No immediate prospects of investment in PNG: FNPF

Fiji News

Taken from/By: FBC News
Report by: Shanal Sivan

The Fiji National Provident Fund has indicated that there are no immediate prospects of investment in Papua New Guinea.
This follows FNPF's announcement that it was withdrawing from a telecommunications deal involving PNG based bemobile.
Chairman Ajith Kodagoda, says as of now…they have no emerging interests in Papua New Guinea, despite earlier indications that the super annuation fund was in talks with the Independent Public Business Corporation.
"At this stage, we have just said that we are open for discussions, but the earlier chapter now firmly closed."
At the time when the deal was broken off, a number of staff from Vodafone Fiji had already been dispatched to bemobile in PNG.
Kodagoda confirms some of them have decided to stay on in PNG, while those who come back home will have a place with Vodafone.
"There are some people who were offered jobs in PNG. There were some people who were Vodafone overseas officers that have gone back to their own jobs, those who came back, if there are still opportunities at Vodafone, we will be taking them back."
Kodagoda could give no clear explanation as to why the deal was discontinued, saying he's not aware of some of the details.

Corruption in PNG (Part 2)

JAMES THOMAS Today Tonight
August 27, 2013

Billions of dollars in foreign aid going to PNG are being siphoned off by corrupt politicians and officials, and into Aussie companies.

The Australian property market, casinos, and the banks are playing host to millions of dollars in foreign aid being siphoned off by corrupt Papua New Guinea (PNG) politicians and officials.
The money trail ends up in Australian companies, caught up in the multi-million dollar corruption ring.
Sam Koim, head of PNG's Anti-Corruption Task Force, is on a mission to lift the lid on billions of dollars of dirty money leaving PNG to be laundered in Australia.
Mr Koim says Australia contributes about $500 million to the PNG budget, and 40 per cent of that budget is lost to corruption annually.
"The dirty money is then moved from the Australian banks to Australian-based businesses, and then from the companies the money disappears," Mr Koim said.
Mr Koim says his anti-corruption task force is particularly interested in a transaction of $45 million belonging to the people of PNG into an Australian bank.
In July 2009, $45 million was deposited at the Lismore Branch of the Commonwealth Bank into an account owned by a company named Woodlawn Capital.
The PNG government claims the money was stolen.
The money trail begins in PNG with the government-owned Motor Vehicle Insurance Limited (MVIL). They owned shares in the Bank of South Pacific, which they used to take out a loan to raise roughly $45 million.
The money was then transferred to Australia and into the account of Woodlawn Capital at the Commonwealth Bank in Lismore.
According to the PNG government this all took place without the approval of the board that authorises these transactions, The Independent Public Business Corporation (IPBC). Without the IPBC's approval the transaction is illegal in PNG.
 The newly elected PNG government are accusing the authors of the deal, and the recipients of the cash in Australia as being thieves, engaged in an elaborate scheme to funnel money offshore.
Money laundering expert at the Griffith University, Professor Jason Sharman, says the responsible minister for the $45 million was Arthur Somare, son of former PNG Prime Minister, Sir Michael Somare.
Professor Sharman is working closely with the PNG government to track the missing millions.
"The suspicions from the PNG government tend to focus on the responsible minister during that time," Professor Sharman said.
Arthur Somare has a $700,000 home in Cairns, and claims he has no knowledge of the transaction.
"I don't condone illegal transactions, and I don't have oversight over something that was illegal," Mr Somare said.
He points the finger at Australia's Commonwealth Bank in Lismore, who received the $45 million.
"There's such a thing called due diligence, and I would have expected that during a DD process, that someone would have given us a call," he added.
The Commonwealth Bank said in a statement that they were unable to comment on this specific transaction, but said that: "we can confirm generally, that the bank systematically reviews transactions including those of significant value."
The PNG government has alleged that Arthur Somare is the beneficiary of corruption, and have asked him to account for the $45 million that allegedly went missing on his watch.
Arthur Somare was suspended from office relating to 105 allegations of misconduct in office in 2011.
The PNG government recalled the $45 million from Woodlawn Capital's directors Tim McNamara and Tim Breen, accusing them of stealing the proceeds of an illegal deal.
However Mr Breen believes that they are the victims of corruption, not the perpetrators.
He claims that he and his partner had no idea that the funds came from an illegal transaction, and that everything they did at their end was above board.
"We haven't laundered any money, all the money is accounted for, all money was held on behalf of the client," Mr Breen said.
"It is a matter for the court. It's a contractual dispute, and we're being bullied by a much bigger party on the other side."
Australia's Anti-Money Laundering Agency, AUSTRAC, have stated before the Senate in 2008 that corruptly obtained money that gets laundered in Australia are a serious problem that they face, particularly those coming from PNG and the Pacific Region.

Joint statement from the Attorney-General and Minister for Justice and Home Affairs:

The Government is concerned about the allegations raised on the Today Tonight program.
The Minister for Justice and Home Affairs has spoken directly with AFP Commissioner Tony Negus about the allegations, and has sought further advice on the details of the claims.
The Attorney-General has tasked the Secretary of his Department and the Vice-President of the Financial Action Taskforce, Roger Wilkins, to assist the Australian Transaction Reports and Analysis Centre in examining these specific allegations. Mr Wilkins will advise the Government on any further action required following the election.
Australia's law enforcement agencies already work closely with Papua New Guinea authorities, including to help build PNG police anti-fraud and anti-corruption capacity.
Australia's foreign aid to Papua New Guinea is not paid to the PNG Government, but to internationally recognised Non-Government Organisations such as the United Nations and the World Health Organisation. These organisations have globally recognised standards for accounting and anti-fraud controls.

Close Manus until deal sorted, says PNG MP Ron Knight

From AAP

A PAPUA New Guinea MP has called for the Australian-run Manus Island detention centre to be closed until after the federal election.

Manus Island MP and vice-minister for trade Ron Knight today said Manus residents are preparing to "explode" over the deal, which he says has seen mainland PNG and Australian companies brought in at the expense of locals.
"I met with DIAC (Department of Immigration and Citizenship) officials," Mr Knight said.
"I told them I wasn't happy with the situation and I want the whole thing closed down until after the election.
"We will not be stepped on."
Mr Knight, a long time supporter of the facility, accused security firm G4S of underpaying Manus sourced staff, and says other contracts associated with the facility have gone to mainland PNG and Australian companies.

He said DIAC is yet to give him a final figure for the Manus plan.
"They couldn't or wouldn't tell me," he said.
"I have to explain to my people why Kina 400 million ($187m) is going to Angau hospital and Kina 200 million ($93.4m) to the Highlands Highway.
"This thing is getting out of hand."
During a speech yesterday to locals in Lorengau, the Manus capital, Mr Knight said he would refuse a proposal to build a permanent centre next to a primary school and demand a halt to all construction.
Board members of East Lorengau Primary School told the ABC last month school buildings will be knocked down to make way for a 30-metre wide access road to the new facility.
"We like Australia, we want to help Australia," Mr Knight said today.
"But we wouldn't do this to Australia. We want a fair go."
Immigration minister Tony Burke earlier this month defended the plan, telling journalists in Port Moresby there were already detention centres "within the community" in Australia.
Mr Knight's announcement follows reports PNG's chief migration officer Mataio Rabura temporarily halted all access to the centre last week following alleged breaches of protocol by Australian officials.
In a statement on Friday Mr Rabura said the issues had been dealt with and he was now happy with the implementation of the Manus processing scheme.
Australia is currently housing about 380 asylum-seekers on Lombrum Naval base in Manus Island.
AAP

PNG money laundering

JAMES THOMAS Today Tonight
August 26, 2013, 6:18 pm

Huge amounts of Australian taxpayers' money, supposedly supplying aid to our third-world neighbour Papua New Guinea, is being lost to corruption.
Australian aid is being lost to corruption, with an estimated $1.7 billion being stolen from PNG's budget annually.
The stolen money is then brought to Australia to be hidden in our banks and the Queensland property market.
Around 59 people have already been charged with corruption offences in PNG, and it is alleged much of their illegally obtained money is spent in Cairns.

Professor Jason Sharman, deputy director of the Centre for Governance and Public Policy at Griffith University, is a renowned expert on money laundering.
Professor Sharman along with Sam Koim, head of PNG's Anti-Corruption Task Force, are on a mission to lift the lid on billions of dollars of dirty money leaving PNG to be laundered in Australia.
"Corrupt politicians, and senior officials are buying houses and gambling. Obviously they need bank accounts to do so, and setting their families up here (in Australia) as well," Professor Sharman said.
"Most of Australia's aid program is effectively wasted."
Mr Koim says they have a number of prominent politicians and businessmen on their radar.
"Almost half of the budget (is being stolen. That is how big the problem is," Mr Koim said.
"They see Australia as the Cayman Islands. They see that it is the safest place where they can bring their stolen money from PNG."
There are more than 100 homes in Cairns that belong to Papua New Guineans, a similar number in Brisbane. They inhabit some of the nicest suburbs, and include the prominent PNG politicians and officials.
One such home in Cairns, valued at $585,000, belongs to PNG's petroleum/energy minister William Duma.
Australia's banks have a strong presence in PNG, and Mr Koim says the banks are well aware of the corruption.
"The writing is on the wall. There is some clear evidence of suspicious transactions, but they (the banks) turned a blind eye and accepted those transactions," Mr Koim said.
Mr Koim and his task force informed Australia's money laundering agency Astrac, the Australian Federal Police (AFP) and the Attorney General's department in August last year that Paul Paraka - a lawyer who allegedly sent $2.5 million dollars to his family - was a person of interest in their investigation into corruption.
However Mr Paraka was still able to transfer hundreds of thousands of dollars to his wives and girlfriends through the NAB.
In a statement the NAB claim to take money laundering seriously. They admitted that following an investigation in late 2012 that: "...some customer's accounts were closed and some payments originating from PNG were declined..."
Professor Sharman says few Australians realise how serious PNG's corruption problem is for Australia. He says for every dirty dollar we harbour, PNG is one step close to ruin, with huge consequences.
"If you give $10 million to a hospital and that money comes in as aid through the front door, and at the same time, $10 million is stolen out the back door through a corrupt official, then the net benefit of Australian aid is zero," Professor Sharman said.
"If half the budget is stolen, there is a real risk that PNG as a country will simply collapse. One of the things associated with state failure is massive refugee flow. If you were looking to escape PNG, the closest country is Australia.
"So rather than PNG being a refugee solution, it will become a massive refugee problem."

Response from AFP Assistant Commissioner Serious and Organised Crime, Ramzi Jabbour: "On 23 May 2013, the AFP Senior Liaison Officer (SLO) in Port Moresby addressed a Royal Papua New Guinea Constabulary (RPNGC) Provincial Police Commanders Conference in Lae, PNG. The comments made were general in nature and related to unconfirmed sources of information.I can confirm the AFP does not have evidence of corruption involving PNG public officials.Australian authorities are committed to ensuring that Australia is not a safe haven for the proceeds of crime."

Statement from NAB (National Bank of Australia):"National Australia Bank takes all allegations of money laundering seriously. Payments NAB deems as suspicious will be blocked and reported, as required by law.In late 2012, NAB launched a thorough investigation regarding some funds transfers from Papua New Guinea, based on information provided by the Australian Federal Police and other law enforcement agencies in both Australia and PNG.Following NAB's investigation, some customers' accounts were closed and some payments originating from PNG were declined."

Response from ANZ bank: "We cannot discuss any individual customers due to privacy obligations.
However, as part of its global compliance program, ANZ has undertaken an extensive review of all politically exposed people and taken steps to exit relationships with individuals considered to be 'high risk'.We also continually monitor client activity, report suspicious matters to regulators such as AUSTRAC, and our professionalism has recently been recognised by the Australian Federal Police as 'being a major disruption tactic to combat corruption in Papua New Guinea'.We take our anti-money laundering responsibilities seriously and according to this recent correspondence from the Australian Federal Police, ANZ has been instrumental in 'countering the collective effort to combat corruption' within PNG.We are continuing to strengthen our anti-money laundering procedures. For example, ANZ has set aside $75 million to strengthen our financial crime detection capability this year, including around $25 million on anti-money laundering programs.All of ANZ's 47,000 staff are required to complete annual training to make sure they are able to spot and report suspicious activity. Any staff that do not complete this training are disciplined which could include termination of employment."

Response from Attorney General's department, spokesperson Mark Dreyfus:"I'm writing to you with regard to the Head of Papua New Guinea's anti corruption taskforce Sam Koim's Aug 2012 speech, in which he accused Australia of being the Cayman Islands of the Pacific with respect to money laundering.He alleges our Government is turning a blind eye to large scale money laundering through property purchasing and casino use (among others), of sums up to hundreds of millions each year. He stated that the banking industry of Australia is doing large scale business with 'dirty money'.
We are doing a story relating to these allegations.The Australian Government rejects these assertions. Australia has a robust framework to deter and detect money laundering, and to ensure that Australia is not a safe haven for the proceeds of corruption. Banks and other regulated businesses are required to have appropriate controls to counter the money-laundering risk posed by corrupt foreign officials and politicians.Consistent with its commitment to tackle corruption domestically and overseas, the Australian Government supports the work of the Government in Papua New Guinea (PNG) to address corruption and stands ready to continue providing assistance to strengthen PNG's capacity to combat corruption.Australia’s law enforcement agencies work closely and cooperatively with PNG authorities on a range of complex issues relating to anti-corruption.For example, in May 2013 the Australian Government announced Phase Three of the Australia-PNG Policing Partnership for increased policing support. Foreign Minister Bob Carr has discussed with Foreign Minister Rimbin Pato plans for further strengthening this cooperation by building PNG police capacity and supporting PNG's Fraud and Anti-Corruption Directorate.Australia also provides ongoing training and mentoring on anti money laundering and proceeds of crime to PNG law and justice officials. This includes work with the Proceeds of Crime Unit and PNG prosecutors to increase capacity to pursue the proceeds of corruption under PNG law, providing case-specific mentoring on PNG proceeds of crime matters, and working with PNG Department of Justice to jointly review the PNG Proceeds of Crime Act to strengthen PNG’s capacity to detect and recover proceeds of crime.With regard to the Attorney-General’s Departmental regime to fight money laundering, we wish to discuss what measures the Department is currently taking including your involvement with the Financial Action Task Force and AUSTRAC.The Australian anti-money laundering and counter-terrorism financing (AML/CTF) regime predominantly operates at the point at which money enters the financial system.Under the AML/CTF regime, financial institutions have an obligation to assess the money-laundering risks when they engage with professionals such as real estate agents.Based on the risks, financial institutions may choose not to conduct the transaction, or may be required to report information about the transaction to AUSTRAC.AUSTRAC assists reporting entities understand their obligations by various means, including awareness-raising forums such as the Major Reporters Forum at which Mr Koim made his presentation. Raising awareness among reporting entities assists in improving the quality and quantity of transaction reports submitted to AUSTRAC.Reports from financial institutions are gathered and analysed by AUSTRAC, producing financial intelligence which can be shared with law enforcement and other government agencies to assist them to identify illegal activity and take action.Legislation is in place for the AFP to receive and assess referrals from foreign governments in regards to these types of allegations. The Commonwealth Proceeds of Crime Act 2002 provides a comprehensive scheme to trace, investigate, restrain and confiscate criminal proceeds. The Act can apply to ‘foreign indictable offences' if a benefit from such an offence is derived in Australia or transferred to Australia. The Commonwealth can also repatriate funds that are recovered from the registration of foreign proceeds of crime orders.The Attorney-General’s Department provides ongoing training and mentoring on anti-money laundering and proceeds of crime to Papua New Guinea.Given Australia's recent billion dollar aid assurance to Papua New Guinea, what measures is the Department taking to ensure it is not stolen and laundered?Australian aid is not routinely provided directly to foreign governments.AusAID has world-class anti-fraud measures in relation to our aid spending. Aid funding is provided to international organisations such as the UN, the World Food Programme and the like for projects in recipient countries. These organisations have excellent, internationally recognised anti-fraud measures.

Statement from AUSTRAC: "Measures in place to prevent the laundering of stolen funds through Australia. Australia's AML/CTF regime includes a range of measures to address and mitigate the risk of overseas entities (including individuals) misusing the Australian financial system. Australia's regime is based on international Financial Action Task Force (FATF) standards.
Customer identification requirements
"Australia's AML/CTF laws require reporting entities (including banks and casinos) to have in place customer identification procedures appropriate to their particular business. These procedures are designed to identify overseas customers who may pose an increased money laundering risk and to report any suspicious transactions undertaken by customers.
Financial transaction and suspicious matter reporting requirements
"AUSTRAC's reporting entities are required to report certain threshold cash transactions, as well as international funds transfers and suspicious matters.
Reporting entities are required to report to AUSTRAC suspicious matters if the entity has reasonable grounds to suspect that a transaction may be related to money laundering or any other offence under a Commonwealth, state or territory law.
"AUSTRAC is not an investigatory or law enforcement body. Where AUSTRAC receives reports relating to possible instances of illegal activity, AUSTRAC refers that information to its relevant partner agencies, such as law enforcement agencies."

Manus landowners want a fair go on asylum deal

By MALUM NALU

A landowner clan on Manus has called on the government to clearly spell out what specific benefits they will receive out of the asylum seekers agreements signed between Australia and Papua New Guinea.

Kohonaleng clan spokesmen, Ali Panpan Pinakohon and Abraham Kia, told reporters that while they supported the project, Manus was getting a raw deal out of it.

Pinakohn and Kia speaking to reporters: ‘What benefits will we receive?’-Picture by MALUM NALU

“Just where do we as landowners and Manus people fit into the equation?” Pinakohon said.

“If the agreement between the two governments involves spending up to K500 million for the Angau hospital in the Morobe province, and hundreds of millions for infrastructure development in other centres of the country, what exactly is in it for Manus itself as host province?

“Physically the rest of the country, except for areas earmarked for resettlement, will be immune to the psychological strain, cultural and religious differences, unknown health-threatening inbound diseases, and other traumatic effects associated with people resettlement problems/”

Pinakohon called on the government to seriously address the impending issue of specific benefits for Manus, and not having the courtesy to involve its leaders, administrators, and landowners in the agreed terms for asylum seeker processing in the province.

He also called for K20 million to be set aside as seed capital for Manus to kick start businesses that would over the long term supporting the asylum processing facility.

Kia said: “We do not oppose this project.

“Since July 19, when they signed the agreement, we have not heard anything from our two MPs, Governor Charlie Benjamin and Ronnie Knight.

“Since the signing, we have not heard anything about what benefits we landowners, and all of Manus, will receive.”

Kia also expressed concern about job opportunities for the people of Manus.

“Since the signing of the agreement, we have all these Australian engineers on the island,” he said.

“We have engineers too.

“Are we talking about building a rocket?”

Koki gets a new lease on life

By MALUM NALU

The historic, but now infamous Koki Market in Port Moresby, is set to get a new lease on life, thanks to NCD police and Moresby South MP, Justin Tkatchenko.

A new cop shop has been set up at Koki, once the city’s leading market in bygone days, but now notorious for murders, rapes, armed hold-ups, marijuana, home brew, prostitution, and all manner of vice.

The market will also be completely revamped over the next two years.

NCD police metropolitan commander, Andy Bawa, and Tkatchenko on Tuesday introduced their plans to clean up the market to residents, vendors, and the general public at Koki.

Badili police commander Bill Werake, Tkatchenko, and Bawa inspect the new cop shop at Koki on Tuesday.-Picture by MALUM NALU

“In the next couple of days, we will open up the police cop shop, where there will be a permanent presence of police and volunteers to ensure the safety of people here in the market and the civilians that are using it,” Tkatchenko said.

“The market is a disgrace, absolute disgrace.

“The NCDC waste management and market divisions should be ashamed of themselves that you are selling your goods in a very unhygienic and unhealthy market.

“There’s no proper water, no proper toilets, but things are going to change.

“I have a four-year plan for this market that will change the way we see this market in the future.

“I want Koki to be completely redone in the next two years for the benefit of all of you.”

Bawa said Koki Market had a lot of history and should be respected by the young people.

“You, the residents of Koki, have to take ownership,” he said.

“Development will come but we must make sure that the law and order problem in Koki goes down.

“Koki is a historical market.

“We have to respect our market.

“When law and order problems go down, you will see expatriate men and women, people from other suburbs, come to our market.

“They will come with money.”

Koki youths told: ‘Crime doesn’t pay’

By MALUM NALU

 National Capital District police metropolitan commander, Andy Bawa, has urged youths at the notorious Koki Market to turn away from a life of crime.

He laid down the law on Tuesday at the opening of a new cop shop at Koki, which shot into international notoriety in June this year, when four Chinese nationals were brutally murdered in the shop they were operating there.

Bawa… ‘You can go to jail, you can die, you can lose your legs and arms’.-Picture by MALUM NALU

The new cop shop was built with funding provided by Moresby South MP, Justin Tkatchenko, and will use police and community manpower to patrol Koki.

Bawa provided anecdotal evidence of crime at Koki when his vehicle broke down there last Friday when he was in civvies.

“Last Friday, I was driving this way,” he recalled.

‘My vehicle broke down and I pulled up along the side.

“It gave me a chance to see first-hand what many people are complaining about at Koki Market.

“I saw many youths drinking home brew, smoking marijuana, pretending to walk across the pedestrian crossing, and trying to open the doors of passing vehicles.

“One young man, intoxicated on ‘steam’’ and with a screw driver in hand, attacked the driver and crew of a PMV, and broke the glasses of the 25-seater bus.

“He then walked into the market as if nothing had happened.

“This is an example of the escalating law and order problem at Koki.”

Bawa said Koki was a historical icon of Port Moresby, which was there before the young people of today were born, and deserved to be treated with respect to reclaim its former glory.

“I appeal to the youths of Koki, the Goilalas, Taris, Wabags, Hagens, Chimbus, all of you from all over PNG, not to stand at the pedestrian crossing,” he said.

“Do not hold up men and women, do not steal vehicles, do not pick pockets, drink ‘steam’, check the bags of mothers and market-goers.

“Police will be given all the power.

“Enough is enough.

“Koki must change for the better.

“We can’t stay like this forever.

“There are jobs that we can create for you in cleaning the market and others.

“Crime doesn’t pay.

“You can go to jail, you can die, you can lose your legs and arms.”