O’Neill: Our aim is a stable and robust economy

TREASURER Peter O'Neill assured Australian and Papua New Guinean private sector players that the government was committed to creating a strong and robust economy by providing a stable and conducive environment for business investment in PNG, The National reports.

The assurance came after the government achieved a record budget surplus of K186.3 million equating 0.7% of the gross domestic product (GDP) this year as a result of prudent fiscal management and effective implementation of the 2011 national budget.

Speaking at the 27th PNG-Australia Business Forum and Trade Expo in Madang yesterday, O'Neill said: "PNG can achieve real economic independence because of the anticipated economic growth.

"The partnership with the private sector will ensure this growth will be sustained."

O'Neill announced the total revenue and grants for last year was lower K8, 278.9 million, higher by K34.4 million of the revised budget estimates.

He said the total expenditure and net lending last year was lower by K151.9 million of the revised budget for, thus giving a surplus of K186.3 million, a significant achievement given budget deficits in 2008 and 2009.

Updating on the 2011 budget outcome, he said by the end of last month, 60% of the recurrent budget and 40% of the development budget warrant had been released to agencies.

"This is a significant achievement and it's now the responsibility of agencies to deliver the governments agenda," O'Neill said.

"The government needs to manage its finance prudently to ensure that demands for cash are met but also to ensure that the cash that is released is used to deliver services and does not end up sitting idly in the bank accounts."

The treasurer informed the private sector that the government was aware of the importance of successfully implementing the budget for communities and families.

He said, this year, the government would ensure that funding was available in the timely manner to ensure

delivery of services throughout PNG.

The former opposition leader stressed that while outlook for this year was very positive with expected growth by 8% largely due to ramp up of PNG LNG construction, non-mining GDP was also expected to grow by 8.2%  which would provide a significant boost to activity in other sectors of the economy, with rising incomes and consumptions from businesses and households.

Despite the growth, O'Neill said unfortunately inflation remained one of the key challenges for the government.

He said the government was committed to contain the high inflation rate of 8.2% by maintaining its expenditure with budget appropriations while closely monitoring monetary policy in particular the currency and interest rate movement and reserve deposits equipment.

National Alliance split over leadership

By ISAAC NICHOLAS

 

THE ruling National Alliance appears split over the much talked-about party interim leadership issue, The National reports.

Acting Prime Minister Sam Abal, who was appointed by Prime Minister Sir Michael Somare, had dismissed a push by certain members of the NA party for the interim leadership issue to be taken before the party caucus.

The National understood that there was a series of meetings held last week by the NA party on the interim leadership issue but insiders said that had been thrown back to the regional groups to decide.

Party sources said the interim leadership "is for an interim political head of NA to call party

meetings while the party leader is away".

Sources said Abal was appointed to head the government but the NA party needed an interim political leader to call caucus meetings.

"There is no vacancy and the party constitution is very explicit on the leadership issue. But this is an interim arrangement and consistent with the constitution," the source said.

The Southern region and New Guinea Islands were believed to have met last week and had resolved to back Aitape-Lumi MP Patrick Pruaitch if the interim leadership issue goes before the party caucus.

The Momase bloc, under Pruaitch, had decided to defer the meeting, preferring to wait for the return of Sir Michael.

The highlands bloc, which was yet to meet, was in a dilemma with Don Polye as deputy leader and the job of acting prime minister vested in fellow Engan and highlands bloc member Abal.

Last week, Polye dismissed media reports as "sensationalising the whole leadership issue" but the fact remained that there had been a number of meetings held by the NA.

"It is absolutely not good and inhuman to talk about the leadership issue when the party leader and prime minister is undergoing medical attention," Abal told the media yesterday.

Abal, who was there with Attorney-General and Justice Minister Sir Arnold Amet, said the prime minister, like all other officers of government, "is entitled to medical leave and Sir Michael has accrued leave entitlements which he is taking".

He said there was too much speculation by the media, saying: "There will be no election of an interim party leader.

"We are talking about pulling the carpet under his (prime minister) feet while he is undergoing medical operations and recovery," Abal said.

He said it was not good, under PNG customs and traditions, to talk about somebody "who is down with health conditions".

"I call on the leaders to abstain from talking about the party leadership issue. Let us give it a break for some time.

"I came in as the choice of the prime minister to lead government. I am doing just that and I will do it with my colleagues in government.

"On the leadership issue, I do not think it is timely for the decision to be made.

"Let us give it a break and allow the prime minister and NA party leader to recover."

Air Niugini commences regular commercial flights to Bulolo

Bulolo MP Sam Basil (left) and Air Niugini CEO Wasantha Kumarasiri are welcomed off the inaugural Air Niugini Dash 8 flight to Bulolo by Watut dancers.-Picture by MALUM NALU

 

By MALUM NALU

 

The historical mining town of Bulolo, Morobe province, took another giant step forward today with the commencement of twice-weekly Air Niugini flights between Port Moresby and Bulolo.

The first batch of passengers on board the Dash 8 flight to Bulolo yesterday – led by Air Niugini CEO Wasantha Kumarasiri and Bulolo MP Sam Basil - was greeted by management and staff of PNG Forest Products, which owns the land on which the Bulolo Airport is built; Morobe Mining Joint Ventures; Bulolo administration; as well as hundreds of local people who braved pouring rain to be present for the occasion.

The Bulolo service, which will be every Monday and Friday, promises to greatly boost business and tourism in Bulolo, as well as the surrounding electorates of Menyamya, Huon, Markham and Lae.

Air Niugini's introduction of flights follows on from Airlines PNG in 2009.

"Bulolo is a very ideal destination with a high demand for air transportation from the local communities," Kumarasiri said.

"Due to the current activities in Bulolo, we consider it is our duty as the national airline to provide the air services to the local and business communities in Bulolo.

"Apart from the mining activities, there are also other operations and activities that certainly call for further air transportation.

"To name a few, we have the PNG Forest Products Ltd, BSP, Post PNG, Bulolo Forestry College, the Micro Bank, the district administration, which certainly demands for an increase in air transportation.

"As the national flag carrier, Air Niugini has a community service obligation to serve the people of Papua New Guinea.

"Therefore, Air Niugini's operation into Bulolo also means that the local people of Wau/Bulolo can now travel direct from Bulolo to Port Moresby instead of travelling via Lae."

Basil said history was rewriting itself as Bulolo was once one of the busiest airfields in the world during the gold rush days of the 1920s and 30s.

He said his joint district planning and budget priorities committee would commit K50, 000 subsidies for vegetable freight and return airfares.

"We would also look at building the staff quarters and ticket purchasing office for Air Niugini to be owned by the district administration, which will benefit from the rental proceedings," he said.

"I also call on Menyamya people, Wanpar people and people from my district to utilise this service because extra seats are now available.

"We do not have to drive all the way to Nadzab to catch a plane, as it is now at our doorstep."

Transparency International PNG: Parliamentarians must do their job

One of the core responsibilities of a Member of Parliament is to make laws and oversight the executive.

And these things happen in Parliament.

 In a Supreme Court ruling (Supreme Court Reference No.3 of 1993), the Court handed down the decision that the Parliament has a duty to sit, in principle, a minimum of 63 days each parliamentary year.

 Whilst acknowledging the Parliament's attempt to meet for a full three weeks for the next three months to achieve the minimum 63 sittings defined within a calendar year, Transparency International PNG (TIPNG) is concerned that Parliament are not abiding by the ruling of the Supreme Court and furthermore the Constitution as stipulated under Section 124.

 "In the past four years, Parliament has failed to sit the required minimum number of sitting days, and one can wonder if the 63 sitting days would be achieved this year," it says. 

"A backlog of work and outstanding national priority agendas remain unresolved may be a result of insufficient legislative activities.

"Parliament, through the office of the Speaker, should come out publicly and explain to the citizens of Papua New Guinea their reasons for not sitting the required number of days.

"Questions may then be raised on the consequence of Parliament breaching a clear court ruling."

Petromin to turn wastes into profits

By PATRICK TALU

 

FOR the first time in the history of Papua New Guinea's mining industry's waste management, state owned Petromin's Tolukuma gold mine will now turn its tailings into profits after a feasibility assessment was done for a state-of-the-art mine waste processing, The National reports.

The feasibility study will be undertaken by Everest Remediation Ltd of Australia with an investment of US$1.5 million over a six-month period.

To effect the assessment, Mining Minister John Pundari, Petromin managing director Joshua Kalinoe and Everest chief executive Patrick Salera penned the agreement last Friday at Petromin Haus witnessed by Petromin board chairman Sumasi Singin and staff.

Pundari described the study as a "milestone achievement for Tolukuma after the Solwara-1 project and a new frontier for PNG".

"After all, doing business is taking risks," he said.

 "We must venture into unknown frontiers."   

Pundari said Everest had been with Tolukuma for some time with a focus on extraction of trace elements of metal from the waste.

"Mine waste is a significant issue with respect to environment.

"In fact, the study will focus essentially on the capacity of extract metals from the waste at the mine site," he added.

He said the feasibility study would, as a first step, assess the commercial benefits derived from treating waste.

Pundari said the process could be applied to all mining projects in PNG and Petromin and PRL would in due course, assess the commercial viability at treating at mines throughout the nation.

The minister indicated that importantly a successful outcome from the study would not only enhance environmental outcomes at the mine but also lead to the creation of new employment opportunities and new revenue for Tolukuma.

Kalinoe said Petromin was proud to be part of the venture which might create significant employment, revenues and improved environmental outcomes throughout the mining sector.

He said the objective of the study was to apply state-of-the-art technology to wastes at Tolukuma with a view to producing a refined waste product which contained no elements that were harmful to the environment.

 

Athlete jailed for sex crime

Darwin court imprisons paralympian for assaulting 10-year-old

 

A PAPUA New Guinean paralympic athlete has been described as a paedophilia when he was jailed last Thursday in Darwin, Australia, for sexually assaulting a 10-year-old girl at the Arafura Games, The National reports.

In a news that had shocked the PNG team management, track and field athlete Edward Ilau, 24, pleaded guilty in a Darwin magistrates court for indecently assaulting the girl last Wednesday.

Police prosecutor Justene Dwyer told magistrate Daynor Trigg that Ilau –  who has cerebral palsy – "squeezed" the girl's breast three times at the stadium, according to ntnews.com.au

Dwyer said Ilau had finished his field events for the games when he noticed the girl walking through the gates at about 6pm.

She said that Ilau called out to the girl: "Hey you, come over here."

She said Ilau wanted to have a photo taken with her.

"The victim agreed and followed (him) up the stairs of the arena," she said.

She said Ilau and the girl were standing on the first platform and another man continued up to the second platform with a camera.

"(Ilau) moved close to the victim and put his arm around her shoulder," she said.

Dwyer said that Ilau grabbed the girl's breast three times, "causing pain", before he let her go.

She said the girl immediately told her mother what had happened.

Ilau's defence lawyer Matt Hubber said Ilau was "skylarking" with his mates when he touched the girl.

"It was a spontaneous act," he said.

But magistrate Trigg said what Ilau did was a "criminal act" that could be described as "paedophilia".

"The defendant abused the girl's innocence," he said.

Hubber said Ilau came from a poor coconut farming family in rural PNG and had only attended school for one year of his life.

"He lives a very basic life," he said.

But Trigg said what was considered wrong in PNG was also considered wrong in Australia.

"I'm not going to have him on the streets of Darwin," he said.

Trigg sentenced Ilau to one month jail, suspended after seven days, but said he would most likely be deported from Australia once released, ntnews reported.

PNG Paralympic committee president Bernard Chan said he was devastated at the news of Ilau's jailing and would be making a formal statement during the week.

PNG Paralympic assistant team manager Rosemary Mawe said it was an incident that had shamed not only the Paralympic team but all PNG athletes as well.

She stressed that all athletes had been given strict instructions on behaviour and what was expected of them at the games and it was "unfortunate" that one had abused this trust.

K125m deal illegal, says treasurer

TREASURY and Finance Minister Peter O'Neill has admitted to parliament that the K125 million deal for Kokopo district is illegal and contributors risk losing 4% of their savings if the government did not repay the money, The National reports.

After intense pressure from within the National Alliance-led members, including East New Britain Governor Leo Dion who asked a series of questions in parliament last Friday, O'Neill admitted the transaction was illegal and that an investigation was under way.

O'Neill said the national executive council had directed the Central Bank, which is the supervisory body of the superannuation fund, to investigate how the Nasfund board approved the deal.

In his series of questions, Dion asked whether the Treasury Department had the powers to issue treasury bills and whether it had the power to appoint an agent to manage the deal.

"Why was National Capital Ltd appointed at no cost to the state?" Dion asked.

"Do the National Planning and Communication ministers have powers to approve the treasury bill transaction?"

Dion said it was a controversial transaction and called for an immediate investigation and to hold those responsible accountable.

Section 209 (1) of the constitution stated that the raising and expenditure of finance by the national government is subject to the authorisation and control of parliament.

This means this kind of financing must form part of a national budget or a supplementary budget in line with the appropriation act.

Dion said the deal was activated by the then treasury minister, national planning minister and Kokopo MP without appropriate legal advice from government lawyers.

O'Neill said under the Public Finance (Management) Act, only parliament could approve such a deal.

He said under the Treasury Bill Act of 2002, when there was not enough revenue, "the government can go out and raise revenue to fund its expenditure".

But he said only the Central Bank was authorised to do that.

"Treasury has conducted its own investigations and we have got advice that the transaction is illegal," O'Neill said.