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."

Four get loans from PNGWiB

THREE Papua New Guinean women entrepreneurs and one professional woman yesterday received more than K72,000 in sustainable loans from the PNG Women in Business (PNGWiB), The National reports.

Small business owners Rebecca Haibu and Josephine Paul Ambaen from New Life Group each applied for and successfully received K1,000 while Josephine Chapiu was loaned K700.

These three women were the first grassroots women entrepreneurs to receive loans.

The loan is to assist the women with enough cash for their business.

The fourth, owner and managing director of Human Resource Business Solutions Linda Paru, was the first professional entrepreneur to receive a loan of K70,000 from PNGWiB.

PNG WiB president Janet Sape said the women had savings with the PNGWiB so they were eligible to apply for loans to further their businesses and support themselves and their families.

Sape said the payouts should be seen as an opening not just for grassroots women but also for professional women to come and apply for financial support.

She said PNGWiB, believed that women could do better and wanted them to have easy access to these funds as it was difficult to obtain loans from commercial banks.

Sape added that the financial training for women in Morobe was proving successful as many women now knew how to apply for loans.

She said these women were mostly illiterate, thus the training helped them understand how to plan and save their money.

The PNGWiB has so far loaned K107,400 to grassroots women in six months.

Parliament adjourns

PARLIAMENT was forced to adjourn on the second day of this session due to lack of quorum, The National reports.

Speaker Jeffery Nape, who walked into the chambers after the bells had rang for an hour starting at 10am, asked the clerk to count the numbers and suspended parliament to this morning.

The session time starts at 10 o'clock every morning but, as in the past, it normally starts an hour late.

Leader of government business Paul Tiensten has appealed to members of parliament to turn up and deal with important government business.

Tiensten made the call yesterday after parliament was adjourned.

Only 35 MPs turned up, two short of the 37 MPs required for a quorum for the session to go ahead.

The adjournment yesterday was not new as the last session failed to muster quorums for debate.

"It is unfortunate that the government had the numbers while most MPs were still doing other businesses outside the chambers when it was adjourned," Tiensten said.

The Pomio MP, who turned up straight after parliament adjourned, said that he was out of the chambers sorting out district services improvement programme (DSIP) funds with

the Office of Rural Development officers.

Tiensten said the ORD officers turned up at parliament when the session was to start at 10am.

"There are important ministerial statements and bills to go through this session of parliament and I call on all MPs to be present."

Bills that needed parliament support included enabling legislations for the Hela and Jiwaka provinces, the Women's Bill and electoral boundaries.

"Members of parliament are paid to represent their people and we should all make an effort to attend all sittings of parliament," Tiensten said.

 

 

Church head warns elders to stay silent

By PISAI GUMAR

 

THE Evangelical Lutheran church of Papua New Guinea head bishop Rev Giegere Wenge has warned elders not to make any comments regarding the dealings of laymen involved in making changes to Investment Promotion Authority records, The National reports.

He said it was a court matter and would be dealt with by the judiciary.

He said church elders should not go to the media as they would be in contempt.

"No press conferences or telephone interviews will be held to say or reveal anything to the press until such time we decide to," he said.

He also said that other matters regarding developments of the church can only be released by the church council.

Wenge issued the warning at the ELC-PNG council meeting yesterday after The National cited court files in 0S441 of 2010 which stated that Lutheran laymen had made changes to church business without the approval of the council.

Named in the files were church secretary Albert Tokave, finance secretary James Pena, German financial adviser Lothar Stock, Jabem district representatives Ben Woo and Titi Solomon for their part in the church's trust company, ELCPNG Nominees, and business arm Kambang Holdings.

They are being accused of misleading the church council while operating as board members of ELC­PNG Nominees "without lawful authority".

Article 13 of the nominees by-laws restricts all laymen, except district presidents, from being members of the trust company's board, the court files stated.

The news report stating the court files had shaken the church council with several district presidents from the Highlands saying the media had no right to interfere in church affairs.

But many Lutherans across the nation called The National saying that "truth and righteousness must prevail in the affairs of the church".

Yesterday a pastor who called tried to make comments supporting the five-laymen but he was told that his comments could not be reported and he may have to file an affidavit as the case was before the court.

Abal’s son in police custody

PORT Moresby detectives were last evening questioning the adopted son of Acting Prime Minister Sam Abal at Boroko police station over the murder of an unidentified woman at the Abal residence grounds, The National reports.

Police Commissioner Tony Wagambie said detectives, acting on intelligence information, picked up Theo Abal yesterday morning at the Ponderosa Hotel in Port Moresby.

Police have named him as the prime suspect after he went into hiding following the discovery of the body.

While overseas media, including Radio Australia, were telling their audiences last night that Theo Abal was charged with wilful murder, Wagambie said he had not been informed.

He was also unable to confirm reports that the victim's throat had been slit and that the murder weapon – a knife – had been recovered by police.

The dead woman's identity also remained unknown.

Her body is at the Port Moresby General Hospital morgue and police called on relatives of missing women to come forward to identify her.

The arrest, and subsequent actions by police, related to the discovery of a woman's body on Monday morning inside the Abal residence grounds in Konedobu.

On the night, guards at the residence told police they had seen a man walk in hand-in-hand with a woman through the gate.

Later, they said they heard a woman scream.

Following the discovery of the body, the acting prime minister called the police commissioner and reported that there was a body inside his yard.

He told the commissioner, and later parliament, that he and his family would assist police in their investigations and anybody found responsible would face the full brunt of the law.

The opposition yesterday called on the acting prime minister to step down while investigations into the case was under way.

 

 

A new prime minister and a grand coalition

By REG RENAGI

 

Next week, Parliament resumes again for a further three weeks of more feisty debates on issues of national importance (we hope). 

 

Parliament was to sit for a marathon six-weeks session but the Speaker (and his deputy) decided our parliamentarians needed a fortnight recess. 

 

Our elected representatives seem to have an easy life. 

 

No wonder they feel over-pampered (and quite spoilt) at our expense. 

 

However, unfortunately their assessed output towards the overall net development outcomes since 2002 to the present time leaves a lot to be desired. 

 

So the public considers this half-year break to be quite excessive. 

 

But the media reported that the Speaker advised all and sundry that an adjournment at this stage was necessary for urgent repairs and maintenance work to be done to the parliament. 

 

Several millions to the order of some K20 million was also reportedly even set aside for this purpose. 

 

The opposition voiced its extreme disappointment but the media deduced that it was the usual standard procedure of the Speaker to shield the government from votes of no-confidence motions being moved against it. 

 

 This should not come as a great surprise to the opposition as it has been the usual delaying tactic used by the same man presiding over proceedings on the floor of parliament since 2002. 

 

But what’s very disappointing about this six-month break ordered by the Speaker was that there was no real physical evidence of any structural improvements in parliament to justify the long recess by MPs.

   

Notwithstanding, the two-week break should do them some good. 

 

After resting their minds properly, catching up on some outstanding projects back in their electorates, or more importantly; think hard about what issues they are going to seriously address that is affecting everyone.

 

When parliament resumes again, there will be many outstanding issues carried over from last year to be properly debated on the floor of parliament. 

 

It is hoped that all these issues will be seriously addressed by all MPs regardless of which side of the parliament they sit, and all decisions made will also be in PNG’s national interest.

 

While not pre-empting anything here, nevertheless; the people’s government must now critically address in this particular session of parliament the all-important issue of PNG’s leadership. 

 

The country has not had a proper leader for over two months that must be immediately corrected.

 

This is a matter that is now so crucially important at this very moment that our people and country cannot be denied a fit and competent leadership to be captain of our state-ship before the year’s end for obvious reasons. 

 

PNG must have a competent leadership that will give confidence to its people and all democratic institutions. 

 

I again foresee our able Parliamentary Opposition Party Leader, Belden Namah and his intrepid deputy, Sam Basil to bring the matter up again in the ‘House’ next Tuesday, for Acting PM, Sam Abal to evoke the provision of section 142, sub-section 5 (c) of the constitution. 

 

 The government must appoint a competent medical panel to accurately assess our PM’s true medical condition and determine whether he is 100% fit in all respects to be able to carry out the duties of his high office.

 

I hope the Speaker does not try to pull the same silly stunt as last time or he risk incurring the wrath of the Opposition, and may risk warranting a possible a vote of no-confidence being moved against the ‘chair’ itself.

 

With the prevailing health condition of our PM now and the current state of what is happening in government, the political environment in PNG is not good for the country’s leader to return to, and resume duties of his high office in a ‘business-as-usual’ fashion.

 

Hence, if the medical situation does warrant it and supported by a special medical panel’s recommendations, then the process of electing a new PM can then be taken by parliament on the floor – but must be done now and without delay.  

 

With due respect to parliament, it is now time for it to make a bold decision to have a competent and honest government to rule PNG from this point onwards. 

 

 For some time now, PNG is badly lacking here and must now have a visionary, transformational and honest government. 

 

As I wrote last week, the only way out of this leadership crisis PNG is in now is to immediately invite the Parliamentary Opposition party MPs and form a ‘government of national unity’. 

 

The Opposition is quiet unique at this stage because it has many quality MPs, including two former PMs that their presence is very much needed in a reformed government in 2011.

 

Some government MPs have had bad reports of being involved in serious allegations of bad leadership actions. 

 

These MPs must be immediately investigated with necessary corrective action taken against them. 

 

The government has so far not done anything to address these very serious allegations, thus, this cannot be allowed to continue hanging over their head for obvious reasons.

 

With a new,  fit and healthy PM elected by parliament and a revitalised ‘grand coalition’ in a ‘Government of National Unity’, PNG will be progressively transformed into a much better and stronger position than now to go into the elections next year. 

 

The end result for the people of PNG in 2011 will be a properly functioning parliament and government that will diligently serve our people better in a more highly responsive, and responsible manner than before.

 

I hope and pray that Acting PM, Sam Abal and Opposition Leader, Belden Namah start talking of bringing back stability and credibility into the government in 2011. 

 

The people will then look towards next year’s elections with confidence and hope for a better future.

 

Finally, I join my fellow Papua New Guineans and pray that PM Somare makes a speedy recovery and returns back safely to PNG with his family.

 

May God bless our Grand Chief.