Basil slams MPs' pay rise

By GABRIEL LAHOC

 

Bulolo MP Sam Basil is against the budgeted pay rise for Members of Parliament, announcing to his district that he “didn’t get into parliament to get a pay rise, but to bring development and services down to the people”.

Mr Basil said this on Monday during the launch of the EMTV and Australian Network signals into Lekluk village in Mumeng Local Level Government area.

He described as “ridiculous” the decision of the Somare government, seeing it as another luxury item on the Government’s wish list.

The Government passed the 2011 national budget last week and gave a massive 52% salary increase, which Mr Basil argued should have been spent on other important government sectors which will have a direct impact on the people and communities.

“We the MPs are getting an extra K80,000 while the Prime Minister is getting another K100,000, which I believe is not the people’s wish,” said Mr Basil.

He also announced that for all future bills and acts presented in parliament to be enacted and amended, he would firstly consult the people through mass opinion polls in the local level governments and vote accordingly in Parliament.

Several leaders speaking on behalf of the Leklu community, which has a population of more than 2000 people, openly challenged him to continue to bring community impacted projects and give to the people all that is rightfully theirs.

Bougainville Copper Ltd shares soar

BOUGAINVILLE Copper Ltd’s share price has soared as talks to unite the landowners of the mine site under a single umbrella company proceeded, The National reports.

If successful, the talks will streamline negotiations for the reopening of the mine in Bougainville.

According to Australian security exchange last Friday, the share price of the Rio Tinto-controlled company rose 4.08%, and on Monday 4.58%.

The shares had  doubled in price since August and tripled since May, even though the mine had not operated for 21 years, the ASX stated.

The new president of the Autonomous Bou-gainville Government John Momis, told the media last week that discussions between landowners were going well.

“I am satisfied we are doing OK … we need to get the mine reopened … it will kick start developments in Bougainville,” Momis said.

The copper mine, at Panguna, provided about 20 % of government revenue during the 1970s and 1980s.

It closed in 1989 as the island disintegrated into civil war, in part due to disagreements about the mine’s impact and the way royalties were shared. Rio Tinto owns 53.58% of the company.

The PNG government has a 19.06 % stake, and the other 27.36% is held by public shareholders.

“With copper reserves estimated at almost three  million tonnes and gold production in the range of 400,000 ounces per annum, Panguna is one of the world’s largest potential producers of both metals,” BCL, as quoted in the Sydney Morning Herald this week, said.

“It is expected that the Bougainville copper agreement renegotiation will be actively pursued towards the end of 2010.”

The company said market values for both copper and gold were higher than at the time of mine’s closure.

 

 

Tiensten: Scam ring in Waigani

By JEFFREY ELAPA

 

THE nation’s top planners admitted yesterday that there is a highly organised syndicate operating with the bureaucracy who preys on recipients of government cheques, The National reports.

They included public servants, bank workers and police personnel who may have milked the state of millions of kina over the years.

Members of the syndicate, mostly women public servants, take “cuts” of K10,000 to K30,000 to facilitate quick payment of these cheques at commercial banks.

National Plannning Minister Paul Tiensten and his departmental secretary Joseph Lelang said this at a media conference, adding weight to what had been suspected by the public for some time.

“This syndicate has done a lot of damage to individuals and organisations,” Tiensten said.

He and Lelang called a media conference after The National ran a front-page story yesterday about an MP claiming that he had paid K10,000 to a staff of the department to have a cheque of K12.4 million released, only to find out that it was a bogus cheque.

Tiensten was angry that Telefomin MP Peter Iwei could allow himself to be conned.

Tiensten called on the Ombudsman Commission to investigate Iwei for facilitating official corruption in depositing K10,000 into a Westpac account for the immediate release of funds.

“This is a very irresponsible leader who, earlier, had misplaced K1 million of DSIP funding for the people of Telefomin in a taxi.

“The people of Telefomin should be given a fair treatment by their member.

“Parliament recently increased MPs’ salaries and he should buy himself a car instead of running around in a taxi with cheques.”

Teinsten said the cheque issued was bogus, and was never raised by the department.

He said there was a scam in operation outside of Vulupindi House, not within his department as people claimed, although there were “several rotten officers” in National Planning who were also involved in supplying information to facilitate the fraud.

Tiensten said they were producing copies of fake cheque, claiming that they were from the department and asking people for commission for up to K30,000.

He said the syndicate was using electronic copies of cheques remittances in their computers and printing them out and were conning people, pretending to be him or his secretary, and asking for commissions for the release of fake departmental cheques.

Tiensten said the recent case of Iwei depositing K10,000 into the account of a woman was not an isolated case.

He said he was aware of other similar cases.

“This syndicate is an evil existing in our society. Look at the links, the police is involved as well as the banks are involved,” he said.

He said on two different occasions, some people were caught and locked up at the Boroko police cell but they were released on unknown grounds without even turning up in court.

He said a woman was caught with money in the New Erima Primary School scam but she was set free by police.

In another incident, a woman was arrested for the diocese of Bereina case involving K20,000, but she was also set free.

He said several incidents were known and referred to police but the suspects were running around free.

“I appeal to the new police commissioner to investigate these cases,” he said.

Teinsten said things were made even more difficult when callers could not be identified because there was no control over the issue of mobile phone sim cards where people would buy them without registration.

 

 

Anti-graft group queries Iwei's modus operandi

ATTEMPTS by a member of parliament to expose fraud and graft at the Department of National Planning have backfired with the authorities now questioning the motives and methods used in dealing with public funds, The National reports.

In a front-page story yesterday, The National reported that Telefomin MP Peter Iwei had used personal funds to induce finance officers at the Vulupindi Haus to release a cheque for K12.4 million.

After paying K10, 000 into a private Westpac bank account and being provided a Department of National Planning and Monitoring remittance advice, Iwei later found out that the K12.4 million cheque was worthless.

Global anti-corruption organisation Transparency International (TIPNG) yesterday said in a statement that the use of personal funds to claim government funds was questionable and created a lot of suspicion.

“Additionally, the attempted use by the MP of a consultancy company to manage K12.4 million in development funds further compounds suspicion around the use of public funds,” TIPNG stated.

“If most of PNG’s development expenditure is spent in this way, then grassroots people can be assured that all government development plans will go nowhere fast.”

It also called on the government to take a greater holistic approach towards demonstrating its willingness and commitment in seriously combating corruption.

TIPNG said it was alarming that Iwei had, days earlier, saw fit to personally take carriage of a cheque for K1 million of electoral funds without due diligence and care, losing it in a taxi on his way home from parliament.

“The assertion by the same MP that he was not aware of the existence of the infamous Vulupindi syndicate is ludicrous, given that much publicity has been made on this issue over the past months.”

However, TIPNG did acknowledge efforts by the Telefomin MP to bring the issue to light in the media.

“Furthermore TIPNG would like to call on Iwei to initiate the relevant measures to bring this matter to the attention of concerned agencies such as the police fraud squad to institute legal proceedings.

“TIPNG now calls on all key stakeholders, in particular the police fraud and anti-corruption squad and the departments of Finance and Treasury and National Planning, to take a more proactive role in addressing the issues at hand.

“These institutions should be playing a role that is perceived to be dynamic, efficient, well-resourced and result-driven to enhance public confidence in the capacity of government to tackle corruption from the top down.

“Instead, it appears that from the top down, there is little, if any, will to tackle systemic corruption that plagues PNG public expenditure today,” TIPNG stated.

 

 

Prime Minister: Case still before court

PRIME Minister Sir Michael Somare said yesterday that the court challenge on his referral by the Ombudsman Commission remains on foot in the National and Supreme Court, The National reports.

He said what was dismissed by the Supreme Court was an interlocutory appeal regarding a summons to produce his lawyers had asked for to adduce certain documents from the Ombudsman Commission.

He was disappointed with the front page article of the Post-Courier headlined “PM appeal annulled” yesterday.

“The truth is that my real substantive case is still pending in the National Court and the dismissal of this completely separate interlocutory appeal does not affect my substantive case,” Sir Michael said in a statement issued yesterday.

“The Post-Courier reporter had full knowledge of this as explained by my lawyers, PKA. The reporter still went ahead in today’s paper (yesterday) to tell a half truth and continued on to draw his own misleading conclusion.

“PKA informed me this morning that the reporter’s reaction to his explanation that the dismissal bears no consequence to the substantive case against me was basically it did not matter as ‘this is the prime minister’ and he had a paper to sell.

“My lawyer informed me that he also warned the reporter not to mislead the public but the reporter had his mind set on the sale of the paper.

“This callous behaviour is deplorable.

“Whether it is the prime minister or any other citizen of this country, the media should not be allowed to manipulate information at the expense of others for their market share.”

“I condemn the actions of the Post-Courier in the strongest possible manner.

“We have to be mindful of the consequences of tolerating such unethical behaviour. Our complacency allows indecency to creep into our daily life as a nation,” Sir Michael said.

The prime minister’s challenge remains on foot in the National Court, while his lawyers have also filed a Supreme Court reference to clarify certain issues that were raised.

While these proceedings are pending, the Public Prosecutor is restrained from making any referral.

The Prime Minister’s referral by the Ombudsman Commission relates to his annual returns.

The commission alleges that he has filed them late, or that what he has filed were misleading.

Row over internet domain name

By PATRICK TALU

 

THE European Shareholders of Bougainville Copper (ESBC) has questioned a move by a Chinese industrial group to acquire “Bougainville copper” as their internet keyword, The National reports.

Alex Sturm, ESBC president in a statement yesterday, questioned what China’s real intentions on Bougainville are after an email dated Nov 19 requested ESBC verification on the proposed internet keyword.

The email read: “This is a Network Service Co which is the domain name registration center in Hong Kong, China.

“On Nov.16, 2010, we received an application from MEIHUA Group requesting ‘bougainville-copper’ as their internet keyword and China (CN) domain names.

“But after checking, we find this name is in conflict with your company’s name or trademark. In order to deal with this issue better, it’s necessary to send this email to you and confirm with your company whether this company is your distributor or business partner in China. If you did not authorise, please let us know within seven working days, so that we will handle this issue better.”

Sturm had asked why a giant Chinese industrial group was so  interested in acquiring the name of “Bougainville copper” for their own purpose.

“Why are they contacting the European Shareholders of Bougainville Copper and not our company itself or even better, Rio Tinto?

“What are the true intentions of this MEIHUA Group?

 “The European Shareholders of Bougainville Copper had asked these questions to Linda Wang of Hong Kong China Technology Ltd, a domain provider, but did not get any response until now,” he said.

A search on the internet showed that MEIHUA Group is engaged in door manufacturing and in the production of monosodium glutamate, a flavour enhancer, using materials from corn.

 

 

Worthless cheque!

MP pays K10,000 for K12.4m bogus cheque

 

By JEFFREY ELAPA

 

MEMBER for Telefomin Peter Iwei followed instructions and paid K10,000 into an account at a bank in Port Moresby, so that an official at the Department of National Planning will release a cheque for K12.4 million, The National reports.

Iwei was told he had until 4.06pm on Nov 19 to pay the money into the account, or the K12.4 million deal would be off.

Iwei identified by name the person who instructed him to pay the K10,000.

He said he really wanted the money for his projects, so he got his wife to pay K10,000 of their own money into this account on Nov 19.

Iwei produced the butt of the deposit slip, which showed the K10,000 being deposited into a Westpac bank account number 600099061. The bearer of that account was a Susan Boga.

Iwei said on Nov 29, he received a fax from the official at the Department of National Planning.

The fax was a Department of National Planning and Monitoring remittance advice, dated Nov 25. It said a cheque number 901973 for K12.4 million was raised in favour of Tatoo Pacific Consultants, a firm that the MP had retained for projects in his electorate.

Of the K12.4 million, K2.4 million was for Telefomin market rehabilitation while K10 million would be for the Telefomin hospital project.

Iwei and his consultant went to the bank, with the photocopied remittance advice, and were told that the cheque was worthless.

He was told that the cheque was bogus, or fake.

He immediately informed National Planning secretary Joseph Lelang to look into this.

“A highly organised syndicate is operating within the Department of National Planning, collecting commission in thousands of kina in return for the release of government development grants.

“This is corruption, and something has to be done quickly.

“There is a lot of leak and stealing in Waigani, and people in the villages are suffering,” he said.

Lelang told The National yesterday a major corruption ring might be operating from Vulupindi House.

“I believe it might involve some of my staff,” he admitted when pressed if people close to him were involved.

Lelang said he had received 10 other complaints regarding a person in the department demanding payment into this account at Westpac before cheques could be delivered to MPs.

“I have written to police to take action on this. I do not know what has happened to date.”

He said it appeared the same person was demanding K30,000 from a company doing a project in Madang before a cheque of K5 million could be released.

A previous complaint from the board of a school in Erima prompted Lelang to call in police, resulting in the arrest of at least three people, two of them employees at Vulupindi House.

This is not the first time Iwei has had issue with public funds at his disposal.

On Monday, he picked up a K1 million cheque for his electorate but lost it in a taxi.

He had still not recovered the cheque.

Iwei had asked the Finance Department to put a stop on the cheque.