Tax crackdown

Company faces K20mil fine in customs probe

 

FOREIGN companies operating in the country that have evaded paying customs tax can be expected to be exposed and prosecuted, The National reports.

A crackdown is underway by the PNG Customs Services and already one oil company has been told it owes the state K20 million, while a mining company was forced to pay more than K1.5 million recently.

If successful, the state can expect something of a windfall in revenue from the Customs Services by the end of the year.

The oil industry company, which has not been named at this stage of its investigations, has been slapped with a bill of K20 million in outstanding duties to be settled within a deadline or face prosecution, Customs boss Gary Juffa said yesterday.

The company has also been advised to produce documents, which the company refused saying its records were kept offshore.

In a stern warning to corporate giants operating in PNG, Juffa said no one was above the law and all efforts were being made by Customs to ensure revenue due to the state of PNG and its people were paid up.

Juffa said the company was operating in PNG for the last decade and had substantial investments in PNG and abroad.

“If the company does not pay up, it faces the consequences which include refusal by Customs to clear its vessels or imports, or have its bank account garnisheed.

“If the ordinary Papua New Guinean is required to pay his taxes and duties every time he purchases a good or a service or imports or exports, then I don’t see why companies which have the means to and are obliged by law to pay their duties, avoid doing so,”  Juffa said.

The oil industry company has told Juffa it would take time to bring their documents into PNG for scrutiny.

Under Customs laws, they were required to ensure they hold all documents in relation to their business in PNG for five years.

Meanwhile, Simberi gold mine has been fined more than K700,000 for alleged failure to declare goods and evasion of customs duty.

A further K700,000 in import duty was also collected for a total of more than K1.5 million.

“The company had brought in machinery for its mine in New Ireland without declaring and paying the necessary duty until they were caught.

“Many companies in PNG that operate and reap significant profits ignore paying their duties and behave with contempt for PNG laws and its people.

“We welcome them with open arms and yet they deem it their right to ignore our laws.

“Multinational companies in PNG that import are coming under the spotlight of Customs and where they are found to have evaded duties due to the state, they will pay with heavy penalties,” Juffa said.

He also said an expatriate working at the Mineral Resources Authority, who attempted to interfere with Customs was under investigations, and could be prosecuted.

“He is employed by the state and is to maintain state’s interests and the interests of the people of PNG and not lobby for companies that err and fail to respect our laws,” Juffa said.

Stop being overly generous: Bakani

THE country’s chief banker has warned the national government against making excessive commitments with landowners and to discourage the free handout mentality, The National reports.

Bank of Papua New Guinea governor Loi Bakani also warned yesterday that the government’s previous unsettled commitments were likely to prompt a supplementary budget this year due to the exerted pressure by landowners, especially the liquefied natural gas project area landowners.

Bakani was concerned this might lead to an increase in the government’s total debt.

His warning was contained in the central bank’s Quarterly Economic Bulletin for the March quarter released yesterday.

Bakani said: “While high mineral export prices will lead to higher taxes for the government, the unsettled commitments to various landowners have exerted pressure on the 2010 budget.

“If the revenue is not sufficient to meet these outstanding commitments, the government will have to introduce a supplementary budget with new financing plans.

“The government, through departments that are directly involved in the LNG project, should refrain from making excessive commitments with landowners and avoid free handout mentality,” he said.

Last month, the government moved for a supplementary budget to accommodate landowner commitments but it was not clear whether the budget would be introduced in this month’s Parliament sitting.

Southern Highlands Governor Anderson Agiru said last month there was more than K1.3 billion in claims from landowners for various commitments, including the K120 million seed capital and other memorandum of agreements commitments.

Meanwhile, JP Karai Landowners Association from petroleum development licence (PDL) 1 has welcomed the change in bringing the K60 million seed capital to the project sites for payment.

JPKLA general secretary Thomas Hengebe said:  “We, the majority landowners at home, support the move by Agiru because we fear our money might disappear in Port Moresby into the hands of unidentified city-based landowners.”

 

 

Second chance at life

FOUR-year-old Bainam Palo has survived her second heart operation, this time under the operation open heart (OOH) involving Australian doctors and nurses and their PNG colleagues, The National reports.

Palo, of mixed Morobe and Goroka parentage, was first wheeled into the operating theatre for a closed heart surgery last year.

However, when her condition did not improve, further tests revealed that she had a hole in her heart that needed open surgery.

Doctors at the Goroka Base Hospital had her listed as a candidate for this year’s OOH and, hence, Palo’s second surgery which went smoothly to the relief of her mother, Nafil Palo.

She said her daughter was diagnosed as having a heart defect at two years of age.

“I thought my daughter would die. She had recurring shortness of breath and, sometimes, seizures; and she would collapse. She could fall asleep all day from 8am to 7pm faced down and not wanting to be moved around,” mum Nafil said.

Mother and daughter first made the trip to Port Moresby in 2008, but were referred to surgery last year.

“We returned last year and my daughter had a closed heart operation because of a lack of oxygen circulating in her body. After careful examination, she was confirmed to have a hole in her heart,” Nafil said.

“The feeling of pain when your child is going through such a condition is very painful.

“I am thankful to God for giving my child another chance at life and for blessing the medical staff at PMGH with lovely hands to carry out this extraordinary work,” she said.

Meanwhile, Australian High Commissioner Ian Kemish and his family visited PMGH yesterday.

The family’s visit was a morale booster for the Australian volunteer doctors and nurses and a clear indication of the Australian government’s support and commitment for the OOH programme in PNG.

Kemish said OOH was supported by the Australian government through AusAID’s PNG health programme which provided about A$100,000 per year since 2002. To date, this amounts A$820,000, which is inclusive of this year’s A$140,000.

The family toured the two operating theatres – Kangaroo and Kumul – the emergency ward and the intensive care unit.

They were accompanied by Prof Nakapi Tefuarani, OOH coordinator Russell Lee and board member of the Sir Buri Kidu Heart Foundation Marilyn Ward.

The Australian doctors and nurses, the largest OOH contingent so far, arrived last Thursday and will leave for home on Sunday.

The team included 53 volunteers ranging from surgeons to scrub nurses from hospitals in Alice Springs, Newcastle, Brisbane and Sydney. 

Officials said 24 OOH patients had gone through surgery and were recovering at the PMGH.

Manus plants new coconuts

By SOLDIER BURUKA of DAL

Coconut is the tree of life for rural communities in the coastal areas of Papua New Guinea.

 It provides for the people's livelihood as well as cash income and is a major export earner for the country.

 In some areas, especially the island communities, coconut trees are dying out and need to be replanted.

On M'buke Island on the south coast of Manus, the community has rallied together and sought technical assistance to carry out replanting and revitalising the coconut industry. 

But their main priority is to ensure that coconut continues to provide for their sustenance on a daily basis.

In these photos, Department of Agriculture and Livestock regional director for Mamose, Masayan Moat, does the honor to replant a young coconut plant to signal the start of the replanting exercise.

DAL in collaboration with the Manus provincial administration is embarking on a programme to do replanting and redevelop the coconut industry on the island and other communities.

Politics Down Under

From JOHN PASQUARELLI

Malcolm Turnbull has written a soppy,  silly piece about Rudd's execution in the SMH – will he be just as soppy about John Howard – losing his seat of Bennelong and now not even making the cut for his seat on the international cricket board – or whatever it is!

Howard has been done over by racist bongo bongo African despots and Asians – for Asians read Indians and Pakis(oops) – let's call a spade a spade - I can't remember any tall,  ferocious real Asians belting down sound-barrier breaking body-liners at Old Trafford! 

Fancy a murderous mongrel like Mugabe being listened to. 

Cricket has now been captured by Indian and Pakistanian racists who will do anything for dollars.

Howard should have been more perceptive and not put up his hand in the first place but his love of cricket overcame his decision making. 

Where to now? 

We should fight back and only play cricket with England,  New Zealand and South Africa(?) but political correctness and gutlessness will win the day for sure. 

How many of our MPs will support Howard and attack the disgraceful racism that has been directed at him? 

The racist bastards didn't even have the decency to cast a vote! 

New boss same as old boss? (Or steady as she goes Julia.)

By REGINALD RENAGI

 

So what's new in Australian politics? 

Julia Gillard is the new boss now but what can she do different from her old boss?

 As the old pop song goes... 'new boss same as old boss', and many wonder whether Julia will be any different or will she be the same as her old boss, Kevin Rudd. 

 Some sections of the Australian public think this way because Gillard is also seen as the co-drafter with the man she dethroned of key ALP policies.

 Some of these policies have been the main cause of former PM Kevin Rudd's diminishing popularity in recent times.

 So Julia is equally guilty by association and should take part of the blame for Kevin's drop in ratings by opinion polls.

 She played the loyal deputy's role very well whenever she was given a chance to appear on breakfast TV shows during studio debating sessions one-on-one with opposition leader, Tony Abbort.

Both looked liked good mates on the surface but Julia struck me as a more shrewd and calculating pollie not to be trifled with, as Kevin Rudd found out recently.

As deputy PM, Gillard looked good to viewers when defending her government's policies against prevailing public criticisms.

Gillard accounted herself well in the public's eye on national TV while her boss's popularity slump as he refrained from constructively engaging with a concerned public.

The opinion polls subsequently convinced Julia to make her historic move a fortnight ago to oust one of Australia's most popular PM in recent years.

Her reason?

The country needed strong leadership to move it forward and Labor was not doing that well and might prove much worse come election time. 

ALP stalwarts broke poor Kevin's career as PM so Julia can rebuild Labor's wavering public support as inside power brokers felt the party would have a better chance of winning with her in the coming polls this year.  

So will the new PM make some real changes or will it be 'steady as she goes Julia?'

 I think it will be the former. Gillard will try very hard with her new cabinet team to try and regain Labor's popularity slump.

 Labor will in the short time it has under Julia Gillard to build up public support and trust before the elections.

 So what key policy changes will she make for the ALP? 

 Key ALP policies will remain very much intact except the ones that are controversial with the Australian public like the new Mining tax slapped by the former Rudd government.

Here Julia will be a more engaging PM than Kevin Rudd was in talking more with her critics and try to reach a middle ground to appease a recalcitrant industry.

Other key policy changes may be in climate change and whether to reintroduce Rudd's ETS in another form and configuration, stronger border policies, asylum seekers issue, AusAid programme with Papua New Guinea and the Pacific, Pacific Forum and possibly a relook at its future ADF troop involvement in Afghanistan.

Australia under Julia Gillard is a new sea change.

The ALP just need three new good policies now to sell to the Australian public and they just might win the election for Julia Gillard: Cut PNG aid levels to zero and instead increase trade by 100 percent, do more for indigenous Australians than before and lastly; pull Australian troops out of Afghanistan by Christmas.

Keeping troops in Afghanistan will not make Australia any safer but a very unsecure country in future.  

New Guinea Energy spuds first exploration well

NEW Guinea Energy (NGE) spudded its first exploration well at Panakawa oil prospecting licence in Gulf province last June 25, according to a statement to the Australian Stock Exchange yesterday, The National reports.

The drilling programme is managed by contractor Australian Drilling Services, using its contracted rig #6.

Work has been progressing well for the last 10 days

The Panakawa oil prospect is located in PPL 267.

It was initially identified as a lead from the Yalis phase I seismic survey completed in 2006, and further delineated by the Yalis phase II seismic survey (Q3 2008).

The prospect underlies the Panakawa oil seep which has a surface measured flow rate of five barrels of oil per day of 35°API oil and is ideally located less than 1km from Rimbunan Hijau’s Panakawa logging and veneer plant wharf.

The statement said the Panakawa-1 well was targeting the lower cretaceous toro formation sandstone and several secondary reservoirs.

Proposed total depth of the well is 2,323m in basement.

The company expects the well to require approximately 30 days drilling.

NGE is the sole owner of PPL 276.

The company said apart from PPL 276, NGE also has five other onshore petroleum prospecting licences (PPLs) covering more than 52,000sqkm (including PPL 276).

These PPLs contain an excellent exploration inventory of 59 prospects and leads, which include six drillable prospects.

Ten top leads are currently being evaluated for upgrading to drillable prospect status.

The oil-and-gas-focused explorer raised US$18.5 million (K49 million) early this year by a placement of 112,121,210 shares at US$0.165 per share to sophisticated or professional investors, it said.

The fundraising was managed by Bell Potter Securities Ltd and was strongly supported by both institutional and sophisticated retail investors.

The shares issued will rank equally with existing ordinary fully-paid shares on issue, with shareholders approving the matter at a meeting last week.

NGE is partly-owned by Sir Michael Bromely, a PNG-based businessman who, at one time, ran one of the Highlands’ region’s large supermarket chains – the Bromley and Manton.