Supreme Court rebukes PM

SIR Michael Somare has been castigated by the Supreme Court and cited for "preventing a necessary and proper legal process from taking its proper course", The National reports.

He has been accused of applying delaying tactics in his prolonged legal battle against the Ombudsman Commission which go against good public administration and good governance.

In a landmark decision last Friday, the Supreme Court dismissed all matters brought before it by Sir Michael.

In the process, the court made findings that clarified confusions surrounding the question of exactly when a leader ought to be suspended from office.

The Supreme Court decision by Deputy Chief Justice Gibbs Salika and justices Nicholas Kirriwom and Ambeng Kandakasi had restored the time of suspension of a leader back to the moment when the public prosecutor makes a decision to refer a leader to a leadership tribunal.

"For avoidance of any doubt, we reiterate that suspension is triggered or takes effect from the moment a decision  is made to refer a leader to a leadership tribunal by the public prosecutor ..." the court ruled.

This now meant that Public Enterprises Minister Arthur Somare and Treasurer and Finance Minister Patrick Pruaitch are automatically suspended as both had been referred to separate leadership tribunals.

Somare appeared before his tribunal yesterday and his suspension was confirmed by his own counsel.

An earlier decision in Pruaitch's case, relating to tendering of certain documents before the tribunal before suspension is effected, was found to be "bad law".

Suspension is not automatic only in the case of the referral of the prime minister, the chief justice and the public prosecutor.

All others, without exception, are covered by section 27(2) of the Leadership Code which states that leaders are suspended when the public prosecutor decides to refer them to a leadership tribunal.

While facing the leadership tribunal, Sir Michael decided to file certain proceedings in court raising questions of interpretation and application of the constitution mainly to review processes brought against him by the Ombudsman Commission and the public prosecutor.

Having made its decision, the court said: "The various steps Sir Michael took, through his legal counsel or advisers, were nothing short of an attempt at preventing a process ordained by law taking its proper course."

The court ruled that through the unnecessary delay tactics, Sir Michael denied himself justice and quicker options and reliefs under normal process.

"The process, albeit with much delay, has now been concluded with no direct challenge against its conclusion by Sir Michael.

"These proceedings, therefore, have no utility and have been a total waste of the court's time."

Costs were awarded against the PM.

Chief takes first few steps

By JEFFREY ELAPA

 

PRIME Minister Sir Michael Somare has been walking with aid in hospital and talking since last Thursday, although his recovery is expected to be slow, The National reports.

According to Brian Gomez, media adviser to State Enterprises Minister Arthur Somare, Sir Michael has been walking with assistance after weeks of being confined to bed in a hospital in Singapore after undergoing surgery.

Gomez said Sir Michael had been walking and talking since last Thursday.

He underwent heart surgery in April and then underwent two more re-construction surgeries.

Theresa Kumo, media adviser in the Prime Minister's Department, said, when asked for more information on Sir Michael, any official statement on the condition of the Grand Chief would come from the family of Sir Michael.

Kumo said although Sir Michael was recovering, it was too early to comment on anything because any statement would have to come from the family.

Last Tuesday, Sir Michael's son Arthur revealed to the nation of his family's intention to retire their father from active politics.

However, under the law, Sir Michael will have to officially declare his intention to step down from office and formally inform the head of state of his decision.

In the case of ill-health, the government may nominate two doctors to examine him and give their professional opinion on whether he is capable of continuing in office as prime minister.

It would be left to parliament to decide, if he was declared unfit to continue or decides to step down, on who should succeed him.

There were already reports of factions lobbying to get the top post and the leadership of the National Alliance party.

Meanwhile, it is understood that Fiji's prime minister  Frank Bainimarama, who is in Singapore to watch the netball world championship, is likely to visit Sir Michael in hospital. This, however, could not be confirmed with Fiji's permanent secretary for information Sharon Smith-Jones yesterday.

 

 

K125m glitch will be fixed, say ministers

By ISAAC NICHOLAS in Kokopo

 

TWO senior government ministers have assured Nasfund contributors that the government will correct any anomalies in the K125 million saga in the next appropriation bill, The National reports.

National Planning Minister Paul Tiensten and Communication Minister Patrick Tammur gave the assurance yesterday.

Tammur was the initiator of the controversial sovereign community infrastructure bill.

Neither men would comment on a Central Bank report that the entire saga was conducted outside the normal financial approval processes and in contravention of the Public Finances Management Act.

Tiensten said the government would accommodate the arrangement in the next appropriation bill whether it was a supplementary budget or the budget proper for next year.

"The maturity period for the loan is 2014 for the government to start repaying as guarantor of that funding," he said.

Tiensten said the timing was within the period when the government was expected to get proceeds from the liquefied natural gas project.

He said the Nasfund loan was unlike conditional loans or multi-lateral loans that would cost the state more and  exposed to external risks.

Tammur denied claims that the K125 million had been released to the Kokopo district.

He said the Kokopo joint district planning and budget priorities committee, in prioritising projects, identified water supply and roads as a major development agenda.

He said the committee came up with a project submission and knocked on the doors of donor funding agencies including Nasfund.

"The people of Kokopo are only the recipients, the procedures and procurements are the responsibility of the funding agency," Tammur said.

"The treasury minister authorised or signed off the documents to guarantee Nasfund that the money will be repaid by the government.

"The K125 million is still with Nasfund," he said.

He said a similar arrangement was made to build the Poreporena Freeway.

Ramu workers go on rampage

By RIGGO NANGAN

 

MORE than 1,000 wor­kers on strike at the multi-million kina Ramu Agri-Industries Ltd oil palm project in Gusap Downs, Ramu Valley, destroyed company properties yesterday after the mill management failed to address their grievances, The National reports.

Gusap police station commander Insp Adam Busil and his men had to calm down the angry workers after they had cut through the fence into the mill site and started destroying company properties.

Busil said he had warned the workers that their strike was an industrial matter and it was up to the company management to respond to their demands. But if they started to destroy properties or harass people, then police would deal with them, he said.

The workers from the first, second, third and fourth divisions of the oil palm project, after waiting in vain for the management to address their grievances, went on the rampage claiming that their petition had not been attended to after lodging it last week.

They claimed to have waited at the oil palm estate at Gusap Downs since last Saturday but the management at Ramu sugar estate in Ramu town, several kilometers away, did not respond directly but instead sent the union representatives to talk to them.

They said their main grievances were low pay, lack of safety gear, inadequate housing allowances, entitlements and death benefits.

They said they received an hourly rate of K1.78 and a harvest target of 120 fruit bunches at 0.12 toea per bunch for eight hours daily. The workers claimed that they usually harvested more than 120 bunches under harsh conditions at times but were paid for only 120.

They said they were not issued with footwear or hand gloves as the dried oil palm leaves and stalks were very sharp.

Attempts to get comments from the company management yesterday were unsuccessful.

Flowers and trees in the lawn outside the mill were cut down and a fallen tree was laid across the main entrance into the mill.

A section of the wire fence was cut and glass windows of the main mill office, an oil analysis laboratory and a weighbridge reading panel were smashed and a computer screen removed.

A truck parked outside the office also had its windscreen smashed and a pile of paper was placed under the fuel tank ready to be lit.

Signboards were torn and debris were scattered along the main oil palm road leading into the mill.

The glass window of a butcher retail outlet nearby was smashed with rocks and beef from the abattoir was removed before the looters were stopped by police.

Lae contractors line up to get payout from council

Words and picture by PISAI GUMAR

 

Despite heavy down pour in Lae city whole day today, almost 500 contractors engaged for minor grass cutting and cleaning drainage around various city locations fronted at Lae City Council (LCC) office to get their payment for the work done three years ago.

Officers that requested anonymity reported the major road work contractors are still waiting for their payments.

Most payments were due for payments back in 2008 coupled with 2009 until 2011.

Some of these works could be done by the LCC health and community services; otherwise could be directed into respective wards to engage youth, women, church and sporting groups to involve.

 However, contractors were involved without knowledge of the responsible sectional heads.

The picture shows contractors waiting for their names to be called to receive payments.

The rate of the payments defers on tools, manpower and the size of the work.

K1.9million ravaged

Probe exposes shady deals by civil servants

 

By JEFFREY ELAPA

 

A TOTAL K1.9 million of the development budget has been committed in just three months and much of it in questionable projects, an investigation reveals, The National reports.

The investigation, conducted by private law firm, Korowi Lawyers, into the Department of National Planning further asserted that a network of senior workers have been awarding themselves lucrative contracts from the development budget to their own companies.

The report, hastily put together in a short space of time on the directions of reinstated secretary, Joseph Lelang, contained names of the senior officers, their companies and instances of the alleged transactions along with cheque details.

Copies had been sent to Acting Prime Minister Sam Abal and the fraud squad.

The report cited acting secretary Ruby Zarriga and Minister Paul Teinsten as having turned a blind eye on the actions of the senior officers. Both were recommended for serious disciplinary actions.

Nearly K23 million out of a K30 million, allocated under the church-state partnership programme, was reported to have disappeared leaving only K22,000 in the till as of June 1.

The report further recommended that a number of projects totalling K33.7 million would need to be further investigated while some 17 payments, totalling K14.3 million, were made without any project documentation received.

Other recommendations were: 

*That head of department to commence disciplinary proceedings and refer officers to the police fraud and anti-corruption squad for criminal investigation;

*Use the proceeds of Crime Act to recover all monies paid out as well as repossessing tangible properties;

*For the acting prime minister to commission an inquiry into this year’s development budget by allowing for independent investigators;

*To discipline acting secretary Ruby Zarrigga and minister Paul Teinsten; and

*To abolish the Department of National Planning and Monitoring and transfer all financial powers to Treasury Department, the adoption of one appropriations Act and transfer of policy and planning functions to the Prime Minister’s Department.

A total K1.9 billion, which comprised 90% of the national government component of the K4.2 billion development budget, was alleged to have been mismanaged.

The balance of the budget comprised foreign aid monies, of which 75% was from AusAID.

The K1.9 billion in total warrant authorities were reportedly released by the Department of Treasury of which K735 million in project monies were placed under trust accounts held by the Department of Finance.

A remainder of K1.2 billion was released to projects by the Department of National Planning and Monitoring over three months from March to May.  

While lengthy future scrutiny would reveal what had happened to all the funds, several incidences of mismanagement of the development budget programmes were discovered and contained in the report.

For example, the district market programme was allocated K20 million under the budget. Of this, a total K10.442 million was released in two batches leaving a balance of K9.558 million. However, the report revealed a nil-balance with the money transferred or diverted elsewhere.

It was further revealed that certain districts did not acquit previous funds but still continued to receive funding. These included Telefomin, Imbonggu and Talasea markets.

The report revealed that senior managers of the department received much of these funds through several private companies (registered with IPA) to benefit themselves and their cronies.

A total K30 million was

allocated to social development funds governed by the church-state partnership framework

and executed between the state and church partners in October 2008.

It was reported that between March and May this year, a total of K7,160,263.66 was released to projects without records for the balance of K22,817,321.34.

The balance as of June 1 was only K22,415.

Lawyer: Police shock family in dawn raid

By JEFFREY ELAPA

 

A TEAM of police officers allegedly stormed the home of National Planning secretary Joseph Lelang and harassed his wife and children early last Friday, his lawyer Philemon Korowi claims, The National reports.

Korowi told reporters that the officers entered the home at around 4am last Friday and demanded to know the whereabouts of Lelang.

He questioned the actions of the police officers, saying they had traumatised the family.

“We deplore the conduct of the policemen as being unprofessional, undisciplined and sinister,’’ he said.

Lelang was charged by police earlier this year with breaking in and entering his office after he was reinstated by the court to his current position. He had been earlier suspended from that position over certain allegations levelled against him. The court had ruled in his favour.

The latter case is pending in court.

But, last week, police wanted to question him over reports he was trying to interfere with state witnesses in the case.

Lelang was summoned twice by the police to go to the Boroko police station. Even Police Commissioner Anthony Wagambie wrote to him to go to the police station. He failed to do so.

But Korowi said the police officers had treated the Lelang unfairly.

“If it was in relation to the criminal charges against Lelang, in which he was requested to attend at the Boroko police station for a record of interview relating to the complaints of attempting to pervert the course of justice, then, there was no urgency for him to attend as he was not a common criminal,” the lawyer said.

He said Wagambie had agreed to a request from Lelang to delay his visit to the police station because he had to seek a medical check overseas and that he would come to the police station upon his return.

Korowi claimed that the police officers did not have any arrest or search warrants.

He said he had reported the matter to Wagambie and lodged a formal complaint with the internal public complaints division.

 

Nothing done to control arms, says Maipakai

By JUNIOR UKAHA

 

INTERNAL Security Minister and Kikori MP Mark Maipakai is worried about the build-up of firearms leading into next year’s elections, The National reports.

He said this last Friday during a passing-out ceremony 98 officers from the Royal Papua New Guinea Police Band at the Bomana Police College.

Maipakai said since the report and recommendation of the Guns Control Committee came out six years ago, “little or nothing has been done to rectify the situation”.

“I am concerned about the use of firearms, both legal and illegal, in the commissioning of crimes, conflict situations and especially in next year’s national elections,” he said.

Maipakai said the use of guns was one of the single biggest problems facing the country.

He said guns which fell into the hands of criminals and other unscrupulous people were used to kill people.

He said the use of illegal firearms to commit crimes “is a hindrance to development and is destroying businesses”.

“Guns will drive away investment and ruin our society,” he said.

He said guns were used in over 80% of crimes committed in the country.

Maipakai commended Police Commissioner Tony Wagambie and his deputies for the pre-election operations being conducted nationwide.

“It will flush out some of these illegal firearms but not all of it,” he said.

Police Commissioner Operations Fred Yakasa said police operations before and during the election would require K188 million to be successful.

Yakasa said around 20% of that money would be used in pre-election operations.

Lae is on a road to nowhere

By MALUM NALU

On Friday, June 25, while back home in Lae, I took a drive along the city’s infamous roads with regional works manager Brian Alois.

We took a look at Markham Road opposite Lae Showground, Bumbu Road opposite  golf course, Milfordhaven Road opposite Botanical Gardens, the steep hill leading up to town from Voco Point, and the Huon Road leading from town to Eriku.

At first glance, so much for so little, that I felt like breaking down and crying for the people of Lae – me included – who have suffered so much over the years.                                              

I remember a Lae from the 1970s and 1980s that was perfect – before the rot set in – and had no potholes at all

Just last December, acting Prime Minister Sam Abal dished out more than K100 million to a handful of contractors to fix up Lae roads, however, cracks are already appearing in the concrete and water is spilling out from drains.

Contractors are working willy-nilly on their assigned stretches, in an unplanned, haphazard fashion, and there seems to be  no uniformity all over the city.

Compare that to a decade ago when AusAid-funded Barclay worked on the Lae roads?

The Department of Finance, seemingly, has appointed overseas contractor NME International as its engineering supervising consultant for Lae roads with no input whatsoever from Department of Works.

Alois and the works guys, even the city engineer, have no say whatsoever in the Lae roads project.

“That question that arises is that if the national Department of Works or provincial works is not supervising the millions already spent on Lae roads, which agency is responsible?” wonders four-time Lae MP Bart Philemon.

“Going by the project signboards, it would appear that the Department of Finance is now the implementing agency.

“If this observation is correct, then how much this could be?

“Department of Finance is not technically qualified, so how will it depend on the engineering consultant to manage the whole project?

“I believe the Department of Finance appointed NME International as its engineering consultant for Lae roads project.

“It means that the government has now delegated or offloaded its responsibilities to this private company in preference to its own implementing agencies.”

“The company, NME International, is now totally responsible for everything that takes place.”

What is painfully obvious to all is that there is no overall design for total Lae roads upgrading, with all engineering designs being different, each contractor having his own design.

Alois concurs with Philemon, and during our drive, pointed out some things that were lacking on Lae roads including utilities, road furniture, street lights, dumping of spoils and physical planning approval.

“There are no provisions for relocation of utilities such as water, telephone lines and power poles, etc,” he says.

“Consideration should have been given to these respective service agencies to firstly, relocate the infrastructure and secondly, make provisions for future extensions/installations, etc.

“Once the roads are concreted, it would be near difficult to carry out works on the relocation, maintenance and installation of service utilities.”

Road furniture

“Every road has to have them and apart from the many other functions, they are there to promote road safety for vehicles and pedestrians as well,” Alois says.

“Importantly, we have not allowed for accessibility for people with disabilities (wheelchairs); compare the previously upgraded roads by AusAID and these current works.”

Street lights

“Every modern city has to have street lights and these were installed when AusAID funded the roadworks before.

“In these current works, there are no street lights and we say all the time that Lae is not only the second city, it is the industrial hub.”

Dumping of spoils

“We are dumping all the spoils dug up from the roads into the sea at the DCA beach and that is not good environmental management.

“If these works were planned properly, then my suggestion would be to do river training works on the Bumbu, and use the spoils as backfills and that way we can reclaim some of the land that was eroded over the years by the Bumbu River.

“Institutions like National Polytechnic (Lae Tech), Bumbu Barracks, CIS Buimo and streets along the Cassowary Roads have suffered loss of land.

“So instead of dumping the spoils and polluting the sea, we could have made good use to reclaim and at the same time protect further erosion.

Physical planning approval

“I am sure that no physical planning approval was given for the current works unlike the previous works by AusAID.

“So we have broken the procurement laws (no tender, variations exceeding maximum limits etc), and also the physical development laws.”

Alois says entry into Lae can be through ends or gateways: From the Highlands Highway at Bugandi and from Bukawa Road through Busu Bridge.

“These two roads that lead into Lae City are classified as national roads; the Highlands Highway as it traverses into the city rides on Markham Road then onto Milfordhaven Road ending at the Lae Port, while the Bukawa Road rides on to Malahang/Busu Road terminating at the Malahang Industrial Centre,” he adds.

“I’d like to believe that there is no road classification for the network of roads here in Lae.

“Needless to say, it is necessary, in view of the traffic volume and high maintenance costs, that we categorise our roads into their primary functions.

“This means that we must, in the first instance, assign roads according to what we want them to deliver in terms of traffic.

“We must have different classification of roads that are designed and constructed for the different types of traffic that we would expect would use them.

“The suggested road classifications can be:

·         Class A main arterial roads;

·         Class B link roads;

·         Class C industrial roads;

·         Class D residential roads; and

·         Class E central business roads.

“At the same time, we must emphasise on nominated routes for our public transport system.”

Alois, apart from being the regional works manager, is also the president of the Institute of Engineers PNG Lae branch and a board member to Institute of Engineers PNG Board and Professional Engineers Registration Board.

Meantime, Lae continues to be heading on the road to nowhere!

Chief remains, says Kaiwi

GRAND Chief Sir Michael Somare remains in office regardless of the wishes of his family, the president of his National Alliance party said yesterday, The National reports.

“The position now is that the Somare family has made its wishes known,” National Alliance president Simon Kaiwi said yesterday.

“They do not want their father to continue as a politician. That is understandable.

“In terms of the positions that he (Sir Michael) holds as prime minister, parliamentary leader of NA and East Sepik member, he stills holds those positions.

“He is still the party leader and the PM until such time as that position is taken.”

He said Sir Michael’s position as prime minister would only be determined by parliament after legal requirements were satisfied.

The process to replace Sir Michael as parliamentary leader of NA begun in February this year at the Grand Chief’s own behest and was now well advanced, Kaiwi said.

Kaiwi said the next caucus meeting, scheduled to be held in Jiwaka, would determine the party leadership position.

“We are at an advanced stage now,” he said. “The process is well under way.”

That process started in February when, in consultation with the Grand Chief, Kaiwi was told to prepare for a successor to Sir Michael.

The parliamentary wing of NA, comprising 42 MPs, would convene in Minj town to elect the leader of the National Alliance.

That leader would be NA’s choice for the PM’s post should a vacancy occur by then.

Should a vacancy occur before the July meet, Kaiwi said it was the sole prerogative of parliament to elect a prime minister.

The view that the Somare family’s announcement to retire Sir Michael without his knowledge does not constitute a legally-binding decision was also shared by a number of people yesterday.

Private lawyer Tiffany Nonggorr said:  “It is not a family monarchy we have here in PNG; that Arthur Somare or any member of the family can decide on when the prime minister of this country can step down or not step down. 

“There are existing processes and bylaws of this land that must be followed.”

She said that by the application of this country’s section 142 of the Constitution and section 6 of the Prime Minister (PM) and National Executive Council (NEC) Act 2006, “the only way Sir Michael ceased being a PM is when he himself says (from his own mouth) that he has resigned and does so in writing to the national executive council, declaring that he is resigning and, therefore, stepping down”.

Or, that he is dismissed, suspended or voted out by parliament.

She said the application of such laws safeguard a PM (any PM) and the people of PNG from any actions, unscrupulous or otherwise.

She said the proper legal procedures required – under current circumstances – was that, upon advice from the national executive council, the governor-general was required to advise the PNG Medical Board, “who designates two medical practitioners to examine the prime minister”.

It would be based on that joint medical report presented to the governor-general “who advises the speaker to advise parliament which would then decide whether to suspend the prime minister on medical grounds or not”.

She said only then can a new prime minister be elected by parliament.

Outside of that, no one, not even the prime minister’s family members, have any say in whether or not he, as the chief executive of the country, should step down or not.

Senior lawyer Peter Donigi had raised similar points and the opposition yesterday called for the appointment of medical practitioners to follow the dictates of the Constitution.

Abal: Govt is intact

By JEFFREY ELAPA

 

ACTING Prime Minister and Wabag MP Sam Abal has assured the nation that the National Alliance-led government is intact and will continue to dispatch its responsibilities until next year’s general election, The National reports.

Abal said this during a  state-owned enterprises (SOE) consultation on the National Plan and Vision 2050, with the theme “Delivering through SOE” at the Crowne Plaza in Port Moresby yesterday.

He said despite speculations that the NA and coalition partners were splitting and regrouping to elect a new prime mi­nister after Sir Michael Somare stepped down, the go­vernment was intact.

But the talk in the corridors of power is that seve­ral MPs from the go­vernment are in talks with the opposition to change the prime minister when parliament resumes in August.

A few leaders who were interviewed said the coalition partners and NA members remained intact out of respect for Sir Michael.

The sources said since the PM had had been advised by his family to retire, the leaders could make their move.

Abal said in order to bring stability to the go­vernment and in fostering development, all political leaders needed to focus on the development agenda of the country first so “our people do not have to keep asking why they are still poor in a rich country”.

Abal said: “With less than a year to go before writs are issued for the next national election, it is my hope that politicians on both sides of parliament focus their best efforts on the people in their electorates, in deli­vering the best development outcomes possible.

“We can then go to next year’s election confident that which ever party wins the most seats, its leader can become the prime minister.”

Meanwhile, Abal urged all state-owned enterpri­ses to commit themselves to outlining three priority initiatives that could improve their profit margins and result in greater corporate growth.

 

 

Elias urges SOE CEOs to improve services

By JEFFREY ELAPA

 

CHIEF Secretary Margaret Elias has urged chief executive officers of state-owned enterprises (SOEs) to be responsive towards the joint efforts to implement policies and directives of government geared towards achieving development objectives, The National reports.

She said the CEOs had responsibilities to improve service delivery by providing the environments to support economic growth and social development.

She said they should work closely with the Department of Public Enterprises and Independent Public Business Corporation (IPBC) to develop an infrastructure development policy framework which they should present to government as soon as practicable.

Elias added that the state-owned enterprises needed to develop a master plan to be submitted to government by the end of this year.

“The challenge for you is to offer your services and technical advice to both the rural and urban communities in establishing enabling environment,” she said.

“For example, our district treasuries and district hospitals must have electricity and proper water supplies to ensure that they are functioning and which will encourage the local people to access services at the districts.

“I challenge you all to support government in improving service delivery under your organisations’ mandates.

“It is intended that this forum provides an avenue for effective monitoring, evaluation and reporting to government on how SOEs are supporting government in achieving its policy objectives through the existing mechanisms.

“It is imperative that we must improve on our performance as CEOs of state-owned enterprises and heads of agencies of government.”

She said it was a system under which government would enforce compliance and monitor performance particularly at heads of government agency level.

She said there had to be transparency, accountability and commitment in the operations of the organisations they led and be accountable to the government and the people.

Elias said the state-owned enterprises must submit their annual profit and loss statements and valuation of assets for scrutiny by government, through the IPBC.

She urged the CEOs to manage the people within their organisations to create harmony and avoid industrial disputes “which can be a disruption in the economy as well as hinder the achievement of the objectives of their organisations and the expected outcomes as per their business plans.”

BSP to buy back shares

BANK South Pacific Ltd will buy back up to K40 million worth of its own shares, chairman Kostas Constantinou announced yesterday, The National reports.

The shares buy-back was agreed upon during the bank's capital management strategy discussion during its annual general meeting last month.

The buy back is set to open today for a period of 12 months.

The board of directors decided to buy back shares since BSP's current market share prices did not reflect the fundamental value of the company.

Constantinou said BSP intended to enter the market from time to time to purchase shares pursuant to the buy back, which under this, shareholders are invited to sell up to 10,000 BSP shares of each registered holding.

BSP would pay for any brokerage on shares bought back.

Selling shareholders would not pay brokerage.

At the release of the full-year profit results to Dec 31, 2010, Constantinou informed the market last March that "BSP had achieved sound results last year, characterised by continued profitability and balance sheet growth, demonstrating operational and financial stability".

The directors of BSP believed that a measure on market buy back of the company's own shares would complement the share consolidation that was effected early this month.

The shares consolidation allowed for shareholders to now receive one share for every 10 shares they previously owned, meaning BSP's share price will, in effect, be multiplied by 10 to maintain the value per share.

Shareholders would notice that the current selling price for BSP shares stood at K6.68 from K0.68, and where they had 1,000 shares, they now have 100 BSP shares.

 

Tribunal date set for Somare

By JULIA DAIA BORE

 

ANGORAM MP and Minister of Public Enterprises Arthur Somare will face the Leadership Tribunal next Monday, The National reports.

The tribunal is to decide whether Somare is to continue as an MP pending the tribunal hearing on allegations of misapplication against him.

Much will depend on his submissions before the three-member tribunal headed by Justice Salatiel Lenalia.

The other two members are Principal Magistrate Orim Karapo and Senior Magistrate Noreen Kanasa.

They were appointed in 2006 by the late Chief Justice Sir Mari Kapi.

Lenalia was appointed by Chief Justice Sir Salamo Injia three weeks ago following the National Court's dismissal on June 3 of Somare's last ditch attempts to have his referral stopped.

He had argued before a Supreme Court panel of judges headed by the Deputy Chief Justice Gibbs Salika that the proceedings should be dismissed.

Salika, however, ruled that Somare's application had "no merit".

He added: "The decision to refer, in my respectful opinion, is not unreasonable and capricious in the circumstances and as such, the Ombudsman Commission did not act in excess of its jurisdiction to refer.

"In the end result, all the grounds for judicial review are dismissed as having no merit."

Following this decision, Sir Salamo said the decision of June 3 effectively paved the way for the new chairman to be appointed and for the stalled tribunal to get under way.

After Somare, who?

The National Commentary

 

YESTERDAY dawned an ordinary sunny Port Moresby kind of day – a little on the windy side – but before it ended, Tuesday, June 28, 2011, was propelled into the annals of PNG history.

Shortly after 3pm, an announcement was made that Prime Minister Grand Chief Sir Michael Thomas Somare was retired after nearly 50 years in PNG politics.

"Was retired", not "had retired"!

The man who has achieved so many firsts in his life has also achieved another milestone at this parting juncture – he could neither himself be present at the announcement of his retirement nor had he participated in the decision himself.

His immediate family made the decision for him three weeks ago while he still lay in the intensive care unit of Singapore's Raffles Hospital.

The announcement had been delayed in the hope that he would recover sufficiently for the family to consult him on its decision.

When that did not happen, the family decided to make the announcement to stop the speculation, to allow him time to recover fully and to make way for PNG to move ahead with the business of government without "Somare being in the way".

"We are removing our father," son and Public Enterprises Minister Arthur Somare said in Tok Pisin yesterday, "so that he is not an obstacle for PNG to move ahead".

It is a significant moment in the life of PNG when one of the longest serving leaders in the Commonwealth of Nations is removed from our midst. It is a moving time to see a firebrand politician so incapacitated on medical grounds that he cannot make the final solemn decision to retire.

Yet, the family decision is the correct one and it must be commended for it. That the family has stood together in the face of great stress and difficulty to make a decision for both their father and in the interest of the nation truly makes them our first family.

While retirement should be self-executing and, therefore, ought to automatically remove from him all necessary powers as MP for East Sepik, as National Alliance parliamentary leader and as prime minister, because he did not make the decision himself might raise some thorny legal questions.

What is to follow is not clear-cut at all.

The family action now removes the constitutional provision for three doctors to declare him incapable to continue in office on medical grounds. That provision is no longer relevant.

The action also provides a vacancy in the office of the prime minister.

The announcement by the family begins a process that will end with the election of a new prime minister of PNG.

Acting Prime Minister Sam Abal is in charge for now but how long he is to continue legally is unknown. While his reign on government, shaky at first, is strengthening and he appears focused and charismatic, this announcement will mean he must first gain legitimacy to continue in office from his own National Alliance party.

Since this situation has never before occurred, the laws have not been tested. This situation is unprecedented so that should provide government lawyers with some interesting legal gymnastics.

Parliament has adjourned to August, placing it well within the 12-month period when no motion of no-confidence can be moved in the prime minister, yet, there is no prime minister to move a motion against.

Only parliament can elect a prime minister so it is important that parliament meets as a matter of urgency and it falls to cabinet to make that decision.

Political lobbying, as expected, has begun in earnest and will continue.

The ruling National Alliance party, with 42 members, has a head-start but it might not have the advantage that the integrity law guarantees when it states that the leader of the party with the largest number will be invited by the governor-general to form government.

That provision, we would vouch, only applies at the end of a general election.

In such confusing circumstances, perhaps, a look for direction to the founding father, who now lies ill on a hospital bed in a distant land, might prove helpful.

A dangerous constitutional crisis is looming which needs averting but how to do it is the question.

What would the Grand Chief do in such a circumstance?

That unique ability of his to calmly smother all dissent, to gather differing views and extremities through consultation and consensus, to make sense out of chaos and to move all that mass in one direction, is needed again now more than ever before.

The question is: Do we have that man?

Somare retires

By ISAAC NICHOLAS

 

PRIME Minister Grand Chief Sir Michael Somare has retired from office for medical reasons, his son Arthur Somare announced yesterday, The National reports.

The decision was not Sir Michael's, but that of his immediately family members who reached it three weeks ago in Singapore.

"He is not in a position to coherently make a decision himself ... that is why we have made the decision,'' Arthur said.

"On behalf of Lady Veronica and the rest of Sir Michael's family, I would like to inform the public that it is our wish that Sir Michael will now pursue a life in retirement after nearly 50 years of active politics due to medical reasons and the uncertainty of the recovery period."

The retirement covers all positions held by the PM including:

*Parliamentary leader of the National Alliance party;

*Regional member of parliament for the East Sepik people; and

*As Prime Minister of Papua New Guinea.

Somare, who is minister for public enterprises, put on a brave face although he was visibly emotional when making the announcement.

"The public was informed at different intervals that Sir Michael has taken medical leave to address a condition that has prevailed over many years," he said.

"The initial operation to replace the leaking heart valve was successful but, subsequently, other complications had developed.

"These complications have further delayed the anticipated time in which Sir Michael was expected to recover and return to Papua New Guinea."

The son said the difficult and trying part of identifying infectious diseases had been cleared but, at the age of 75, going to 76, and after three heart operations, "it will weaken a person of his age".

 "The uncertainty of when he will be out of intensive care has pushed us into this decision," he said.

He said Sir Michael was in ICU and "is not in a position to talk and understand the decision made by the family three weeks ago".

"I have not talked to my father in weeks," Somare said.

He said the road to recovery would be slow and "it will be a tedious wait and the family cannot keep PNG waiting".

"All five siblings and our mother have taken this decision that he steps down from politics and that Sir Michael is allowed to recover at his own pace. In our considered decision to do this, we believe PNG should have a level of certainty with regard to political stability and leadership well into the future.

"He is not only the head of the Somare family. He is the head of the country and there are different processes to be taken to elect a new prime minister.

"I am not here for politics but as a family member to announce the family's desire to retire our father.

"Taim femili ino toktok, banis istap yet. Nau mi toktok, mi kliarim rot. Em samting bilong palamen, kebinet na pati long mekim disisen. Em bai ino mo sanap long rot. (When the family did not speak out, it becomes an obstacle, but now that I make that announcement, it clears the road for parliament, cabinet and party to make a decision).

"This has not been an easy decision to make without full and proper consultation with Sir Michael.

"However, in the greater public interest and collective good of the country, we are of the view that this decision is necessary and we believe it will be his desire to do so at this time given the circumstances.

"I would like to thank the people of Papua New Guinea for their well wishes, messages of support and constant prayers."

Women at work

Women of the Seventh-Day Adventist church in Lae, Morobe, walked through the streets of the city collecting rubbish on Sunday, The National reports.

About 200 women were divided into three groups and collected rubbish at the three major shopping centres of Main Market, Eriku and Chinatown. 

Some of the women (above), who had cleaned Chinatown were on their way to the Main Market when they were pictured at the Lae Yacht Club, at Voco Point.

The other group, which started from the market, also cleaned the road to Eriku from where other women picked up rubbish on the way to Chinatown.

The women collected used plastic bags, soft drink containers and other rubbish. – Words and picture by PISAI GUMAR

 

Broker highly rates Highlands Pacific

AUSTRALIAN investment broker Evans and Partners has given a “positive” rating to Papua New Guinea mining explorer and developer Highlands Pacific, The National reports.

The company is a junior partner in the US$1.4 billion Ramu nickel and cobalt being developed by Chinese giant Ramu NiCo, 18.18% joint venture partner in Xstrata’s Frieda River copper mine in East Sepik and explorer in the Star Mountains of Western’s North Fly electorate.

“Highlands Pacific remains our number one recommendation within the copper space, due largely to the extreme discount to valuation the company is currently trading,” research analyst Cathy Moises said in Evans and Partners’ Australian resource sector report released last week.

She wrote that with a decision on the Ramu NiCo submarine tailing disposal court case expected later next month, a trebling of the exploration focus in the Star Mountains and final definitive feasibility study for Frieda River due in January 2012, the news flow would be significant.

Frieda is the key asset, she said, noting that it was one of the world’s largest undeveloped copper/gold resources.

“Subject to the project continuing to meet its project hurdles, a 12-month feasibility study is due for completion in January 2012, with possible construction commencing in 2012 and production in 2017,” Moises said.

The pre-feasibility study provided for a 60mtpa operation for the first eight years of mine life and 50mtpa average for LOM (when processing harder ore).

 

 

Students urged to repay Tesas loans

By BOSORINA ROBBY

 

RECIPIENTS of the Tertiary Education Study Assistance Scheme (Tesas) loan from 2000 to 2007 are urged to start repaying their loans to the Office of Higher Education through the Department of Finance and Treasury, The National reports.

OHE student support and scholarship assistant director Joseph Morimai said recipients living in the National Capital District should go to the cash office at Vulupindi Haus and make payments to finance revenue vote #106.01.

Recipients in the provinces could visit their district treasury office and make payments to the same vote.

Those employed recipients are asked to provide their employment details to the OHE.

Morimai said copies of the receipt should then be faxed to the OHE for their database and cross-check purposes.

He said the OHE would design and maintain debt recovery database to allow accurate accounting of individual student’s loans and repayments, and to keep all student data.

He said since its inception in 2000, OHE had loaned close to K6 million to more than 3,000 students in Tesas attending nursing, teaching, technical and business colleges and universities.

“So far, only two women have repaid their loans since the Tesas loan scheme started,’’ he said.

“So, by creating this repayment mechanism with the help of the Finance and Treasury Department, we hope to recoup at least 60% of the funds.”

The loans scheme was developed to help students enrolling at universities and non-university institutions pay their tuition fees.

The four scholarship categories were academic excellence scholarship (AES), Higher Education Contribution Assistance Scheme (Hecas) and self-sponsored.

The service was suspended in 2008 to allow OHE to develop ways to get its money back.

Police boss cracks whip

Officers implicated in student killing face suspension

 

By JUNIOR UKAHA

  

POLICE officers implica­ted in the death of a Kokopo Business College student will be suspended pending an investigation, Police Commissioner Tony Wagambie said yesterday, The National reports.

He condemned the actions of a group of policemen who allegedly assaulted a final-year management student who died while in police custody.

Wagambie said if the reports into the alleged beatings and death were correct, “then the policemen responsible will be dealt with accordingly”.

“Nobody is above the law, even if they are police officers,” he said.

“Normal police investigations will follow and none of the officers responsible will walk away free.”

As he made his hard stance known, Acting Deputy Commissioner operations Fred Yakasa announced one policeman had been committed to stand trial and three others were facing charges in relation to the death of a man in custody in Kimbe, West New Britain, early this year leading to a riot in that town (story on page 3).

East New Britain provincial police commander Supt Sylvester Kalaut yesterday maintained, however, that he needed to have “concrete evidence” on the allegation that his officers were involved in the student’s death.

He said it was mere speculation by the community and the school administration to force an internal investigation on his officers.

Wagambie spoke out after a group of policemen from Kokopo, East New Britain, stormed the Kokopo Business College, fired tear gas, raided a male dormitory and assaulted students.

The officers allegedly beat up the final-year student, Stanis Jiki, in his dormitory and hauled him and three others to the police cells where Jiki was said to have died.

Wagambie said police were allowed to “use force”, when carrying out their duties, but the “nature of the situation” must justify the type of force used.

“I have not been formally briefed,” he said.

“But if it is true (killing), then, administrative procedures will apply.

“The officers implicated will be suspended automatically pending investigation.”

He said a similar case where police brutality had resulted in the death of a local youth in nearby Kimbe, West New Britain, had resulted in three police officers committed to stand trial.

He said another policeman in Port Moresby was last year sentenced to 22 years in jail for discharging a firearm in public and pointing a gun at members of the public even though he did not kill anyone.

Wagambie passed his condolences to the relatives of the deceased and appealed to the students not to take the law into their own hands.

His comments came as four male students from the Kokopo Business College appeared before the Kokopo District Court yesterday on charges of arson and damaging school property.

The students were all from Wosera in East Sepik. They were Winsaslaus Bagamu, a second-year student, Noel Wapikundi, Edward Jiriwahu and Bradley Wambi, all first-year students.

They were charged on Saturday under section 67, subsection 1A of the Criminal Code.

Their cases had been transferred to the Kerevat District Court and were remanded in custody at the Kerevat Correctional Services.

The four were refused police bail and had been ordered by magistrate Samuel Lavutul to file for bail application.

The burning down of the office administration building was in retaliation to the death of Jiki.

Kalaut yesterday said the school administration had complained that police officers had beaten up Jiki.

He confirmed that a post- mortem would be conducted on Jiki this week, once doctors at the Nonga Base Hospital morgue were ready.

It was understood that a protest march was being planned by KBC students and staff for today.