K125m glitch will be fixed, say ministers

By ISAAC NICHOLAS in Kokopo

 

TWO senior government ministers have assured Nasfund contributors that the government will correct any anomalies in the K125 million saga in the next appropriation bill, The National reports.

National Planning Minister Paul Tiensten and Communication Minister Patrick Tammur gave the assurance yesterday.

Tammur was the initiator of the controversial sovereign community infrastructure bill.

Neither men would comment on a Central Bank report that the entire saga was conducted outside the normal financial approval processes and in contravention of the Public Finances Management Act.

Tiensten said the government would accommodate the arrangement in the next appropriation bill whether it was a supplementary budget or the budget proper for next year.

"The maturity period for the loan is 2014 for the government to start repaying as guarantor of that funding," he said.

Tiensten said the timing was within the period when the government was expected to get proceeds from the liquefied natural gas project.

He said the Nasfund loan was unlike conditional loans or multi-lateral loans that would cost the state more and  exposed to external risks.

Tammur denied claims that the K125 million had been released to the Kokopo district.

He said the Kokopo joint district planning and budget priorities committee, in prioritising projects, identified water supply and roads as a major development agenda.

He said the committee came up with a project submission and knocked on the doors of donor funding agencies including Nasfund.

"The people of Kokopo are only the recipients, the procedures and procurements are the responsibility of the funding agency," Tammur said.

"The treasury minister authorised or signed off the documents to guarantee Nasfund that the money will be repaid by the government.

"The K125 million is still with Nasfund," he said.

He said a similar arrangement was made to build the Poreporena Freeway.

Ramu workers go on rampage

By RIGGO NANGAN

 

MORE than 1,000 wor­kers on strike at the multi-million kina Ramu Agri-Industries Ltd oil palm project in Gusap Downs, Ramu Valley, destroyed company properties yesterday after the mill management failed to address their grievances, The National reports.

Gusap police station commander Insp Adam Busil and his men had to calm down the angry workers after they had cut through the fence into the mill site and started destroying company properties.

Busil said he had warned the workers that their strike was an industrial matter and it was up to the company management to respond to their demands. But if they started to destroy properties or harass people, then police would deal with them, he said.

The workers from the first, second, third and fourth divisions of the oil palm project, after waiting in vain for the management to address their grievances, went on the rampage claiming that their petition had not been attended to after lodging it last week.

They claimed to have waited at the oil palm estate at Gusap Downs since last Saturday but the management at Ramu sugar estate in Ramu town, several kilometers away, did not respond directly but instead sent the union representatives to talk to them.

They said their main grievances were low pay, lack of safety gear, inadequate housing allowances, entitlements and death benefits.

They said they received an hourly rate of K1.78 and a harvest target of 120 fruit bunches at 0.12 toea per bunch for eight hours daily. The workers claimed that they usually harvested more than 120 bunches under harsh conditions at times but were paid for only 120.

They said they were not issued with footwear or hand gloves as the dried oil palm leaves and stalks were very sharp.

Attempts to get comments from the company management yesterday were unsuccessful.

Flowers and trees in the lawn outside the mill were cut down and a fallen tree was laid across the main entrance into the mill.

A section of the wire fence was cut and glass windows of the main mill office, an oil analysis laboratory and a weighbridge reading panel were smashed and a computer screen removed.

A truck parked outside the office also had its windscreen smashed and a pile of paper was placed under the fuel tank ready to be lit.

Signboards were torn and debris were scattered along the main oil palm road leading into the mill.

The glass window of a butcher retail outlet nearby was smashed with rocks and beef from the abattoir was removed before the looters were stopped by police.

Lae contractors line up to get payout from council

Words and picture by PISAI GUMAR

 

Despite heavy down pour in Lae city whole day today, almost 500 contractors engaged for minor grass cutting and cleaning drainage around various city locations fronted at Lae City Council (LCC) office to get their payment for the work done three years ago.

Officers that requested anonymity reported the major road work contractors are still waiting for their payments.

Most payments were due for payments back in 2008 coupled with 2009 until 2011.

Some of these works could be done by the LCC health and community services; otherwise could be directed into respective wards to engage youth, women, church and sporting groups to involve.

 However, contractors were involved without knowledge of the responsible sectional heads.

The picture shows contractors waiting for their names to be called to receive payments.

The rate of the payments defers on tools, manpower and the size of the work.

K1.9million ravaged

Probe exposes shady deals by civil servants

 

By JEFFREY ELAPA

 

A TOTAL K1.9 million of the development budget has been committed in just three months and much of it in questionable projects, an investigation reveals, The National reports.

The investigation, conducted by private law firm, Korowi Lawyers, into the Department of National Planning further asserted that a network of senior workers have been awarding themselves lucrative contracts from the development budget to their own companies.

The report, hastily put together in a short space of time on the directions of reinstated secretary, Joseph Lelang, contained names of the senior officers, their companies and instances of the alleged transactions along with cheque details.

Copies had been sent to Acting Prime Minister Sam Abal and the fraud squad.

The report cited acting secretary Ruby Zarriga and Minister Paul Teinsten as having turned a blind eye on the actions of the senior officers. Both were recommended for serious disciplinary actions.

Nearly K23 million out of a K30 million, allocated under the church-state partnership programme, was reported to have disappeared leaving only K22,000 in the till as of June 1.

The report further recommended that a number of projects totalling K33.7 million would need to be further investigated while some 17 payments, totalling K14.3 million, were made without any project documentation received.

Other recommendations were: 

*That head of department to commence disciplinary proceedings and refer officers to the police fraud and anti-corruption squad for criminal investigation;

*Use the proceeds of Crime Act to recover all monies paid out as well as repossessing tangible properties;

*For the acting prime minister to commission an inquiry into this year’s development budget by allowing for independent investigators;

*To discipline acting secretary Ruby Zarrigga and minister Paul Teinsten; and

*To abolish the Department of National Planning and Monitoring and transfer all financial powers to Treasury Department, the adoption of one appropriations Act and transfer of policy and planning functions to the Prime Minister’s Department.

A total K1.9 billion, which comprised 90% of the national government component of the K4.2 billion development budget, was alleged to have been mismanaged.

The balance of the budget comprised foreign aid monies, of which 75% was from AusAID.

The K1.9 billion in total warrant authorities were reportedly released by the Department of Treasury of which K735 million in project monies were placed under trust accounts held by the Department of Finance.

A remainder of K1.2 billion was released to projects by the Department of National Planning and Monitoring over three months from March to May.  

While lengthy future scrutiny would reveal what had happened to all the funds, several incidences of mismanagement of the development budget programmes were discovered and contained in the report.

For example, the district market programme was allocated K20 million under the budget. Of this, a total K10.442 million was released in two batches leaving a balance of K9.558 million. However, the report revealed a nil-balance with the money transferred or diverted elsewhere.

It was further revealed that certain districts did not acquit previous funds but still continued to receive funding. These included Telefomin, Imbonggu and Talasea markets.

The report revealed that senior managers of the department received much of these funds through several private companies (registered with IPA) to benefit themselves and their cronies.

A total K30 million was

allocated to social development funds governed by the church-state partnership framework

and executed between the state and church partners in October 2008.

It was reported that between March and May this year, a total of K7,160,263.66 was released to projects without records for the balance of K22,817,321.34.

The balance as of June 1 was only K22,415.

Lawyer: Police shock family in dawn raid

By JEFFREY ELAPA

 

A TEAM of police officers allegedly stormed the home of National Planning secretary Joseph Lelang and harassed his wife and children early last Friday, his lawyer Philemon Korowi claims, The National reports.

Korowi told reporters that the officers entered the home at around 4am last Friday and demanded to know the whereabouts of Lelang.

He questioned the actions of the police officers, saying they had traumatised the family.

“We deplore the conduct of the policemen as being unprofessional, undisciplined and sinister,’’ he said.

Lelang was charged by police earlier this year with breaking in and entering his office after he was reinstated by the court to his current position. He had been earlier suspended from that position over certain allegations levelled against him. The court had ruled in his favour.

The latter case is pending in court.

But, last week, police wanted to question him over reports he was trying to interfere with state witnesses in the case.

Lelang was summoned twice by the police to go to the Boroko police station. Even Police Commissioner Anthony Wagambie wrote to him to go to the police station. He failed to do so.

But Korowi said the police officers had treated the Lelang unfairly.

“If it was in relation to the criminal charges against Lelang, in which he was requested to attend at the Boroko police station for a record of interview relating to the complaints of attempting to pervert the course of justice, then, there was no urgency for him to attend as he was not a common criminal,” the lawyer said.

He said Wagambie had agreed to a request from Lelang to delay his visit to the police station because he had to seek a medical check overseas and that he would come to the police station upon his return.

Korowi claimed that the police officers did not have any arrest or search warrants.

He said he had reported the matter to Wagambie and lodged a formal complaint with the internal public complaints division.

 

Nothing done to control arms, says Maipakai

By JUNIOR UKAHA

 

INTERNAL Security Minister and Kikori MP Mark Maipakai is worried about the build-up of firearms leading into next year’s elections, The National reports.

He said this last Friday during a passing-out ceremony 98 officers from the Royal Papua New Guinea Police Band at the Bomana Police College.

Maipakai said since the report and recommendation of the Guns Control Committee came out six years ago, “little or nothing has been done to rectify the situation”.

“I am concerned about the use of firearms, both legal and illegal, in the commissioning of crimes, conflict situations and especially in next year’s national elections,” he said.

Maipakai said the use of guns was one of the single biggest problems facing the country.

He said guns which fell into the hands of criminals and other unscrupulous people were used to kill people.

He said the use of illegal firearms to commit crimes “is a hindrance to development and is destroying businesses”.

“Guns will drive away investment and ruin our society,” he said.

He said guns were used in over 80% of crimes committed in the country.

Maipakai commended Police Commissioner Tony Wagambie and his deputies for the pre-election operations being conducted nationwide.

“It will flush out some of these illegal firearms but not all of it,” he said.

Police Commissioner Operations Fred Yakasa said police operations before and during the election would require K188 million to be successful.

Yakasa said around 20% of that money would be used in pre-election operations.

Lae is on a road to nowhere

By MALUM NALU

On Friday, June 25, while back home in Lae, I took a drive along the city’s infamous roads with regional works manager Brian Alois.

We took a look at Markham Road opposite Lae Showground, Bumbu Road opposite  golf course, Milfordhaven Road opposite Botanical Gardens, the steep hill leading up to town from Voco Point, and the Huon Road leading from town to Eriku.

At first glance, so much for so little, that I felt like breaking down and crying for the people of Lae – me included – who have suffered so much over the years.                                              

I remember a Lae from the 1970s and 1980s that was perfect – before the rot set in – and had no potholes at all

Just last December, acting Prime Minister Sam Abal dished out more than K100 million to a handful of contractors to fix up Lae roads, however, cracks are already appearing in the concrete and water is spilling out from drains.

Contractors are working willy-nilly on their assigned stretches, in an unplanned, haphazard fashion, and there seems to be  no uniformity all over the city.

Compare that to a decade ago when AusAid-funded Barclay worked on the Lae roads?

The Department of Finance, seemingly, has appointed overseas contractor NME International as its engineering supervising consultant for Lae roads with no input whatsoever from Department of Works.

Alois and the works guys, even the city engineer, have no say whatsoever in the Lae roads project.

“That question that arises is that if the national Department of Works or provincial works is not supervising the millions already spent on Lae roads, which agency is responsible?” wonders four-time Lae MP Bart Philemon.

“Going by the project signboards, it would appear that the Department of Finance is now the implementing agency.

“If this observation is correct, then how much this could be?

“Department of Finance is not technically qualified, so how will it depend on the engineering consultant to manage the whole project?

“I believe the Department of Finance appointed NME International as its engineering consultant for Lae roads project.

“It means that the government has now delegated or offloaded its responsibilities to this private company in preference to its own implementing agencies.”

“The company, NME International, is now totally responsible for everything that takes place.”

What is painfully obvious to all is that there is no overall design for total Lae roads upgrading, with all engineering designs being different, each contractor having his own design.

Alois concurs with Philemon, and during our drive, pointed out some things that were lacking on Lae roads including utilities, road furniture, street lights, dumping of spoils and physical planning approval.

“There are no provisions for relocation of utilities such as water, telephone lines and power poles, etc,” he says.

“Consideration should have been given to these respective service agencies to firstly, relocate the infrastructure and secondly, make provisions for future extensions/installations, etc.

“Once the roads are concreted, it would be near difficult to carry out works on the relocation, maintenance and installation of service utilities.”

Road furniture

“Every road has to have them and apart from the many other functions, they are there to promote road safety for vehicles and pedestrians as well,” Alois says.

“Importantly, we have not allowed for accessibility for people with disabilities (wheelchairs); compare the previously upgraded roads by AusAID and these current works.”

Street lights

“Every modern city has to have street lights and these were installed when AusAID funded the roadworks before.

“In these current works, there are no street lights and we say all the time that Lae is not only the second city, it is the industrial hub.”

Dumping of spoils

“We are dumping all the spoils dug up from the roads into the sea at the DCA beach and that is not good environmental management.

“If these works were planned properly, then my suggestion would be to do river training works on the Bumbu, and use the spoils as backfills and that way we can reclaim some of the land that was eroded over the years by the Bumbu River.

“Institutions like National Polytechnic (Lae Tech), Bumbu Barracks, CIS Buimo and streets along the Cassowary Roads have suffered loss of land.

“So instead of dumping the spoils and polluting the sea, we could have made good use to reclaim and at the same time protect further erosion.

Physical planning approval

“I am sure that no physical planning approval was given for the current works unlike the previous works by AusAID.

“So we have broken the procurement laws (no tender, variations exceeding maximum limits etc), and also the physical development laws.”

Alois says entry into Lae can be through ends or gateways: From the Highlands Highway at Bugandi and from Bukawa Road through Busu Bridge.

“These two roads that lead into Lae City are classified as national roads; the Highlands Highway as it traverses into the city rides on Markham Road then onto Milfordhaven Road ending at the Lae Port, while the Bukawa Road rides on to Malahang/Busu Road terminating at the Malahang Industrial Centre,” he adds.

“I’d like to believe that there is no road classification for the network of roads here in Lae.

“Needless to say, it is necessary, in view of the traffic volume and high maintenance costs, that we categorise our roads into their primary functions.

“This means that we must, in the first instance, assign roads according to what we want them to deliver in terms of traffic.

“We must have different classification of roads that are designed and constructed for the different types of traffic that we would expect would use them.

“The suggested road classifications can be:

·         Class A main arterial roads;

·         Class B link roads;

·         Class C industrial roads;

·         Class D residential roads; and

·         Class E central business roads.

“At the same time, we must emphasise on nominated routes for our public transport system.”

Alois, apart from being the regional works manager, is also the president of the Institute of Engineers PNG Lae branch and a board member to Institute of Engineers PNG Board and Professional Engineers Registration Board.

Meantime, Lae continues to be heading on the road to nowhere!