Agwi's term as PNG Defence Force commander expires

Prime Minister Peter O’Neill announced yesterday that Brigadier-General Francis Agwi will continue as commander of the Papua New Guinea Defence Force on an interim basis.

General Agwi’s term as Commander expired at midnight last night.

The process to appoint a new commander is currently underway.

“The appointment of Agwi on an acting basis is therefore necessary to fill the vacuum, and to maintain command and control in the force while the appointment process is completed.

“Agwi has shown professionalism and dedication in his years of service to the military and country. He led by example in maintaining stability in the force and I would like to thank him on behalf of the people of PNG for a job well done,” Mr O’Neill said.

InterOil's PNG LNG project heats Up

Energy and Capital

For the last two years, InterOil Corp. has been looking to tap into the liquefied natural gas reserves under Papua New Guinea which could yield more than 5 trillion cubic feet of gas.

Last week, the company agreed to sell a majority stake in the LNG development project to Total SA (NYSE: TOT) for an as-of-yet undetermined amount. The deal could be worth up to $3.6 billion, depending upon the fecundity of the fields in Papua New Guinea.

Australia's Oil Search is reportedly in talks with InterOil getting involved with the project as well. The company has been operating in PNG since 1929 and already works with Total on exploration projects there.

The development of LNG wells by Total and Oil Search is seen as a competitive move against ExxonMobil (NYSE: XOM), which operates a $20 billion liquefied natural gas facility in Papua New Guinea. ExxonMobil will begin shipping gas to Asia in 2014.

Oil Search in talks to join InterOil, Total in PNG project

Seeking Alpha

Oil Search International (OIS) says it is in talks about getting involved in development of the Elk and Antelope oil discoveries in Papua New Guinea, which may contain more than 5T cu. ft. of natural gas.
Just three days ago, InterOil (IOC) agreed to sell a majority interest in the discoveries to Total (TOT) in a deal worth up to US$3.6B, depending on how much gas is confirmed to be there.
TOT had hinted at a selldown when confirming the deal with IOC but didn’t name a prospective partner; one way to facilitate OIS’s entry into Elk-Antelope could be an equity swap involving part of its stake in the Taza oil and gas discovery in Iraq's Kurdistan.
IOC +4.8%, TOT -0.6% premarket.

K9 million worth of projects grind to a halt in Bulolo

By MALUM NALU

Bulolo MP and Deputy Opposition Leader Sam Basil says projects totaling up to K9 million in his electorate had come to a standstill because the government has still not released his electorate’s district support improvement programme (DSIP) funds for 2013.

 “Everything,” he said.

“K9 million worth of projects has stopped.”

The projects which have grinded to a halt include  rural policing, road maintenance, foot bridges, honey,  rural electrification, Garaina road K5 million, support vehicles for each LLG, mobile health, Leklu Bridge and Latu bridges, Balob Teachers College corporate sponsorship for next year, road from Wagau to Bumatu in Labu, eye operations for people in all LLGs, Bulolo Technical College sponsorship, livestock, sponsorship of training for Wau Mining School,  fuel for machinery, foot bridges, Buang hydro power,  drugs and various others.

Basil said he had only received K1 million this year, K2 million was still to be cleared, and K7 million was outstanding.

Last Friday, backed by a rowdy crowd of supporters, Basil fired a broadside at Finance Secretary Dr Ken Nangan at Vulupindi Haus,

“You are the Secretary of Department of Finance,” he told Nangan,

“Bulolo is one of the 89 districts, which has two mines that pay taxes to the government.

“Bulolo has people who are into alluvial mining, coffee, is home to PNG Forest Products and Zenag Chicken.

“We play a big role in the development of PNG, unlike many other districts, in terms of our taxes.

“The government last year passed the Appropriation Act, which says that all 89 districts of PNG will receive K89 million.

“From January up till December, Bulolo district has received K1 million and I got another K2 million, which is yet to be cleared.

“Practically, we have K9 million yet to be received.”

Basil said legal action was being sought for immediate release of outstanding funds with orders that Finance Minister James Marape pay all costs.

“We are taking court action,” he said.

“Our lawyer will take out a court order before Dec 31 to James Marape and his Secretary.

“We won’t stop there.

“As soon as the order is released, we will go further.

“Damage has been done: 12 months no projects.

“We will seek further orders that no more DSIPs be paid out in cheques and all payments must be paid out electronically at the same time.

“Payments must be made quarterly.

“We will seek a court order in that regards and we will pass on all legal costs to James Marape, not the Independent State of Papua New Guinea.

“The minister himself misused his powers in terms of delaying and instructing his Finance Secretary to delay the payments.

“We will ensure that he pays the full legal costs that the opposition will pick up.”

Basil demands release of Bulolo district funds

By MALUM NALU

 Bulolo MP and Deputy Opposition Leader Sam Bail last Friday led a small but vocal group of supporters to Vulupindi Haus demanding the immediate release of his people’s district support improvement programme (DSIP) funds for 2013.

In heated scenes outside the building Basil, backed by Huon Gulf MP Ross Seymour and rowdy supporters, accused Finance Secretary Dr Ken Nangan of telling blatant lies and denying the people of Bulolo what was rightfully theirs.

Basil addressing Nangan as Seymour (centre) and supporters look on.

Basil made the outburst after Nangan said not all government MPs had received their K10 million, which he said was not true, as all government MPs had received their K10 million.

Bulolo and Huon Gulf have not yet received K7 million out of the K10 million, which Basil said was by virtue of him and Ross being in opposition, and gave a deadline of Dec 31 to pay up or he would up on again on Jan 10, 2014, with even more supporters.

“Many government MPs have not got their K10 million yet,” Nangan said.

“What I’m told is that, eventually, all the money will be paid out to the districts.

“I can assure everyone that I will make sure that every MP gets their K10 million, but again, I’m subject to the government of the day.

“I can assure you that this will be before close of financial year.

“I’ll make it my business to deliver the K10 million.”

Basil, however, didn’t accept Nangan’s remarks.

“This is wrong,” he said.

“This money belongs to all the districts.

“I have friends on the government side.

“They showed me their K10 million cheques.

“Secretary, you are telling lies to me and the Huon Gulf MP.

“Cheques were written out and they have been paid K10 million already.

“You are telling lies by saying that government MPs have not received the K10 million.

“Mr Secretary, you are lying to an MP.

“I want you to go and get the cheque from (Finance Minister) James Marape.

“I want the cheque, Mr Secretary, now.

“This money belongs to Bulolo district.

“Why, Mr Secretary, are you treating MPs like plantation labourers?

“These funds are supposed to go out to every district through electronic transfer and divided into four quarterly payments: K2.5 million first quarter, K2.5 million second quarter, K2.5 million third quarter, K2.5 million fourth quarter.

“To date, government MPs have received K10 million, while we opposition MPs have received K3 million.

“There are only six MPs in opposition, we are no threat to government, and we should not be punished further.

“Mr Secretary, I’m giving you until Dec 31, and if I receive nothing by then, you will see my face again here with a crowd 100 times bigger.

“We will not care if the police arrest us, we will come here and demand for what is rightfully ours.”

The write stuff

A group of enthusiastic toddlers graduated in reading last Friday at Waigani Christian School in Port Moresby.

The 100-plus toddlers, aged four, five and six, are kindergarten students who underwent a reading readiness class to prepare them for higher grades.

Some of the toddlers who graduated last Friday.

“Reading is the key to everything,” said school founder Benjamin Mul.

“Reading is the key to knowledge and information.

“When a child reads, and he or she goes to school, it will be easy for him or her to understand.

“But if a child doesn’t read, when he or she goes to school, he or she will be confused.

“We have reading readiness classes, which prepare toddlers, aged four, five or six to read before they go up higher.”