this is nothing but another wasteful use of taxpayers' money.
And, do not forget the encroachment factor referred to in the beginning of this editorial.

99% say Prime Minister not doing enough on corruption

24 May 2010

 

PORT MORESBY: Ninety-nine percent of people who voted in an on-line poll think the government is not doing enough to tackle corruption.

The poll was conducted by the public interest group ACT NOW!

Effrey Dademo, Program Manager, says: “The message to the Prime Minister and the government is clear. The people want to see much more action on corruption. That has to include prosecuting white collar criminals in the public service and those they conspire with”.

ACT NOW! says corruption is the biggest single issue facing PNG as it takes vital funds away from the health sector, education and infrastructure maintenance.

“Why are our hospitals crumbling? Why do our kids go to schools with no books in the library? Why are our roads impassable? It is because our government is failing to stop corruption and the theft of public money”, Ms Dademo says.

ACT NOW! says the people of PNG have a right to know what the government is doing to give effect to the recommendations of various Commissions of Inquiry, including the very recent finance inquiry. Also, what steps have been taken to investigate allegations against government Ministers who have been linked to bank robberies committed by William Kapris?

“We hope the Prime Minister will listen to what the people are saying and take some immediate action.”

For further information and comment contact Effrey Dademo on (675) 7689 5266 and at effrey@actnowpng.org

 

 

 

World Environment Day celebrations at Varirata National Park

World Environment Day celebrations in Papua New Guinea will take place on Friday, June 4, and not the internationally-designated day of June 5.

Department of Environment and Conservation will be hosting the official WED programme at Varirata National Park, outside of Port Moresby, under the theme ‘Many Species, One Planet, One Future’.

DEC secretary Dr Wari Lea Iamo said PNG would join the international community to observe the event with a wide range of activities including song and dance by schools.

“WED is celebrated every year to stimulate awareness of the environment and enhance political attention and public action,” he said.

“This year’s theme highlights biodiversity development and poverty alleviation.

“It is important for the public to be made aware of environmental issues, feeling responsible about protecting or conserving the diversity of life in our local environments.

“We are not alone, we share the environment with many species of living things either land life forms or marine life, we need to appreciate their existence.”

“We must also see the importance of protected areas like Varirata National Park for instance, where, as individuals or families, we can come to be one with nature and get a glimpse of living things in their natural environment.

“For from the environment, we get our food and water.

“We must also remind ourselves that we cannot over-harvest, over-garden or even abuse natural things that we depend upon to sustain our life.

“Neither should we introduce new things that nature cannot absorb or eliminate by its own process of degradation.”

Dr Iamo thanked companies that demonstrated corporate social responsibility (CSR) towards the environment and invited all residents of Port Moresby to go to Varirata for WED celebrations, to be presided by Governor General Sir Paulias Matane.

“Perhaps,” he said, “someone may take the park to heart and help the department build it into an international tourist attraction.”

 

Provision of ART drugs in Papua New Guinea will continue after August 2010

National AIDS Council chairman Sir Peter Barter says provision of ART drugs in Papua New Guinea will continue after August 2010.

He made this reassurance, particularly to people with HIV and AIDS, in response to news articles in The National on May 20 titled “Last three months before ART drug supply ceases” and “Government deadline to fund AIDS drugs looming”.

 ART in PNG has been exclusively funded by the Global Fund since 2004 and current funding will expire at the end of August 2010. 

“These new articles may cause unnecessary panic, anxiety and alarm in the public especially among the community of people living with HIV,” Sir Peter said.

“This misinformation needs to be corrected.”

He said the facts were:

• There was stock of ART drugs in the country till December 2010.
•  A proposal to extend funding for treatment beyond August 2010 had been submitted under a ‘continuation clause’ to the Global Fund Secretariat by the PNG country coordination mechanism. The two-year proposal document is currently under review by the secretariat in Geneva;
• The Prime Minister had verbally committed K6 million to fund treatment and testing programmes from September to the end of 2010.  This was in response to the gaps created by the Round 9 HIV proposal which was not approved for funding; and
• The CCM was in the process of developing a five-year HIV Global Fund Round 10 proposal. The funding proposal would cover treatment, care and support services.

“Whilst the National Aids Council is responsible for the coordination of the fight against HIV and AIDS, this is a shared responsibility involving the National Department of Health who are responsible for the treatment together with the procurement of ARTs,” Sir Peter said.

“The National Aids Secretariat is in close consultation with the Health Department and other donors, bilateral partners and stakeholders who are implementing the fight against HIV and AIDS and whilst emphasis is being given to treatment and care which is vital, the main objective is to prevent the spread through awareness, increase testing and to upscale this message throughout PNG.”

 

Questions on use of Gulf accident funds

Questions have been raised about how public funds have been used as the first anniversary of the horrific Hiritano Highway accident is remembered on May 30.

A horrific head-on truck crash involving two passenger trucks from Gulf province killed 17 people, in what was Papua New Guinea’s worst-ever road accident, until the Jan 12 accident along the Markham Valley this year in which more than 40 people were killed.

The trucks collided near Bereina in Central province, about 100km west of Port Moresby.

Fourteen passengers and the two drivers died instantly in the accident on the Saturday afternoon of May 30, 2009,  while a young boy died later from severe internal injuries at the Port Moresby General Hospital.

Many survivors were taken to hospital, some with life-threatening injuries and others suffering broken arms and legs.

One passenger truck was heading to neighbouring Gulf province, while the other truck was heading for Port Moresby.

The vehicles were reportedly carrying 28 passengers each, many of whom were sleeping at the time of the crash.

After the accident, the Gulf provincial disaster task force committee was set up, especially to look after funds which were donated to assist victims

Committee member Jacob Ivaroa, who has been appointed new chairman after allegations of misuse of funds by the previous executive, said this was “blood money” for victims of the accident and should never have been misused.

He had a short meeting with members of the Gulf community at the OTC oval at Five-Mile on Saturday, at which it was decided that another meeting be held on Wednesday this week, to prepare for the anniversary.

Ivaroa said over K200, 000 was raised by the committee for the purpose of repatriating bodies, erecting memorials and various others.

“The balance of the money has disappeared,” he said.

“These are public funds and we must be accountable to the public.

“Unfortunately, we have no funds, despite the first anniversary being on May 30.

“We want to hold a small commemorative ceremony; we want to remind drivers of the dangers of not being responsible.

“We want to go back to the accident site, set up a plaque, maybe go to the Gulf villages and have some food, publish something in the newspaper, and wash our hands clean.

“We don’t want people to question us about how we have used the money.

“We want to be fair to the people, especially those who lost family members.”

Ward 8 councillor from Sepoe village, Vincent Aiere, said all concerned members of the Gulf community should attend Wednesday’s meeting.

“Today’s turnout is very poor and could have been influenced by the previous committee management,” he said.

Accident survivor Damien Feareka, 32, from Lese Oalai village, suffered serious physical injuries and is still going through psychological trauma.

A devout Catholic, Feareka was traveling home that weekend to be with his wife and son for a church festival for Mother Mary, however, ended in tragedy with many people including his brother-in-law Sylvester Auhava being killed.

He has taken a year off work from his job as a storeman with Airways Hotel because of the serious nature of his injuries.

“I’ve gone through a lot of pain and trauma,” Feareka said.

“Sometimes, when I sit down by myself, all those memories come back to haunt me.

“It also comes back to haunt me when I look at my bad legs.”

Feareka said while in hospital, committee members never visited him, and when he was discharged the previous chairman gave him a mere K200.

He and wife Sophia Auhava, as well as four-year-old son Colbert Ivosa Kovea, plan to travel to Lese Oala to remember the accident and brother-in-law Sylvester Auhava.

 

Sepik woes in public eye

By JAMES WANJIK

 

Sepik Highway and roads and bridges accounting and leadership plot have been uncovered by Public Accounts Committee.

Slowly Sepik people are probing leadership of Sepik and Papua New Guinea.

A group of senior Sepiks are questioning where trust funds for Sepik Highway, roads and bridges have gone to.

About K30 million were parked in the trust account controlled by public servants of Sepik.

Thaddeus Kambanei was the key trustee.

Very bad record and bookkeeping is at the root of the scam.

Public servants are taking leaders' directions without question.

This explains lack of accountability.

 But the question is why has Somare as Regional Member for East Sepik not taken up this issue with appropriate authorities like Ombudsman Commission and police?

 

Business officers urged to drive SMEs

Central deputy administrator Mannasseh Rapila presents Jacklin Ravu from Yu Tok, a non-government organisation, with her certificate.-Pictures by MALUM NALU
Central deputy administrator Mannasseh Rapaila presents Jerry Mekero, a business development officer from West Sepik province, with her certificate

Business development officers (BDOs) who attended a seminar conducted by the Small Business Development Corporation have been urged not hold back what they have learned.
Central deputy provincial administrator Mannasseh Rapila made the call in his keynote address at the graduation of BDOs from throughout Papua New Guinea from an International Labour Organisation – Start Improve Your Business training of trainers and refresher training of trainers seminar at the Granville Hotel in Port Moresby last Friday.
“The worse thing you can do to your people is to withhold all the good things you have learned in the ILO-SIYB training of trainers and refresher training of trainers seminar,” he said.
“At the end of the day, the losers will be your own people whose interests brought you to attend this seminar.
“Your provincial administrator thought that you would provide the type of advice required for the betterment of local businessmen and women, therefore, you were selected to attend this seminar away from your province.
“By the same token, in acceptance of this selection, you have made a commitment with your provincial administrator to return well-equipped to do what is required of you as business development officer of the province.”
Mr Rapila further urged participants to return to their respective provinces and take stock of local business entrepreneurs.
“How can you assist these local businessmen and women with the new, modern methods that you have been provided with over the past two weeks?” he said.
Mr Rapila said small and medium enterprises (SMEs) provided employment for local people; hence, their survival should be the concern of the BDOs.
“One of the visions of Somare/Temu government as enshrined in Vision 2050, which was recently launched, is the empowerment of people in the rural areas economically and your training this week has been timely,” he said.
“In order to achieve this vision, you as business development officers in your respective provinces, play a very-important role.
“While the government is advocating and strategising policies to enhance and improve standards of living in the rural areas, this vision cannot be achieved without properly equipping our local businessmen and women with better and improved methods and systems of operations.
“They need your expert advice in order to do well in their businesses; otherwise, they will be spectators while more-established foreign companies grab all the business activities from them.
“You make it your business to ensure that these local entrepreneurs are competitive.
“Given this scenario, you as the key agents in the provinces in promoting and growing the SME sector, play a very important role for these small SME entrepreneurs.
“The SME sector empowers PNG businessmen and women by providing better methods and ways to carry out businesses.
“In doing so, you play a very-important role in the achievement of this development vision.”

Business training in Papua New Guinea ‘non-existent’

Participants and trainers are all smiles after the graduation.-Pictures by MALUM NALU
Central provincial administration business development officerVictor Aite receives his certificate from SBDC managing director Diri Kobla
East New Britain provincial administration business development officer Pauline Wamoi receives her certificate from SBDC managing director Diri Kobla
Manus provincial administration business development officer Ikanau Posanau (with her baby) receives her certificate from SBDC managing director Diri Kobla

Small Business Development Corporation managing director Diri Kobla has admitted that business management training in Papua New Guinea is “non-existent”.
Mr Kobla made the admission at the graduation of business development officers (BDOs) from throughout PNG from an International Labour Organisation – Start Improve Your Business training of trainers and refresher training of trainers seminar at the Granville Hotel in Port Moresby last Friday.
ILO’s internationally-recognised SIYB is one of the few internationally-recognised business courses in PNG and is run by SBDC.
“Skilled business management training is non-existent,” Mr Kobla said.
He said many Papua New Guineans did not know very basic business skills such as simple bookkeeping and cash flow.
Furthermore, Mr Kobla added, after 35 years of independence and in line with its Vision 2050, the government was looking at ways to “create wealth”.
“How are we going to create wealth?” he posed to graduands.
“We want to follow the current government policy by following an established network.
“We want to upskill you with business training skills.
“The skills that you have learned are very important skills.
“The government has realised the importance of small business after 35 years of independence.”
Mr Kobla said ILO’s SIYB programme was recognised in 48 countries, including PNG, which had the benefit of four internationally-recognised master trainers who conducted the two-week seminar.
He appealed to provincial administrators to contribute by way of providing computers and other necessary items.
SIYB acting manager Peter Piawu described the two weeks as “very intense but very satisfying”.
“That is the key for any capacity building.”
Participant’ representative Medley Koito, who represents a non-government organisation from Arawa on Bougainville, said the challenge was now on them to deliver business training to rural areas of PNG.
“SBDC has left us with a challenge,” he said.
“We must go out and deliver what we have gained over the last two weeks: that is the challenge to all of us participants.
“People in the rural areas, the SMEs (small medium enterprises) need our efforts.”
The seminar was a capacity building training programme for provincial and district BDOs.
A total of over 30 provincial and district BDOs attended.
This seminar was a result of findings from the 2009 provincial commerce advisors conference in Alotau that identified many impediments that incapacitate BDOs in respective provinces to provide and deliver services for the development and growth of the SME sector in the provinces.
SBDC, as the lead implementing agency for SME development and growth in the country, took this initiative to up-skill the BDOs to:
• Effectively provide assistance to small business women and men to start and improve small-scale businesses;
• Participate actively in economic development projects; and
• Businesses and spin-off activities created by the large resource development projects.

Business in the APEC region concerned by emerging European crisis, seeks new vision for economic integration

Issued by the APEC Secretariat

Chinese Taipei, 21 May 2010 - Business leaders from the APEC region have expressed concern over the crisis currently emerging in Europe.

At a meeting in Chinese Taipei this week, the APEC Business Advisory Council (ABAC) called on member economies to be prepared to take quick and coordinated action, should the crisis in Europe persist and spread toward the APEC region.

Progress toward free trade goals, future vision for APEC

Reviewing APEC’s own progress toward its guiding principle of free trade throughout the region, the group noted that both developed and developing member economies have become considerably more open since the adoption of the Bogor Goals* by APEC Leaders in 1994.

However, says ABAC Chair Gempachiro Aihara:

“The world has changed and APEC needs a renewed focus on removing barriers to deeper integration and deliver stronger business growth.”

ABAC called for a new vision for economic integration that takes into account the evolving nature of global business particularly regional supply chains and value chain in the Asia Pacific region. This vision, say members, should not only include liberalising the flow of goods throughout the region, but also the flow of services, investments, ideas and people. It should be underpinned by balanced and inclusive growth and sustainable development and should take into account the needs of small and medium enterprises as well as microenterprises.

ABAC continues its call for the establishment of a Free Trade Area of the Asia-Pacific (FTAAP) which appears to be the most viable concept for achieving economic and market integration in the Asia Pacific. It called for APEC Ministers to provide greater detail on the modalities and process toward a FTAAP to enable the business community to be more actively involved in its evolution.

ABAC will put forward their recommendations to Leaders on the way forward for APEC during their meeting with Ministers Responsible for Trade which will take place on 5-6 June 2010 in Sapporo, Japan.

 About ABAC

ABAC includes representatives from the business communities in each of the APEC’s 21 member economies.  These representatives are appointed by APEC Leaders as a source of insight to the priorities and concerns of business sector. The second ABAC meeting was held from 17 – 21 May in Chinese Taipei.

For more information, contact:

Mr. Osama Kamikawa, ABAC Executive Director 2010 at (813) 3285 5857 or at: o.kamikawa@mitsui.com

Mr. Antonio Basilio, ABAC Secretariat at (63 2) 845-4564 or at: abacsec@pfgc.ph

Ms. Tran Bao Ngoc, APEC Secretariat at: (65) 6891 9616 or at: tbn@apec.org

* In 1994 APEC established the “Bogor Goals” of free and open trade and investment in the region by 2010 for industrialised economies, and by 2020 for developing economies. 

 

NADP needs to be aligned with higher development policies

By SOLDIER BURUKA of DAL

 

The Department of Agriculture and Livestock is reviewing the National Agriculture Development Plan to realign it with the Government’s higher national development objectives.

A three-day workshop was held last week for senior DAL staff and representatives from the agricultural commodity agencies, industries and farmer groups to discuss the agenda.

About 50 participants met to review the NADP objectives and see how it can be aligned to higher government policies and strategies such as the Medium Term Development Strategy (2005-2010), PNG Development Strategic Plan (2010-2030) and the PNG Vision 2050 in the “promotion of smart, fair and happy society”.

The workshop objectives included the review of the values, vision and mission of NADP, formulation of its goal and purpose, and determination of the thematic areas and objectives.

The workshop was told that the policies and strategies had similar goals to the NADP whose main objective is to improve the people’s quality of life.

However, it is important that all government policies and strategies are aligned together and implemented jointly by all government departments and agencies and its partners for more impact, effectiveness and greater success.

DAL Secretary Anton Benjamin said the NADP was a good plan which was about mobilising and growing the agriculture sector.

 However, in its current state, the NADP had lesser linkages to the Government’s higher development policies and strategies and this needed to be addressed.

Benjamin welcomed the input by all stakeholders and thanked the Agriculture Research and Development Support Facility (ARDSF) team for successfully facilitating the workshop proceedings.

He urged the stakeholders to continue working in partnership with NDAL to make the NADP an even better plan for sustainable agriculture growth.

 

Oro farmers seek help on rubber

Caption: Mr Uhena pictured outside the Comfort Inn during the CIMC meeting.-Picture by SOLDIER BURUKA

 

By SOLDIER BURUKA of DAL

 

There is potential for rubber in the oil palm-dominated Oro province but more effort is needed to improve agricultural delivery services including transportation and marketing.

The call was made by a rubber grower, Paulinias Uhena, who says many people are interested in rubber development but are critical of the lack of basic infrastructure services as well as inadequate extension and technical support from the relevant government agencies.

Uhena attended the recent Consultative Implementation and Monitoring Council (CIMC) Southern Regional Development Forum in Popondetta and was happy to meet with PNG Rubber Board chairman Warren Dutton.

The main constraints faced by farmers are the lack of transportation to transport the rubber cup lumps to designated markets, access to basic infrastructure such as roads and bridges, extension advice, credit and finance, rubber seedlings and the appropriate tools for tapping.

There is also a need to rehabilitate the rubber trees as well as to go into further expansion.

“We need assistance with transporting of rubber produce from the rubber plantations to the main road, feeder roads to be built and upgraded,” Mr Uhena said.

“We need rubber tapping equipment, and we need seedlings for planting.”

“Our biggest obstacle to rubber development and most agricultural productivity is the lack of roads and bridges and the poor conditions of the feeder roads.

“This has been the major concern before, during and after the cyclone disaster that affected the province in 2007.”

He said desperate farmers had to pay people to carry their bags of cup lumps to the nearest road to await transport.

 He said what the people needed was cheap transport such as tricycles.

Mr Uhena said the Ioma area not only produced rubber but also cocoa, coffee and vanilla and there was enormous potential for forestry development or agro forestry.

He said there were several options on agricultural productivity for the people to choose, however, this would be made easier with better access to good roads and bridges, market, extension and other essential services.

He said rubber plantations that were established in the early 1970s with provincial government assistance were now in production and this gave the people the opportunity to tap the trees and earn reasonable income.

He said there were over 34,000 matured rubber trees which were in total production.

 A local market for rubber cup lump has been established in Popondetta at 90t/kg which is attractive for growers.

Mr Uhena, who works in the provincial administration, is the chairman of the Aeka rubber project in the Ioma sub district of Sohe district, which has over 200 farmers. Another 200 farmers exist in other nearby districts, which mean that the rubber production can be doubled in the province.

The growers and their families, despite the difficulties they encounter, are happy that they are able to earn some income to sustain their livelihood.

Mr Uhena said he had raised his concerns with Mr Dutton who had assured him that he would approach the PNG Sustainable Development Program for possible assistance.

Mr Uhena said he also appealed to the Department of Agriculture and Livestock to donate a big truck and a tractor and provide the appropriate tapping equipment including cups and knives.

Manus signs rubber agreement

By SOLDIER BURUKA of DAL

 

 A memorandum of understanding (MoU) has been signed to promote rubber development in the Manus province.

The signing took place between the Department of Agriculture and Livestock and the Manus provincial government last week in Port Moresby.

Officiating at the signing ceremony, acting Minister for Agriculture and Livestock, Peter O’Neill, described it as the way forward for the development and expansion of the rubber industry in Manus province.

“The National Government supports the initiative taken by the Manus provincial government for the establishment and development of the rubber estate and will undertake to provide the necessary funding and technical assistance, including training and extension services to growers,” Mr O’Neill said.

He said the MoU would also enable the stakeholders to be involved in the effective planning, organising and management of rubber development and expansion in the province.

 This, he said, was an example of the public-private partnership which the National Government encourages for sustainable agriculture growth and to involve investors in the process.

He emphasised that the important thing was for the provincial government and the resource owners to benefit in the long term.

“The rubber industry offers some challenges and the Government through the Rubber Industry Board and NDAL and relevant stakeholders, including the private sector, are working together to promote the industry,” Mr O’Neill said.

“The public-private partnership is an effective way to support the board and department in their efforts to commence rehabilitation and replanting in potential areas of the country.”

Mr O’Neill said rubber had been cultivated in the country for over 100 years but its contribution to the GDP remained marginal.

Although over 40,000 ha were planted in the past only, 18,230 ha still exist with 6,000 ha in production.

Rubber provides income for over 5,000 growers and indirectly supports another 20,000 population.

In Manus province, it is smallholder-based with 126 growers with an area of 149 ha of matured rubber.

PNG’s natural rubber can be a major foreign exchange earner and is fast becoming a major commodity, given the growing need for natural rubber around the globe.

The current world market price for classified rubber is $US2, 000 per tonne which is around K5, 000.

Manus Governor Michael Sapau signed the MoU on behalf of the province.

Also present was Minister for Inter-Government Relations Job Pomat, DAL Secretary Anton Benjamin and Rubber Board deputy chairman Colin Damai.