Somare’s bill put at K3.7 million

FIVE-year-old Iluh Kara, dressed in her mother's Manus traditional bilas, was at the Jackson
International Airport yesterday morning to welcome home her bubu and East Sepik regional MP Grand Chief Sir Michael Somare. Iluh presented Sir Michael with a basket. Iluh's dad is the son of Sir Michael's only sister, Rosa.  – Nationalpic by EKAR KEAPU

THE state has paid K3.7 million to keep Grand Chief Sir Michael Somare in Singapore's Raffles Hospital and for related costs, The National reports.
The actual hospital bill is less than K1 million but travel and accommodation expenses and sustenance allowances for his family, minders and visitors blew up the amount to K3,718,981.82.
An amount of K67,703.52 was still outstanding as of Aug 29.
All the expenses was borne by the Prime Minister's Department, which does not have any allowances within its budget for the medical expenses of the prime minister, deputy prime minister and other ministers of government, department sources said.
Sources also said Prime Minister Peter O'Neill had directed his department to transfer all future expenses to parliament and to have parliament reimburse the department's expenses so far.
At any time, there had always been three security officers and a protocol officer in attendance at the hospital as well as Lady Veronica, press secretary and daughter Betha Somare and personal assistant Seki Karingal. All their expenses were met by the department.
This came to light as the Grand Chief jetted in on an Air Niugini commercial flight from Singapore yesterday morning to an emotional welcome at the Jackson International Airport.
It was important that Sir Michael was in the country to attend tomorrow's sitting of parliament. To miss it would mean his third consecutive absence, rendering Sir Michael an automatic disqualification as the regional parliamentary representative of East Sepik.
The Grand Chief spoke briefly upon his arrival yesterday, looking frail but walking without assistance.
Scores of people, including Governor-General Sir Michael Ogio, who broke with protocol to be pre­sent personally to meet Sir Michael, wept openly when they saw the former prime minister who had been in a Singapore hospital for the past four months.
Sir Michael greeted the airport crowd and spoke briefly on health care, clearly avoiding the events of Aug 2 and the election of O'Neill as prime minister.
"The days ahead of us are tough but I am one of those who have proven to be a fighter and to make things work," Sir Michael said.
A strategy meeting is expected to be held by the Somare camp today for tomorrow's parliament meeting.
The topic of where Sir Michael would sit would feature prominently with expectations that he would attempt to occupy the prime minister's chair.

PNG exposed as 'dysfunctional blob'

By PHILIP DORLING

PAPUA NEW GUINEA is trapped in ''Ponzi politics'' being practised by deeply corrupt politicians who have enriched themselves on resource revenue and Australian aid , according to US diplomatic reports.

Australian government officials are reported as saying generational change in PNG politics following the departure of founding father and former prime minister Sir Michael Somare was a ''false hope'', and the PNG government was a ''totally dysfunctional blob''.

The damning assessments of political and economic life in Australia's nearest neighbour are contained in confidential US embassy cables leaked to WikiLeaks.

In a November 2008 briefing, the US embassy in Port Moresby noted that resource revenues and Australian aid have served ''more to enrich the political elite than to provide social services or infrastructure. There are no large-scale local businessmen, but numerous politicians are relatively well off.''

PNG is Australia's largest recipient of foreign aid and in 2011-12 will receive more than $480 million from the country.

Anxious to avoid diplomatic offence, Australian government ministers and officials rarely talk openly about corruption and maladministration in PNG, preferring to speak of ''strengthening governance'' and helping ''institution building''.

However, the leaked cables from the US embassy in Port Moresby provide grim assessments of PNG's chaotic political system and failing public administration. In May 2007, in a cable titled ''Ponzi politics'', the US embassy presented a damning pen picture of PNG politics.

''Steeped in traditional magic and innocent of modern economies, PNG's citizens prove easy marks for Ponzi schemes which proliferate throughout the country,'' the embassy said. ''Now it's election time … and the politicians are dusting off their bottles of snake oil. Viewed from afar, or from a national perspective, it's an appalling spectacle of disregard for governance.''

It went on: ''If all politics is local, politics in PNG - with 830 languages, myriad cultures and thousands of clans - is Tip O'Neil (sic) on steroids … Though this government, and the current crop of leaders on the national scene, have presided over a steady, nationwide deterioration of services - closure of health centres and schools, collapse of effective policing and a steady rise in violent crime - little mention of this can be expected during the campaign to come.''

In the run up to the 2007 election, the US embassy reported that ''the pork has hit the fan'' as Sir Michael reallocated ministerial portfolios. One promoted minister was described as ''the government's chief bagman for the corrupt forestry industry''. A former health minister was ''mostly remembered for his insistence that he was just a politician and therefore could not be held responsible for the fact that the country's hospitals had run out of medicines while his ministry was still flush with cash''.

The report gave a damning judgment on the Somare administration's commitment to law and order: ''The single most pressing problem facing PNG is the almost total collapse of the police force. So it is doubly disappointing that the effective [Police Minister Bire] Kimisopa was pushed aside. The portfolio has little control over expenditure. But his focus likely discomforted Somare and his cronies for the same reasons they worked to scuttle a large-scale Australian package which threatened to dramatically improve police performance.''

The leaked US cables are ambiguous about Sir Michael's financial interests and their effect on political decisions and public policy. However, they noted a ''strange'' shift in PNG government policy that potentially increased its financial exposure in legal action being taken by Bougainville residents against company Bougainville Copper. ''Given the way things are done here, the general suspicion is that PM Somare has been given a financial incentive to reverse the previous government's position on the case. Certainly, it would be very typical of Melanesia if what the government saw as in its nation's interest also redounded to the individual benefit of its leadership. It is worthy of note that Paul Nero (sic, Nerau), a plaintiff and the current PNG [consul-general] in Brisbane, is very much a Somare man.''

The US cables confirm that, privately, Australian officials have no illusions about the state of the PNG government. After a mid-2007 discussion on political and economic developments with Australian high commission staff in Port Moresby, the US embassy reported: ''One Australian analyst described generational change as a 'false hope', while other Australian officers described the PNG public service as a 'totally dysfunctional blob' that is great at planning but appalling at implementation.''

Speaking to the US embassy in September 2009, the then opposition leader and former prime minister Sir Mekere Morauta lamented the collapse of effective government decision-making.

''AusAID is out of control,'' he said. ''I don't mean that Australia is being naughty. What I mean is that, out of desperation over lack of government direction, they are funding projects of their own choosing. The government cannot truly be said to be in charge of how and where foreign assistance is spent.''

However, as an example of poorly planned Australian assistance, Sir Mekere cited money spent on infrastructure projects such as road-building, new schools and hospitals.

''Our problem is not a need for new infrastructure. At this point, we cannot even maintain the infrastructure we have.''

Following a long illness Sir Michael was removed from office, though he is still protesting that his ousting has been illegal. Peter O'Neill, who had served as treasurer in the Somare government, was elected Prime Minister by a parliamentary vote on August 2. He has declared his desire to ''restore open, honest governance''.

Somare arrives back in Port Moresby

Caption: Sir Michael waves to the crowd before boarding his car. He is flanked by Valentine Kambori (left), Tony Aimo (behind him) and Sam Abal.-Picture by EKAR KEAPU

GRAND Chief Sir Michael Somare arrived at Jackson Airport in Port Moresby today from Singapore after being hospitalised there for more than four months.

Among those at the airport to meet Sir Michael were the vice regal Sir Michael Ogio, MPs Sam Abal, Sir Arnold Amet, Patrick Pruaitch, Gabriel Kapris, Dame Carol Kidu, Tony Aimo, James Marape, John Pudari, Peter Wararu, Paru Aihi, Andrew Kumbakor, Timothy Bonga plus former departmental heads Margaret Elias and Vincent Kambori.

Also present were the Sepik council of chiefs led by their president Eric Wangehau.

Medical society disassociates itself from Mola report

By MALUM NALU

The PNG Medical Society has disassociated itself from "unprofessional actions" of its treasurer Prof Glen Mola in making allegations against former society president Dr Mathias Sapuri.

This follows the publication of a leaked report in The National last Friday in which Mola claimed that Sapuri had misused almost K1 million during his tenure as president.

Mola, however, said at the weekend that he did not know how The National obtained an advance copy of his treasurer's report.

"I wish to make it clear that I did not send a copy of my treasurer's report to The National," he said.

"I do not know where The National got a copy of the report. 

"My report should have been treated as confidential by members of the Medical Society until it is presented to the annual general meeting of the society on Sept 7 in Kimbe. 

"At the AGM, members will have an opportunity to consider the report and vote on either accepting or rejecting it, and also make any recommendations as to what action – if any - to take as a result of it.

"I note also that Dr Sapuri is reported as stating that 'legal action would be sought against Mola if the allegations were found to be false'. 

"In fact no 'allegations' are made in my report; my report only contains statements of fact."

Society president Prof Nakapi Tefuarani said today that neither he nor his executive sanctioned and approved Mola's report.

"In fact," he said, "the official decision and plan reached during the executive meeting was for Dr Mola to present his 2010-2011 financial report at the annual general meeting in Kimbe this year.

"He was warned not to publicise the allegations he had conjured against Dr Sapuri.

"The past president, Dr Mathias Sapuri, was asked and will present his exit report at the society's AGM in Kimbe in 2011 and treasurer Prof Glen Mola is expected to present the financial report covering Sept 2010 to Sept 2011.

"However, despite being told by the current president and his executive to be more professional towards the former president, Prof Glen Mola has unilaterally opted to pursue this in a manner that of a personal vendetta."

Tefurani said his executive would raise Mola's actions at this week's Medical Symposium in Kimbe for appropriate decision and action.

He assured all members, supporters and donors that his executive would continue to manage administer the affairs of the society with "due diligence".

Leave East Sepik provincial government matter to the court, says Chief Justice

By JULIA DAIA BORE

THE Supreme Court at Waigani has called on people not to interfere with the proceedings of the East Sepik provincial government executive council's reference, The National reports.
"We express our concerns in the strongest terms possible," Chief Justice Sir Salamo Injia said yesterday before ending the second day of the reference hearing at Waigani.
He said he was speaking on behalf of the five-judge Supreme Court panel hearing the matter.
The panel consists of Sir Salamo, Deputy Chief Justice Gibbs Salika, senior judges Bernard Sakora, Nicholas Kirriwom and Les Gavara-Nanu.
Sir Salamo said: "We ask the media, the interested public and all interested parties to leave the courts to deal with this matter."
He said the panel agreed to express their concerns about public interest and events as they were unfolding outside the courthouse and as reported by the media.
"There should not be any form of interference from anybody on the matters before this court."
He called on the media to report about the public involvement of the reference court matter "with care, responsibility and fairness".
He said the media's reporting of the public involvement of matters before the court could amount to interfering with the proceedings.
"Nothing should be repeated from the public and any interested parties by the media ... that amounts to interference with issues being dealt with by the courts," he cautioned.
Sir Salamo said this did not mean the court was interferring with the freedom of the press.
"The media is free to report on issues, but there are limitations to do so," he said in reference to on-going events outside the Waigani Court main gates.

Tkatchenko denies receiving funds from NCDC

PNG Gardener Justin Tkatchenko has denied allegations that he has received millions of kina from the National Capital District Commission through his association with NCD Governor Powes Parkop, The National reports.
The alleged financial benefits were contained in a purported internal audit report circulated on the internet via the pngexposed.com blog.
Tkatchenko told a day-long media conference, organised by NCDC at the Bluff Inn Hotel outside Port Moresby on Wednesday, that the K3 million he was paid last year were "for projects that were carried out through cooperation between the public and private sectors".
"The projects were not to create revenue but a service to the people," Tkatchenko said in the presence of Parkop and other senior City Hall officials.
He also gave a power-point presentation on the NCDC mini parks and courts, water fountain, water slide and zoo and animal farm projects that the internet report had cited in its alleged audit report.
According to the internet audit report, no quotation was provided for any of the projects and there was no tender advertised or accepted.
It claimed all the payments were made out to Kitoro No.33 Ltd and PNG Gardener.
A company search listed the directors of Kitoro No.33 as Justin Wayne Tkatchenko and Catherine Jane Tkatchenko.
Its sole shareholder was Catherine Jane Tkatchenko, who was also listed as the secretary.
Both companies share the same office space on the fifth floor of Defens Haus in downtown Port Moresby.
However, Tkatchenko denied receiving the K3 million as claimed.
Parkop, on the other hand, said he had no common interest with Tkatchenko and his companies.
He said he only knew the PNG Gardener when Tkatchenko won the parks and garden outsourcing contract.
"Neither of my immediate family is interested in Tkatchenko's family and his businesses."

Doctor charged with stealing

By JUNIOR UKAHA

A SENIOR doctor in charge of the Department of Health was arrested and charged by police yesterday with misappropriation, The National reports.
Dr Esorom Daoni, 43, from Babagi village, Gazelle, East New Britain, was arrested and charged by members of the fraud squad with one count of misappropriation.
Director of fraud squad Chief Insp Timothy Gitua said, between last December and January, Daoni "on numerous occasions during his leave went to the Queen Emma Lodge in Kokopo and withdrew money totalling K12,892 belonging to the department held in the company's account".
He said the money was excess payment that was left after a conference was held last year by doctors at the lodge.
Gitua said Daoni somehow managed to convince the management at the lodge and withdrew the funds.
He said police started their investigation in April after former health secretary Dr Clement Malau laid a complaint with the office of the fraud squad alleging that the accused had withdrawn the funds from the company's account without the approval of the department.
Gitua said his men picked up the accused on Wednesday night in his home and questioned him the next day, resulting in his arrest.
Gitua said Daoni was out on K1,000 bail sanctioned by the office of the metropolitan superintendent yesterday afternoon.
He said the accused would appear at the Waigani Committal Court today for his first mention.