InterOil LNG project in strife

THE  InterOil-proposed Gulf LNG project has been dumped by cabinet on grounds that it deviated from the original pro­ject agreement, The National reports.
An industry observer warned last night this could be seen as a case of "expropriation" by the government and the state could be hit with a "hefty lawsuit".
He said the project agreement provi­ded for disputes and agreements to go before an arbitration tribunal, but "it appears the government has taken the extreme decision".
InterOil executives were contacted last night for comment but did not  respond.
Announcing the cabinet decision, Petroleum Minister William Duma blasted InterOil for moving away from the original agreement and instead proposed a "small scale fragmented" Gulf project to be developed by companies not recognised as LNG operators.
He said none of these companies were experienced in operating a world-class LNG plant that InterOil was contracted to deliver.
"Hence they do not fit the description or intent of a world class operator as contained in the project agreement," Duma said in a statement.
In what appears to be a double-barrel blast at InterOil, Petroleum secretary Rendel Rimua issued a separate statement attacking the company for not complying with requirements of its NapaNapa oil refinery agreement.
Duma said original project agreement executed between the state and Liquid Niugini Gas Ltd (LNGL) in December 2009 was for a "world-class LNG plant of international scale and quality using internationally recognised technology with a plant size of 7.6 million to 10.6 million tonnes of LNG per annum and to be operated by an internationally-recognised LNG operator".
"Instead of delivering a pro­ject that fits this project description, LNGL/InterOil has been announcing, presenting and promoting a different project without seeking prior formal state approval," Duma said.
The original InterOil LNG plant was to be built alongside the NapaNapa oil refinery outside Port Moresby, but LNGL/InterOil had over time changed that and proposed a Gulf project using a combination of different production methods.
These included a land-based LNG plant using multiple mini LNG trains to be developed by Energy World Corporation and a fixed floating LNG plant to be developed by Flex and Samsung.
"Clearly this is not the project contemplated by the project agreement and to which the state has dedicated its gas for commercialisation," he said.
Duma said that since May last year, Rimua had on numerous occasions been conveying the state's requirements for LNGL/InterOil to deliver the project contemplated in the agreement.
The minister said the developers ignored these concerns and proceeded to publicly promote a different project in Gulf pro­vince.
Therefore, the cabinet deci­ded last Wednesday that the Gulf project was not the kind that was contemplated in the project agreement.
"I have also reminded LNGL and InterOil to comply with their contractual obligations to deliver a world-class project with the support of a world class LNG operator," Duma said.
He said NEC still supported the development of a second LNG project by LNGL/InterOil and reiterated that it must comply with the original project agreement.
"The NEC confirmed that if LNGL and InterOil continue to progress the fragmented Gulf project, they will inevitably reach a point at which LNGL/InterOil will commit a repudiatory breach of the project agreement.
"The PNG government supports and will continue to support LNGL/InterOil in delivering the project contemplated in the agreement but not a project which deviates from the agreement."

Australia’s policy on visas towards Papua New Guineans

By SIMON MERTON

http://www.facebook.com/groups/austpngvisapolicy/

I started this group on Facebook out of pure frustration in dealing with the Australian High Commission Migration Office in Port Moresby for visas,  etc.

I thought that due to the popularity of social media these days that I might stir up a couple of hundred of peoples’ interest.

Little did I know that in under a week that we would have over 1,000 members.

I find their policy and attitude towards Papua New Guineans in general to be borderline racist.

I understand that this is an emotionally-charged topic, but please do remember, our ultimate goal is to have such an impact where we encourage positive changes.

I am not trying to create disharmony, division, racism etc.

I am simply highlighting an issue that needs to be dealt with.

I feel that it’s an absolute disgrace, Australia's attitude towards Papua New Guineans at the High Commission.

What's even worse is the apparently racist attitude that the Papua New Guinean staff  have towards their own country folk.

As a former Australian citizen and long-term resident of PNG (I have been here since I was an infant) and married to a Papua New Guinean, I have sponsored relatives, friends and employees on several occasions to travel to Australia for short stays, for weddings, funerals, shopping trips and holidays.

It's the same each time, and it's getting worse.

Forced to line up in the hot sun or pouring rain like cattle, when they eventually get in the door and wait a further two hours, they treated with contempt and suspicion by the PNG officer who serves them.

They are then forced to provide hideous amounts of personal information that can include letters of support, medical histories, bank account statements of the applicant and those of their sponsors and even more.

Of course my story is the same as everybody else's.

The AHC demands sensitive and personal information that they never acknowledge receipt of.

The whole process can take months just to get a one-month visa.

I just met a couple in the AHC car park a few weeks ago morning, the wife was in tears.

They had applied for visas for themselves and their child to fly down to Brisbane for a couple of weeks and visit the husband’s sick grandmother who is in hospital down there.

 It cost them K300 each for their visa applications and guess what, their applications were rejected!

The reason? Well apparently the wife’s sister had previously overstayed her visa by a few days due to a mix up in airline bookings.

So she is automatically considered an overstay risk and automatically rejected. This poor lady and her husband get penalised because of a mistake that someone else made.

So I can now confirm, they are now black listing people based on who your relatives are. Were these people given a chance to explain or even submit further information to support their case? No, it was automatically denied.

How were these people told that their visas were denied? Via email. So on this particular day they came down in an attempt to talk to the officer and explain their circumstances, guess what? They weren’t even allowed past the gate.

You will find stories just like this one on our Facebook page, it’s absolutely disgraceful.

It appears that the Australians have Papua New Guineans on an automatic "at risk blacklist", something carried over from the pre-colonial White Australia Policy.

What's really insulting is Papua New Guinea's history with Australia, especially that of WWII where Papua New Guineans played a critical role in defending Australia from Japan during the war.

Now a citizen of Japan can apply for an Australian Electronic Travel Authority online and a visa is granted on arrival in Australia.

Papua New Guinea gives visas to Australian nationals on arrival at the airport as well. Yet the humble Papua New Guinean whose ancestors helped protect Australia from Japan during the war is made to jump through near impossible hoops.

I find this extremely unfair, when we offer visas on arrival to Australians as long as they arrive with a return ticket.

A Samoan, Tongan, and Cook Islander can freely travel between their home and their former colonial master, New Zealand, yet ours has put up an impassable barrier! Why ?

Now that the opening of two new Australian Visa Application Centers (AVAC) in Port Moresby and Lae is being promoted by the Australian High Commission as a positive step in addressing our concerns. Fact is, it doesn’t! All it is doing is shifting the line up from the car park to somewhere else. These application centers are third- party contractors who simply accept applications and then pass them over to the AHC for processing. What they have achieved by introducing these centers is placing yet another barrier between the applicant and the Migration Office which is now closed to the general public.

And to further rub salt into the wound, on top of the existing no- refundable application fee, people will now have to pay an additional k49 to fund these centres. Why is this? Because the AVAC is operated by a private contractor, TT Services which belongs to an Indian company that specialises in, among other things, “out sourcing solutions” such as call centres.

Now Papua New Guineans will be faced with even higher processing fees and of course, as they are now been handled by a private contractor, they will not be able to answer any questions in regards to declined applications or policies etc.

I strongly suggest that the PNG Minister responsible for Migration should immediately implement a blanket ban on the issuance of visas on arrival to all Australian citizens traveling to Papua New Guinea until such a time when Australia can accord Papua New Guineans the same privilege.

We have an email address austpngvisapolicy@gmail.com

And our Facebook group, Australia’s policy on Visa’s towards Papua New Guineans can be accessed here, http://www.facebook.com/groups/austpngvisapolicy/

We also have an online petition that can be accessed here, http://www.petitions24.com/call_for_a_fair_unbiased_visa_treaty_between_australia_and_png

PNG police consider possible ransom demand for missing scientists

Police in the Papua New Guinea province of West New Britain are working on a possible breakthrough in the investigation into the disappearance of five scientists nearly two months ago, Radio New Zealand reported last Friday.

The five staffers from the Institute of Medical Research, along with the three crew of their banana boat, disappeared at sea at the beginning of August.

A search was called off two weeks ago but police believe the group may be victims of piracy and has been kidnapped.

The West New Britain police commander, Senior Inspector Thomas Reu, says they are continuing to investigate this possibility.

He says last Thursday a relative of one of the missing researchers received a demand for money from an unknown source.

"The unidentified caller is asking for phone credits worth 1, 000 kina to be given to them and also he's asking for ten thousand kina to be given too. So I am now in the process of running a request letter to both [telecoms] companies, Digicell company and B-Mobile company to see if they could assist."

More lies from Australian High Commission

By SIMON MERTON

The Opening of two new Australian Visa Application Centres (AVAC) in Port Moresby and Lae is being promoted by the Australian High Commission as a positive step in addressing our concerns.

Fact is, it doesn't!

All it is doing is shifting the line up from the car park to somewhere else!

 These application centres are third-party contractors who simply accept applications and they pass them over to the AHC for processing.

What they have achieved by introducing these centres is placing yet another barrier between the applicant and the Migration office which is now closed to the general public.

And to further rub salt into the wound, on top of the existing non-refundable application fee, people will now have to pay an additional K49 to fund these centres.

Banker arrested over fraud claims

GOVERNMENT inaction in dealing with the poor state of affairs at the National Museum and Art Gallery (NMAG) has resulted in the arrest and charging of a highly respected senior banker Aho Baliki last Thursday by Boroko police on allegations of fraud, The National reports.
Police Commissioner Anthony Wagambie expressed surprise over Baliki's arrest and said he was in the same aircraft with Baliki to Goroka last Thursday.
He said he would seek an explanation today on what was going on.
Baliki's arrest has angered the president of the NMAG board of trustees Julius Violaris, who had been working with Baliki to protect the institution's funds and all its assets from theft and maladministration.
Baliki, 56, of Okiufa village, in Goroka, Eastern Highlands, is BSP's paramount banking general manager.
Police alleged that Baliki conspired with three board of trustees members to defraud the museum by fraudulently debiting K149,400.97 and crediting it to several accounts.
NCD metropolitan commander Supt Joseph Tondop said the three board of trustee members had been summoned to be at the Boroko police station today for questioning.
Baliki's arrest came after police acted on a complaint lodged by museum director and chief executive officer Meck Kuk of the unauthorised transfer of funds from the museum accounts by its board of trustees.
Violaris last Friday wrote to Finance and Treasury Minister Don Polye advising him that the so-called charges against Baliki were "trumped up and malicious".
He said the charges were "vindictively applied by the current director of the museum Meck Kuk because we have denied him unaccountable access to the NMAG's funds".
"Police have been investigating allegations by Meck Kuk since Aug 24 and there is no evidence of any fraudulent practices. The only payments made by the trustees have been to legitimate creditors including electricity and water supplies, because the director refuses to process their accounts for payment.
"Minister, the action by police will have major ramifications for the business community and your government.
"Aho Baliki is a senior banker and a prominent member of the business community, with many years of service in the banking industry.
"He has a very strong reputation as an honest and industrious person and Meck Kuk and his friends and relatives in the police should not be allowed to tarnish his re­putation," Violaris said.
"In your position, you must also consider the impact on the business community as they ponder on how a prominent banker with impeccable integrity can be falsely accused and charged."
Violaris said Kuk had been attempting to gain "unfettered control of the museum's finances" and used his "tribal and kinship connections in the police to attain his ends".
"These charges and arrests are an act of desperation on his part. We have asked our minister to have him suspended by the NEC, three months ago, and we hope that this will happen soon as this man has no regard what damage he causes to the reputation of people by his illegal actions," he said.
Violaris also gave The National a copy of a court order of last June 27, which allowed the current trustees to stay in office after they were wrongfully terminated by the former culture and tourism mi­nister Guma Wau.
The National Court granted the trustees leave for a judicial review on their termination and that is yet to take place.
Violaris said last night the K149,400.97 which Kuk claimed were illegal payments were, actually "critical" payments necessary to maintain the museum.
They included water bills, telephone charges, electricity and legal fees.

Merger query

By BOSORINA ROBBY

ANY merger of Airlines PNG (APNG) and Air Niugini Ltd (ANG) will have to satisfy all requirements set out by the Independent Consumer and Competition Commission (ICCC), the commission has said, The National reports.
ICCC CEO and Commissioner Dr Billy Manoka said last Friday that the ICCC would have the last say in the proposed merger which was approved in principle by ca­binet last week and announced by Prime Minister Peter O'Neill before he departed for New York.
Manoka said: "As the guardian of competition, the commission is always mindful that merger transactions have significant implications for the competitive pro­cess in the market."
Four trade unions also called on the government to immediately shelve the proposed merger.
Former public enterprises minister Arthur Somare yesterday also called for ICCC intervention and approval before the merger could go ahead, saying the merger could derail all positive gains made with the national flag carrier in the past eight years.
Manoka said section 69 of the ICCC Act prohibits anti-competitive business mergers and acquisitions, unless the transaction had been approved by the commission through either a clearance or authorisation process.
"Clearance and autho­risation are simple administrative processes which involve wider stakeholder consultations, through which the commission is able to assess the competitive impact of the merger in the market.
"In the case of authorisation applications, it is whether or not public benefits outweigh the anticompetitive effects, which decides whether or not to grant or decline the application," Manoka said.
O'Neill said last week the merger would expand the airline industry, leading to more services to the people.
The merger issue surfaced last August when APNG took a financial downturn brought on by the 2009 Kokoda Track crash and the entry of Qantas flights between Cairns and Port Moresby.
Government sources said the merger would be
detrimental to ANG's safe­ty record and it would be forced to pay higher insurance premiums, not to mention its record of good profits.
Manoka said that ICCC expected Air Niugini or Airlines PNG to make an appropriate application to it in due course.
Manoka said whether or not applications had not been made by parties to the transaction, did not prevent the commission from inquiring independently to satisfy itself that the law had not been broken.
"If the commission inquires and forms a concluded view that the law has been contravened, there are remedial measures provided to it under the ICCC Act, such as divestiture of assets acquired, and or other pecuniary penalties, which can be sought from the courts", he said."In the interim, the commission is monitoring this development closely, including making its own preliminary inquiries," he said.

Goroka Show gets kudos

By MALUM NALU

Eastern Highlands Agricultural Society has given the thumbs up to Goroka Show committee, sponsors, farmers and the community for the successful staging of the 55^th Goroka Show and 36^th independence anniversary.

 President Wilson Thompson and secretary Thomas Solepa gave kudos to organising committee chairman Gideon Samuel, his deputy David Seine, Coffee Industry Corporation CEO Navi Anis, National Agriculture Research Institute, department of Agriculture and Livestock, Goroka Treks & Tours and Coral Sea Hotels.

They said that it was without incident and many activities such as parades by police and prison officers, as well as a performance by the Royal PNG Constabulary Band, stole the show.

"There was also the introduction of greasy pole by CIC with farming implements, and live bands such as K Dumen," Thompson said.

"There were also many exhibitors from NGOS like CARE, Save the Children, Eastern Highlands Disabled Committee, Bismarck Ramu Group and environmental NGOs.

 "We had government agencies such as Bank of PNG, Mineral Resource Authority, PNG NRL Bid, Eastern Highlands Health Authority and Fresh Produce Development Authority, apart from the traditional support from CIC, NARI, DAL and promotion of model farmers by Highlands Farmers & Settlers Association, Ramu Agricultural Industries Ltd, Brian Bell and Bris Kanda project from Morobe.

"In the cultural exhibits, the attractions were the Eastern Highlands Cultural Centre from Kainantu, Zumin (Markham) Pottery and individual craftsmen and artists who sold their arts and craft and paintings.

"Commercial attractions include RAIL, Trukai Ltd, Lae Biscuit Ltd, New Guinea Fruit Company, Coca-Cola Amatil Ltd, Nestle PNG and others.

Prime Minister Peter O'Neill graced the show and 36^th independence anniversary celebrations in Goroka with his presence.

"The EHAS also appreciated the presence of our three Ministers from Eastern Highlands John Boito, Thompson Haroqkaveh and Sai Sailon Besseo;  Yawa Silupa, Vice Minister for Finance and Treasury;  Benny Allan, Unggai Bena MP (patron of show);  Patrick Kondo, Daulo MP;  Ombudsman commissioner John Nero; Chief Secretary Manasupe Zurenuoc; Commissioners of Police and Correctional Service; and other dignitaries," Thompson said.

"The EHAS Inc as the legal body of the Goroka Show organising committee, people of Goroka and Eastern Highlands,  commend the Prime Minister's various policy statements on free education and NATSCHOL, law and order and road infrastructure development;  and also appreciated the various K5 million government funding for Goroka Town roads, Goroka Secondary School, Goroka mobile clinic, National Sports Institute/showground development totalling K20 million and K10 million committed to Goroka Base Hospital.

"We also appreciate the K0.7 million grant to the Goroka Show committee, based on short, medium and long-term plans submitted to the national government.

"The EHAS is optimistic that we will be involved with the various stakeholders in the upgrade of the showground to facilitate the aspirations of the Goroka Show.

"There were many tourists from Europe, USA and Australia who appreciated and commended the Goroka Show Committee for the event."