Nape may lift Tiensten’s ban

By ISAAC NICHOLAS

SPEAKER Jeffery Nape is expected to rescind his decision to disqualify Paul Tiensten as member for Pomio, according to Sir Arnold Amet, The National reports.
It followed talks yesterday between members of the former government led by Madang Regional MP Sir Arnold, Prime Minister Peter O’Neill, Speaker Nape and Leader of Government Business Moses Mala­dina to have the decision reversed.
Sir Arnold later explained that there had been consultation between O’Neill and Nape over the decision and the Clerk of Parliament was now checking the attendance records.
Sir Arnold said he hoped the issue would be resolved amicably to avoid resorting to court action.
“On Tuesday, our esteemed speaker purported to exercise powers he did not have to disqualify the member for Pomio. The matter is absolutely sub-judice,” Sir Arnold said.
“We are pleased to say that since yesterday (Tuesday) we explained and Tiensten explained and a proposition was put to the speaker’s office.
“We had formal discussions with the speaker and prime minister and this issue can be resolved amicably.
“It is a positive outcome we are pleased with. We do not want to go to court.”
Tiensten who was in the parliamentary chambers but left before the session, told The National that he did not want any confrontation with the speaker.
He said his presence could force the Speaker to adjourn parliament which would affect the tabling of important bills such as the declaration of Hela and Jiwaka as provinces and the Women’s Bill
“I left because I did not want any confrontation again.
“I was mandated by the people of Pomio and the speaker has no right to disqualify me so I leave it to him to rescind his decision to disqualify me,’’ he said.
Sir Arnold said the records showed that Tiensten only missed two meetings of parliament and not three to warrant his disqualification.
He said they had urged Tiensten to take two days off and return when the speaker rescinded his decision.

Missing K96 million found in Australian bank

ALMOST K100 million owned by a state-owned enterprise has been siphoned off to a bank account in the Australian state of New South Wales and a police investigation is underway to recover the money, The National reports.
Former public enterprises minister Arthur Somare and former Motor Vehicle Insurance Ltd (MVIL) manager director Dr John Mua are implicated.
The money – about K96 million – was the proceeds of the sale of 530,105,100 shares in Bank South Pacific which were owned by MVIL.
Public Enterprises Minister Sir Mekere Morauta announced details yesterday, saying he had ordered the recovery of the money.
“The sale, to an Australian company called Nominees Niugini Ltd, is now the subject of a police investigation.”
He said MVIL sold the shares when under the control of his predecessor Arthur Somare and the former Independent Public Business Corporation (IPBC) management.
According to Sir Mekere, proper processes had not been followed, and the sale was in breach of Section 45B of the IPBC Act and Section 110 of the Companies Act.
The sale was not approved by the IPBC board, as required, and there was no shareholders’ resolution approving the sale, as required, he added.
The new IPBC board has instructed MVIL to rescind the sale contract, called an equity monetisation contract agreement while starting legal proceedings against MVIL and Nominees Niugini.
“The money is being held in an account owned by a company called Woodlawn Capital, at the Commonwealth Bank in Lismore, New South Wales,” Sir Mekere said while calling on Mua to help recover the money.
“Dr Mua would save the nation a lot of money by assisting us in the recovery of the K96 million and its return to IPBC.
“For the nation to recover the money through court proceedings would be expensive and time-consuming. I would like Dr Mua to help us avoid this.”
Sir Mekere said this when announcing NEC’s endorsement of changes to the MVIL board, adding that no Public Enterprise chairman would be an executive chairman

Hela, Jiwaka get nod

By ISAAC NICHOLAS

HELA and Jiwaka will be our newest provinces following yesterday’s parliament acceptance of the Boundaries Commission report, The National reports.
They take the number of provinces to 21 and the National Capital District and it also meant an additional two seats in parliament.
The new provinces will elect their own governors in the gene­ral election next year.
Parliament unanimously voted 73-0 to accept the declaration of Hela and Jiwaka as new provinces after Jimi MP Wake Goi, the Minister Assisting the Prime Minister on Constitutional Matters, tabled the commission’s report and recommendations in parliament.
Last year, parliament proposed the Hela and Jiwaka provinces by varying the boundaries of Southern Highlands and Western Highlands respectively.
Goi said the people of Hela and Jiwaka were expected to elect their own provincial and open electorate representatives in the 2012 election.
“The people of Hela and Jiwaka have openly expressed views in favour of them going into the 2012 general election as separate provinces from Southern Highlands and Western Highlands,” he said.
Goi said the current boundaries would remain within the limits as determined by law in 1977 until 2013 when a nationwide review would be carried out.
Hela will comprise Tari-Pori, Koroba-Lake Kopiago and Komo-Margarima.
Jiwaka will have North Waghi, Anglimp-South Waghi and Jimi.
Goi said there was a desire by some electorates and provinces to change their current electoral boundaries based on ethnic, cultural and traditional affiliations.
“In general, many communities sharing common provincial and/or open electorate boundaries continue to be critical of their apparent lack of recognition both by provinces and electorates they legally are in and those they claim to be getting services from,” he said.
“These issues, however, will be addressed in 2012 when the boundaries commission conducts a nation-wide review to redistribute all electorates in PNG and report to parliament on its recommendations.”
Tari-Pori MP James Marape thanked everyone on behalf of the 300,000 people of Hela for making his people’s dream come true.
Marape singled out Grand Chief Sir Michael Somare and the former government and Prime Minister Peter O’Neill and his government for making the Hela dream come true.
“As chairman of Hela Transitional Authority, the Hela MPs and the 300,000 people say thank you to everyone who gave the necessary support to pass the final hurdle,” Marape said.

NARI hosts rice stakeholders' workshop

ByJOSEPHINE YAGA of NARI

Rice development efforts in Papua New Guinea have received on- and -off attention in recent years. Attempts have been uncoordinated and therefore lack organised information, co-ordination, well-researched policy and strategy for rice development in PNG.

 Participants listen attentively to NARI director general Dr Ragunath Ghodake’s opening remarks

Different departments, institutions and organisations work in isolation of each other and lake proper and coordinated partnership and collaboration.
There is a need to get realistic and well-shared understanding of various constrains, opportunities and arising issues in rice research and development so that this issues can be address.
To identity the constrains and potential rice development opportunities, a two-day rice stakeholder workshop was hosted this week by the National Agricultural Research Institute (NARI) at its Momase Regional Centre in Lae, engaging key players in the area of rice research, policy and development to share their experiences, achievements and understanding of their roles and responsibilities.
The workshop was designed to meet the following objectives:
• To assess and understand rice research and development programmes and activities implemented and undertaken by different stakeholders, including progressive rice farmers;

• To identify and prioritise their different constrains and opportunities and emanating issues in rice research and development in PNG;

• To review and decide on key aspects to be covered by rice production survey and development implementation plan; and

• To explore opportunities for partnership and collaboration between stakeholder and agree on modalities of collaboration for rice research and development..

The participants included representatives from the national and provincial agriculture, Organisation for Industrial, Spiritual and Cultural Advancement ( OISCA), Christian Leaders Training College (CLTC), Community Development Initiative-Kutubu, Japan International Cooperation Agency, ROC Taiwan, PNG Women in Agriculture Development Foundation (PNGWiADF), Territory Packaging, National Voluntary Service (NVS) – Erap, NARI and rice farmers.

Rice stakeholders during the rice stakeholders’ workshop host by NARI at the NARI Momase Regional Centre in Bubia, Morobe.

The two-day workshop started on Tuesday and ended yesterday.

Cabinet makes changes to MVIL board

Minister for Public Enterprises, Sir Mekere Morauta, said National Executive Council had endorsed changes to the board of Motor Vehicle Insurance Ltd ( MVIL).
The new members are Mr Bonny Igime, Mr Steven Pim, Ms Veronica Waieng, Dr Bangi Kumdim and Mr John Tuka.
In announcing the appointments, Sir Mekere stressed that no Public Enterprise chairman would be an executive chairman.
“Reports that executive chairmen have been appointed are wrong," he said.
“These new appointments are part of the O’Neill-Namah Government’s reforms of IPBC and its Public Enterprises, and I look forward to working with them.
“One of the new board’s first jobs will be to recover about K96 million missing from MVIL.”
Sir Mekere said the money was the proceeds of the sale of 530,105,100 shares in Bank South Pacific which were owned by MVIL.
The sale, to an Australian company called Nominees Niugini Limited, is now the subject of a police investigation.
MVIL sold the shares when under the control of the former Minister for Public Enterprises, Arthur Somare, and the former IPBC management.
Proper processes had not been followed, and the sale is in breach of Section 45B of the IPBC Act and Section 110 of the Companies Act.
The sale was not approved by the IPBC board, as required, and there was no shareholders’ resolution approving the sale, as required.
The new IPBC board has instructed MVIL to rescind the sale contract, called an Equity Monetisation Contract Agreement. IPBC has begun legal proceedings against MVIL and Nominees Niugini.
The money is being held in an account owned by a company called Woodlawn Capital, at the Commonwealth Bank in Lismore, New South Wales.
Sir Mekere today called on the former managing director of MVIL, Dr John Mua, to help recover the money.
“Dr Mua would save the nation a lot of money by assisting us in the recovery of the K96 million and its return to IPBC.
“For the nation to recover the money through court proceedings would be expensive and time-consuming. I would like Dr Mua to help us avoid this.”

Sir Mekere Morauta answers questions on National Petroleum Company

Minister for Public Enterprises, Sir Mekere Morauta, said today the O’Neill-Namah Government’s decision to restructure the National Petroleum Company (NPCP) had been made in the national interest.
“A number of questions have been asked about NEC’s decision, and I am happy to respond to them,” he said.
“The first thing to say is that there has been no change of ownership of the shares in the LNG project belonging to the State and to the landowners.
“They remain held in trust within IPBC by NPCP (formerly Kroton) on behalf of the State and the landowners.
“All that has been changed is the management structure of NPCP/Kroton, to make it simpler, more efficient and ultimately cheaper for the State and landowners.
“That will clearly benefit both the State and landowners.”

Questions to the Minister for State Enterprise :

1. Why has he decided to have a Shell Company when it needs to function like a Joint Venture Partner in what is the largest investment that PNG has ever made?

The purpose of IPBC, including NPCP/Kroton, is only to hold state assets. It is not an operating company. All it does is distribute the dividends from the equity – to the State and to the landowners.

If the landowners want to enter into a joint venture they can do so through Petromin, or MRDC or a private company.

2. How will the shell company manage cash calls, monitor the Project progress, do the analysis of various legal, commercial and technical complexities of the Project during the construction and into production phases of the Project?

IPBC will employ the best technical team to manage cash calls, monitor the project and analyse the legal, commercial and technical complexities. The technical team will continue to attend joint-venture meetings, along with expert DPE staff. Cash calls are currently paid by IPBC and this will continue.

3. Are we just going to be watching and accepting what foreign companies tell us on the various aspects of the projects or we will develop our own skills in oil and gas?

As above. Also, it is not the best use of human resources to have expert staff spread across NPCP/Kroton, Petromin, DPE and MRDC.

4. What happens to the Landowners 25.75% equity in the Kroton equity?

Nothing happens to the landowners’ equity. It remains with the NPCP/Kroton shell company.

Under this decision, we have cut out the middle-man between IPBC and landowners. Landowners will not have huge fees deducted from their dividends by NPCP/Kroton.

For example, for next year NPCP/Kroton has demanded a budget of K75 million. Landowners would have had to pay their share of this.

5. Why has IBPC or the State Enterprise Minister not consulted us Landowners? It makes us wonder whether there was wider consultation amongst the other Ministers and whether it was endorsed by the Prime Minister?

The decision was necessary under the planned legislation for the Sovereign Wealth Fund. The SWF NEC submission was jointly sponsored by the Prime Minister, along with myself and the Treasurer. The Prime Minister approved the decision to restructure NPCP/Kroton. All other Cabinet Ministers were consulted on the decision at NEC.

6. Was this decision done in consultation with the other State agencies like DPE, the developer of the LNG Project etc ?

The submission was jointly sponsored by the Minister for Public Enterprises and the Minister for Petroleum and Energy. Treasury was also consulted. DPE has been consulted about taking over NPCP’s community affairs staff. The decision to restructure NPCP/Kroton will also help reduce the industry confusion surrounding the creation and operations and responsibilities of NPCP/Kroton, Petromin and the proposed Petroleum Resources Authority. This makes things simpler, more efficient and less expensive for everyone.

7. In light of national interests, we wonder who IPBC and Sir Mekere’s advisers are. Certainly this decision as reported by the Minister for State Enterprises does not look into the big picture in terms of PNG’s national interest.

I am advised by IPBC, Government departments and institutions and independent consultants. I consult the Prime Minister and other Ministers. I always act in the national interest and in this case in the interest of landowners. Consolidating the vehicles used for PNG participation in resource projects means that we can use PNG skills and financial resources more efficiently to get a better deal for all Papua New Guineans. That is what the national interest is all about.

8. Why is the current draft Organic law on Sovereign Wealth Fund (SWF) silent on a nominated or designated state entity as the vehicle for managing the state’s interests in PNG LNG Project? Are the current media statements by Sir Mekere and IPBC deliberating endorsing the demise of NPCP (Kroton)? Notwithstanding the current SWF draft legislation, we landowners are interested to know the link between the nominated state entity, the development funds and our share of Kroton equity.

The Organic Law is about the management of revenue. It is not about the management of equity. The nominated entity under the IPBC Act and the LNG Project Loan Agreement is NPCP/Kroton. The loan Agreement is a binding legal agreement signed by the former Somare Government and may not be changed. The equity and the landowners’ equity remain exactly where it has always been, and managed by the people it has always been managed by. NPCP/Kroton has been restructured because it was wasting state money and landowner money by duplicating activities that could be carried out by others, for example DPE and Petromin.


Mekere Morauta KCMG MP


Minister for Public Enterprises

Bart Philemon in Parliament today on the 22 reserved seats for women

Mr. Speaker.

1.0 Introduction & Setting the context

Let me be very clear. I DO NOT have any problems at all about Women in political leadership. In fact, there are many very capable women who can provide better political leadership than man. So I am NOT in this debate to argue whether a male or a female can lead better.

I stand today as a National Leader. And I make my remarks consistent with my role as a former Treasurer for four years and as an Opposition spokesman on Budget and Finances for four years.

Mr. Speaker.

I think this is the most consequential act of law making since our independence and this will now go down in our political history books.

We have now legislated to allow women to enter Parliament as legislators without going through the normal electoral process.

Mr. Speaker.

I personally have no problem in giving fair representation to our women population. They are important partners to work along with in pursuing our development goals as enshrined in our constitution.

Because of women, we are all here today. Women are an inseparable part of community life and our family life. They share our lives as mothers, wives, daughters, nieces and friends.

Mr. Speaker.

I consider women as a most important part of the society, for me it is the sign of modesty and respect in the society.

There are women who make the fate of societies. They are the reason of the success of every successful man, because they are the one who gives the moral support and listen to their son, brother, husband and father when no one listen and support them. So they don’t deserve to be looked as a thing of time pass or a tissue paper whose fate is to get used and thrown away.

Mr Speaker.

My issue on debating this bill is about the right use of public money in our nation – at this crucial time.

We must, as responsible leaders, act responsibly to ensure that the priority needs of Papua New Guinea and the 6.7 million people are addressed.

I want to ask this Parliament to lay aside in your mind the potentially emotive equality in gender debate. And I want you to focus on the facts and figures together with the issues I must raise.

I want to highlight the cost of governance and measure this against this bill to add 22 reserved seats for women which in total would add at 24 seats to this National Parliament Chamber with the two regional seats for Hela and Jiwaka Provinces.

2.0 The Parliament & Cabinet as envisioned by CPC fathers


Mr Speaker.

Let me remind this honourable House what our constitutional founding fathers said about our role. In chapter 3, clause 4 of the CPC Report while addressing the reasoning behind The LEADERSHIP CODE, our constitutional founding fathers envisioned, and I quote:

In his public office, a leader’s first responsibility is to the people he or she represents or on whose behalf he is working. This responsibility must override self interest. A leader’s first loyalty must be to his office, not to himself. Such priority of loyalties might in fact mean some personal loss of opportunity or benefit, but this personal and official responsibility of a leader is assumed when he takes office, and it continues throughout his entire tenure of office. END OF QUOTE.

Mr Speaker.

If we, as elected leaders by virtue of this Constitution, are to be faithful to our mandate, we must take note of the thoughts of these founding fathers on leadership and decision-making.

The Constitution and subordinate legislations as they framed allowed for 109 MPs and a maximum of 27 Cabinet Ministers.

Because of the early Bougainville secession movement, the Provincial Government system was introduced. Then we added 12 Vice Ministries.

We have now added five additional ministries to bring this to 33 ministries altogether.

SO now we have the following:

• 33 Cabinet Ministries

• 12 Permanent Secretaries or Vice Ministers

• 19 Permanent Parliamentary Committees

• 14 Parliamentary Referral Committees

Mr Speaker, add all the costs of the provincial government system, the district administrations and all the Government Departments and statutory bodies, our country has a very high public sector bill.

3.0 Huge Cost of Public Sector

Wages alone account for over K2.55 billion for some 77,000 public servants, 109 MPs and 584 political staff.

Year after year since I became a Member for Parliament – particularly since I had anything to do with PNG’s finances, I have raised concern about this public sector bills.

With the five new additional Cabinet Ministries introduced, figures from the SRC Determinations, indicate that some K21,492,781 is needed annually to cover the salary, allowances and staff salaries of the Executive Council Members alone. An additional K3 million needed to be found to pay for the additional 5 new ministries.

Mr Speaker.

I see no justification for the increase in Cabinet Ministries. I see no justification for the 12 Vice Ministers. Were all Ministers (before the additional five) overloaded with work? Instead of the usual eight hours a day, were the Ministers working 12 hours to 16 hours per day?

In truth, there was been no research to determine this. And then 12 Vice Ministers were added. What actually do these 12 Honourable Members do for the extra perks and privileges? The public hardly hear or see them at work. This floor has yet to hear a vice ministerial statement, or even a ministerial statement that acknowledges vice ministers’ contribution on the floor of Parliament.

If a leader’s first responsibility and loyalty is to the people and to the office, would any leader at all in clear conscience voted for the additional five Cabinet positions? Would a Prime Minister, from that perspective, allowed for 12 Vice Ministers to be appointed? The answer should be a resounding NO. But instead, in PNG, it has been YES.

Mr. Speaker.

And now we want to add two more regional seats and 22 more reserved seats for women to this Parliament!

4.0 Report of the Public Sector Rightsizing Working Group


Mr Speaker.

In September 2004, the National Executive Council chaired by then Prime Minister Sir Michael Somare in NEC Decision 143/2004 approved the establishment of the Public Sector Rightsizing Working Group. Their job was to provide the NEC with an appropriate policy, strategy and plan of action for an overall review and restructuring of government administration to achieve the government’s fiscal objectives for a reduction and rationalization of budget expenditure.

The report of this Public Sector Working Group was concluded in September 2006 and handed over to the Prime Minister shortly after.

This Rightsizing Report done by academics and hands-on experts. This report, on issues directly related to cost of governance, highlights the following:

(And this is a direct quotation) There are 27 Ministries at the moment in PNG, one Minister for about every 190,000 people. This is much higher than in other developing countries. The world average is around 16. National Parliament Ministers in PNG typically receive an annual salary of around K80, 000 (representing a total base salary cost to National Parliament of K2 million). This cost is compounded by the excessive level of support provided to this largest number of ministers. There are over 500 ministerial support staff servicing 27 Ministers – over 10 staff on average per Minister. For example, direct ministerial support services received K13 million in 2005. Involvement by the backbench in the process of government is limited; committee processes are not used effectively.

Mr Speaker.

The report examined the types of introduced reforms into Cabinet and examined PNG’s peculiarity, and recommended that there be: (And I QUOTE)

a reduction in the number of Ministers to between 15 and 20 (with departments grouped into portfolios). ADB reported the world average to be 16. Developing nations in Africa, Latin America, Asia and the Pacific had considerable variation. PNG’s current 27 Cabinet Ministers is large in comparison with many developing countries. (END OF QUOTE).

The report, done by PNG’s own sons, recommended:

A number of vice ministers in charge of various portfolio agencies with an overall Portfolio Minister

Reducing 24 departments to 18 portfolio departments.

In short, this report compiled by experts in various fields recommended re-organisation to reduce costs - not additional new ministries. We want to reduce the cost of governance – and increase the delivery of goods and services.

5.0 Analysising cost of governance and delivery of goods and services

Mr. Speaker.

I ask myself: will the additional seats increase the delivery of goods and services?

The same report highlights how savings in cutting down of number of ministries and number of Government Departments would have savings as follows:

For every K3 million, the State can:

• Engage 198 more policemen to address the law and order problems per year

• Educate 10,200 pre school students for a year

• Purchase medical supplies for vaccines for 10,200 young children per year

• Re-seal (single coat) 30 kilometres of road per year

Will 22 reserved seats for women increase delivery of goods and services?

Let me now focus specifically on this bill to allow for 22 reserved seats for women.

Mr Speaker, it is estimated that each seat will cost taxpayers about K500, 000 so we are talking about K11 million addition to the cost of governance.

Papua New Guinea is no where near to achieving the Millennium Development Goals. These goals and our human development indicators show that:

1. Up to five women die daily while giving birth;

2. Up to 15,000 out of every 100,000 children born will die as infants or within the first five years of their young life. Half of those will be female infants or children;

3. PNG is still struggling to balance gender equality in enrolments and retentions.

4. HIV/AIDS continues to create havoc especially among our young people – half of whom are female and who are the most vulnerable.

Mr Speaker.

This the only report which recommends cutting cost of governance. The 22 reserved seats for women will no doubt raise the scale a little in gender equality.

But I am faced with this mathematics: With just K9 million out of the K11 million for the proposed additional reserved seats for women, the State can:

• Engage 594 more policemen to address the law and order problems per year which will keep our womenfolk and girls safer

• Educate 30,600 pre school students for a year which will educate 15,300 female pupils

• Purchase medical supplies for vaccines for 30,600 young children per year which will save the life of 15,300 female children from early death and give them a chance at life.

• Re-seal (single coat) 90 kilometres of road per year allowing access for travellers of which 50 per cent are likely to be females.

6.0 Conclusion

Mr Speaker.

This bill boils down to this question:

Does gender equality in political leadership addresses the current development priority needs of Papua New Guinea?

In other words, does the cost of having 22 reserved seats in parliament addresses poverty eradication, better education, improved health, add more infrastructure, roll out more utilities to the majority of our 6.7 million people.

The answer, Mr Speaker, is NOBODY CAN TELL US. NOBODY KNOWS.

Faced with an obscure attempt to address our development woes by allowing for gender equality in political leadership, and faced with immediate human development indicators that ought to highlight immediate funding priorities, Mr Speaker, I have decided, consistent with my stance on reducing the cost of governance and public sector, NOT to support this bill.

I therefore do not support this bill because it adds to the cost of governance without showing it will improve delivery of goods and services to the masses.

Thank you.

BART PHILEMON