Petromin pays K100 million in taxes and dividends

By MALUM NALU
Petromin has paid K8 million as dividend to the state in the 2008 and 2009 years of operation, in addition to K105.5m in taxes to the government since 2008, according to board chairman Brown Bai.
Speaking at the opening of Petromin Haus last Friday, Bai said this was because of sound and prudent management, and urged management and staff to continue taking pride in their work and new office.
He also applauded last week’s decision by Mining Minister John Pundari to nominate Petromin to participate in four world-class mining projects: Solwara-1, Frieda River, Wafi-Golpu and Yandera.
“In our assessment,” Bai said, “these projects are operated by reputable operators and Petromin is happy to be a participant in these respective projects, because they will add value to the growth of the company and future prosperity of our people.
“Similarly, Petromin is comfortable to be a partner in the Moran oil fields and the PNG LNG projects, which are operated by world-class operators.
“Petromin is also a nominee in the second large Elk/Antelope LNG project, with a 20.5% equitable interest, led by InterOil Corporation.
“Whilst we have not been provided information on the recent arrangement between Energy World Corporation (EWC) and Liquid Niugini Gas Ltd (LNGL), we hope the project will be developed on schedule.
“…I am particularly excited about the future prospects based on major important investment decisions and new commitments that we have made to further enhance Petromin’s continuing successful performance.
“These include mineral and petroleum exploration programmes and commercial investments in partnership with strategic partners.”
Petromin currently has six wholly-owned subsidiaries which hold its equity in current and future projects: Tolukuma Gold Mines Ltd (TGM); Eda Oil Ltd (Moran petroleum project); Kumul LNG (PNG LNG project); Eda LNG (Elk/Antelope LNG project); Eda Minerals (mineral exploration and production); Eda Energy (petroleum exploration and production); and Petromin Shipping (LNG shipping).

A dream comes true for Petromin

By MALUM NALU

Petromin board chairman Brown Bai (right) with (from left) fellow board member Sumasy Singin, managing director Joshua Kalinoe, Prime Minister Sir Michael Somare and Mining Minister John Pundari.-Picture by MALUM NALU

What began four years ago from the private residence of Petromin managing director, Joshua Kalinoe, has culminated with the opening of the magnificent K31.9 million Petromin Haus at 2-Mile in Port Moresby last Friday by Prime Minister Sir Michael Somare.
From Kalinoe’s residence, Petromin moved on to the Government Printing Office, and then Pacific View Apartments before staff began moving into Petromin Haus on Jan 3 this year.
Petromin board chairman, Brown Bai, said the opening of the company’s new head office building was an excellent testimony of the will for Papua New Guinea to prosper through more direct and active investment in the development of minerals and petroleum resources.
“As the saying goes, ‘where there is a will, there is a way’,” he said.
“And Petromin plays a pivotal role in paving the way for the nation’s will to prosper from the revenue generated through our mineral and hydrocarbon resources.
“This process began with the creation of the Petromin Act and establishment of Petromin PNG Holdings Ltd and now it has its very own head office building.
“I am really proud of our hardworking management team and staff serving tirelessly in their new office to deliver on Petromin’s mandate to advance the state’s interests as enacted by parliament.
“Now the company, with its new home here, can confidently move forward from strength to strength in the performance of its mandate to help propel the nation’s will to prosperity.
“I have no doubt in my mind that this modern office facility shall shine as symbol of prosperity for PNG, through direct participation by Papua New Guineans in the mineral and hydrocarbon sectors.
“This will be the engine room for generating revenue flows from oil, gas and minerals developments that will be invested in nation-building efforts that bring more benefits to our people.”
The building was pre-fabricated in Indonesia to Petromin specifications, and delivered, with all furniture and fittings, in containers.
This includes the cost of land, design, materials, fittings, furniture, and security features.
The building is one of PNG’s first green buildings, and has many energy-saving features, including climate control, insulated roofing, and reflective glass panelling.
It is designed to save energy.
The building was designed to company specifications by a Jakarta-based firm, and was constructed over a period of 10 months.
It is earthquake-proof, and the structure is coated in a fireproof material that ensures that despite fire damage, the structure will remain intact.
All divisions and subsidiaries of the company are located within the building, except for the Tolokuma gold mine administration, which is still based at Waigani.
Petromin PNG Holdings Ltd is an independent company created by the state of PNG to hold the state's assets and to maximise indigenous ownership and revenue gains in the mineral and petroleum sectors.
It is empowered as the vehicle to better leverage the state's equity holdings and encourage more production and downstream processing of oil, gas and minerals in PNG through proactive investment strategies either wholly or in partnership with resource developers.

Prime Minister opens landmark Petromin Haus

By MALUM NALU

The K31.9 million Petromin Haus as it looked before opening last Friday.-Pictures by MALUM NALU

Prime Minister Sir Michael Somare says the opening of the landmark K31.9 million Petromin Haus also reflects the successful performance of state-owned Petromin since its inception in early 2007.
He said this last Friday when opening the modern state-of-the-art office complex at 2-Mile in Port Moresby, witnessed by senior ministers, corporate executives and members of the diplomatic corps.

Prime Minister Sir Michael Somare cuts a ribbon to open Petromin Haus flanked by from left Petromin chairman Brown Bai, Treasurer Peter O’Neill, Petromin Minister William Duma, Mining Minister John Pundari and deputy Prime Minister Sam Abal

“I am proud to say that Petromin Haus will accommodate and facilitate the vision for Papua New Guineans to develop capacity and expertise to play a leading role in this fast-growing industry with its huge potential and impact on our national economy,” Sir Michael said.
“I am pleased to be part of this national company that is prepared to take on the country’s modern commercial and international development culture.
“A culture of sophisticated technology, technical language, communication systems, safety and environmental consciousness, good field and industry best practices at world standards and high returns that can come with successful operations.
“Having initiated and established Petromin, my government will continue to maintain firm support for the company in its mission to generate and effect asset acquisitions and investments, and to efficiently manage the state’s interest in designated mineral and petroleum resources.”
Sir Michael said Petromin’s determination was quite evident when, despite criticisms and skepticism, it took the bold step of acquiring Tolukuma gold mine with liabilities and turned it into a sound operating mine within a short period of time.
“Petromin has taken important and decisive moves to invest in exploration activities, including partnering with InterOil Corporation in the Elk/Antelope project as well as other areas with potential for oil, gas and minerals,” he said.
“These include its first-ever exploration license - PPL 345 – for petroleum exploration in the New Ireland Basin and 13 highly-prospective mining tenements in Central, Morobe and Oro provinces.
“As part of Petromin’s innovative approach to investment decisions, I note with keen interest that the company is now pursuing a joint development plan with strategic partners from Republic of South Korea and Norway that is aimed at introducing new and sophisticated technology in floating LNG production, storage and off-loading system (FPSO).
"As a trustee shareholder, I expect these partnerships to be developed in ways that respect each other’s roles and functions so that projects are implemented expeditiously.
“And with the current increase in exploration and mining in the country and your outstanding performance, I would like to see Petromin make a significant commitment to human resource development in this sector.”
Sir Michael urged the Petromin board to consider a significant number of scholarships for young Papua New Guineans in coming years.
"And with the current increase in exploration and mining in the country and your outstanding performance, I would like to see Petromin make a significant commitment to human resource development in this sector,” he said.
“We have many vocational training schools funded by our donor and development partners.
“It makes sense for national companies in this sector to also invest in the training of our trades people as well as specialists.”

Flower power to Gerehu

By MALUM NALU

Joe Gimbe and wife Jenny tending to plants at their roadside market.-Picture MALUM NALU

Tete settlement at Gerehu Stage 2 in Port Moresby is a notorious ‘hell’s kitchen’ synonymous with the worst of crimes.
Tete is one of the worst settlements in Port Moresby, where law and order problems have been rife over the years, including murders, rapes and robberies.
On December 16, 2008, leading citizen and businessmen Sir George Constantinou was killed by just petty criminals outside Tete, in a crime which shocked Papua New Guinea and the world, and which saw Port Moresby disparaged as one of the top five murder capitals in the world.
In retaliation, police went in and demolished the settlement two days later to fulfil what the Prime Minister Sir Michael Somare had warned about in November 2003, after 15 people were killed in Tete.
Sir Michael had warned that one more killing would have this settlement removed.
Hundreds of setters were left homeless, with many fleeing the area with their belongings when the police operation started.
The police operation followed a public outcry against the notorious settlement, which has a long history of criminal activity, following the brutal murder of Sir George.
Police personnel from all stations in the nation’s capital went to the settlement around 2pm and began bulldozing it, setting alight buildings and chopping down trees on one side of the settlement.
“In retrospect, we all have very short memories: we are masters of the art of knee-jerk reaction,” businessman Allan Bird said after the Sir George murder.
“Illegal settlements full of young men with little or no education, no skills and little chance of getting a job, who are going to turn on the rest of us eventually unless we do something about their situation.
“Razing the settlements will only move the criminals to another location.
“There are many more places with young men who have no jobs, no life, no hope and no future.
"To them their life has little value, so why should your life or that of our loved ones be worth anything?
“They have nothing to lose while we have everything to lose.”
Three years on, Tete is back, and rising from the ashes with its denizens quietly determined to rub off that mark of Cain which has plagued them since the settlement was established.
In the Biblical Book of Genesis, God declared that Cain, the firstborn son of Adam and Eve, was cursed for murdering his brother Abel in the Garden of Eden, and placed a mark upon him.
When God confronted Cain about Abel's death, God cursed him, saying:"What have you done? Listen! Your brother's blood cries out to me from the ground. Now you are under a curse and driven from the ground, which opened its mouth to receive your brother's blood from your hand. When you work the ground, it will no longer yield its crops for you. You will be a restless wanderer on the earth." (Gen. 4:10–12).
One of those quietly striving to rub off that mark of Cain at Tete, working the land so that it will yield its crops for him, is Joe Gimbe from Amaiyufa village in Asaro, Eastern Highlands province.
He has set up a roadside flower and plant market at the recreational park at Gerehu Stage 2, from his ‘Garden of Eden’ at Tete, and is quietly working towards greening and beautifying Gerehu and Port Moresby: literally bringing us all ‘flower power’,
Since Gimbe set up shop on Wednesday last week, business has been good, with many people stopping to buy plants, flowers and home-made compost for their homes, as well as wandering through his little roadside market.
Not bad for a self-taught gardener, who has never been to school and, ironically, was given his marching orders from the big PNG Gardener Justin Tkatchenko last July.
Gimbe has since been eking out a living by selling beautiful plants and flowers in stylish flower pots.
Many a house in Gerehu and wider Port Moresby is decorated with trademark Joe Gimbe pot plants.
He fashions them at Tete, where he sold them at home, but has now ventured into the public domain at the recreational park.
Gimbe makes enough to put food on the table for his young family, pay the bills, and put his two children to school.
He is adamant PNG would not have such a huge unemployment problem if people eat humble pie and go into such small business.
He is also proud that he is quietly contributing to keeping Port Moresby green and beautiful.
“I first came to Port Moresby in 2000,” Gimbe tells me.
“I started work with Robin Carter at Palm Grove.
“I learned how to nurse flowers, maintain gardens for companies, as well as plant flowers in gardens.
“Robin Carter left for New Zealand in 2004.
“I then started work with Justin Tkatchenko at PNG Gardener, however, left PNG Gardener in July 2010.
“I was without a job, so I started growing plants and selling them, out of Tete settlement.
“Since last July, I’ve been running my own little plant business at home in Tete, where people who knew me came and bought my plants.
“However, it wasn’t that many, that’s why I decided to come out in public to this area.
“There have been many customers since I came out here on Wednesday last week.”
Gimbe admits to me that he has never been to school.
“I grew up growing coffee,” he says.
“There was a tribal fight in my area from 1993-2000, so I left and came to Port Moresby.
“When I came to Port Moresby, I didn’t know anything about this plant business, until I joined Robin Carter at Palm Grove.
“Now I really enjoy what I’m doing.
“If my plants give so much joy and happiness to people, it also gives me a lot of joy and happiness.
“I haven’t made any big sales as yet, or have major clients, and only make small sales to individuals who want plants and flowers for their homes.
“My plants and flowers are reasonably priced, and range from K1 to K40.”
So there you are, next time you’re driving to Gerehu, make sure you stop at the recreational park and buy a plant or flower from Joe Gimbe.
You will make your home more beautiful, help a small local businessman, as well as rub off the mark of Cain from the notorious Tete Settlement.
If you want to contact this little PNG gardener, his number is (675) 72361481. Show him your support by buying one of his plants or flowers!

3 charged with fraud

By ANGELINE KARIUS

 

THE main suspect involved in conning a local businessman in Madang into believing he was Department of National Planning and Monitoring secretary Joseph Lelang has been arrested and charged with two of his accomplices, The National reports.

Nelson Paniu, 42, of Bulian village in Manus was charged along with Patrick Guan, 23, of Kondan village in Kerowagi, Chimbu, and Wesley Pabulu, 36, from Yule Island in Central.

All three were charged with two counts each of stealing under false pretence and conspiracy.

Paniu, a former policeman, conspired with his accomplices to steal from complainant Bobies Karbain from Bogia in Madang, according to police.

The incident occurred between Feb 14 and 18, where Karbain made two cash deposits of K1, 000 and K10, 000 into a BSP account number 1001629208 under the name Robert George.

The second payment was made after Paniu claimed that his wife had cancer and needed treatment in Australia.

Karbain was given a false copy of a K5 million department cheque serial number 241839 under the name of Kaborbor General Contractor Ltd, when he was asked to travel to Port Moresby.

Karbain paid another K40, 000 to the accused upon request.

Paniu and his accomplices told Karbain, who was in Madang, that his K5 million cheque was ready and that an upfront payment was to be made before the cheque could be released.

It is understood that Karbain had submitted a K5 million cocoa and coconut rehabilitation project proposal through the department to help start his project.

Guan had his case adjourned after appearing for mention yesterday, however, Paniu and Pabulu are expected to appear before the Waigani committal court today.

Acting deputy police commissioner and chief of operations Fred Yakasa, when referring to this case, said the fight against graft would intensify due to theft and embezzlement was spiralling out of control.

He warned people to be wary of conmen and thieves who had become more daring and cunning in their illegal activities, adding that the theft of K5 billion over the years from the government is a good example of such crimes.  

Clinton: China seeks to outflank ExxonMobil

CHINA wants to elbow US oil giant ExxonMobil out of a US$15 billion liquefied natural gas (LNG) project in Papua New Guinea, US secretary of state Hillary Clinton said on Wednesday in an example of the new competition Beijing presents to US interests, The National reports.

She told the senate foreign relations committee in Washington DC that Republican proposals to cut US foreign affairs budget would hit US efforts to compete with China’s rising power on the global stage, Reuters news service reported.

“We are in a competition with China,” Clinton said, citing the PNG LNG project in the Southern Highlands as an example.

“ExxonMobil is producing it. China is in there every day, in every way, trying to figure out how it is going to come in behind us, come in under us,” Clinton said.

The committee heard that ExxonMobil was the majority stakeholder in the PNG LNG project, now in full construction stage, which was due to come on stream in 2014 and was expected to produce 6.6 million tonnes of liquefied natural gas a year.

When she visited Port Moresby last November, Clinton warned PNG to avoid the “resource curse”, referring to many countries which were blessed with oil, gas, gold and diamond were now poor as a result of bad management by their governments on the proceeds from those resources.

She urged PNG not to go down that path but learn to use and invest the revenue from the LNG project in long term investments.

Clinton said the US state department would help PNG manage the revenue from the LNG gas project.

The US-based Export-Import Bank in 2009 approved the largest financing transaction in its history to help develop the PNG gas reserves.

In Washington DC this week, Clinton said China was also boosting ties with other states across the Asia-Pacific and other island nations that had long been reliable, if little noticed US allies.

According to Reuters, Clinton said funding cuts that would require a US pullback on everything from support for global health programmes to protection of women’s rights could have a serious long-term impact on US influence around the world.

“If anybody thinks that our retreating on these issues is somehow going to be irrelevant to the maintenance of our leadership in a world where we are competing with China, where we are competing with Iran, that is a mistaken notion,” she said.

Republicans have proposed a 16% cut to US spending on diplomacy and foreign assistance, among other things, saying it was imperative to fight the ballooning federal deficit.

Reuters reported Clinton as saying the US retreat was opening new doors to competitors, noting new media challengers such as Al Jazeera and Russian and Chinese English-language broadcasters were winning “the information war”.

“Let’s put aside the moral, humanitarian do-good side of what we believe in and let’s just talk straight realpolitik,” she said of the various US programmes that could be hit by the budget cuts.

“I also look at this from a strategic perspective, and it is essential.”

 

 

Murder suspect for top government t job

MURDER suspect Dr Theo Yasause was short-listed for, at least, three departmental head positions, including that of the chief secretary, before he was arrested by police following the shooting death of rugby league star Aquila Emil last month, The National reports.

This came to light on Wednesday when cabinet appointed Margaret Elias as permanent secretary for the prime minister and the National Executive Council. By virtue of the post, she automatically assumes the post of chief secretary as well.

Elias beat Yasause and a former deputy secretary of the Prime Minister’s Department, James Melagepa, to the post.

The National learnt that Yasause had applied for and was short-listed for the position of secretary of Commerce and Industry and Education as well – appointments for which were still pending before cabinet.

The National learnt that all selections were made and the short-list finalised before the shooting incident which landed Yasause as the main police suspect.

Yasause, a doctorate holder, was formerly head of the Office of Climate Change but it was closed under controversial circumstances by the prime minister and he was subject to an investigation and was cleared of all the charges.

After the fatal shooting of Emil in the early hours of Feb 4 in Port Moresby, police arrested and charged Yasause with wilful murder.

He had been denied bail and remained a remandee in Bomana prison.

Wednesday’s cabinet decision on the chief secretary revealed that government jobs, however senior, were unattractive.

The position of chief secretary, the top of the public service bureaucratic ladder which carried the most attractive terms and conditions, was publicly advertised but attracted only five applicants.

Only Elias was a serving departmental head. The National learnt that the other four were retired former public servants.

Even the acting chief secretary, Manasupe Zurenuoc, was said to have not applied for the job and so was not considered. He would revert to his substantive position as secretary for Provincial Affairs.

There were fewer than 10 candidates for each of the other heads of department positions advertised-Education, Commerce and Industry and Agriculture and Livestock.

There were no permanent appointments made at Wednesday’s meeting but the short-listed names would be considered when NEC next convenes.

It was almost certain Yasause would be dropped from the short-list.

 

 

Let Tamate prosecute Somare: Morauta

Acting public prosecutor Camillus Sambua should refrain from prosecuting prime minister Sir Michael Somare, when his leadership tribunal hearing commences on March 10, 2011.

Leader of opposition Sir Mekere Morauta explained that this was because Sambua originated from Angoram, East Sepik province and is also Sir Michael's nephew.

Sir Mekere stressed that any involvement of Sambua in the tribunal hearing would be perceived as compromising the State's position.

"It is fair and in public interest that Mr Sambua is stopped from any involvement in the whole process.

"He is closely related to Sir Michael, "the former prime minister said today.

As well, Sir Mekere urged senior lawyers in the public prosecutor's office to ensure that all material evidence submitted by the Ombudsman Commission was not interfered with or destroyed.

"All evidences must be safe guarded at all cost.

"No evidence must be compromised or amended," he said.

Sir Mekere also said that if the prime minister had any public conscience, he should not have appointed a relative through the attorney general, Sir Arnold Amet.

"It is nepotism in its most naked form and the PNG public should not put up with such nonsense.

"It is public knowledge that Somare used Sir Arnold to appoint his relative simply to put up road blocks in the prosecution process.

"Camillus Sambua was conveniently appointed under the prime minister's instruction simply to frustrate the whole process.

"There is no other reason.

"The whole nation knows the real motive for removing Jim Wala Tamate.

"He fearlessly took a courageous and decisive stand to refer Michael Somare to a leadership tribunal.

"I reiterate my earlier statement that Mr Tamate's removal as acting public prosecutor has the finger marks of the prime minister all over it.

"It does not make any sense to revoke an acting appointment only to be replaced by another person also on acting basis."

Sir Mekere said Tamate should be the lawyer who should present the indictments relating to Sir Michael's alleged misconduct charges in the leadership tribunal hearing.

Sir Mekere noted that the Ombudsman Commission lawyer would also be there to observe, assist and clarify any issue in the process of the tribunal hearing. 

Eye sore!

Prime Minister Sir Michael Somare has expressed disappointment at the graffiti which appeared on the beautiful bird of paradise sculptures at the Boroko roundabout in NCD.
Graffiti has been sprayed over the less-than-a-month painting of the “birds of paradise”.
Loiterers are also a problem as was captured yesterday in these AURI EVA pictures.
 The prime minister expressed his displeasure while opening the PNG national orchid garden at 14-Mile last Sunday.

Airline ordered to pay K811,000 for pilot's death

Pilot’s family wins 11-year court battle

 

By SAMUEL RAITANO

 

AN AVIATION company was yesterday ordered by the National Court to pay more than K800, 000 to the family of a pilot who died in a plane crash in 1995, The National reports.

The long-fought claim was based on negligence by Trans Niugini Airways Ltd for allowing pilot John Kale to fly an airplane which was not airworthy.

The incident happened on July 25, 1995, when the Britten-Norman Islander (BN2 A-21), carrying 13 bags of coffee weighing more than 700kg, crashed in fine weather during take-off from Karimui airstrip in Chimbu.

Yesterday’s was the second of two decisions by the court. In May 2006, the court ruled against Trans Niugini Airways, which had breached aviation safety practices and standards when it “recklessly permitted an aircraft that was plagued with chronic engineering faults to be flown”.

In yesterday’s decision, Justice Les Gavara Nanu outlined assessment of the cost totalling K811, 742.66.

At the time of the tragedy, the pilot’s wife and plaintiff in the case, Esther Kuri, was 22 years old while their only son was two years old.

Kale, who was 27, then, was a licensed and qualified commercial pilot.

The payment of the claim covered 11 years, 11 months and one week, in which loss of dependency, increase risk of orphanhood, estate claim, special damages, legal costs and interest was looked at.

The decision itemised how much would go to the wife, the son and the pilot’s parents.

The cost of trial on the issue of liability, decided on in 2006, will also be paid by the defendant.

The earlier court decision said that in permitting the deceased to fly such an aircraft, the defendant (company) had acted without due regard for the safety of the deceased and was in breach of its duty of care.

During that time, the court also found that the Civil Aviation report, which attributed the cause of the crash to pilot error, was grossly flawed.

 

 

Police cautioned on arms

By ISAAC NICHOLAS

 

ACTING Police Commissioner Tony Wagambie has instructed his regional and provincial commanders to start assessing threats of arm build-up leading into the 2012 election, The National reports.

Wagambie said police would start flushing out suspected areas by June in the pre-election operations.

He said this when receiving K270, 000 worth of firearms from Maprik MP Gabriel Kapris in Port Moresby yesterday.

The arms included three Israeli-made Gail Ace 23 semi-automatic rifles and three Glock 19 semi-automatic pistols that were paid for by the Maprik joint district planning and budget priorities committee at a cost of K271, 800 for police in the district.

The presentation was witnessed by East Sepik police commander Charles Parinjo, Maprik rural police station commander James Baugen and district administrator Simon Failou.

Wagambie praised Kapris for the foresight in providing the “tools of trade” to the police force to carry out their duties in maintaining law and order.

“Today, young criminals are daring, they have no respect for the law and these tools will assist police.”

He said there was a shortage of funds in the police force  and he urged other leaders to follow the example set by Kapris because law and order was a community issue and not for police alone to resolve.

Wagambie said the police were preparing for the pre-election operations by next June to flush out areas of concern of arms build-up and the contribution by Kapris is welcomed.

Kapris said law and order was very important for any economy to prosper and if it was not addressed law and order would eat away at the economy.

“Many investors’ first question is about the law and order situation in PNG. It is hard to explain but we just say it is like any other place on earth.”

Kapris also urged the police personnel to look after what the leaders are helping with because a new vehicle he gave to Maprik police had been wrecked.

“It is costing the state money and we cannot continue to abuse state assets.”

Wagambie also advised his men that the firearms used must be secured at all times and used properly.

“When your life is in danger, shoot to injure. The gun is not for you to go and do things outside of the law and set security procedures.

East Sepik police Chief Insp Charles Parinjo, in expressing his gratitude for the support, said this was the second, with Angoram MP Arthur Somare already handing over four M16 assault rifles and two SIG pistol for Angoram police.

He also commended East Sepik Governor Peter Wararu for buying five vehicles for police in the province.

Judges query tribunal team

SOME Papua New Guinea National and Supreme Court judges are concerned about not being consulted in the appointment of the membership of the leadership tribunal hearing misconduct allegations against Prime Minister Sir Michael Somare, The National reports.

A three-man tribunal, comprising pre-eminent overseas retired judges Roger Gyles as chairman, Sir Bruce Robertson and Sir Robin Auld, was scheduled to begin next Thursday.

While the appointment of a leadership tribunal was the sole prerogative of the chief justice, it was an established practice for the CJ to consult his fellow judges before naming the tribunal, The National had learned.

In this case, where tribunal members were drawn from outside PNG court jurisdiction, the local judges were all the more concerned.

The judges, who were approached by The National, had no idea about the tribunal and its membership or preparations.

“I have no idea about the appointment of the tribunal and what criterion was used in the appointment of the tribunal membership,” a judge said.

Consultation is a general and legal requirement in such situations, leading up to the appointment of the members of a leadership tribunal within the PNG judiciary, The National was told.

Another judge said that ideally, tribunal members must had previously served on the PNG bench and were now retired, which was not the case in the case of the current membership of the tribunal.

PNG Law Society president and the prime minister’s lead lawyer Kerenga Kua said the CJ’s appointment of pre-eminent retired overseas judges was in line and was within the bounds of law.

“The law allows for the appointment of sitting judges or retired judges from the PNG’s judicial bench. Or, in the current situation, from comparable jurisdiction – that is, from the common law jurisdictions such as Australia and New Zealand who, like PNG, follow the traditional English common law.

“We do not have any issue with that,” Kerenga said.

Issues are being raised in legal circles, regardless, about whether or not the decisions of the tribunal would be legally binding if its membership did not comprise members of the PNG justice system.

The National was told that the appointment of any tribunal membership, to judge on allegations against any leader, would be done collectively within the judiciary where names of possible candidates are circulated to the sitting PNG judges for their comments.

The names are then returned to the office of the chief justice who consults with the most senior of his colleagues before deciding on a final list.

 

 

Public service is collapsing

By ISAAC NICHOLAS

 

THE public service system has collapsed and is in total disarray, a senior government official said yesterday, The National reports.

The official said this was evident by the number of acting appointments currently in the public ser­vice.

The source said currently, there was the acting police commissioner, acting correctional services commissioner, acting secretary for national planning, acting auditor general and acting public prosecutor but within departments and government agencies, there were many more on acting positions.

He also revealed that the Department of Personnel Management (DPM) did not even have records of the total number of public service on the government pay-roll.

“I believe the government is paying more than 300,000 public servants, including names of dead persons, wives, children and even some walking around the streets but still getting salaries every fortnight.”

He said the DPM claimed to have less than 100,000 public servants but they did not have proper records to show the total number of government employees, adding that Public Service Minister Moses Maladina had a big task ahead to get his department in order.

Maladina, when contacted, said he was aware of this report but decline to criticise his own department and said he was awaiting the return of secretary John Kali from holidays to map a way forward for the department.

He confirmed that there were too many acting appointments with some acting on the job for more than six months which was illegal.

He said the problem was that three months before the term of an appointment expires, the Department of Personnel Management must advertise the position.

He said during the three months, appointments were confirmed to ensure smooth flow of operations but this had not been happening, resulting in the current situation of acting appointments.

“I have a huge task ahead of me in which I have to conjure up all my experience to deal with this situation.”

Maladina said this year had been declared the “year of implementation” and he would ensure that the public service is put right to deliver government agenda to the majority of the people.

“It is a huge challenge for me and I will take the bull by the horns if I may put it that way for efficient and effective public service.”

 

Students miss out due to fees, space

By YVONNE HAIP

 

NEARLY half of the registered students in PNG are not yet in school either because they lack school fees or because schools lack space, Education Minister James Marape said in Mt Hagen on Monday, The National reports.

Addressing students, staff and parents at the Mt Hagen Technical School, the minister also revealed that the controversial outcomes-based education (OBE) was less than perfect and had deficiencies.

Speaking during the commissioning of the college as a polytechnic institution, Marape said despite the deficiencies, the government would persist with the reformed system in the hope of overcoming the shortcomings.

The education minister highlighted some of the setbacks in OBE were in the quality of education received and school facilities. But, he said, the reform was only 10 years old and authorities were working to address these shortcomings.

Meanwhile, the upgrading of the Hagen institution would allow it to teach specialised trade courses with certificates, diplomas and degrees being offered.

The Mt Hagen Polytechnic Institution would enrol its first intakes in 2014.

It is one of four such institutions in the country, and the only one for the highlands region.

He also revealed that 47% of registered students throughout the country were yet to be in schools due to school fee-related issues.

Despite these problems, Marape said the reformed system was aimed at providing more opportunities for students to progress through the various levels of education.

He cited the four national high schools, which were taking in a limited number of Grade 10 graduates, as a good example.

Today, upgraded secondary schools in all the provinces nationwide are providing Grade 10 students the opportunity to further their education to Grade 12.Accompanying the minister was acting

Education secretary Dr Joseph Pagelio and senior education officials, who will be attending the 171st national education board meeting in Mt Hagen.

Pacific should not be used as a testing ground

Two campaign organisations, based in Fiji and Papua New Guinea, have joined forces to denounce plans for the Pacific to be used as the testing ground for deep-sea mining.

ACT NOW! and the Pacific Network on Globalisation say the Pacific region has already suffered the negative social and environmental impacts of industrial mining on land and should not take further risks with the marine environment.

“Rather than allowing ourselves to be the testing ground for multinational companies and foreign governments, Pacific countries should focus on new approaches to our own

development that is consistent with our lifestyle, history and social and political realities”, says Effrey Dademo, programme manager with ACT NOW!

Nautilus Minerals has already been granted a license by the PNG government to develop the world’s first deep-sea mine and the European Union has announced plans to help 15

Pacific island countries to develop laws and policies to facilitate such operations across the region.

Maureen Penjueli, coordinator for PANG, says Pacific island countries do not have the resources, capacity or experience to effectively manage and monitor large resource projects and government should focus on supporting their own people rather than large corporate interests.

“We have had an alternative development model forced upon on us by outsiders but it is clear that model is not working for us and, indeed, is failing in the West as well.

“We, as Pacific people, need to find our own voice and return to a focus on our own strengths and knowledge base.

“Deep-sea mining is likely to be another catastrophic failure for the region and we don’t need it.”

 

Petromin to take up state share in Solwara-1

Petromin PNG Holdings Ltd has been nominated to exercise the state back-in right in the Solwara-1 mining project, according to mining minister John Pundari.

Nautilus exploration vessel.-Pictures courtesy of PETROMIN

He made the announcement as Petromin prepares to open its magnificent new Petromin Haus at 2-Mile in Port Moresby on Friday.
Pundari said after consulting prime minister Sir Michael Somare, who is also minister responsible for Petromin, he had exercised his powers under the Mining Act to nominate Petromin, once the state entered the project through the options agreement which was being negotiated with project developer Nautilus Minerals Ltd.
He said based on his advice, Sir Michael had confirmed the nomination under the Petromin Act, conditional on the state entering the project.
“Petromin will now negotiate commercial terms with Nautilus to fund its equity in the project,” Pundari said.
Petromin owns and operates Tolukuma gold mine, the only operating underground narrow vein mine in the country and is venturing into several others.

Solwara drill cores

“I have taken the initiative to nominate Petromin as the state’s nominee to acquire the state’s interest in all upcoming major mining projects that are rapidly advancing into the production stage,” Pundari said.
“These exciting projects include the three upcoming mines: Frieda in East/West Sepik province (copper/gold), Yandera in Madang province (copper/molybdenum) and Wafi-Golpu (copper/gold) in the Morobe province.
“PNG must gain significantly from these projects once these mines begin production.
“I believe the benefits to the state can be greatly maximised if the state participated in these projects as a shareholder.”
Pundari said state equity participation through Petromin would also be beneficial to landowner participation.
“Under the mineral policy, landowners in project areas are entitled to 5% equity in the project to come from the state’s share of equity,” he said.
“The cost of the equity will be negotiated on a case-by-case basis.”
Pundari said the landowner equity would be managed separately by the Mineral Resources Development Company (MRDC), pursuant to its constituent law, the Mineral Resources Development Company Pty Ltd (Privatisation) Act 1996.

Underwater sampling

15% credit for Nasfund members

NASFUND members have been credited with 15% for last year on the back of a strong net profit of K294 million and net value asset of K2.22 billion, The National reports.

However, members were cautioned to lower their expectations as the same might not apply for this year due to expected change in economic conditions.

The e-newsletter yesterday said the fund did exceptionally better in fund returns over one-to-10 year period.

The newsletter cautioned members that the 15% credit rates were extraordinarily high and rarely matched year on year.

The fund, as reported last month, had anticipated a model generated return this year of around 8%-9%.

From last year’s return of 16.93%, some of these returns have been parked in reserves, while anticipating the impact of a higher currency and lower capital values.

Reserves are now around 4% of net asset value.

This made Nasfund the highest reserve fund in the country with over K88 million in reserves, which would also provide some insurance for any shock either in PNG or world economy this year.

The aim for this year is to balance the enormous previous returns based on particular asset class settings and bring the fund’s asset allocation into alignment to counter what is seen as emerging issues both at home and abroad.

To this end, Nasfund will set a course for a soft landing this year and that means a return to lower but more sustainable long term returns.

 Nasfund asks again for members to readjust expectations in light of the current events unfolding and not to assume double digit returns are the norm.

 

Police: No early campaigning

 ‘Offenders will be arrested’

 

By JAMES APA GUMUNO

 

POLICE throughout Enga have been instructed to arrest anyone campaigning for next year’s general elections, The National reports.

And, provincial police commander Supt Martin Lakari has relayed this instruction to all his station commanders.

He said it was illegal for anyone to campaign at this stage.

PNG Electoral Commissioner Andrew Trawen announced last week that any early campaigning by intending candidates or current members of parliament would be illegal.

Lakari said many intending candidates in Enga were already on the campaign trail but this practice must stop immediately or they would be arrested by police.

He said many were sponsoring sporting events or organising parties to inform the people about their intentions to run for election next year.

He said they were also taking advantage of grieving relatives at funerals to buy food and drinks on the pretext of comforting them when it was a thinly disguised campaign strategy to win hearts and minds next year.

Lakari warned anyone breaching the electoral process and the relevant organic laws would be arrested.

“The law is very clear. Candidates are only allowed to campaign after they have paid their nomination fees when the writs are issued by the governor-general next year.”

Lakari appealed to people not to move around begging for money or goods from intending candidates.

He urged the people to elect leaders of their choice when the time comes next year.

Trawen had warned intending candidates not to campaign until he gave the go-ahead as required under the constitution.

 

 

National Alliance looks at 'a range of issues'

THE ruling National Alliance party held marathon meetings, running all throughout last week, to discuss a range of issues, including the referral of its parliamentary leader Sir Michael Somare, The National reports.

The NA council, which included the full executive wing and the parliamentary wing, discussed, among other things, succession issues pertaining to the leadership of the party should the leadership tribunal decide to suspend the prime minister.

Although a leadership tribunal has been named, Chief Justice Sir Salamo Injia had left the issue of suspension up to that august body to decide when it meets on March 10 rather than the automatic application of the law which would have meant Sir Michael was suspended at the naming of the tribunal.

That particular decision, as well as the chief justice’s decision to bring in three judges from common law jurisdictions, had not been without controversy among the bench as well as from the wider community.

Succession issues in National Alliance had been an on-going and contentious point of discussion over the years and The National had learnt it had entered a crucial stage now the prime minister was referred and was most likely to be suspended.

While the highlands faction of the NA had the numerical strength in the party, its deputy leader in Don Polye was no longer the deputy prime minister, which is held by Works Minister Sam Abal. This had presented the party with a dilemma.

The NA constitution stated that the successor to the parliamentary leadership would be drawn from the regional deputies.

Next year’s elections also featured high in last week’s discussions and it was expected that a team would be selected following this NA council meeting to take the party and government into the elections next year.

 

 

NPC takes over LNG claims

THE national planning committee (NPC) will, with immediate effect, vet all memorandums of agreement and ministerial commitments relating to the liquefied natural gas (LNG) project, The National reports,

Deputy Prime Minister and NPC chairman Sam Abal had directed Treasury and National Planning departments to refrain from effecting payment of all outstanding claims by landowner groups.

He said in a statement yesterday that all payments would be screened by the expenditure implementation committee (EIC), the peak bureaucratic-level committee sanctioning all proposals for funding against the various benefit streams for oil and gas, particularly the LNG business grants, MoAs and ministerial commitments.

He said following EIC vetting and approved lists of proposals made, these would then be subjected to final vetting by the NPC.

“The prime minister has appointed me to ensure LNG-related issues are handled properly and I will do that with full participation of all related committee members,” Abal said.

“Except for one or two BDG cases that are subject to litigation, as far as the government is concerned, the case regarding BDGs is closed.

“It has been paid on site and there are no further payments to be made.”

The deputy prime minister said with regards to MoA commitments, “we sympathise with the landowner groups that have waited long”.

“Payment of MoAs will be the government’s most immediate focus and attention.

“Ministerial commitments made within the context of the PNG LNG negotiation and the BSA will be the next to be considered.

“Through NPC, we will seek to settle these claims as soon as possible.”

Abal also reaffirmed his early direction that all payments would be paid on-site in front of the people to whom these monies were intended for in improving their livelihoods and standard of living.

He appealed to landowner groups living in Port Moresby not to complicate issues for the government by resorting to a “confuse and plunder” strategy but return to their people in project areas and organise from there.

“We must cooperate with the government to settle these issues once and for all,” Abal said.

 

 

Borer decreases yield

By ELIZABETH VUVU

 

EAST New Britain’s economy has been devastated by the cocoa pod borer since it first showed up in 2005, deputy governor Boniface Setavo told The National yesterday.

Setavo said cocoa production in the province had dropped from 28,000 tonnes two years ago to 8,000 tonnes – a drastic drop of 20,000 tonnes which he attributed in part to the CPB.

This equated to a loss of income to ENB of around K150 million, he said.

He said CPB had taken a toll on the lives of many rural cocoa farmers who contribute the most to the total cocoa production in the province.

 “This is a disaster quite diffe­rent to the 1994 twin volcanic disasters, but it has an equal or greater impact that has affected many rural farmers who depend exclusively on income from cocoa,” Setavo said.

He said the loss of this revenue had multiple effects on other economies in the province and with such a huge socio-economic effect, it was important that the national government must save the industry by injecting much needed funds.

Setavo also indicated that the World Bank would be injecting much-needed funds for a nationwide CPB eradication programme.

He said these funds must be channelled through the legally established institutions charged with the responsibility of resurrecting the industry.

Setavo supported calls made by the PNG Growers Association to the minister for agriculture and livestock to look into the appointment of a representative board to the Cocoa Board.

He said this board should concern itself with quality control and other regulatory measures and leave the rest of the activities to the other participants in the industry.

ENB currently has a centre point of coordination and implementation of much needed funds for the CPB eradication programme called the provincial CPB committee.

He suggested that the committee should be the focal point for coordination of the different sectors.

Currently, the growers were not seeing much assistance and those farmers receiving some help were being confused by different agencies competing to provide service to them, he said.

Setavo expressed some delight in the farmers’ resilience to CPB and who had learnt and were now diversifying into other short, medium and long term crops.

The province is witnessing the emergence of a diversified agro-based economy based on alternate crops which has been possible through a number of integrated projects including Toriu Headwaters, Illi Stand Alone, Illi Wawas, Suikoi, Memalo and Mukus-Tolo development pro­jects which would see major developments in oil palm, cocoa, balsa and reforestation.