Fuel prices go up from today

FUEL consumers nationwide will now dig deeper into their pockets as fuel prices for petrol, diesel and kerosene go up from today, The National reports.

Consumers will pay K3.33 per litre for petrol (from K3.16) and K2.75 per litre for diesel (from K2.53). Kerosene price

rises from K2.42 to K2.60 per litre.

Independent Consumer and Competition Commission (ICCC) acting chief executive officer Elastus Geroro blamed the rise in fuel prices on an increased crude oil price, and a fall by the kina against the US dollar on the exchange rate.

High cost in transporting the products also contributed to the rise.

He said on monthly average comparison, crude oil price rose significantly last month, increasing by 6.48% compared to a 2.7% reduction in February.

Mr Geroro said as the global economy continued to show signs of recovery, crude oil prices began to rise in a region where China has a big influence on other Asia-Pacific economies.

He stressed that change in the fuel prices were determined by global energy demand and, given that crude oil is a globally traded commodity, it was expected that the demand and supply determination in the major regions around the world against the US dollar would continue to cause price changes at any time in the future.

He said with crude oil trading above US$70 per barrel for the third consecutive month, prices would continue to fluctuate in the coming months.

He urged fuel suppliers and retailers not to charge consumers above the set prices.

 

 

 

Payroll excesses

Government expenditure blown by K200 million in 2009

 

THE Government blew a larger than expected hole in its recurrent expenditure last year, and the Treasury Department is blaming the payroll for that, The National reports.

The department is conducting a review to see where it occurred and who caused it, so those responsible can be made to account and closely monitored in future.

This was revealed yesterday when Finance and Treasury Minister Patrick Pruaitch released the final budget outcome (FBO) for last year. 

Figures released said the recurrent expenditure last year was K4, 166.4 million, which was K213.8 million higher than the revised budget estimates.

This was due to higher expenditure, particularly under personnel emoluments costs by provincial and national departments.

Mr Pruaitch said the total expenditure on personal emoluments was higher than the revised estimate, and Treasury was reviewing the processes of monitoring and controlling expenditure incurred from the payroll.

He said they would monitor agencies that continue to overspend.

Despite this, last year’s FBO recorded a deficit of K36.3 million or 0.2% of GDP against a revised deficit of K86.0 million or 0.4% of GDP announced in this year’s budget.

This was an improvement from the high deficit of K478.5 million (2.2% of GDP) recorded for 2008.

The improved budget deficit outcome was due to higher revenue. Total revenue and grants for last year was K6, 651.3 million, which was slightly higher than the revised budget estimate by K11.7 million.

Abstracting from grants, total revenue collections last year were higher by K172.8 million compared to the revised estimate.

On the expenditure side of the budget, total expenditure and net lending last year was K6, 687.6 million, which was lower than the revised budget estimate published in this year’s budget by K37.7 million.

Total development expenditure was K2, 348.7 million. This was lower than the revised budget estimate by K247.0 million.

Mr Pruaitch also admitted that detailed expenditure on trust accounts were lacking.

“Unfortunately, a number of executing agencies did not provide expenditure reports on their trust accounts.

“A detailed report on the expenditures from trust accounts will be provided in the mid-year economic and fiscal outlook report in July,” he promised.

As a result of the payroll blowout, the Government had to borrow to fund the deficit. This caused a net increase in overall debt last year.

Mr Pruaitch said the budget deficit last year resulted in total public debt increasing to K6, 944.1 million, up by K17.4 million from a debt level at the end of 2008 of K6, 962.7 million.

But strong nominal GDP growth contributed to debt as a percentage of GDP fell from 32.1% in 2008 to 31.9% last year, he said

 

O'Neill blames Finance for police housing delay

PUBLIC Service Minister Peter O’Neill has blamed “bureaucratic slowdown” in the failure to deliver police housing in Lae, Morobe province, on time, The National reports.

He wants public servants responsible to be severely reprimanded.

Mr O’Neill said failure by the Finance Department to release funds had resulted in the project at East Taraka being delayed by almost 12 months.

He said this meant police personnel and their families continued to live in rundown and condemned houses at Bumbu.

The project at East Taraka was meant to deliver 120 two-bedroom units at a cost of K20.8 million.

The units would be brick-built, fully furnished, and valued at around K180, 000 each.

He said K5 million was released last year to the contractor to start work. But K15.8 million remained outstanding, and Waigani has not been able to release this money to the contractor to complete the project.

“I’m very disappointed.

“Policemen and women and their families are made to suffer because of incompetence in Waigani.

“There are people in the bureaucratic system, especially in the Finance Department, who are not doing their job,” Mr O’Neill said yesterday.

“If I had the powers to sack, they will be gone.”

Mr O’Neill’s ministry is charged with developing a number of housing schemes for public servants.

The Lae police housing project is one of them.

The Bumbu police barracks has been condemned as unfit for human habitation by health authorities.

Policemen and their families have moved out of the condemned houses to live with wantoks.

Some have crammed into the single quarters, making it very unsafe and unhygienic.

Businesses in Lae are worried about this, as unsettled police personnel may not attend to the city’s daily law and order needs

 

Men face court over missing Vision 2050 office equipment

THE ordinary Papua New Guinean is interested in seeing good education and health services today, rather than in 30-50 years time, Deputy Chief Justice Gibbs Salika said, The National reports.

 “We are dreaming (of what will happen in 50 years time) while our people continue to suffer from lack of basic services which they need immediately to better themselves,” he said.

Justice Salika made this comment in relation to Vision 2050 and the current dispute by those involved in its formulation.

The National Planning Committee Secretariat consisting of Dr Vele Ila’ava, Andrew Kavana, Westly Nukundj and Ralph Yamb were in court after allegedly stealing office equipment from the Vision 2050 office.

They refuted the allegations, saying they were moving offices as their rental of the office space at the Waigani IPA campus had expired.

“Surely, we can resolve this dispute without fighting over these things,” Justice Salika told the parties.

He adjourned the matter to this morning for the alternative dispute resolution to be effected.

 

 

 

Prime /minister to officiate at UNRE graduation

By UNRE Public Relations

 

Prime Minister of Papua New Guinea Grand Chief Sir Michael Somare will present the keynote address at the 13^th annual graduation ceremony of Papua New Guinea University of Natural Resources & Environment tomorrow.

Sir Michael, who is expected to arrive in the province tomorrow morning on the government jet, Kumul, will officiate at the ceremony as the keynote speaker.

Guest speaker will be Professor David Kavanamur, chairman of the National Strategic Plan Taskforce that produced the PNG Vision 2050.

Hundreds are expected to turn-up at the University’s Vudal campus to get a glimpse of the ‘Father of the Nation’.

Since word of the possible presence of the Prime Minister at the ceremony spread two weeks ago, the campus has been a hive of activity, with staff and students alike preparing to receive him.

His presence adds significance to the annual ceremony which for the first time is being held in the beginning of the year unlike the traditional November ceremonies held previously.

Students from both of the University’s campuses - Vudal and Popondetta – will receive their qualifications.

The Grand Chief will witness the culmination of years of study and commitment of 126 students.

Damien Toki will graduate with a Masters degree in management while 13 of his postgraduate course mates will receive graduate certificates in management.

In the undergraduate stream, 23 students will receive bachelor degrees of tropical agriculture, while 89 students will receive diplomas in tropical agriculture. 45 of these diplomats come from the University’s Popondetta campus.

The students were originally scheduled to graduate two weeks ago; however, the ceremony was deferred after acting Secretary to the Department of Prime Minister & National Executive Council and Pro-Chancellor, Margaret Elias, advised Vice Chancellor Professor Philip Siaguru of the Prime Minister’s desire to personally attend the event.

Preparations for Sir Michael’s visit have not been restricted to the University. Local communities have cleaned up along the road and students from several primary schools have indicated that they will line up along the road with flags to welcome him this morning as he travels to the University campus.

Holiday Inn to undergo a multi-million Kina make-over

Members of the largest superannuation fund in the country, Nambawan Super will benefit from a K200 million investment to expand the Holiday Inn in Port Moresby (artist's impression above).

Nambawan Super is the major shareholder with 54% of the Kumul Hotel group which owns Holiday Inn and Crowne Plaza.

Last week (Mar 29) Kumul Hotel group signed a contract with Canam Construction Company of New Zealand to begin work this year.

The hotel expansion comes at a time when the LNG projects are set to begin with the demand for accommodation in the nation’s capital expected to rise.

Chairman of Nambawan Super, Sir Nagora Bogan said the Holiday Inn had been an important institution in Port for over many years as an accommodation provider.

It is now time, he said, for the shareholders to capitalize on the full potential of the site to benefit the thousands of members of Nambawan Super, as well as the members of the Melanesian Trustee

Fund which is a minor shareholder.

When signing the contract with Canam Construction, Chairman of the Kumul Hotel group and Nambawan Super Board member, Mr Greg Taylor said the demand for short and long-term accommodation, and resort-style facilities had increased and it was expected to continue as the flow-on effects of the LNG projects percolate through the economy.

The expansion work will include a new hotel and all-suite apartment block at the current Holiday Inn site.

The new hotel to be called HOLIDAY INN EXPRESS will add 200 rooms to the group’s

existing 312 whilst the separate block of apartments will add another 86 apartment suites to the hotel chain.

The hotel will have 11 levels with the 200 rooms being located on eight (8) floors. The other three floors will be reserved for car parking. In total, there will be 158 queen-size rooms and 40 twin-size rooms.

On the other hand, there will be 86 all-suite apartments, 58 of them will be one-bedroom while 28 will have two bedrooms.

The first phase of the project involving extension of the hotel facilities which is the all-suite apartments will commence immediately for completion this year whilst work on the hotel section will begin in May and is expected to be complete in late 2011.

Representative of the Intercontinental Hotel Group (IHG) which operates Crowne Plaza and Holiday Inn, Mr Bruce McKenzie, said the new development would establish a competitive edge for accommodation in the nation’s capital.

“Considering the high demand for accommodation products in Port Moresby, both the all-suite apartments and the Holiday Inn Express service model will enhance the appeal for our existing accommodation,” he said.

“The new facilities will provide a distinct competitive advantage, especially in relation to larger companies seeking service and product standards that can be provided by an international operator with long-term commitment to the destination.

The Holiday Inn Express model is the first for the South Pacific region.

Mr McKenzie added, “We are particularly excited to be introducing Holiday Inn Express to the South Pacific region. The express will complement our current Holiday Inn and Crowne Plaza hotels by offering a fresh, uncomplicated hotel with competitive rates to a range of government and mid-scale business travelers.”

At the signing last week was the Chairman of the Kumul Hotel Group Mr Greg Taylor with fellow Board member Mr Wayne Smith.

21 escape from Lae police cells

Top cop warns public of ‘inevitable’ mob attacks

 

POLICE in Lae, Morobe province, have gone on full alert following the mass escape of 21 detainees who broke out of the Lae police cells early yesterday morning, The National reports.

The mass break-out occurred at the Top Town police cells between 3am and 5am.

Police yesterday warned that crime, particular break and enter and stealing, would inevitably increase.

Metropolitan commander Supt Nema Mondiai told reporters yesterday that the escapees dismantled brick walls near the toilet block and then jumped over the two-tier barbed wire fence at the back towards the State House and dashed for freedom.

None of the escapees have been recaptured.

Supt Mondiai has ordered an investigation.

He said police had yet to verify the status of each of the escapees, but he urged the public to take precautions.

He added that the improvement of the floor and roofs of each cell blocks had deterred detainees from escaping, however, the brick walls needed to be replaced with metal sheets or iron rods built into the bricks.

The escape raises further worries for the Lae public with more than 70 escapees from last year’s break out at Bomana still at large.

These escapees could further strengthen the mob already on the streets into doing more public harm.

Supt Mondiai said it was an increasing trend in Lae for criminals to attack in groups.

Whether it was while a person was walking on the streets in broad daylight or in the safety of his home on a rainy night, “mobs will attack”, he said.

Supt Mondiai added that break and enter cases had reached a two-year high.

An increase had also been noted in car-jacking.

He also reported that three men, armed with pistols, held up a woman and stole K10, 400 from her at Casuaraina Avenue at Eriku.

One has been arrested while the other was hospitalised after being manhandled.

The third escaped.

At the Papindo department store at Eriku, a man managed to hide inside the shop when it closed for the day and then made off with an undisclosed number of cell phones and DVDs worth thousands of kina yesterday morning.