Petromin pays out final K1.5m dividend

By PATRICK TALU

 

PAPUA New Guinea's petroleum and mining company Petromin Holdings Ltd paid out its final dividend of K1.5 million to the state last Friday, The National reports.

After recording a K81.5 million profit for last year, K1.5 million was paid to the trustee shareholder, the prime minister, at the 4th annual general meeting in Port Moresby's Gateway Hotel.

Petromin chairman Brown Bai said that although there were constant cash call requirements for the company's investment in the PNG LNG and Elk-Antelope projects as well as reinvesting in the Tolukuma gold mine, funding of mineral exploration budget and ongoing training and development of its legal and commercial people, it still could afford to pay a final dividend.

Bai said that the dividend was an addition payment to a total of K22.9 million tax paid by the group last year.

Mining Minister John Pundari, who was  not present to receive the cheque on behalf of the state said he was proud to see a nationally-owned company performing at that level.

Pundari said Petromin was the brainchild of Prime Minister Sir Michael Somare with a vision to make Petromin the vehicles to drive all hydrocarbon and mining industry in PNG.

Given the purpose for the creation of Petromin, Pundari said he wanted to see Petromin become a leader in the mineral and hydrocarbon industry in PNG and the Asia-Pacific region.

"Petromin was created to drive the commercial interest of the government on behalf of the people of Papua New Guinea."

Pundari challenged Petromin to be at the forefront of the industry and emulate major industries like Singapore and China, who had a track record of nationally-owned hydrocarbon and mining companies.

Meanwhile, the board had retained Bai as the chairman for another term while chief executive officer and managing director Joshua Kalinoe was also retained for a further four-year term.

Other directors reappointed were Sumassy Singin and Jerry Wemin for another term while Deloitte Touche Tohmatsu was reappointed as the company's auditor.

Senior cabinet posts remain unoccupied

ACTING Prime Minister Sam Abal has yet to make ministerial appointments for the Foreign Affairs and Petroleum and Energy portfolios, The National reports.

By yesterday, no new appointments had been announced as lobbying heats along the corridors of power at Waigani.

Abal is believed to be under pressure from his National Alliance party and coalition partners who are vying for the key jobs leading into the elections.

Sources close to the acting prime minister said he was still consulting his NA party members, regional groupings, party executives and coalition partners to fill the two vacancies created by the sacking of Don Polye and William Duma.

Last Friday, the opposition called on Abal to immediately appoint the new ministers to give investor confidence in government.

Anglimp South-Waghi MP Jamie Maxtone-Graham said during grievance debate in parliament the appointments were taking longer than expected.

He urged Abal to stand his ground and not bow down to pressure from his party.

Maxtone-Graham said the acting prime minister "must stand firm in the face of adversity to make decisions for the good of the country".

Juha landowner leader Hengebe Haluya has called on Abal to immediately appoint new ministers for petroleum and energy and affairs given the importance of the LNG project.

"Abal is taking too much time in making new appointments," he said.

"If Duma and Polye have done nothing wrong, then reinstate them instead of destabilising the government."

Haluya said if Abal could not reinstate them, "then appoint former treasury and finance minister and Aitape-Lumi MP Patrick Pruaitch to the important petroleum and energy portfolio".

"We, the landowners, want Pruaitch back as minister or reshuffle cabinet and give him back treasury and finance," Haluya said.

He said the MoA and ministerial commitments had been delayed for a long time while "Waigani politics takes over".

Hides PDL1 landowner chief Stanis Talu said Duma and his colleague government ministers Patrick Pruaitch, Paul Tiensten and Arthur Somare had been the key state players in progressing the LNG deal.

"During the umbrella benefits sharing agreement (UBSA) meeting in Kokopo in 2009, Duma, as the minister responsible for the Oil & Gas Act, made commitments to certain landowner representatives to pay them business development grants, with more than K115 million committed and was endorsed for payment by Pruaitch when he was minister for finance and treasury," Talu said.

"With Pruaitch now holding another ministerial portfolio and Duma sacked, we fear that the commitments made at the UBSA and the licensed-based benefits sharing agreements (LBBSA) will not be looked at seriously, or not even considered and progressed further."

He said cabinet had endorsed the commitments through NEC decision No.96/2010 and a total of K93 million was approved for payment.

"In the 2010 supplementary budget, NEC approved the ministerial commitments to be captured for payment. This was done and an appropriation bill was also passed for funds to be allocated (ministerial commitments).

"As such, there is no point in Abal, Treasurer Peter O'Neill and Southern Highlands Governor Anderson Agiru hijacking the payment of LNG funds as these and other project-related funds do not come under their responsibilities," Talu said.

"With Duma and Polye now out of the way, other politicians can now have a field day with landowners' funds as they count down the days towards the general election."

LNG project locals block roads after row with cops

IRATE landowners from Hides, Komo and Angore have blocked off roads leading to the LNG project sites, The National reports.

Reports from Hides yesterday indicated that major bridges and access roads leading to well heads, plant sites, quarries and other construction areas had been blocked.

Attempts yesterday to get comments from the police in the Southern Highlands and at police headquarters were unsuccessful.

Attempts to also get comments from ExxonMobil failed.

According to Wilson and Willie Ayule of Hides 4 PDL7 and Hare Hengi, chairman of Wita Arua Holdings, there were deep trenches on the road between the Nongoli Camp, Hides 4 conditioning plant site, Komo Airport and Hides1.

Ayule said it all started when policemen believed to be from  Mt Hagen forcefully retrieved a vehicle which had been confiscated by the relatives of the women who were run over by it at Nogoli last week.

The women had died instantly. Five men were also injured in that incident.

Ayule said the police allegedly clashed with relatives who wanted to know why they were taking the vehicle away.

One of the landowners, John Kalomo, said the villagers then forcefully took over five other vehicles believed to be owned by ExxonMobil.

However, he said a reinforced police later retrieved all the vehicles.

Ayule said the situation got out of hand because of the unresolved issues between the landowners, the State and ExxonMobil.

"They got one backhoe from CCJV and dug up deep holes near the quarry, the road between Nogoli and Hides 4, Hides 4-Komo junction and also blocked off Tagali River between Tari and Hides," Ayule said.

"The police are to be blamed for the problem at Hides and Komo. They did not follow the (proper) process in retrieving the first vehicle from the relatives (of the deceased).

"They forced people and harassed them. And they did the same to the aggrieved landowners who had (taken over) the five other vehicles.

"Now they have to tell ExxonMobil and the state whose interest they were acting for."

Ayule said major activities on all project sites came to a halt expect for minor activities at Hides 4, Komo Airport.

There was no movement of vehicles in and out of Hides and Komo. 

All roads leading to Tari, Hides, and Komo are cut off.

"It seems like the situation is tense and will definitely become like another Bougainville.

"All the landowners want now is the state to come to Hides and Komo and talk to the landowners.

"If they ignore and use the police, it will definitely be like Bougainville as all landowners are up in arms."

Meanwhile, small landowner companies involved in the early works of the LNG project construction are losing money each day when project works shut down, Juha Joint Venture chairman Hengebe Haluya said.

Haluya appealed to the government and police hierarchy to discipline policemen involved in the harassment, assault and intimidation of landowners who have since destroyed three bridges in Hides, forcing a LNG work stoppage.

"My company started from scratch without any seed funding, MoA and ministerial commitments from the government." Haluya said yesterday.

He said landowners wanted the LNG project construction to be on schedule, "but some rogue policemen are causing problems with the landowners".

"The more we stop work, we are losing money," Haluya said.

He raised the issue after landowners removed three bridges between Hides PDL 1 and 7, forcing a stop work on the LNG project.

Haluya said angry landowners felled the Tugu, Tumbi and Kuara bridges.

He said many landowners had died while anxiously waiting for the long delayed MoA and ministerial commitment funds.

Haluya said politicians in Waigani "are delaying the payments and sacking ministers without seriously addressing landowner issues".

He said recently two police vehicles raided the two deceased women's village and arrested 10 leaders who were locked up in Tari and released on K2,000 bail.

The angry landowners then dismantled the three bridges in retaliation over the police action.

"We call on the commanders of Western Highlands and Southern Highlands to immediately take action against those policemen involved."

Haluya said not every policeman was involved but "one or two who were bringing a bad name to the police".

"We, the landowners, want to deliver the LNG project on schedule and such harassment, intimidation and threats will not help the project".

"We, the landowner companies participating on the early works, are losing money because of the behaviour of police and a very slow national government response to MoA and ministerial commitments."

Passam riot

National high school to close for an indefinite period

 

By GABRIEL FITO

 

A GROUP of Grade 12 students at Passam National High School went on a rampage setting fire to three buildings and looting school property, police said, The National reports.

The school in East Sepik faces closure after the administration block and ration store were destroyed early yesterday morning.

Fire to the female students' dormitory was put out by staff and other students.

Wewak police said last night 10 suspects were in police custody and would be questioned over the fire and looting.

Sources said the school would close for an indefinite period after losing all its records and valuables in the fire.

The burning down of the two buildings brings to seven the total number of buildings destroyed by arsonists since 2000.

Wewak police responded hours later after receiving a distress call from Passam late Saturday night and arrested the 10 suspects, all Grade 12 students, who were believed to be among 20 others who went on a rampage earlier in the night, breaking into offices, looting computers and other valuables and attempting to set fire to the dormitory.

Eyewitnesses said that the suspects, armed with the deadly wire catapult, scared off staff and students before continuing to destroy school property until after midday when they set the two buildings on fire.

They said they watched helplessly as the buildings went up in flames while the armed suspects prevented anyone from salvaging any item.

Eyewitnesses said the suspects took advantage on the unavailability of police to ensure everything was burnt to ground before they fled into the bushes.

The angry landowners mobilised with police to track down the suspects yesterday while the staff recalled all students to the school hall for a head count to see who was missing.

School principal Theresa Dingu declined to comment, saying officers at the Department of Education would release information on the incident.

However, sources said the suspects were students who were either suspended or reprimanded by the school on disciplinary issues.

Former governing council chairman, Leo Kabilo confirmed that some of the students, who were now in custody, faced the council last year and were reprimanded for indecent behaviour.

Sources said the school was waiting for instructions from Port Moresby.

Deputy landowner chairman John Sambukoi condemned the burning down of the buildings, saying it was not related to the land compensation issue that the landowners were negotiating with the government.

Digicel Cup Round 7 Results

Mioks 14 bt Isapea 10

Lahanis 36 bt Tigers 6

Muruks 12 v Warriors 12

Vipers 20 by Eagles 12

Gurias 28 bt Wigmen 18

 

Question without notice by Sir Mekere Morauta on the Independent Public Business Corporation

Mr. Speaker, I direct my question to the Minister for State Enterprises.

 

Minister,

 

It is usual in the conduct of public finance that taxes due and payable to the state are initially received into Consolidated Revenue by the Treasury or Finance Department.  The expenditure requirements of government departments and agencies to implement approved government programs are then allocated through the annual budgetary processes.  This is the model practised widely throughout the world.

 

The principal reason for this practice is to allow governments to ensure that fiscal policy is in harmony with monetary policy, together promoting a sustainable macroeconomic framework and stability. By allowing other agencies to independently collect revenue and expend, the government weakens the sharpness of fiscal policy.  In addition, the government loses control over the revenue and expenditure of agencies. 

 

The Somare Government has departed from this widely accepted model and developed a uniquely NA variation where Independent Public Business Corporation (IPBC), under your personal control, receives dividends payable to the state for the government’s shares in commercial enterprises such as the Bank of South Pacific, Oil Search, Be Mobile, Telikom, Air Niugini, PNG Power, PNG Ports, etc.

 

People’s money, public money, due and payable to the state, in hundreds of millions of Kina have been paid to and received by IPBC in the last few years.  

 

My questions are:

 

1. What public finance management justification can you give to explain the Somare Government’s variation to the accepted model?

 

2. A small portion of the money received by IPBC has been passed on to the Treasury.  Can you outline the dividend policy agreed between Treasury and IPBC in determining how much of this money should flow to Consolidated Revenue?

 

For example, on 14^th July last year you were both the Treasurer and the Minister for State Enterprises.  You could hardly present a cheque publicly to yourself, so the Prime Minister stood in for you as Treasurer to receive a cheque for K36.5 million from you as Minister for State Enterprises, as dividend from IPBC to the state.

 

Five days earlier, on 9^th July 2010, IPBC was paid a dividend of K42.8 million for its shares in the Bank of South Pacific.

 

3. What reason can you give for only 85% of the 2010 BSP dividend being passed on to Treasury?

 

4. Can you tell us what IPBC has done with the remaining K6.34 million received from BSP?

 

5. Who vets the expenditure of the monies kept by IPBC?

 

6. Can you tell us what the total dividends paid to IPBC have been in the past 3 years, detailed by enterprise?

 

7. Can you tell the people of Papua New Guinea what the expenditure of IPBC has been in the past 3 years?

 

On handing over the cheque to your father last July, you said that the sum of money reflected how well state enterprises were performing under your stewardship.  You neglected to tell the public that ALL of the money you handed over came from one source, the Bank of South Pacific.  I can assure the nation that it is not you, Minister, who can take credit for BSP’s profitability.

 

My final question is this:

 

8. Why is it that the model that has been adopted for IPBC is unique to IPBC?  Why does the Department of Mining for example not receive and retain the taxes and dividends from OTML, Barrick Gold or Lihir Gold Limited, decide itself what it wants to spend, and decide itself if it will hand over any remaining funds to Treasury?  What is so special about IPBC that it should determine its own expenditure and how much of the revenue it receives it will pass on to the rightful owners of that revenue, the people of Papua New Guinea?

 

The questions I ask are of great importance, given that IPBC will receive over 12 billion kina of people’s dividend income from the LNG project.  Under your model, IPBC will have sole control over this money, without being subject to government budgetary processes.

 

Mekere Morauta KCMG MP

Member for Moresby North-West

Cop: Organised crime suspected

Non-Papua New Guineans involved in killing, says Yakasa

 

By JUNIOR UKAHA

 

THE shooting to death of a Malaysian businessman in Port Moresby on Wednesday afternoon has the hallmarks of a syndicate-type killing, police operations chief Fred Yakasa said yesterday, The National reports.

Condemning the killing of Wong Tee Tee, the general manager of Tango Trading, Yakasa said police had every reason to believe the shooting was well-planned and premeditated.

"We have reasons to believe the killing was planned and organised by non-Papua New Guineans," he said.

"We have reasons to believe that this is an assassination due to the manner in which the shooting was carried out.

 "It is similar in nature to the attempted murder of another Asian businessman and owner of J-Mart (Jason Tan) last year," he said.

"We don't know who the suspects are and the motive behind the shooting but we (police) will get to the bottom of this," Yakasa said.

Yakasa, who was one of the first persons to arrive at the scene of the shooting, said yesterday the killing "is similar in method to the Jason Tan attempted killing and is a new trend".

He said nothing was taken from Wong or removed from his vehicle when he died, saying his killers only aimed to take his life. 

Yakasa said Wong was shot between 3pm and 4pm on the Poreporena Freeway as he was driving from Hohola in his 4x4 Hilux Surf.

The first shots were fired at Wong while he was in the tunnel.

Yakasa said unidentified gunmen in a sedan (registration CAH 036) followed Wong and fired at him several times at close range with a bullet hitting his lung and causing his death.

Yakasa said Wong had lived and worked in PNG for more than 20 years and was well known to the Asian business community.

Police are now appealing to the public around the Hohola area and the city who may have any information about the killing to help them in their investigations.

Meanwhile, president of the Chinese Association in PNG Ni Cragnolini yesterday condemned the murder of Wong.

Cragnolini described Wong as a respectable business identity in PNG and did not deserve to be a victim of such heinous crimes.

She said: "Wong was a well known Chinese businessman and was well respected by many in the PNG Chinese community.

"This is such sad news for all those who knew him and we offer our deepest condolences to his family and friends.

"Any killing like this is a shock to all.  It brings bad publicity to the country and causes unnecessary unrest."

Cragnolini went on to condemn the brutal and senseless slaying and called on the police to bring those responsible for this heinous crime to justice.

In conclusion, Cragnolini called for peace and calm in the community. 

"Let the police do their job, be calm and let his family and friends grieve as they lay him to rest," she said.

Also, following questions from media personnel yesterday, Yakasa said: "We have reasons to believe the killing to have been planned and organised by non-Papua New Guineans.

"It is similar in nature to the attempted murder of another Asian businessman and owner of J-Mart but, in that incident, two Asians were involved and caught.

"One of them had been in the country for only a week and both did not speak English or Tok Pisin.

"I assume that there is some level of organised crime syndicate at play somewhere.

"We do not have the evidence to prove this at this point in time but I am confident we will in the near future," he said.

Yakasa said illegal guns were a major concern to police.

"While police have implemented a number of the recommendations within the PNG Guns Control Report, it still requires the endorsement and support of parliament."