Bank South Pacific posts K356 million profit

By MALUM NALU
 

Bank South Pacific has announced an after tax net profit of K356 million for 2011, an increase of 26% on the after tax net profit of K283 million reported in 2010, The National reports.

BSP chairman Kostas Constantinou said in the bank’s 2011 financial report that the results in 2011 reflected steady net growth on a group basis.

Constantinou…profit reflects strong PNG economy

“Profits are up by more than 10%, and the balance sheet has grown by K1, 654 million (K1.654 billion),” he said,

“The results are dominated by BSP’s continuing strong performance in PNG.

“Whilst that performance has been driven by that economy’s very strong growth in the 2011 fiscal year, it has been achieved under some challenging circumstances.

“Globally, 2011 has seen Europe continue to grapple with an intractable debt crisis, popular but violent uprisings in the Middle East, natural disasters with devastating consequences around the world, and credit downgrades led by the U.S.

“In 2011, politics, nature, and the human spirit have held sway over earnings, interest rates, and capital markets, driving volatility in stocks, commodities, bonds and currencies. 

“In our region, Asian demand for natural resources continues to fuel growth in the economies of natural resource providers including PNG.”

BSP’s achievements in 2011 included:

·         Total assets of K11.7 billion, up K1.7 billion from 2010 levels;

·         Dividend payments totalling K224 million were made to shareholders comprising K149 million final dividend for 2010 (at 3.13 toea per share) and K73.7 million interim dividend for 2011 at 15.4 toea per share;

·         Regulatory capital ratios maintained at levels complying with the regulator’s definition of “well capitalised”;

·         Return on equity of 28.7%, whilst maintaining investments in the company modernisation programme, with key projects being delivered in the areas of customer segmentation and product development, systems operations, electronic banking, and process simplification;

·          A first-of-its-kind major customer acquisition campaign, “Green Gold”, which introduced about 150,000 new customers to BSP;

·          Net growth in customer deposits of K2,261 million to K9,446 million with market share of 51.84% in NG; and total group deposits at K9,366 million;

·         Loans and advances increased by net K959 million to K4,236 million with market share at 51.4% in PNG; total gross loans of the group is K4,301 million;

·         Introduction of BSP’s international class BSP First customer lounge at Harbour City and a full-service branch at Vision City, in Port Moresby;

·         Continued roll out of BSP Rural branches, and rural customer acquisition initiatives;

·          Opening of a new branch at Lautoka in Fiji, and the transfer of the Solomon Islands head office at Point Cruz and the Mud Alley branch to the modern Heritage Park development in Honiara; and

·         Continued commitment to community-oriented activities resulting in 70 local community projects delivered by bank staff in PNG, Fiji and the Solomon Islands, worth in excess of K1.250 million.

Somare fails in bid to take over PNG government

By EOIN BLACKWELL

AAP Papua New Guinea Correspondent

Papua New Guinea's court-appointed prime minister, Sir Michael Somare, has failed in his bid to have the nation's governor-general swear in his cabinet, after police refused to let him enter Government House.

Sir Michael Somare

Sir Michael, 76, was ordered back to power on Monday by three of the five Supreme Court justices overseeing hearings into the legitimacy of the government of Peter O'Neill.
Two judges refused to participate in the judgment.
Sir Michael arrived at Government House in Port Moresby about 3pm on Tuesday, but was prevented from entering the grounds by about 30 policemen guarding the front gate.
After waiting inside a dark blue Mercedes Benz for about five minutes, the man known as the Grand Chief was driven away from Government House back to the Ela Beach Hotel in central Port Moresby.
Sir Michael's choice for attorney-general, Sir Arnold Amet, had told journalists earlier on Tuesday Governor-General Sir Michael Ogio had agreed to swear in the Somare cabinet.
"The prime minister, Sir Michael, requested His Excellency to receive him and swear in his caretaker cabinet," Sir Arnold said.
"He has agreed to see the Grand Chief subject to protocol."
However, Sir Arnold soon left Government House for the Ela Beach hotel, a well-known base of operations for Sir Michael's supporters.
After he left and the police presence began to lessen, Operations Commander Colonel Walter Enuma told his men he had been advised by the governor-general's office not to let anyone in.
"No one goes in until after the elections," he said.
"Enough of this chequebook war."
Peter O'Neill, the man installed as prime minister on August 2 with the backing of 70 of PNG's 109 MPs, on Tuesday said the court had overstepped the separation of powers.
"We believe the decision of 12 December 2011 and repeated on Monday evening is in total defiance of the legislature and in total disregard of the Doctrine of Separation of powers between the three executive arms of government," he said.
"We believe this decision in warped, vengeful and was arrived at emotionally."
He had earlier said the court's sudden decision on Sunday to hand down its judgment the following day was an attempt to disrupt the national elections in five weeks' time.
The O'Neill government has been criticised internationally for its repeated attempts to suspend Chief Justice Sir Salamo Injia, whom they accuse of bias.
Police earlier this year arrested the Supreme Court veteran on charges of trying to pervert their investigation into his handling of court funds.
However, the court quickly stayed proceedings into that matter and called the police investigation an abuse of process.
Deputy Chief Justice Gibbs Salika and Justice Bernard Sakora refused to participate in Monday's judgment, citing legal ethics and judicial integrity.
The Sunday Chronicle newspaper the day before had published emails between the judges, in which one of the five judges, Justice Nicholas Kerriwom, referred to the O'Neill government as illegal.
In December, Mr O'Neill and about 60 of his parliamentary supporters were prevented from entering Government House after the court first ordered Sir Michael's return to power.
After the majority of parliament again backed Mr O'Neill, Governor-General Ogio agreed to swear in the O'Neill government.
Sir Michael's cabinet then tried to instigate a military mutiny, but only about 30 soldiers supported them.
Parliament had been expected to be recalled on Tuesday at 10am, however, the sitting did not go ahead.
A spokesman for Mr O'Neill said most MPs had returned to their electorates to campaign for reelection.
"If we can't do it today, we'll try and get them tomorrow (Wednesday)," he said

In Port Moresby today: Tuesday, May 22, 2012

Pictures from in and around Port Moresby today.

I'm a big fan of clouds so I'll start of with them!

Walking along Wards Road from Hohola to Waigani

An everyday man!

Driving out from Islander Village

Holiday Inn continues to reach for the skies!

Pavement along Mobil Service Station, Waigani

Plastics are becoming another cause for concern and a serious environmental threat!

Today's buai pekpek (betelnut shit) in Port Moresby

While we are so busy moaning and groaning about politics, Port Moresby gets filthier and filthier by the day.
These are some pictures of the dirty side of Port Moresby that I took today.

This lady outside Mobil Service Station Waigani always keeps her market clean

Outside Mobil Service Station Waigani

BSP Waigani looks clean, however, look to your left where the crowd is already gathering around a buai seller!

While we are so busy moaning and groaning about politics, Port Moresby gets filthier and filthier by the day, as examplified by this rubbish drum outside BSP Waigani this morning

Disgusting sight along bemobile bus stop, Waigani

I'd rather have more fruit and vegetables sold on the streets than buai!

Buai seller outside bemobile Waigani

Somare caretaker cabinet not sworn in yet

A sense of deja vu!
Police and PNG Defence Force are barring the Somare faction from entering Government House to be sworn in by Governor-General Sir Michael Ogio.
Meantime, Peter O'Neill says parliament will hold the special session tomorrow, and is holding a press conference right now.

Statement by Sir Michael Somare on the Supreme Court decision

The 21st of May 2012 will be remembered in our history as a triumphant day for our time-tested Constitution and the Rule of Law.

Sir Michael Somare

The Supreme Court ruling ensured that the democratic foundations on which our nation was built remains intact.
The architects of our Constitution had the foresight to include specific sections that virtually took into account every eventuality including the dark occurrences since the August 2 political coup. Its resilience and relevance has withstood its greatest test since independence.
It is widely accepted that recent assaults on our Constitution were engineered by a minority group who purported to represent the overall interest of our people.
Never before in our history has our young vibrant democracy endured such serious assaults on our Constitution and on our Judiciary these assaults:

• Brought our nation to the brink of political tyranny and dictatorship; 
• Tested our resolve for national unity;
• Left our people deeply troubled as to the future of our system of government, as guaranteed by the Constitution;
• Left our people fearful of their wellbeing and future hopes and aspirations. The last nine months of court references and court challenges have compelled Papua New Guineans to build their resolve and willpower to protect and fight for the legality and supremacy of our Constitution, the highest law of the land.

It is the Constitution that guarantees the fundamental rights of every citizen.
Today we are reassured that one of the three arms of Government, the judiciary, still maintains its independence in spite of intimidation exerted by Parliament and the National Executive Council since the 2nd of August last year.
The Judiciary is able to exercise its powers and perform its functions under the Constitution; to answer key constitutional questions as to the issue of the legitimate Government.
Today the judiciary has upheld the supremacy and integrity of the Constitution and the rule of law.
The Supreme Court has ruled, not for the first time, but the second time, in favour of my Government.
The Supreme Court has once and for all determined the question of Government legitimacy and has ruled to restore the Constitutionally-formed Government: the Somare Government.
I call on every law-enforcing agency, in particular, the police to uphold the Constitution and to enforce the rule of law and to honour the Supreme Court ruling handed down today. You are duty-bound to do so.
I also call on the public service to respect the ruling and work together to support it.
I said it before and I say it again. The O’Neill/Namah regime hijacked parliament and took the country on a dangerous and risky ride the full implications of which may not be clear for some considerable period.
They introduced a number of retrospective and vindictive pieces of legislation in an attempt to camouflage their illegitimacy.
In the process personal accusations were being made against me and a small group of members of parliament that resisted the forces of tyranny.
I believe upholding the rule of law and protecting the Constitution is one of my last and most important challenges as a member of parliament. I hope that such an assault is never repeated again in our proud and diverse nation.
Throughout these past months, my team has worked quietly and diligently behind the scenes.
I sincerely thank Governor Peter Wararu, the East Sepik people and Provincial Government for driving the agenda from the beginning.
I thank our legal team and organisations for putting considerable efforts and resources into the task of protecting national interests. I also extend my appreciation to the Morobe Provincial Government led by Governor Luther Wenge who recognized the importance of the battle and joined in to counter attacks on the integrity of our parliament, judiciary and Constitution.
Our fight in the courts has been for the common good: for the supremacy of the Constitution, for the rule of law; for separation of powers and the independence of the three arms of government..
I am pleased that parliament has now risen, having recognised that no one has the power to defer the Elections: not Parliament; not even the Electoral Commissioner and certainly not the Speaker of parliament.
All power and authority flow from the supremacy of the PNG Constitution.
Papua New Guinea must never again be held at ransom by a minority group of Papua New Guineans, who purport to represent the overall interest of the people.
Seven million Papua New Guineans have the Constitutional right to freely elect their parliamentary representative in a timely manner.
The major lesson from recent events is that we ignore the major tenets of our Constitution at our own peril, whether it relates to the independence of the Judiciary or the conduct of the National elections.
In their wisdom our founding fathers had made sure that national elections were held on a regular basis and this has indeed served the nation well in all the years since independence.
I also commend the Electoral Commissioner, Mr Andrew Trawen and his team for completing the electoral roll in time and for standing up against members of parliament to ensure that the elections take place and a new government is in office by the end of July this year.
I appeal to every Papua New Guinean to vote wisely in the coming election. Your vote is important as you determine whether a person is truly worthy and capable of representing your interest in parliament over the next five years.
My fight over the last nine months has been for the collective national interest, not just my personal interest.
At the same time it would have been wrong for me to just sit back and accept my removal from parliament after my people in the East Sepik Regional seat have elected me continuously to this position for the previous 43 years.
My fight has been over the highly important task of protecting our National Constitution, in which I had a leading role as the person who took this country into independence in 1975. These rights are enshrined in the Constitution.
As caretaker Prime Minister and up until the return of writs, I will turn my focus to running the affairs of the country with my caretaker Government.
I will also in due course make a separate statement on the leadership of the National Alliance, the party which won the most number of parliamentary seats in the 2002 and 2007 national elections.
Between now and the return of writs, my Government will move quickly to:

• Finalise the Caretaker Cabinet; 
• Assist the electoral commission where necessary to ensure the holding of free and fair elections;
• Restore normalcy and good order including stability within law enforcement agencies;
• Reinstitute respect for the judiciary and enforce the rule of law;
• Stabilise, reunite, and rebuild the confidence of the public service; and
• Prepare to handover Government to the incoming Government after the General Election this July.

Finally, I wish to thank the people of Papua New Guinea for your prayers and support over many years in our common desire to move this nation forward and to try and create a better future for this and subsequent generations.
As a government that is now taking over in a ‘caretaker mode’ I wish to assure all citizens of this great nation that we would operate in this ‘mode’ until the election results of the 8th Parliament are completed.
Our foremost task in this period is to ensure that a free and fair election is conducted so that the new government that is formed will enjoy the full trust of the public and ensure that the tasks of nation building continues to progress, building on the achievements that my government has made in the past decade.

M T SOMARE GCL GCMG CH CF KStJ

Governor General not asked to recall parliament

Governor General Sir Michael Ogio says he has not been asked to recall parliament.
He is swearing in Sir Michael Somare's caretaker cabinet.