2011 BUDGET REPLY By The Leader of the Opposition Rt Hon Mekere Morauta KCMG MP (Tuesday, 23rd November 2010)

Find below Budget Speech of Opposition Leader Rt Hon Sir Mekere Morauta that was not allowed by Speaker Jeffrey Nape to be delivered .Nape failed to specify under what Parliamentary Standing Order he did not allow Sir Mekere to make his budget speech.

 

Mr Speaker, the 2011 Budget may set a record in terms of revenue raised and money to be spent, but it may also set a record of money wasted.

The public sector lacks capacity, capacity to convert the billions of kina appropriated every year into public goods and services for our people and for the nation’s future. 

We all know that the public sector is beset with problems: problems of inefficiency, of abuse, theft, wastage and lack of accountability – lack of accountability of resources that belong to the public.

What does this record budget do to address these problems, the very problems that negate the Government’s ability to deliver decent affordable services to people?

Not one thing Mr Speaker; not one thing.

Throwing billions of kina at Departments and Statutory Authorities will not solve the host of problems the public sector increasingly faces.

 These problems are eating away the heart of state institutions, and the Government is doing nothing to solve them.

The 2011 Budget fails to address the capacity problem. 

It fails to address the overarching problem of waste and corruption. 

Control of corruption has deteriorated sharply over the last eight years of Somare National Alliance governments. 

According to one international measure of corruption tracked by Transparency International, PNG is now in the bottom 10% of countries in the world.

Mr Speaker we may have billions of kina to spend, but given our very poor development indicators, especially in health and education, given the huge gaps we need to fill to meet the basic needs and rights of people, and given the real cost of delivering decent services, there is no room for waste or leakage.

Misuse of funds means less money for services. 

As one budget commentator noted:  “If only 10 toea in each Kina went missing over the next five years, that would still be a massive K3.6 billion – enough to rehabilitate and maintain the priority national roads.  And every toea is enough to education 30,000 children per year.”

That is the cost of corruption and waste Mr Speaker. 

A cost met by every man, woman and child. 

It is the people who are the victims of corruption and who suffer its effects in lack of decent health services, lack of decent schools or well-trained teachers, and roads full of pot-holes. 

Corruption is a parasite:  it is truly feasting on the blood and flesh of its host, the people of Papua New Guinea.

What safeguards are being put in place to reduce corruption and to make sure money does not go missing?

 Not one, Mr Speaker; not one.

With our experience of successive so-called “record budgets” over the last few years, Mr Speaker, we should all know by now that money alone will not provide the answers. 

In the last eight years this National Alliance-led government has appropriated well over K50 billion kina. 

What have those budgets produced? 

Almost nothing that we can be proud of, or satisfied with:  a doubling of maternal mortality, an increase in infant mortality and closure of half the country’s health facilities; a sharp reduction in the quality of education,  as detailed in the recent report on universities commissioned by Prime Ministers Somare and Rudd; deteriorating roads – national, inter and intra–provincial roads. 

The level of deterioration is reaching the stage where many of these roads now require not just repair and resealing, but rebuilding.

In the last eight years we have had one government, led by the National Alliance.

 We can no longer blame political instability or frequent changes of Government for the failure in performance. 

During the same period we have also experienced and benefited from the record prices of mineral resources.  This “record” budget mirrors that fact and is built on it.

Mr Speaker, record appropriations totaling over 50 billion kina in eight years under one government. 

What do the nation and people have to show for such a large sum of money?  Not much. 

And until and unless corruption is addressed; until and unless the capacity, management and accountability issues of the public sector are addressed; until and unless the waste and leakage of public monies are stopped, the “record” expenditure of the government will continue to have little positive benefit for the nation and for people.

Record appropriations, one Government in eight years, poor services, the majority of people living in poverty. 

Why? 

What is it we are lacking? 

The answer to that question, Mr Speaker is good government, led by a good leader.

Mr Speaker, before I offer a few comments on particular aspects of the Budget, I wish to make a few general comments concerning the 2010 and 2011 Budgets.

First, there is very little analysis of the 2010 budget outcome or outturn, that is, how actual spending or performance in 2010 compared to what was planned. 

Without this analysis, it is difficult to judge how the Government might perform in 2011. 

It seems, Mr Speaker, we are travelling blindfolded.

Secondly, there is very little medium-term analysis. 

A lot is said about the spending plans for 2011, but very little about the forward context of these plans. 

We know that service delivery is a multi-year undertaking. 

Investments take time to be delivered, whether they are capital works programmes, text books or essential drugs; recruiting new staff is an ongoing commitment that also often requires new training. 

For example, the budget provides for 1,333 new positions in hospitals.

 No-one would contest that those positions are not needed. 

The question is:  where is the trained staff to fill them? 

To be effective the budget must guarantee a commitment of resources year-after-year, over say a five year period. 

A one year commitment, year to year, is not likely to lead to the outcomes planned to be achieved.

Thirdly, the budget is scarce in details.  

The budget tables show headline budget numbers for planned 2011 spending, but there is scarce information on how this funding will be managed effectively, how it will reach service delivery units, and how it will be translated into goods and services. 

Take the increased budget for drugs as an example. 

Yes, the Government does need to spend more on drugs and essential medical supplies. 

But those that are currently procured are not reaching hospitals or health facilities. 

Theft is common. 

There seems to be a merry-go-round of the very same drugs being purchased not once, but two, three times or more from the same suppliers, after “going missing” from medical stores or dispensaries. 

This results not only in the cost of drugs per unit becoming extortionately high, but also renders many of the drugs to be out of date by the time they ever reach the intended destination. 

What will the Government do Mr Speaker to ensure that the money allocated for drugs is spent efficiently and honestly, and that the people who need that medicine actually receive it?

The only conclusion that any informed or aware observer might reach is that it is not possible to form an accurate assessment of the likelihood that the record spending under this budget will translate into services and into better outcomes for people.

 But if we go on past performance of the Somare Government, we have good reason to be doubtful.

I will now turn to the revenue side of the Budget.

Total Domestic Revenue is projected to yield 7.7 billion kina in 2011, compared to 6.9 billion and 5.7 billion kina in 2010 and 2009 respectively.  Fine, no problems.

However, when the Total Revenue is broken down into Tax and Non-tax revenue, a disturbing trend emerges.

 In 2009, Non-tax revenue totalled 766 million kina (actual). 

The revised estimate for 2010 is 410 million kina, 356 million kina less than the previous year. 

A similar result is expected for 2011, with 411 million kina budgetted.

Mr Speaker, these figures represent a 46% reduction for both 2010 and 2011 over actual revenue received in 2009.

 Total domestic revenue in 2011 is expected to be 35% higher than in 2009, in line with growth in the economy, so why at the same time is there a reduction in non-tax revenue? 

It makes no logical sense.

When one examines the components of non-tax revenue in 2011, one sees two glaring facts:  a significant reduction in revenue collected by government departments and agencies, and no contribution to the budget from commercial statutory authorities.

Why?  Can the Treasurer explain this?

Are we all so besotted with the prospect of LNG revenue that we no longer both to collect other legitimate charges for goods and services?

Take as an example land lease rental revenue to be collected by the Department of Lands and Physical Planning. 

In 2009, K38.3 million was collected in land rent. 

In 2010, K22.1 million was collected, a reduction of K16.2 million or 42%.  In 2011, only K24.8 million is budgeted. 

Why is it that we are not collecting at least the same as the amount collected in 2009?

 Is PNG’s land mass shrinking? 

Or is it a reflection of the incapacity of the Department to collect?

Treasurer, please explain.

It is not just the Department of Lands that is asked to collect less in 2010 and 2011 than it did in 2009. 

Another example is the Department of Foreign Affairs and revenue from passport and migration service fees.  

In 2009, K37.1 million was collected. 

In 2010, only K11 million. 

In 2011, a meagre K2.5 million is budgetted. 

Why the massive reduction? 

Are there less people coming to work in PNG?  I thought that with Ramu Nickel and LNG many more foreigners were coming to our shores to work.  Are they paying no visa fees?

 Or is this revenue just being spent, perhaps by overseas missions on visiting politicians, and never recorded or accounted for?

Mr Speaker, the other area of potential revenue which is of great concern is dividend income, dividends payable by government-owned commercial statutory bodies and from State shares in businesses like banks and oil companies.

In 2009, no dividends were paid.

 In 2010, K55 million was budgeted, but only K38.5 million was received.  K36.5 million of this was paid by Bank South Pacific, with K2 million coming from Petromin.

Where are other monies received by IPBC?

Why are they not being paid to consolidated revenue? 

The Minister constantly reminds us that all the commercial statutory authorities, Telikom, Air Niugini, PNG Power, PNG Ports, etc, are making heaps of profit. 

Where is it?  ]

Apart from not tabling the accounts of these entities for Parliament and the people to see the true picture, Minister Somare is returning none of the profit to the people.

This year, 2010, Bank South Pacific paid 42.8 million kina to IPBC in July and 11.55 million kina in November, a total of 54.4 million kina. 

Why was only 36.5 million of this paid to Treasury? 

What happened to the other 17.9 million kina?

What is happening to the revenue from the state’s shares in Oil Search?

 In 2009 Oil Search paid AUD15.4 million dividend to IPBC, but not one toea of this money (approximately K40 million) found its way to Treasury.  In 2010 Oil Search paid AUD8.5 million, around K22 million to IPBC.  Where is this money? 

What has it been spent on?

 Why is none of it being paid to the legal custodian of monies of the people of Papua New Guinea?

Mr Speaker, the amounts of money that have been paid to IPBC in recent years are very large, with zero reporting, zero public scrutiny, and zero accountability.

 But these amounts pale in comparison with the gigantic sums of money IPBC will receive in the future.

How many of us are aware of the fact that IPBC, under the stewardship of Minister Somare, will receive all the dividends payable by PNG LNG from 2015.

  In the first five years that the project is expected to return dividend, IPBC will receive K1.3 billion kina.

 Between 2015 and 2049, a period of 34 years, IPBC will receive from PNG LNG dividend income totaling K12.5 billion at an average rate of K366 million per year.

Why IPBC?  Revenue to do what?

Apart from the money being available to satisfy the whims of IPBC’s political leaders, perhaps Mr Speaker there is a hint of things to come in the 2011 Budget. 

On top of the dividend income directly received by IPBC, the Government is allocating large amounts of money to its bureaucratic brother, also headed by Arthur Somare.

The Budget papers note that K30 million of the additional money allocated to the Police will be for (quote) “LNG support, to be paid through the Department of Public Enterprises”.

Since when did democratic governments channel funding for police forces through companies and through totally unrelated government departments?

Mr Speaker, why is IPBC allowed to control such large dividend monies?  Should not the monies be paid directly to the Treasury?

 Should not IPBC be allocated an amount for its operational expenditure through the Budget, just like every other Government institution?

Mr Speaker, my conclusion is that we, Papua New Guinea have one Government but two Prime Ministers: one elected, the other appointed by the elected.

Not only do we have two Prime Ministers, we also now have two Treasurers, two collectors of revenue and two overseers of expenditure: one treasury headed by Hon Peter O’Neill and the other by Arthur Somare.

Why is this being tolerated? 

It is not just totally unacceptable; it is frightening.

I repeat Mr Speaker:  in 2011, IPBC will pay no dividend at all to the State.  Why? 

Why is IPBC allowed to retain all it will receive from Bank South Pacific, from Oil Search, PNG Ports, Air Niugini and Telikom?

I ask again, what is IPBC going to do with all the dividend income that it will retain?

Mr Speaker, answers to these questions are just as important to the public as the intoxicated boasting by the Government of its record budget. 

The proof of the pudding is in the eating, not in the ingredients.

 

Namah welcomes Ombudsman Commission brief on prime minister's case

Leader of PNG Party Belden Namah has welcomed the Ombudsman Commission (OC) explanation on the status of leadership referral case involving Prime Minister Sir Michael Somare.

Namah said it was in PNG’s national interest that the OC went publicly and explained that the onus was on the public prosecutor to act on Sir Michael’s referral.

Last Friday (Nov 19 2010), Chief Ombudsman Chronox Manek told a media conference in Port Moresby that Sir Michael was referred to office of the public prosecutor after his court challenge failed to stop the referral.

Manek said he was not aware of any court order preventing the public prosecutor from appointing a tribunal.

Namah said following the OC explanation it was incumbent on the public prosecutor to move swiftly to perform his constitutionally mandated duty speedily.

“This matter involves the chief executive of this nation and therefore demands for the public prosecutor to act in a timely manner in the public interest,” he said.

Namah said he was not trying to interfere with the work of constitutional offices, but merely asked for high profile cases involving Sir Michael and other politicians to be dealt with speedily in public interest.

 “It is only fair that the constitutional offices do their jobs in timely manner so that leaders referred do not continue in office making important decision for the nation while there is a cloud of uncertainty hanging over them,” he said.

 Namah said the public prosecutor owed it to the over six million PNG citizens to act speedily.

“It is unfair and unjust for ordinary citizens to be prosecuted very quickly for crimes they commit, while there are long delays in dealing with lawmakers and senior public servants,” he said.

“I see no logic in parliament continuing to make laws when the lawmakers are not dealt with in timely manner for offences they are alleged to have committed.

“Parliament should stop making laws and the government releases all prisoners nationwide if we are going to continue this way.

“The general perception among our citizens is that there are two sets of law, one for the big men and another for ordinary citizens.

“This perception must be corrected by relevant state agencies moving fast to clear outstanding cases involving public office holders.”

The OC alleges that Sir Michael failed to lodge annual returns for the periods 1994/5, 1995/96 and 1996/7, his lodgement returns for the periods 1998/99, 1999/2000, 2000/01, 2001/02, 20003/04 and incomplete statements for periods 1992/93, 1993/94,1997/98, 1999/2000, 2000.01, 20001/02 and 20002/03.

The OC referred Sir Michael to the Public Prosecutor for it to ask the Chief Justice to appoint a Leadership Tribunal to deal with the allegations, but Sir Michael went to court seeking orders to stop the OC from investigating him.

On June 24 2008, National Court Judge, Justice Derek Hartshorn rejected an application by Sir Michael for a temporary injunction to stop the OC from investigating him.

When rejecting Sir Michael’s temporary injunction, Judge Hartshorn ruled that it was not in the interest of the justice of the general public that lawful authorities should be prevented from performing their legal and constitutional duties.

Sir Michael had gone to court asking the court to grant him certain declarations and a permanent injunction preventing the OC from continuing its investigations.

However, Judge Hartshorn stated that Sir Michael did not have a strong case to stop the OC from continuing its investigations.

Section 4 of the Organic Law on the Duties and Responsibilities of the Leadership requires every person who is subject to the Leadership Code to furnish the OC every year details of assets, income and other required information.

 

Mothers plea for space

Problems at the Port Moresby General Hospital women’s ward seem to go on and on, The National reports.
Mothers have no beds and have to sleep on the bare floors due to overcrowding, there are no proper facilities for in-patients to use and midwives are hard to find, with about two a day. 
Workers attributed all these to lack of funds. 
Ward nurses and doctors described the challenge as “overwhelming; not enough beds and unfinished construction work due to lack of funds”. 
Statistics indicate an average 40-to-50 delivery a day and, with space an acute problem, mothers are forced to sleep along the corridors and even in the reception area of ward 10.

10 mums train in coffee quality control

WOMEN should also be seen as equal partners in business and not just as mothers and housewives, The National reports.

Ten mothers recently graduated with certificates in coffee quality control in a training workshop conducted by Coffee Industry Corp (CIC) in Okopa district, Eastern Highlands.

The training attracted 86 participants from the Tarabo coffee growers association of which 10 are mothers.

Eastern Highlands province smallholder coffee growers association chairman James Korarome said women should receive equal distribution of coffee income just as their male folks.

He added that most often, it was  the case where women did  all the hard work in processing coffee while the men dominate the marketing side of it, resulting in unfair distribution of income.

The coffee quality training comes under the CIC participatory rural participatory programme (PRAP) in bringing awareness and training to coffee farmers nationwide.

Korarome also issued a challenge to the men to respect women farmers to ensure quality production of coffee beans.

Meanwhile, general manager for CIC’s research and  grower service division, Dr Mark Kenny urged the graduates to return to their coffee gardens and apply the skills acquired and become advocates of quality coffee in their area.

 

 

MPs face bill

Women move into capital to push for reserved seats

 

PRESSURE is mounting on members of parliament to vote today to pass legislations to increase the number of women representatives in the house, The National reports.

The campaign to pass this legislation had gained momentum with women leaders from different parts of the country flying to Port Moresby this week to drum up support from their MPs.

And, yesterday, entrants to the Miss South Pacific beauty pageant added their voice to this cause by signing a statement of support. Ten of them signed, saying: “Women of the Pacific are watching this parliament for the vote.”

The bill, if passed, will have 22 seats reserved for women. It sought to amend section 101 of the constitution. To succeed, it needed an absolute majority of 72 MPs voting in favour of the bill.

Women leaders hoped parliament would sit right through this week and next week to entertain the bill and other important legislations pending in the house.

But, with the opposition’s budget reply at the top of the agenda today, and talks of a vote of no-confidence, there were speculations the government might adjourn parliament after the budget is voted on.

On the other hand, if the government is secured in its numbers during the vote on the 2011 budget, it would bring in the women’s bill and others to be deliberated and voted on.

Leader of government business and Minister for National Planning and Implementation Paul Tiensten did not provide a clear strategy yesterday, saying the government caucus would meet today to discuss how to handle the budget and the bills.

The government risked invoking the ire of women leaders and supporters of this legislation if it defers the bill.

“A lot of effort and resources have gone into this, and the least we expect is for the bill to at least make it to the floor to be voted on,” a woman representative said yesterday.

Because it was an important constitutional legislation, MPs will vote through resolutions along party lines.

 

 

Budget reply is priority, says Tiensten

By ISAAC NICHOLAS

 

THE opposition’s reply on next year’s budget will take precedence over all government business in parliament today, including the proposed bill on the reserved seats for women, The National reports.

Leader of government business Paul Tiensten said the opposition would be expected to reply to the budget at 2pm and debate would follow until the passage of the 2011 money plan.

This was expected to take three weeks.

“The government caucus will (this morning) decide on the programme on critical bills to be dealt with by parliament,” Tiensten said yesterday.

“We may sit for three weeks to deal with the huge government agenda, including the women’s reserved seats bill, but the government caucus will decide on the programme and see how we will manage.”

He said the three-week sitting would, at least, meet the 63-day requirement for parliament to sit in a calendar year.

Tiensten, who is National Planning and Monitoring minister, brushed aside claims of a vote of no-confidence against the prime minister.

He said moves by the opposition had backfired after they targeted the man who will entertain their motion – Speaker of Parliament Jeffrey Nape.

“The opposition should be constructive and provide alternative policies.

“We have a country to run and there is no way you can weave magic to resolve the country’s problems, which the opposition is pushing.

“They should sit down and formulate alternative policies and take them to the elections to get the mandate of the people to return and run the country.”

Tiensten was also expected to make a budget statement on the medium-term development plan (MTDP) in parliament today.

He said the MTDP was a measurable document that had been fully costed at K65 billion for the next five years, aimed at creating jobs, growing the economy and improving the quality of life for all Papua New Guineans.

He also condemned the recent “politics of shooting down personalities” instead of providing alternative policies and plans and how to fund them.

Tiensten also disputed the free education policy mooted by the opposition, saying it was not sustainable and funding it would mean sacrificing other sectors such as agriculture, infrastructure and economic development.

“You have to cost such policies.

“How much will you put into free education and, at the end of the day, what will you get out of it?” he asked.

“We have to be responsible in what we say, otherwise, we are kidding ourselves.”

 

PMGH women's ward runs short of space

By GRACE AUKA

UPNG journalism student

 

THE women’s ward at the Port Moresby General Hospital (PMGH) is facing overcrowding, lack of proper facilities and shortage of midwives due to shortage of funds, The National reports.

This was revealed by the hospital staff during a donation of linens by NCD Governor Powes Parkop his wife Jean and a group of women to ward 9 of the PMGH last Friday.

These concerns were raised by unit nurse coordinator Sr Jennifer Piakalyia and Dr Apeawusu Amoa, who said the ward was in distress and needed more support particularly for mothers. 

“The challenge faced by the hospital is overwhelming and it still needs more funds because currently there is not enough beds, unfinished construction work on a building next to ward 9, this all comes down to lack of funds,” Amoa said.

He emphasised that the hospital needed more funding and support for the women in PNG in order for them to be kept in a comfortable and caring environment when admitted to the hospital.

According to Piakalya, the number of women delivering a day was 40-50, but there were not enough hospital beds, forcing some of them to sleep and rest along the corridors and even in the reception area of ward 10.   

“The number of midwives has decreased, in a day there are only two midwives on duty to help mothers to deliver their babies,” she said.

The donation came from the women’s own effort and funds from a family project.

It comprised 100 pillows, 198 pillow cases and 174 bed sheets.

Beauties arrive for Miss South Pacific quest

By ILA PAILAEA

TEN of the 11 contestants for the 2010 Miss South Pacific pageant contest in Port Moresby have arrived in the country, The National reports.

NCD Governor Powes Parkop joining contestants from around the South Pacific, including New Zealand, in Port Moresby for this year’s Miss South Pacific title quest during dinner yesterday evening. Rachel Sapery James (fifth from left) is representing Papua New Guinea. – Nationalpic by AURI EVA

Twenty-three-year-old Miss Hawaii Pomaikai Klein is expected to fly in today for the week-long event.

Papua New Guinea will be represented by Miss PNG 2010 Rachel Sapery James. The other contestants are Miss Niue Island Maria Mitimeti; Miss Tonga Mafi Tuinukuafe; Miss Solomon Islands Fuatino Malasa; Miss Tokelau Meleka Mativa; Miss Samoa Jolivette Menime Ete; Miss Cook Islands Joyana Meyer; Miss Fiji Sera Tikotikoivatu; Miss American Samoa Cindy Fonofili Silao; and Miss Aotearoa New Zealand Angela Cudd.

Yesterday was a quiet day for the contestants with only two public appearances; the first at Lamana Hotel and during dinner at the Royal Papua Yacht Club.

The contestants and their chaperones will leave for Alotau, Milne Bay, today and return tomorrow to continue on with the pageant programme.

The crowning is scheduled for Saturday evening at the Sir John Guise indoor complex.

During a briefing with the media yesterday afternoon, many of the contestants spoke about the “beauty and friendly welcome” which made them felt at home.

Miss Tonga Mafi Tuinukuafe, perhaps, summed up most of their feelings: “I felt surprised by every minute of it. The different people, cultures are a world in one.

“PNG is rich, not only in its natural resources but also in the cultures you have.”

KAML: PNG economy performing along forecast

By PATRICK TALU

 

PAPUA New Guinea’s economy is performing broadly in line with the forecasts outlined in the March 2010 monetary policy statement, according to fund manager Kina Asset Management Ltd last Friday, The National reports.

Significant investment opportunities have emerged in recent times in both local and the Asian regions as a result of the recovery of dynamic economies, according to KAML.

“KAML is well positioned to benefit from the regional bounce back of current investments and the implementation of new investment opportunities which continue to emerge,” chairman Sir Rabbie Namaliu said.

He said while real GDP growth had been revised downwards to 7.5% from 8.5% this year, this mainly reflected the delay in the start of production from the Ramu nickel-cobalt project.

Sir Rabie released the KAML third quarter review last Friday.

“The construction of the LNG project infrastructure, now well underway, will underpin growth in the period ahead.

“The sales revenue generated will represent a significant inflow into the domestic economy and also the region,” he added.

Sir Rabbie said after its weakness early in the quarter, KAML had  benefited from the pick-up in stock markets late in the September quarter, a trend that has continued into the current month.

“The year-to-date performance of all asset classes has exceeded their respective benchmarks,” Sir Rabbie said.

He said PNG is currently among the emerging market countries that were experiencing recovery and growth faster than their more advanced counterparts, adding that it was important to relate the market overview to the implications for the KAML fund.

 

Cholera spreads

30 deaths confirmed, 800 villagers affected

 

THE cholera outbreak on Daru Island has been contained but health officials fear the deadly bacteria is spreading inland, along Western’s Fly River villages, The National reports.

Health Department officials said 30 villagers had died from cholera on Daru while more than 800 Daru people had been diagnosed with the disease.

They said three medical teams were patrolling south bank villages to identify the sick and treat them as well as conducting awareness.

The disease spread to Daru from an outbreak that was first reported in September last year in Morobe.

The World Health Organisation and Australian aid agency, AusAID, have been flying in medical supplies and emergency experts from Port Moresby since cholera was first reported on Nov 11.

Last Friday and Saturday, AusAID airlifted more than 3,000kg of medical supplies with pledges of more from Australian foreign affairs minister Kevin Rudd.

WHO representative in Daru Geoffrey Clark said the cholera outbreak on the island was under control with efforts now focused on reducing its spread on the mainland because of the movement of people from the affected areas along the Fly River.

Australia has restricted all cross-border travel under the free movement provisions of the Torres Strait Treaty, in consultation with PNG authorities.

 

Taylor: Women up to the challenge

TOMORROW is D-Day, when women throughout the country will be waiting for the deliberations and debate on a bill to be tabled in parliament on the reserved seats for women, The National reports.

Prominent women leader Dame Meg Taylor said the current situation was such that women representation in parliament was meagre and unacceptable.

“The future of our nation was, and is, based on our hopes and aspirations as a people.

“At self-government, our leaders enshrined our aspirations in the eight-point plan.

“We clearly articulated the equal participation of women in political, economic and social life and institutions.

“The purpose of this is to ensure the sound and strong development of PNG with women as equal partners in development and nation building,” Taylor said in a statement yesterday.

“At independence, the National Goals and Directive Principles of our Constitution enshrined the desire for a nation recognising tradition but aspiring for a common future based on equality of men and women that will be a shared responsibility.

“We stood as a young nation on a journey of great expectation towards nationhood.

“We knew that there will be challenges and we believed that we will all share those challenges,” she said.

“Women in Papua New Guinea have worked hard and contributed to the development of our young nation, however, women’s participation at senior levels in government has seriously declined.

“Women’s participation in small-to-medium business enterprises is nominal while women have continued to be among the work force in towns and villages.”

Dame Meg said in parliament where laws were made where politicians defined the future of the country, there was an obvious absence of women.

“In the 35 years of our young nation, there have been four women in parliament. Two have held a ministry.

“This statistic is shocking and shameful.

“We will not build a nation when the opportunity for women candidates to be elected into parliament is undermined by reason of culture and prejudice, however, that has been the case and that must be changed.

“As a country in transition, we must note the past and reassess the current situation and redefine our hopes and aspirations for our future generations.

“The participation of women in national parliament, through reserved seats, will ensure a phase in our political history that will prepare the ground for more robust democratic institutions for the future.

“By reserving seats for women in the national parliament, the opportunity will be created to enable women to be elected through a democratic process.

“This will be the beginning for a more equal representation through the electoral process.”

 

Cholera spreads along Fly

By SINCLAIRE SOLOMON

 

THE biggest shipment to date of Australian medical supplies for cholera-hit Daru and villages of the Fly River was delivered at the weekend where health officials said the disease has been contained on the island but is spreading to the mainland, The National reports.

A total 2,845kg of emergency supplies was airlifted from Port Moresby on an Australian aid agency, AusAID, charter on Saturday, taking total aid since Nov 11, when the outbreak was reported, to about A$1 million.

The Australian government had also provided emergency experts in Daru to complement personnel from the Health Department and the World Health Organisation.

Health Department officials on the island said 30 people had died from cholera, a bacterial infection typically spread through contaminated water. But they feared the death toll could be as high as 100, confirming the figure suggested by Daru Catholic mission priest Fr Vinod D’Mello last week,

They said up to 70 patients per day were presenting themselves at Daru General Hospital, which serves a large and difficult-to-access region near the mouth of the Fly River. As of last Friday, some 800 villagers had been diagnosed with the disease.

As of Saturday, three medical teams, which included two doctors provided by the church of the Latter-Day Saints, visited the Fly River villages to treat suspected cases, checked water supplies and carried out awareness.

Communication with Daru, where a control centre had been set up at the police station opposite the hospital, had been made more difficult since last Thursday when landline communication with the rest of the country was cut, Daru police said.

Western communications officer Dr Naomi Pomat told AAP in Daru response to the disease had been slow because of an early misdiagnosis.

“The first test presented for typhoid. Then, the clinical staff realised the presentation was wrong and more likely cholera,” she said.

Villagers travelling by sea to Daru, and other islands in the mouth of the Fly River, have aided the rapid spread of the deadly bacteria that caused diarrhoea-like symptoms.

“Settlements on the island are very crowded. The influx of people, especially from the surrounding villages, has increased the incidence.

“Because of the high water table on Daru, you cannot build good toilets, and poor sanitation and access to water has also fuelled the spread.

“There is a big problem here, but it is not just from now – it goes back to the colonial days.”

WHO representative in Daru Geoffrey Clark said cholera on the island was under control and the islanders were responding well to the awareness campaigns that had been carried out.

He said efforts were now focused on reducing its spread along the north and south banks of the Fly River.

“There has been an excellent coordinated response since cholera was first reported.”

Cholera would usually make people only mildly sick, but up to 10% of patients had developed severe illness.

It is transmitted by water contaminated by bacteria from an infected person or food contaminated by dirty water, soiled hands or flies.

Somare plots to silence critics: Namah

Leader of PNG Party Belden Namah has expressed grave concern over a directive from Prime Minister Sir Michael Somare for his arrest for being critical of the government’s handling of high-profile scandals and controversies involving some very senior parliamentarians.

Namah, who was informed at the weekend of the highly-confidential directive for his arrest, said Sir Michael should not use State institutions, including the police force to silence leaders and citizens who openly criticised him and his government over important national issues and events affecting Papua New Guinea and its citizens.

“It is becoming evidently clear why the Prime Minister has decided to tribalise the three disciplined forces by appointing three men from his own East Sepik province to head the PNG Corrective Institution, PNG Defence Force and the Royal PNG Constabulary,” Namah said.

 “The Somare plot is now being executed to silence leaders and citizens who are critical of Sir Michael and his cohorts using state law enforcing agencies.

“It is a very dangerous and frightening new strategy devised by the Prime Minister, never done by any Prime Minister since independence, to silence people thereby denying the democratic and constitutional rights of PNG leaders and citizens who speak out against the Government on issues affecting the nation.

“Leader of the Opposition Sir Mekere Morauta was not wrong when he described the tribalising of the three disciplined forces, a clearly dictatorial and desperate act heading towards ‘Mugabe land’.

“I’m aware of the Prime Minister’s plot to have me arrested.

It is not because I have broken any laws or the Constitution of PNG.

And also, it is not because I am indifferent with the law. It is merely because I have been most vocal and critical on corruption and some very controversial decisions that are rampant in the current Government.

“It is common knowledge that corruption in PNG has reached an unprecedented level, but this Prime Minister has failed to address it head on, starting from his own backyard.

“I’ve never tried to seek relief from the courts to prevent the Ombudsman Commission and the Public Prosecutor from performing their constitutional mandated duties like Sir Michael over his referral for allegedly not declaring his annual returns.

“There is also a very serious allegation before police of from NGO activist Noel Anjo of his alleged kidnapping ordered by Sir Michael.

“Anjo also alleged that Sir Michael punched him three times and even wringed him neck.

“Mr Anjo was lucky to have been rescued by two named duty policemen.

“Mr Anjo also alleged that he was subject to both verbal and physical harassment from Lady Veronica Somare and other relatives at Mirigini State House.

 “Why have the police not acted on this very serious allegation of kinapping of Mr Anjo and taken Sir Michael and Lady Veronica for questioning?”

Namah called for an independent commission of inquiry into this allegation.

Namah was also critical of Sir Michael’s perceived personal interest to have him arrested.

“What offence have I committed that warrants a directive from the Prime Minister or the National Executive Council for my arrest?” he said.

Namah said he was reliably informed by highly placed sources within the cabinet and police force of such a directive.

As well, the former PNG Defence Force officer said he would not be silenced by the executive directive for his arrest and would continue to criticise the government and its leadership for its actions and suggest alternative policies in addressing national issues and problems affecting the country.

James all geared up for Miss South Pacific title quest

By JASON GIMA WURI

MISS Papua New Guinea’s bid to win the Miss South Pacific title will begin this weekend in Port Moresby, The National reports.

Miss PNG Rachel Sapery James sweating it out at the gymnasium in preparation for the week-long Miss South

Pacific title quest that begins in Port Moresby at 4pm tomorrow

Rachel Sapery James will be joined in the South Pacific title contest by 10 other participants from around the Pacific who are arriving today and tomorrow for the week-long event.

The winner will be crowned Miss South Pacific 2010.

James told The National yesterday that she would use the Miss South Pacific quest to spread three key messages.

“First is unity as a country to move forward.”

Quoting from a phrase used by Community Development Minister Dame Carol Kidu, James said: “The Bird of Paradise needs both its wings to fly, or the familiar saying: United we stand, divided we fall.”

She said her second message would be on education, “which is crucial in building our human resource capacity develop our country”.

James added: “And, finally, sustainable development, environmental awareness and conservation to live in a healthy and safe environment and have healthy and strong communities for the future.”

She said the pageant was also an opportunity to showcase and promote the country and its people.

“As a region, we need to stand strong and united.

“We need to give more opportunities for cultural exchanges, sharing success stories of achieving our goals for development and give ideas to each other to grow as a region.

“As a young aspiring PNG woman, I believe I have a lot to offer the South Pacific community if I were to be crowned Miss South Pacific.

“I see myself as a bridge between two worlds, bringing advanced modern innovative technology and knowledge of science and tools available to improve the lives of the vast majority and enhance our region.

“I see this also as an avenue to put PNG on the map.

“Even though we are the biggest nation in the South Pacific, there is very little spotlight and attention in comparison with other countries like Fiji and Tahiti.

“Thus, I will endeavour to promote our great country and its uniqueness for sustainable tourism,” she said.

“It will also be a great honour to be crowned Miss South Pacific on home soil.

“I am calling on all Papua New Guineans to support me, even if it means to vote for me via the internet, as we will be doing it all for PNG,” James added.

James is 26 years old and comes from New Ireland.

Besides the Miss PNG title, she also bagged the Miss Humanitarian and Miss Patron’s Choice during the Miss PNG quest.

The Miss South Pacific contest will be staged at the Lamana Hotel and Sir John Guise Indoor Complex starting tomorrow at 4pm.

Gas project eyes more fuel output

ExxonMobil, partners: Initial production could be larger

 

EXXONMOBIL Corp and its partners in the PNG LNG project are likely to produce more fuel than they initially expected during the first phase of the project, online publication Bloomberg Businessweek has quoted analysts as saying, The National reports.

The venture initially may produce 6.9 million metric tonnes of LNG from two units, up from the 6.6 million tonnes previously projected, according to Credit Suisse and Citigroup Inc analysts who cover Exxon’s partner, Oil Search Ltd.

The Hides field drilling campaign next year is likely to underpin an expansion of the project to a third processing unit, Sydney-based Credit Suisse analyst Sandra McCullagh said after a visit to the project site.

A final investment decision on the next stage may occur in 2012, she said.

ExxonMobil and partners approved the development of the project almost a year ago.

The venture may double the size of Papua New Guinea’s economy, Port Moresby-based Oil Search has said.

Government projections released during the handing down of the 2011 budget this week say that the economic growth will be over 20% from 2015, the first full year of export.

First exports are due in 2014, barring any disruptions. A third plant may begin in 2016, McCullagh said.

“We are increasingly confident Oil Search has additional growth opportunities that may boost earnings,” she said.

Oil Search rose 2.3% to A$6.67 at the 4.10p.m. close in Sydney yesterday, compared with a 0.3% increase for the benchmark S&P/ASX 200 Index.

An additional unit, or train, producing 3.5 million tonnes of LNG annually, may cost about US$5 billion, Citigroup’s Mark Greenwood in Sydney wrote in his report.

 

 

Nape: I will fight charge

NATIONAL parliament Speaker Jeffrey Nape has vowed to take on the opposition in court, saying he will vigorously defend the case brought against him, The National reports.

After trying for weeks to woo Nape’s support to push through a notice for a vote of no-confidence in Prime Minister Sir Michael Somare in parliament, the opposition attacked Nape after realising they would not succeed.

The opposition leaders filed a criminal complaint in court, summoning Nape to answer for alleged breach of the constitution on July 20.

The claim was in relation to Nape presiding over the proceedings of parliament on July 20 and certifying four legislations when he was the acting governor-general.

Nape issued a statement yesterday, saying: “I have been advised by my lawyers that the court action instituted against me by Sir Mekere Morauta is fundamentally flawed in a number of aspects which I will challenge in court.

“Firstly, as a veteran politician and lawmaker, Sir Mekere should know that, as a member of parliament and a party and witness to the case, I cannot be served with court papers within three days to or after the date appointed for parliament to sit. That is prohibited under the Parliamentary Powers and Privileges Act,” Nape said.

“Parliament was set to reconvene on Tuesday, Nov 16. I was served with court documents on Wednesday (Nov 17), one day after the time appointed for parliament to sit. That is clearly illegal.”

He said he would vigorously deny that section 95(4) of the constitution was breached.

Nape said Sir Mekere was abusing the court process by seeking criminal penalties and sanctions against him in aid of a civil claim for civil remedies against him in court.

“That is unlawful and highly improper.

“Sir Mekere is, in fact, usurping the powers of the police and public prosecutor by seeking criminal sanctions against me. There is no basis for this.

“That is a politically motivated action and Sir Mekere should be experienced enough to leave political issues outside of the judicial process to stop wasting the time of the people’s court.”

Nape was supported by Esa’ala MP Moses Maladina, who said the criminal proceeding was defective.

Maladina said any criminal proceeding should be brought by the state and its instrumentalities, and not individuals.

He said under section 6 of the Parliamentary Privilege Act, any member of parliament cannot be called in as witness three days before and after the parliament sitting.

Sources in Waigani said the move against the speaker showed the frustration felt by the opposition in its bid to remove Sir Michael in a vote of no-confidence before the “window of opportunity” closed.

“The opposition has been courting Deputy Prime Minister Don Polye, United Resources Party leaders William Duma and Anderson Agiru and Nape.

“And, the answer they got is ‘no’ from these leaders,” a source said.

 

 

Ex-soldier walks away with K91,000

By JULIA DAIA BORE

 

A RETIRED soldier who waited for so many years to get his entitlements from the Defence Force has been paid K91,000, The National reports.

Another ex-soldier received K50,000, the lowest paid out up to yesterday.

Both were among 14 already paid, out of 334 ex-servicemen who would be paid a total of K12.3 million for the years spent serving the force.

The pay-outs began on Tuesday, with K200,000 already paid out to the ex-servicemen.

Facilitator in the pay-out exercise Col Paul Mai confirmed yesterday that the payments were taking place at Murray Barracks in Port Moresby.

He said because of no public listing on who was among the 334 eligible recipients, only 14 people had turned up these past few days.

Mai was hopeful that more would turn up today following newspaper advertisements listing the recipients.

The National Executive Council had sanctioned the pay-outs in decision No.159 of Aug 5 this year. However, the cheque payments were not processed until funding was made available recently.

PNGDF chief of staff Capt (navy) Alois Tom Urr had instructed on Monday that following NEC approval after screening the status of each group, 334 ex-servicemen were listed for payments.

Workers from the office of the attorney-general were assisting PNG personnel with administering the pay-outs.

Urr also directed that “the payments will not be released to a third party, including lawyers”.

“In the event where a serviceman has died, his next of kin with proper identification will be paid.

“No payment will be made if there is confusion and conflict over the identification of an ex-serviceman or his dependants. In such cases, the cheque will be returned to the AG’s office to be administered through the public curator’s office,” Urr said.

Security has been tightened at the pay-out station.

 

 

Somare: IPIC funds safe

PUBLIC Enterprises Minister Arthur Somare yesterday gave a full disclosure of the government’s funding of the liquefied natural gas project, saying the money, in a quarantined account, is safe and payments are on track, The National reports.

The minister was forced to give the disclosure in a media statement released yesterday, following a story published in the Post-Courier on Wednesday.

Somare said there was absolutely no truth in the Post-Courier story, which said that the government had lost A$300 million recently because it converted US dollars to Australian dollars in relation to the exchangeable bond issue with International Petroleum Investment Company (IPIC).

“The story is pure fiction because, as pointed out to the Post-Courier before its report, IPBC has not made any currency conversion recently,” the minister said.

The Independent Public Business Corporation (IPBC) concluded an agreement with IPIC in November 2008 to raise A$1.681 billion.

The exchangeable bond deal with IPIC was approved by the national executive council.

The transaction was concluded in March last year, and the funds were deposited in a quarantined bank account in Singapore for use as and when payments were due for the government’s share of the LNG project.

Somare said most of the funds from the IPIC transaction were converted at the time to US dollars with a portion retained in Australian dollars to cover the interest costs of the loan.

A sum of A$1.285 billion was converted to US$828.3 million at the prevailing exchange rate in March last year.

PNG LNG equity payments to the present time had amounted to US$525.5 million, while interest earned on funds totalled US$0.287 million and A$20.7 million.

The cost of the exchangeable bond transaction was US$18.7 million while the “coupon” payments on the exchangeable bond totalled A$135.6 million.

The net balances remaining in the quarantined accounts following these transactions and payments were US$493.7 million and A$262.4 million.

Somare said: “The details of these transactions were audited by the auditor-general for the year 2009.

“This accounting process has already been undertaken for 2009 when the funds were first received and placed in an escrow account and government payments made for sunk costs in the LNG project as well as for ongoing cash calls.”

Somare said he considered it highly improper for the Post-Courier, and any other media, to make false claims on issues of national importance, but it was even worse when news stories were based on fictitious information and unreliable and uninformed sources.

He urged the national media to take a more responsible approach, especially when it came to issues that were critical to social and political stability and future economic growth and prosperity.

 

 

MPs duty to protect PNG's interest: Namah

Leader of PNG Party Belden Namah has reminded members of parliament not to loose focus of their prime responsibility to act in the best interest of their people and the nation.

Namah said all elected leaders in government and opposition were duty bound and had moral obligation to rise, oppose and depose the current scandal-plagued Somare regime.

“Together with parties in the opposition and government defectors, PNG Party will continue to seek support from concern members for a vote of no confidence in the Prime Minister,” he said.

Namah was responding to statements by National Alliance party president Simon Kaiwi who criticised opposition attempts to topple this government through a vote of no-confidence in the Prime Minister. “Simon Kaiwi has turned himself into a one-eyed monster, which sees only NA and the Somares,” he said.

“He has no right to question the opposition.

“His position as NA president gives him no right to question the opposition’s legitimate role to question government on important national issues and concerns.

“Presidency of NA is not an elective position.

“He is not equal to members of parliament.

“As such he cannot question the rights of elected leaders to question the government.

“Who is running the government? The elected prime minister, the unelected prime minister or Simon Kaiwi?”

Namah said it was the opposition’s legitimate right to question the government and hold it accountable for its actions and policies.

 He said that Kaiwi should be telling his political masters in the government of its dismal failure to provide basic and essential services to the people.

As well, Namah said the government should stop pretending, come out clearly and inform the nation of how it spent the K5 billion in various trust accounts.

Ombudsman Commission completes probe on Somares

THE Ombudsman Commission (OC) has said it has concluded its investigations on Prime Minister Sir Michael Somare and Minister for Public Enterprises Arthur Somare, The National reports.
The OC also said the matters were now within the competence of other relevant independent constitutional offices such as the courts and the Public Prosecutor.
The commission said these matters would be addressed by those offices in way they would be considered appropriate with regard to the issues of delay raised in the media.
The commission made the statement in relation to the status of referrals of Sir Michael and Somare to the office of Public Prosecutor as a result of its investigations.
The OC said it was mindful of the operation of the common law principle of sub judice, which essentially prevents public discussion of cases that are currently before the courts.
The statement from the OC said in part: “In the OC’s view it has concluded its investigations.
“However, the parties have exercised their rights to take the matter to court.
“OC assures that it is doing all it can to defend these cases and that of other leaders that have instituted legal proceedings against the OC so as to protect the integrity of its investigations.”