Somare told not to destroy PNGSDP

Opposition Leader Mekere Morauta today urged Prime Minister Sir Michael Somare to show leadership by stopping ministers from destroying PNG Sustainable Development Program.

PNGSDP was established by Sir Mekere when he was Prime Minister in 2002. 

His government negotiated the gift by BHP of its 52% equity in the Ok Tedi mine. 

“This was a gift by BHP, with Parliament’s assent, to the people of Western province and to the people of Papua New Guinea,” he said.

“It was not a gift to the Government of the day or to future governments. 

“And the gift was conditional. 

“It was conditional on the gift being managed properly as a trust, independent of Government.

“It was my view that the trust should be insulated from the sticky hands of politicians, so that they could not get their hands on it to spend on personal or political projects. 

“BHP supported my view, and the way PNGSDP was established is the result, with BHP appointing three directors including the chairman. 

“The Treasury, the Bank of PNG and the PNG Chamber of Commerce appoint three other directors, along with an independent international accountant.” 

Sir Mekere said:  “The funds of the Trust were also set up very deliberately – one as a future generations fund, to ensure the people of Western Province had access to services after the mine closes; another as a fund just for the development of Western province; and a third fund as a national fund, for development projects anywhere in Papua New Guinea.

“At the end of 2009, after seven years existence, PNGSDP had assets of K2.8 billion, K2.2 billion kina of the total being the long-term fund.

“Since its establishment, PNGSDP has approved project funding of K531 million, 54% in the Western province and 46% in other parts of PNG.”

Sir Mekere said that he was pleased to see that the Treasurer, Peter O’Neill had retracted his initial statement on PNGSDP last week. 

“However, Mr O’Neill has not denied that he has written to BHP demanding changes to the trust company so that the Government could appoint board members and have access to the funds of the company.”

“The Minister for Planning, Paul Tiensten bolted into the debate, salivated by the prospect of having access to the 2.8 billion kina (and growing) financial assets of PNGSDP. 

“He has not yet explained to the nation what he and his colleagues have done with the 5 billion kina that was parked in trust accounts under his control. 

“The Opposition has reports that there is less than 500 million left in the trust accounts. 

“The thought of the Somare government having access to the assets of PNGSDP is sickening and frightening.”

Sir Mekere said Sir Michael and his ministers should stop destroying institutions that were working. 

“Concentrate on making the public service more efficient, on getting decent health and education services to people, on supplying people with reliable and affordable power and transport services. 

“The Prime Minister, Treasurer and Planning Minister should be reforming the institutions that have become dysfunctional in the last eight years, the scores of institutions that are in intensive care, requiring resuscitation. 

“Don’t kill others that are working.”

Sir Mekere said that the reasons given by O’Neill and Tiensten for wanting control of PNGSDP were spurious. 

“They are a camouflage. 

“Their real interest is getting their hands on the money, not on solving environmental issues in the Western province. 

“And since when has the Government proved itself an efficient spender of development funds? 

“Why should the Department of National Planning have access to PNGSDP money, when it can’t spend its own money properly?

“Unlike the Government, the expenditure of funds by PNGSDP is totally transparent, with full accountability. 

“Government Ministers should be taking a lesson from the model and practice of PNGSDP, instead of trying to pollute it. 

“The books are open. 

“If they have a problem, or have specific projects they would like PNGSDP to consider, act like civilised human beings and talk to the CEO, Mr David Sode, instead of destroying the institution.

“The statements by the Ministers reflect their ignorance of what PNGSDP is doing, in its own right and as the major shareholder in Ok Tedi. 

“If Mr O’Neill studied the environmental mitigation actions of the company since 2002, he would see value in the record of the company in the past seven years. 

“Over US$40 million per annum has been spent on dredging at Bige, which has arrested the expansion of flooding downstream. 

“For the past two years, a flotation plant has removed the sulphur from the tailings, greatly reducing the risk of future acid and related water problems. 

“The capital cost of this plant is around $US350 million, with an annual recurrent cost of around US$50 million.”

“The increased concern for environmental issues is a direct result of responsible national ownership of the mine, a result which Papua New Guineans should be proud of.”

Sir Mekere said that apart from PNGSDP being deliberately set up as a trust independent of Government, with a specific focus on the development needs of the Western province, he also envisaged PNGSDP playing a major role in national development as a partner of the national and provincial governments, of the private sector, of communities, and of churches.

“If the Planning Minister and his colleagues took time to educate themselves, they would learn that PNGSDP is fulfilling this role.

“Instead of criticising it, the government should be encouraging it as a partner in development.

“ I am quite sure the hundreds of thousands of people, especially in rural areas, who have been the recipients of PNGSDP projects, whether schools, health centres, roads, rural electrification, microfinance, rubber, aquaculture, forestry projects or water supply, to name a few, do not share the views of Paul Tiensten or Peter O’Neill about PNGSDP.”

Sir Mekere said that his vision was for the dividend income flowing from the 52% equity in Ok Tedi previously owned by BHP to be used productively, to build up social and economic infrastructure for PNG now, and in the future. 

“That is happening. 

“It would be a national crime if PNGSDP were to pass into the hands of politicians. 

“I hope people will speak out and tell the government to leave PNGSDP alone. 

“We all know elections are nearing. 

“This attempted takeover of PNGSDP smells to me of building war chests for elections. 

“We must not allow it.”

More police for Southern Highlands

New police recruits, under the Southern Highlands-sponsored six-month initiative, and their squad master passing by the reviewing officer and Southern Highlands Governor Anderson Agiru in a march formation, The National reports.

The 192 probationary constables graduated last Friday at the Bomana Police College outside NCD. 

Of the lot, 120 will be posted at various locations in the province while 72 will serve in other provinces. A

lso present at the graduation were parade host Police Commissioner Gari Baki, Southern Highlands MPs and senior police officers. – Nationalpic by AURI EVA

JV: Rich Wafi-Golpu mineral deposits

NEWCREST Mining Ltd and Harmony Gold believe that deposits in their joint venture Wafi-Golpu copper and gold project in Morobe could double in size, The National reports.

Newcrest is the new operator of Lihir gold mine on Lihir Island while Harmony has mining interests in South Africa.

The partners had previously told the market that the resource estimate at Wafi-Golpu stood at 16 million ounces of gold and 4.9 million tonnes of copper.

But latest drilling has further extended the deposit.

The partners have now upgraded their ‘’exploration target’’ to a potential 30moz of gold and 8 million tonnes of copper.

Sydney Morning Herald  newspaper last Friday reported that Newcrest managing director Ian Smith told analysts last Thursday that the Wafi-Golpu was shaping up as a major discovery and would form the basis of a ‘’major ongoing long life operation into the future’’.

A pre-feasibility study is planned for next year and Smith said that could lead to a development decision in 2014.

Smith was speaking on the release of Newcrest’s September-quarter production report – its first since acquiring Lihir.

Gold production for the quarter from all operations was 674,219oz.

Newcrest also disclosed in its third quarter ending report that a new operating model it would adopt for the goldmine on Lihir island in New Ireland province would cost an additional US$260 million (K640 million), taking the cost of the mine’s optimisation programme from what Lihir had forecast to about US$1.23 billion (K3.2 billion)

But the additional cost was more than covered by the additional 10 million ounces it would contribute to mine production out to 2040.

Newcrest’s cash costs at A$488 an ounce for the quarter were up from A$342 an ounce in the previous quarter due to the inclusion of Lihir’s higher-cost operations, the impact of lower grades and exchange-rate movements.

The gold production effort was lower than the market expected

Police purge

Bawa first of top cops charged

By JULIA DAIA BORE

NEW National Capital District police chief Fred Sheekiot has wield the axe on senior police white-collar crime in the city, The National reports.

The first victim was former NCD police operations deputy boss Andy Bawa, who was arrested and charged with two counts of official corruption last Friday.

Another 10 senior officers would be similarly charged, Sheekiot, who is commander of NCD and Central, said when declaring that he had started his “head-rolling” exercise of police officers within his command who had been indulging in deals outside of their call of duty.

The crackdown was in line with the directives from Police Commissioner Gari Baki, he said, adding that Bawa had been suspended without pay with immediate effect pending the outcome of his court case.

Bawa had, over the years, developed a reputation as a hard-working deputy of NCD police chief Supt Fred Yakasa.

He had been replaced by Chief Insp Jim Namora as the new operations commander for NCD.

Sheekiot said the charges involved receiving a double salary spanning over three years – one from the police force and another from another government agency since January 2008.

The charges alleged that in addition to his normal police salary, Bawa was being paid K500 a fortnight by another government agency between Jan 1, 2008, and April 22 last year and between April 23 last year and July 21 this year.

Bawa was allowed bail of K500 last Friday, and was expected to appear in court this week.

Sheekiot said the practice of double dipping had been going on for a while with no action taken by those in authority.

“We have to clean up our backyard first before we can effectively exercise our designated roles as policing officers in the larger community of NCD and PNG.”

He said more officers would be charged in the coming days.

Since Baki announced a crackdown on discipline within the constabulary, complaints had emerged that policemen were continuing as security guards for politicians, heads of government departments and statutory organisations and businesses.

It was alleged that these policemen were given vehicles and salaries or allowances by their “side employers” while they continue to draw salary from police and live in barracks or police housing.

“Baki must clean up the entire force.

“The crackdown should not just target one or two people,” a senior police officer said last night.

“If police are providing security for big businesses in the city, Baki must stop them.

“If policemen are wearing uniforms and engaging in businesses, Baki must stop them, or get rid of them,” he added.

Paul Pora passes on

NATIONAL Party and Western Highlands icon Paul Pora is dead, The National reports.

The humble elder statesman was three-time member for Hagen open and one of Western Highlands’ first multi-millionaire businessmen.

Pora succumbed last Friday to a life-long struggle with asthma, exacerbated by a life-long smoking habit.

He was 66 years old.

Many would mourn his passing across the country among the National Party followers, business and personal friends and colleagues, and among his former Hagen electorate, particularly his loyal Yamuka Pepka tribesmen.

As with many people of his stature and longevity, Pora was the stuff of legend.

Such stories often tell the measure of the man.

When former communications minister Malipu Balakau was gunned down outside his house in Mt Hagen in June 1989, the death was blamed initially on Western Highlanders.

Yet, Yamuga Paul Pora was the lone man standing in the middle of the road at Togoba with the father of the late Malipu Balakau to face the wrath of the Enga people.

A convoy of Engan vehicles, nearly three kilometres long ready to do battle and burn Mt Hagen town, was stopped by the figure of this lone man.

He told the Engans that they could continue into Mt Hagen, but, in peace.

He told them that the city was theirs as well as Western Highlanders, that the perpetrators of the violence were not known, only that the killing had occurred in Mt Hagen.

The convoy did proceed into Mt Hagen – in peace where Pora ordered every food bar in the town to contribute food for the assembled Engans and told all Western Highlands tribes in the town’s vicinity to contribute sugar cane.

On the day he lost his Hagen seat to William Duma in June 2002, Yamuga tribesman threatened to block the Highlands Highway leading into Mt Hagen and to close the Kagamuga Airport.

They had good reason.

Three boxes from Pora’s stronghold areas remained uncounted when the returning officer declared Duma the member-elect.

Hearing of the threats and the people’s anger, Pora sent word to all Yamuga men to gather at his Tega village community grounds.

There, he told them, in words we paraphrase here: “The elections have just ended. We have a new member for Hagen Open.

“Something happened that I do not agree with, but there is a due process. It is not for you to take any action.

“It is for me to take this course of action.

“I want all of you to return to your jobs and your homes.

“Everything must run as normal.

“The airport is a national airport and it must remain open.

“The highway is a national road and it must remain open.

“Mt Hagen town is ours. It must not be touched ...”

And, with that, Pora stepped out of politics for the last time.

He never challenged his loss. The last 10 years he spent in retirement at his Kuriva farm outside Port Moresby.

When, as minister for finance from 1988 to 1992, he was told to ensure members were secured into guard against impending motions of no-confidence, Pora always sent away to his own company, Dobel Farming and Trading, for financial support.

Such was the drain on his family business that, while he was yet minister, he had the unpleasant task of appointing a receiver for the company when the PNG Banking Corporation placed it under receivership.

He refused pressure to sack then managing director of the PNGBC, Sir Mekere Morauta, which he perfectly well could have done as minister.

Pora’s funeral service will be held tomorrow at the Sione Kami Memorial church in Port Moresby between noon and 2pm before the casket with his remains makes the final journey, by chartered aircraft, the next day to Mt Hagen and his final resting place at the site of his birth, Kum Kona.

Pora walked to Chimbu to attain his primary education and completed it at Finschhafen, Morobe. He did his high school at Bugandi and Sogeri and was the second lot of intake for the new University of PNG.

He worked for the Reserve Bank of Australia, rising to be registrar of the savings and loans division before he answered a call from local councillors to become council clerk of Mt Hagen.

He was charged with having developed the council’s business arm which now remains the successful Wamp Nga group of companies.

He went into business himself and had a diversified portfolio under the Dobel Farming and Trading holding company name.

He was made the first chairman of the national airline, Air Niugini, and entered politics in 1987.

He served as minister for finance and for civil aviation.

Pora is survived by his four wives and 17 children and many grandchildren.

Soft-spoken, unassuming with the distinctive afro-hair and the curled moustache, Pora helped built many people’s lives and businesses and used others less.

His legacy shall long remain.

Angau: Susan Kingal condition 'stable'

By PISAI GUMAR

SUSAN Kingal’s condition is being closely monitored at the Angau Memorial Hospital, The National reports.

Apparently, her situation was not as bad as thought.

“She is not on life support,” hospital chief executive officer Dr Polapoi Chalau said in a statement last Friday.

“Though the injuries sustained are serious and severe, the condition is stable.”

Kingal had sustained head injuries and suffered a broken right arm and nose in the fatal road accident in Zumim bridge last Monday that claimed the life of her husband, evangelist Joseph.

The Kingals had been returning from a rally in Madang when they failed to negotiate a sharp corner.

Their four children also suffered injuries but Chalau did not say anything about their state.

Members of the Joseph Kingal Ministry at Omili said last Thursday, at a press conference, that they were planning on a medivac for the wife and children to Australia.

After that public statement, all information on the Kingals had been tightly guarded.

There was no information on the corpse of the late evangelist.

While his Rolka tribesmen were in mourning in the Dei council area of the Western Highlands, fellow directors of his ministry were keeping a vigil in “an upper room” of the multi-million-kina complex that housed the movement at Ngamili Street at Omili, Lae, Morobe.

They had been praying since last Tuesday for the return of Kingal’s spirit or for a sign from God that he was not going to return.

9 survive boat accident

By ABBIE COLLACO in Kerema

CARELESSNESS by dinghy operators and their owners has again being blamed for an accident at the mouth of Tairuma River in the Gulf early this month, The National reports.

An overloaded dinghy with nine passengers and store goods capsized at mid-afternoon on Oct 9 in rough weather.

All nine passengers were swept into the ocean.

Fortunately, no lives were lost.

One of the passengers and a mother, Londi Meforoe Haihe, from Moveave village, was also on board with her three children when the dinghy capsized.

Recalling the incident with tears flowing freely, Haihe promised never to travel the ocean ever again.

“My family’s safety is not guaranteed and I could have lost all my children.

“The whole time I was in the water, my heart was so heavy because of the lives of my two boys and daughter, but I kept on trusting God that he would save each and every one of us,” she said in between sobs.

Meforoe was one of the first to be rescued by another dinghy travelling up the mouth of the river into Kerema.

In the ordeal to survive, Haihe’s 11-year-old daughter Yvonne, who also had fuel burns to her abdomen, whispered to her uncle that she could not be able to make it.

Swimming for life, her uncle ignored her and turned to God for help.

All the passengers survived and were treated at the Kerema General Hospital.

Reports said the road to Kerema was still being upgraded and could not be accessed during the wet season.