Former MP's wife charged with stealing

THE wife of a former member of parliament was arrested and charged yesterday with illegally receiving payments under the payroll of Southern Highlands government (SHPG) through fraud, The National reports.

Magareth Ovangi Kopaol from Wakwak village in Mendi, Southern Highlands, was charged with one count each for conspiracy to defraud, stealing by false pretence and misappropriation under the Criminal Code.

A statement from the police fraud squad said Kopaol, who is a teacher by profession, got herself onto payroll of provincial government on a position already occupied by another officer with the intention of defrauding the state.

“She was on SHPG payroll from July 2005 to June 2006, a total of 21 fortnights in which she received a total of K21, 627.79 from the SHPG, and during that period was also paid by her legitimate employer, the Education Department,” the investigating team said in a statement.

Kopaol committed the offence while her husband was a member and vice minister for the Department of Finance and Treasury.

She and 300 others were later identified to be illegally on the SHPG payroll and were sacked during the 2006 state of emergency in SHP.

National anti-corruption alliance (NACA) investigations commenced during the state of emergency and thereafter of which more than 60 arrests were made involving various other fraud and misappropriation cases.

This is the second arrest involving salary fraud and the investigating team was unable to say why the investigations took so long.

Kopaol was locked up at Boroko police cell and will appear tomorrow at the Waigani court for mention.

 

 

 

Locals cry foul over Kasieng's suspension

WEST Sepik provincial police commander Sakawar Kasieng has been suspended from duties, The National reports.

The notice of suspension, signed by acting Deputy Police Commissioner Fred Yakasa, was served on Kasieng by Northern divisional commander ACP Giossi Labi late yesterday morning.

However, local police sources in Vanimo last night described the suspension as “unfair and a slap in the face of hardworking personnel on the ground”.

According to the service notice, Kasieng was sidelined following alleged degrading statements he made in the media over operation Sunset Merona and the beating of a local traffic policeman at the hands of four task force members now in the border province.

Kasieng had demanded that the four culprits be handed over to local police to be charged with attacking the traffic policeman.

However, this did not take place and the PPC went to the media to express his frustration.

As of last night, the four task force members were still walking around freely.

Kasieng’s other charge was the alleged closure of the Vanimo police station last Tuesday, which only lasted for a few hours and was reopened after the joined task force commander had assured local police that the four men suspected of beating up the local policeman would be brought in for questioning and charged where appropriate.

However, that had not happened in the past seven days.

Yakasa, when confirming the suspension, said no station commander had the authority to threaten to close a local police station.

“This is a management matter and should be kept at that level and not brought out in the public,” he added.

He said serious security issues had stemmed from the lack of command in restoring law and order in the province.

A parade will be held today to introduce the acting PPC, Chief Insp Tobby Hamago, formerly of North Fly.

Local police sources said the suspension was not in order because Kasieng’s actions resulted from what was done to one of his men.

“As the head of the local police in West Sepik, he spoke out in defence of his men after his request for the four suspects to be brought in for questioning fell on deaf ears.

“Acting Police Commissioner Tony Wagambie should have sided with Kasieng, but he did not.

“Something is terribly wrong here,” a source, speaking by phone from Vanimo, said.

Meanwhile, Sunset Merona had entered phase two of its operations after the completion of all surveillance and intelligence collection.

“Executing identified targets and illegal activities within the province started last Sunday.”

Reports said a number of houses belonging to West Papuans residing at Yako village were torched as part of the operation.

Locals said these groups of people were long-term residents of the township.       

 

 

 

ExxonMobil: LNG plant will stay shut

Polye leads fact-finding mission to Hides PDL7

 

By PATRICK TALU

 

EXXONMOBIL Corp, operator of the multi-billion-kina PNG liquefied natural gas project, said the Hides 4 LNG conditioning plant site will remain shut, The National reports.

ExxonMobil’s subsidiary Esso Highlands Ltd public affairs manager Miles Shaw yesterday said “as a result of this illegal action, we are instituting a shutdown at the Hides gas conditioning plant site”.

Shaw said during the shutdown, the company would “discuss the necessity of a safe and secure operating environment with the government and local leaders and the requirement to use established processes in place to manage any dispute”.

“Any use of violence is unacceptable,” he added.

Miles also confirmed that a group of people illegally entered the project camp at Hides 4 petroleum development licence (PDL) 7 last Friday evening and allegedly attacked four workers who sustained minor injuries.

In related events, members of a mobile police unit stationed at Hides 4 last Saturday allegedly beat a man in relation to last Friday night’s event.

The man was said to have died from his injuries, causing more fear among workers that relatives would retaliate.

A government ministerial delegation was expected to fly into the area today.

 

 

Inadequate investment in agriculture

By JAMES LARAKI of NARI
Agriculture is a fundamental instrument for sustainable development and poverty reduction according to the World Development Report (WDR) 2008 and this is very much so in Papua New Guinea.
The WDR has placed PNG among agriculture-based countries.
PNG may well remain in this category for the next 50 years.
As such, agriculture should take a clear and central position in any development strategy and in necessary investment it deserves for the development of PNG.
Unfortunately, the national government and major donor agencies consider otherwise and have recognised other sectors as enablers of growth and development and have left agriculture out.
 If development is to take place and be self-sustaining, it has to start in rural areas in general and the agriculture sector in particular.
This is simply because 86% of its 6 million people are in rural areas and core problems of widespread poverty; growing inequality, rapid population growth and rising unemployment are direct effects of stagnant and declining economic activities.
Agriculture development is a key to rural development and improvement of livelihoods.
It not only delivers outcomes directly related to increased agricultural productivity but also contributes to necessary outcomes in other sectors such as health, education, infrastructure and law and order either directly or indirectly by empowering rural communities to look after their health and education through improved food security and increased incomes.
In fact agriculture needs to be viewed as a central sector in the country delivering long‐term outcomes and impacts to all other sectors while other sectors can contribute with short‐term outcomes to agricultural development.
Realistically, PNG should be investing around K400 million per year in agriculture if the nation is to avail the real potential of the agriculture sector for economic growth and development.
This is as per the international recommended rate, 10% of agricultural GDP, when agriculture in PNG contributes an estimated 37% (K4 billion) of total GDP.
According to the WDR, such rate of investment is essential if a nation is to move from the category of agricultural-based countries to transformed economies, a transition towards the developed world.
The current level of public investment in overall agricultural development is only about K190 million (including allocations of NADP funds to districts), which is less than 5% of the agricultural GDP.
Public investment in research and development is equally disappointing.
The current annual public investment in agricultural research is K30 million, which is only 0.75% of agricultural GDP while the ideal rate is 2.0% (K80 million).
Many developing countries have received very attractive rate of returns to agricultural research investment, figures being as high as 43%,
This explains the current gap and highlights the huge scope for increasing both public and private sector investments in agricultural research and innovations in PNG.
The European Union is focusing on education, health, and social sectors since last two years as per their strategic change.
The AusAID programme has also changed priorities, now focusing on health (HIV/AIDS), education, law and order and social sectors.
Whatever is left from AusAID funding through the Agriculture Research and Development Support Facility (K7 – 8 million per annum) will cease in 2012 onwards.
This indicates a declining investment in the agriculture sector.
The national government is also focusing on education, health, infrastructure/transport, and law and order as the enablers for development.
The recurrent budget increased by K851 million from K6.9 billion in 2010 to K7.8 billion in 2011 and all increases go to above sectors.
The development budget increased by K647 million to K4 billion (2011) from K3.4 billion (2010) and all increases go to the above sectors.
Again an indication of declining investment (both in absolute and relative terms) in the agriculture sector and this trend may continue.
The notion that transport and infrastructure will bring growth in agriculture sector is partly true; however, it will depend on how effective these are implemented.
The investment in transport/infrastructure should balance and complement direct investment in agriculture.
The assumption that the private sector (large holdings) will bring development to the masses is not true as their interest is creating wealth for themselves.
Obviously there will be spin-off benefits but these will not last long due to cost and inflation impacts.
It is, therefore, necessary for the national government and other donor agencies reconsider their priorities and include agriculture on equal footing with the other sectors currently given priorities.
Smallholders and subsistence sector, natural resource management and development/ environment, biodiversity, policy, technology, innovations and capacity development need public sector investment.
The 8% economic growth projected by the government is achievable with LNG and other resource projects
PNG has more favorable environment now than ever before for all stakeholders to make positive contribution to innovative agricultural development, in general, and to research, science and technology; in particular.
Therefore, this growth should be used for further wealth creation by masses through their participation.
This is important as economic growth not participated and shared by masses lead to double disasters, both in non-renewable and renewable resource sectors.
It would be just appropriate for the government not to turn its back on agriculture now. The consequences in the long run can be disastrous.

Sir Michael thanks Abal

PRIME Minister Sir Michael Somare has directed his deputy and Works Minister Sam Abal to move with all possible haste to implement the government programmes this year, The National reports.

In a letter dated Jan 18, 2011, Sir Michael thanked Abal for taking “affirmative action” in bringing together all agencies of government and provincial governors to focus on implementing the 2011 budget.

He also thanked Abal for holding the fort in his absence.

“I note that you have made a head start in directing serious and conscious undertaking to open important road links of the country and bringing 9,000km of unsealed road to sealing condition as well as your emphasis on quality and high standards of infrastructure that the nation and our people deserve,” Sir Michael said in his letter.

He assured Abal of maintaining his portfolio as deputy prime minister.

“To ensure we are seriously and genuinely focused on implementing the development agenda in the first decade, I would encourage you to continue as deputy prime minster and chair of the national planning committee to ensure the implementation agenda and development objectives from the different  agencies of government are harmonised and pooled together to deliver the development aims of government.”

The assurance from the prime minister came at a time when Abal’s two jobs as deputy prime minister and works minister had been under sustained attack from within the National Alliance.

It was rumoured that NA, and particularly its highlands faction, was keen on seeing deputy NA leader Don Polye assume the second top executive post again.

Lobby had also been intense in taking finance and treasury back to NA.

Sir Michael’s parting words in the letter were an appreciation of Abal’s initiative to get government back in office and working in the first week of this month.

 

 

Electora Commission needs K12m for new gear

By ALISON ANIS

 

ACTING chief electoral commissioner John Kalamoro said more than K12 million was needed for the electronic counting system in next year’s general elections, The National reports.

Kalamoro last Friday reported that Electoral Commission had submitted an estimated figure of K12.3 million as part of its budget submissions toward purchasing the equipment which is said to be transparent and an effective tool for counting election votes.

“As it appears, no funding was allocated for the electronic counting system so the commission has simply pushed that aside while focusing on other activities and preparations leading up to the elections.”

He explained that the electronic counting system captured and stored voting results electronically using cameras, scanners, projectors and a computer.

“The results on the ballot paper is captured on camera and projected to the screen so scrutineers of candidates are able to tell if a vote is invalid or not.”

Kalamoro said the K12 million submission was for the purchase of another 20 equipment for each province and also to cover additional costs for training people in each province on how to handle the equipment.

“We have only put aside the counting system due to no funds for but there is still ample time left now and before the elections to get the equipment ready and the manpower to drive that during elections.”

 

LNG dispute resolutions being finalised for court

By SAMUEL RAITANO and PATRICK TALU

 

THE terms of reference for an alternative dispute resolution process, on all court matters relating to the multi-billion kina liquefied natural gas project, are being finalised and will be presented to the National Court for its endorsement, The National reports.

These terms of references would enable mediation among LNG partners dealing with the Kokopo UBSA and LBBSA of May 22, 2008, and December 2009.

Last month, and again last week, Justice Ambeng Kandakasi ordered that terms of reference for a mediation process be drawn up for all parties involved in the LNG project to use during mediation.

According to a draft terms of reference, the mediation process would cover Hides PDL 1 and 7, Angore PDL 8, Juha PDL 9, the Hides gas conditioning plant site, Komo Airport, pipeline, Moran PDL 5 and PDL 6, Kutubu PDL 2, Gobe PDL 3 and PDL 4 and the processing facility areas.

It would also cover other LNG dispute areas.

Counsel representing all aggrieved LNG project landowners Justin Hayara of Steel Lawyers would present the terms of reference at the National Court this week.

Issues to be covered under the terms of reference included:

• Issues of eligibility or powers to receive business development grant and recognition as licensed-based umbrella company and umbrella associations;
• Proceedings challenging customary landownership based on block concept with PDL area;
• Proceeding seeking payment of outstanding MoA funds;
•  Proceedings challenging the validity or otherwise of ministerial determination and social mapping of landowner identification studies;
• Proceeding challenging the validity of the PNG gas agreement, Kokopo UBSA and LBBSA;
• Proceeding challenging the validity of legislative provision, SCR No.5 of 2010, SCR No.07 of 2010; and
• Proceedings as to the election of directors and appointment of bank signatures – WS No.05 of 2011 – Portion 152.

Under the terms of reference, documents required would include the cost and benefit analysis done by the National Fiscal and Economic Commission, co-coordinated development and operation agreement referred to in the PNG LNG agreement, the content of Abu Dhabi financial deal and records of Land Titles Commission and the local land court or provincial land court in respect of the land within each licensed areas.

All the relevant government departments who have been involved in the LNG project would be parties to the mediation along with the plaintiffs.

Other parties included:

• The developers led by Esso Highlands Ltd;
• The state comprising the solicitor-general, attorney-general and his secretary and all secretaries and their deputies from the departments of petroleum and energy, national planning and monitoring, finance, treasury, commerce and industry,  lands and physical planning, and works;
• Provincial administrators of Southern Highlands, Gulf, Western and Central;
• Hela Transitional Authority led by the chief executive officer; and
• National Gas Corporation led by its chairman Alfred Kaiabe.