By JEFFREY ELAPA and JACOB POK
POLICE Commissioner Tony Wagambie has disbanded the National Capital District command centre and its fraud squad without explaining to his officers the reason, The National reports.
Attempts last night to contact Wagambie for a comment were unsuccessful.
But the Assistant Police Commissioner and NCD central divisional commander Fred Seekiot confirmed the move.
Seekiot said he had received instructions that the NCD fraud squad be disbanded and that the officers had been given until 10am today to vacate their offices.
NCD metropolitan commander Supt Joseph Tondop also confirmed receiving the instruction but declined to comment further.
A member of the NCD fraud squad confirmed receiving the instructions to disband the unit.
Seekiot said the letter from Wagambie did not give any reason as to why they were to be removed, and only stated that the "reasons were only known to him (the commissioner)".
Seekiot said he would be replaced by Assistant Commissioner Awen Sete.
He also revealed that Tondop would be replaced by the Morobe provincial police commander Peter Guiness.
He said they had been informed that the NCD fraud unit would be moved to the national anti-fraud and corruption headquarters at Konedobu.
Reliable sources, speaking on condition of anonymity, said last night the decision was suspicious because it came at a time when high-profile fraud cases were being handled by the NCD fraud squad under the command of Seekiot and Tondop.
It included the K50 million Nasfund cases, Pacific Balance funds fraud case, and the K100,000 National Museum and Art Gallery case in which senior banker Aho Nollen Baliki appeared in court this week to answer charges of conspiring to defraud.
On that same case, police are looking for the museum board of trustees president Julius Violaris for questioning.
The sources said alleged fraud in the lands department in which the acting secretary had been implicated, the national planning anomalies and the public prosecutor case were among the ongoing high-profile cases being investigated by the NCD command.
The sources said the decision could affect the cases, some of which were pending in court.
Thursday, September 29, 2011
Don’t stop InterOil LNG project, say clans
LANDOWNERS of the InterOil Gulf LNG project want Prime Minister Peter O'Neill to reconsider a cabinet decision to shelve it, The National reports.
They also want him to sack Petroleum and Energy Minister William Duma for misleading the people, the government and the developer, after deliberately sitting on the issue since the signing of an agreement with developers InterOil in 2009.
The Ihu and Baimuru landowners are represented by Aitari Huaupe, Ken Ori, Bernard Nikura, Winston Kupea, Gada Govea, Joe Meve and Ivan Evara.
They also represent the Gulf provincial government.
In a joint statement, they said they would stage a protest if the government failed to allow the project to go ahead.
"Why is he (Duma) advising the government to stop the project when he was the minister who signed the agreement and was making good promotional presentation on the project?" they said.
The landowners also want all LNG facilities to be set up in Gulf rather than piping oil all the way to Port Moresby.
They said the Gulf people had been denied development for a long time and now wanted to use benefits from the project to change their lives.
"If it is removed, then we will remain poor," they said.
They also want Duma to name the company to take over from InterOil.
They also want him to sack Petroleum and Energy Minister William Duma for misleading the people, the government and the developer, after deliberately sitting on the issue since the signing of an agreement with developers InterOil in 2009.
The Ihu and Baimuru landowners are represented by Aitari Huaupe, Ken Ori, Bernard Nikura, Winston Kupea, Gada Govea, Joe Meve and Ivan Evara.
They also represent the Gulf provincial government.
In a joint statement, they said they would stage a protest if the government failed to allow the project to go ahead.
"Why is he (Duma) advising the government to stop the project when he was the minister who signed the agreement and was making good promotional presentation on the project?" they said.
The landowners also want all LNG facilities to be set up in Gulf rather than piping oil all the way to Port Moresby.
They said the Gulf people had been denied development for a long time and now wanted to use benefits from the project to change their lives.
"If it is removed, then we will remain poor," they said.
They also want Duma to name the company to take over from InterOil.
InterOil keen on Gulf deal
Oil company vows it will live up to agreement
But this assurance did not help its performance on the New York Stock Exchange as it got a hammering and shed 24% of its share value to trade at US$45.75 (down from an average US$56).
The NYSE recorded the big hit on the stocks as an "unusual stock move" which followed Petroleum Minister William Duma's announcement that the national executive council had decided to dump the project as InterOil had deviated from its original plan to build a world-class LNG plant alongside its NapaNapa oil refinery near Port Moresby.
InterOil chairman Phil Mulacek said the company had this week discussed with Duma the government's concern over the project as highlighted in the media.
"We continue to be working together on the clarification of issues for the project execution, raised by the minister,'' he said in a statement.
"Recent meetings this week show support for the InterOil LNG project in the Gulf by the minister, prime minister and Gulf ministers.
"Further clarification was added for additional support for LNG operations, which all parties are working on."
The government this week decided to cancel the InterOil-proposed Gulf LNG project because the company had deviated from the original project agreement.
Duma said InterOil had instead proposed a "small-scale fragmented" Gulf project to be developed by companies not recognised as LNG operators.
He said none of the companies were experienced in operating a world-class LNG plant that InterOil was contracted to do.
Yesterday, InterOil said in the past 15 years it had been in operation in PNG, it had worked hard to develop a lasting and constructive relationship with the people and the government.
A company statement said: "It is unfortunate that such assertions were being made by the
minister on the basis of preliminary interpretations of complex and permissive contractual definitions while the project continues to develop.
"As a company with a long history and all of its operations and business in PNG, InterOil hopes that these actions, together with the recent period of substantial change in PNG's national government, do not undermine PNG's status as a favourable country for foreign investment and international business.
"InterOil is developing its LNG project in compliance with its project agreement with the PNG government to develop a world-class LNG project of the size provided for, of international scale and quality, and using internationally recognised technology.
"The company believes that reason and governance in the interests of the people of PNG will prevail, as has always been evident in its past dealings with the PNG government," the statement said.
Duma said earlier this week that while the agreement stated InterOil and its partners would build a world class LNG plant of international scale and quality, it had instead been announcing, presenting and promoting a different project without seeking prior formal state approval.
Duma, however, assured the developers that the government would continue to support the second LNG project if it complied with the original agreement.
InterOil said it was developing a vertically integrated energy business whose primary focus was PNG and the surrounding region.
Its assets include petroleum licences covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in PNG.
In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant in PNG.
Wednesday, September 28, 2011
Prime Minister: No job losses in airlines merger
By ISAAC NICHOLAS
PRIME Minister Peter O'Neill has given an assurance that there will be no single job loss in the proposed merger of Air Niugini and Airlines PNG, The National reports.
O'Neill also clarified that the National Executive Council had not made a final decision on the proposed merger but gave an approval in principle to look at the possibilities of merging the two airlines.
He said the NEC decision was very clear.
"We will be looking at financial issues, job security and the ability to provide more services. The decision has not been made," he said.
He assured the workers of both airlines that there would be no job losses.
O'Neill's advice to unions is to look after the workers' welfare and not take over the job of the Independent Consumer and Competition Commission.
He said last week before leaving for New York to attend the United Nations general assembly that the details of the merger would be worked out by a special merger implementation office to be chaired by Public Enterprise Minister Sir Mekere Morauta.
The members will be the chief executives of Air Niugini, Airlines PNG and independent valuers.
"Both Air Niugini and Airlines PNG will be members of the implementation office as will the IPBC who will be assisted by technical experts including independent valuers to undertake a due diligence exercise to ascertain the exact value of assets and business of each airline,'' he said.
Sir Mekere said afterwards no firm decision had been made by cabinet on the merger.
"The MIO will examine the technical and financial feasibility of a merged airline and once a report is done I will take the recommendations to government, and the chairman and Airlines PNG CEO will take it back to their shareholders," Sir Mekere said.
He reminded unionist Michael Malabag that security of employment would be provided.
"The prime minister has given his assurance and if he wants me to put that assurance in writing I can do that."
Sir Mekere said the unions were resistant to changes and they were doing the job of the ICCC.
He said the ICCC had a role to play and would have a say in the merger proposal.
PRIME Minister Peter O'Neill has given an assurance that there will be no single job loss in the proposed merger of Air Niugini and Airlines PNG, The National reports.
O'Neill also clarified that the National Executive Council had not made a final decision on the proposed merger but gave an approval in principle to look at the possibilities of merging the two airlines.
He said the NEC decision was very clear.
"We will be looking at financial issues, job security and the ability to provide more services. The decision has not been made," he said.
He assured the workers of both airlines that there would be no job losses.
O'Neill's advice to unions is to look after the workers' welfare and not take over the job of the Independent Consumer and Competition Commission.
He said last week before leaving for New York to attend the United Nations general assembly that the details of the merger would be worked out by a special merger implementation office to be chaired by Public Enterprise Minister Sir Mekere Morauta.
The members will be the chief executives of Air Niugini, Airlines PNG and independent valuers.
"Both Air Niugini and Airlines PNG will be members of the implementation office as will the IPBC who will be assisted by technical experts including independent valuers to undertake a due diligence exercise to ascertain the exact value of assets and business of each airline,'' he said.
Sir Mekere said afterwards no firm decision had been made by cabinet on the merger.
"The MIO will examine the technical and financial feasibility of a merged airline and once a report is done I will take the recommendations to government, and the chairman and Airlines PNG CEO will take it back to their shareholders," Sir Mekere said.
He reminded unionist Michael Malabag that security of employment would be provided.
"The prime minister has given his assurance and if he wants me to put that assurance in writing I can do that."
Sir Mekere said the unions were resistant to changes and they were doing the job of the ICCC.
He said the ICCC had a role to play and would have a say in the merger proposal.
InterOil LNG project shelving welcomed
By JEFFREY ELAPA
FORMER Petroleum and Energy Minister Francis Potape has welcomed the government's decision to shelve the InterOil-proposed Gulf LNG project, The National reports.
He thanked his successor William Duma and secretary Rendel Rumua for coming to their senses and shelving the project after InterOil failed to honour the original agreement signed in 2009.
The agreement was that InterOil would buy crude oil from Kutubu, refine it and supply petroleum products to the domestic market.
Instead, it was buying refined petroleum products from overseas.
It was also discovered that InterOil had deviated from an agreement to build an InterOil LNG project alongside the NapaNapa oil refinery.
It instead opted for a different production method, a mini land-based trains and a fixed floating LNG plant.
Potape, a minister in the previous government, had raised the issue during a ministerial forum this year.
He had warned the executives of InterOil that the government would not allow companies with an unproven track record to operate a world-class LNG project with unproven technology.
"I told InterOil that the government will not allow any unproven technology to be tested in PNG because PNG was not a guinea pig for international companies to test new technologies.
"My successor has now realised it and I commend him," he said.
He warned them to work within the agreement and not do things their own way because the government would not allow it.
Potape said Duma and Rimua had now realised the problem after sitting on it since 2009 when the agreement was signed.
"I think they have awoken from their sleep and have now realised the problem after I raised it with their executives during my term as the minister," he said.
FORMER Petroleum and Energy Minister Francis Potape has welcomed the government's decision to shelve the InterOil-proposed Gulf LNG project, The National reports.
He thanked his successor William Duma and secretary Rendel Rumua for coming to their senses and shelving the project after InterOil failed to honour the original agreement signed in 2009.
The agreement was that InterOil would buy crude oil from Kutubu, refine it and supply petroleum products to the domestic market.
Instead, it was buying refined petroleum products from overseas.
It was also discovered that InterOil had deviated from an agreement to build an InterOil LNG project alongside the NapaNapa oil refinery.
It instead opted for a different production method, a mini land-based trains and a fixed floating LNG plant.
Potape, a minister in the previous government, had raised the issue during a ministerial forum this year.
He had warned the executives of InterOil that the government would not allow companies with an unproven track record to operate a world-class LNG project with unproven technology.
"I told InterOil that the government will not allow any unproven technology to be tested in PNG because PNG was not a guinea pig for international companies to test new technologies.
"My successor has now realised it and I commend him," he said.
He warned them to work within the agreement and not do things their own way because the government would not allow it.
Potape said Duma and Rimua had now realised the problem after sitting on it since 2009 when the agreement was signed.
"I think they have awoken from their sleep and have now realised the problem after I raised it with their executives during my term as the minister," he said.
Poll deadline reminder
PUBLIC servants wishing to contest the 2012 general election must submit their resignations by this week to meet the six-month deadline required by law, The National reports.
The Minister assisting the Prime Minister on Constitutional Matters, Wake Goi, said the law allowed public servants to resign six months before the issue of writs.
"I want to inform public servants intending to contest the 2012 national elections that by law, they have to resign from their jobs to contest," Goi said.
He said public servants intending to contest must submit their resignations by this week to meet the Oct 27 deadline.
"As intending candidates, you have to do the right thing now to contest the election," Goi said.
He revealed that polling for the four highlands provinces of Chimbu, Western
Highlands, Enga and Southern Highlands would be conducted on the second week of the polling period.
He said this would allow security personnel monitoring the polling in other regions to be redeployed into the four highlands provinces to ensure security for a trouble-free election.
The Minister assisting the Prime Minister on Constitutional Matters, Wake Goi, said the law allowed public servants to resign six months before the issue of writs.
"I want to inform public servants intending to contest the 2012 national elections that by law, they have to resign from their jobs to contest," Goi said.
He said public servants intending to contest must submit their resignations by this week to meet the Oct 27 deadline.
"As intending candidates, you have to do the right thing now to contest the election," Goi said.
He revealed that polling for the four highlands provinces of Chimbu, Western
Highlands, Enga and Southern Highlands would be conducted on the second week of the polling period.
He said this would allow security personnel monitoring the polling in other regions to be redeployed into the four highlands provinces to ensure security for a trouble-free election.
Casino hotel under threat
By BOSORINA ROBBY
THE South Korean developer of the multi-million kina Port Moresby Casino Hotel was yesterday given a 10-day notice to show cause why its contract should not be terminated, The National reports.
Work came to a standstill at the end of last year as the developer, CMSS (PNG) Ltd, went abroad to raise funds.
CMSS signed a contract with the government in 2008 to finance, build and complete the project within two years.
However, there have been various delays and complaints in the past eight months regarding the project as some K22 million in landowner funds was invested in the project.
Reliable sources told The National last night that under the contract, CMSS was supposed to invest US$72.8 million (K164 million) as part of its equity for a 90% holding in the casino project, but that was disputed by CMSS last night saying “not US dollars”.
Two Kutubu oil landowner companies – Petroleum Resources Gobe (PRG) and Petroleum Resources Moran (PRM) invested K11 million each in the project – each for 5% equity.
PRG chairman Philip Kende confirmed their investment and complained of government’s inaction in co-ordinating and monitoring the project.
THE South Korean developer of the multi-million kina Port Moresby Casino Hotel was yesterday given a 10-day notice to show cause why its contract should not be terminated, The National reports.
Work came to a standstill at the end of last year as the developer, CMSS (PNG) Ltd, went abroad to raise funds.
CMSS signed a contract with the government in 2008 to finance, build and complete the project within two years.
However, there have been various delays and complaints in the past eight months regarding the project as some K22 million in landowner funds was invested in the project.
Reliable sources told The National last night that under the contract, CMSS was supposed to invest US$72.8 million (K164 million) as part of its equity for a 90% holding in the casino project, but that was disputed by CMSS last night saying “not US dollars”.
Two Kutubu oil landowner companies – Petroleum Resources Gobe (PRG) and Petroleum Resources Moran (PRM) invested K11 million each in the project – each for 5% equity.
PRG chairman Philip Kende confirmed their investment and complained of government’s inaction in co-ordinating and monitoring the project.
 |
| Petroleum Resources Gobe chairman Philip Kende at the Port Moresby Casino Hotel construction site yesterday. He is concerned about landowner investment in the project and wants a review of the agreement.-Nationalpic by YEHIURA HRIEWAZI |
He wants a complete review of the project agreement.
CMSS managing director and owner Jimmy Kim said yesterday he had written
his response to the show cause notice which would be delivered today
to the government.
It is understood he was also consulting his lawyers yesterday.
He complained bitterly about the government failing in its part as well and admitted the delay in the project.
“I am not running away, I will complete the project … “Yes, I admit there is delay, but work did not stop,” Kim said.
However, a visit to the site by The National yesterday afternoon proved otherwise.
Commerce and Industry Minister Charles Abel said his departmental head Steven Mera delivered the notice to Kim on Monday.
Abel said the developer should prove that it was still able to recommence and complete the project within the terms of the agreement.
He said one of the provisions was the time-frame for the completion of the project.
“The state injected prime land into this project.
“The developer’s obligation was to build the hotel within a specified time-frame.
“After 12 months, we are not seeing anything as outlined in the project agreement,” Abel said.
“As it is, the provisions allow us to terminate the project as we see fit, which we are doing now.”
He said the government was concerned about the interests of the Gobe and Moran landowners and other investors who had contributed capital.
Abel said so far, more than K33 million in investors’ funds had been spent on the project, while the state had contributed the land and related building board requirements plus a 10-year tax holiday.
He said should the developer fail to act on the notice, the state would terminate the agreement and publicly invite expressions of interest from other investors or consortiums capable of partnering with the state and shareholders to complete the project.
Abel revealed that there had already been unofficial expressions of interest should the CMSS fail to comply.
“It should cost roughly between K30 million and K60 million to carry on the work at the hotel site because the cost of materials has gone up and there is still a lot of work to do.”
The Mineral Resources Development Company, which is the custodian of landowner funds, has already engaged an architectural firm to conduct surveys on the unfinished building.
MRDC managing director Augustine Mano said last night the Krammer Group was engaged to check the structural integrity of the building and conduct quantity surveys to establish how much money had been spent on the building and how much more would be needed to complete it.
“We have engaged an independent professional firm who does the work so that will give us the comfort.”
Meanwhile, Abel is undecided on whether a casino will be part of the project at 4-Mile.
“The government is not in favour of the casino but we are not going to remove it.
“We will just ensure that it is managed under strict guidelines,’’ he said.
“The casino is not intended for the public, so restrictions will be put into place such as people may have to pay subscription fees or produce passports to enter.”
He said the focus was on the accommodation part of the project and its immediate completion to give investors a just return for their money.
“What I’m saying is, should we have a new agreement, the issue of the casino can be reviewed and decided by the new partners to either keep it or not.
“As yet, we have not applied for nor received a casino licence from the National Gaming and Control Board.
“The options are open,” he said.
It is understood he was also consulting his lawyers yesterday.
He complained bitterly about the government failing in its part as well and admitted the delay in the project.
“I am not running away, I will complete the project … “Yes, I admit there is delay, but work did not stop,” Kim said.
However, a visit to the site by The National yesterday afternoon proved otherwise.
Commerce and Industry Minister Charles Abel said his departmental head Steven Mera delivered the notice to Kim on Monday.
Abel said the developer should prove that it was still able to recommence and complete the project within the terms of the agreement.
He said one of the provisions was the time-frame for the completion of the project.
“The state injected prime land into this project.
“The developer’s obligation was to build the hotel within a specified time-frame.
“After 12 months, we are not seeing anything as outlined in the project agreement,” Abel said.
“As it is, the provisions allow us to terminate the project as we see fit, which we are doing now.”
He said the government was concerned about the interests of the Gobe and Moran landowners and other investors who had contributed capital.
Abel said so far, more than K33 million in investors’ funds had been spent on the project, while the state had contributed the land and related building board requirements plus a 10-year tax holiday.
He said should the developer fail to act on the notice, the state would terminate the agreement and publicly invite expressions of interest from other investors or consortiums capable of partnering with the state and shareholders to complete the project.
Abel revealed that there had already been unofficial expressions of interest should the CMSS fail to comply.
“It should cost roughly between K30 million and K60 million to carry on the work at the hotel site because the cost of materials has gone up and there is still a lot of work to do.”
The Mineral Resources Development Company, which is the custodian of landowner funds, has already engaged an architectural firm to conduct surveys on the unfinished building.
MRDC managing director Augustine Mano said last night the Krammer Group was engaged to check the structural integrity of the building and conduct quantity surveys to establish how much money had been spent on the building and how much more would be needed to complete it.
“We have engaged an independent professional firm who does the work so that will give us the comfort.”
Meanwhile, Abel is undecided on whether a casino will be part of the project at 4-Mile.
“The government is not in favour of the casino but we are not going to remove it.
“We will just ensure that it is managed under strict guidelines,’’ he said.
“The casino is not intended for the public, so restrictions will be put into place such as people may have to pay subscription fees or produce passports to enter.”
He said the focus was on the accommodation part of the project and its immediate completion to give investors a just return for their money.
“What I’m saying is, should we have a new agreement, the issue of the casino can be reviewed and decided by the new partners to either keep it or not.
“As yet, we have not applied for nor received a casino licence from the National Gaming and Control Board.
“The options are open,” he said.
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