Together we stand: APEC business leaders urge greater government collaboration to address economic woes

Issued by the APEC Business Advisory Council (ABAC)

 

Lima, Peru, August 23, 2011 – The APEC Business Advisory Council today called on APEC governments to collaborate more with the private sector to address the causes of the recent uncertainty in global financial markets. The current situation has created disincentives for private sector investment and risks rekindling protectionist sentiments.

"We are asking governments to work together and with their own business communities to develop plans to stimulate inclusive economic growth and create jobs in the short-term and work towards balanced growth in the long term with the ultimate objective of a Free Trade Area of the Asia Pacific" said ABAC Chair Deb Henretta.

Business leaders of the APEC Business Advisory Council (ABAC) met in Lima this week to finalize their recommendations to be presented to APEC Economic Leaders and discussed in depth with them in Honolulu in November. At the meeting, ABAC Members expressed their concern about a potential rise in protectionist sentiments and asked Leaders to reconfirm their commitment to reject protectionist policies.

ABAC's 2011 Report to Leaders focuses on regional economic integration, sustainable growth and small, medium and micro enterprises (SMME) as critical areas where the business community can help fulfill a vision of 21 economies working towards 21st Century prosperity.

For regional economic integration, ABAC has developed an integrated supply chain and value chain framework to help build understanding of the complex nature of global supply chains and to identify chokepoints obstructing the efficient flow of goods and services throughout the region. The disruptive impact of Japan´s devastating earthquake and tsunami in March highlights the highly integrated nature of the supply chain and the importance of business continuity preparedness.

ABAC has also identified next generation trade issues in areas such as competition policy, investment, services, government procurement and skilled labour shortages, and recommended key policy approaches for APEC governments to work towards regulatory coherence throughout the region.

Under the theme of sustainable growth, ABAC calls for collaborative action between the private sector and the public sector to address food security, as well as greater trade and cooperation for environmental goods and services. In addition, the Council finalized the Framework for Energy Security, which will serve as a source of recommendations and guidance to the region's policy-makers.

Fostering a strong business environment for SMMEs is vital for growth and job creation in all economies. ABAC is leading capacity building efforts through a range of activities aimed at enhancing opportunities and raising awareness of issues affecting smaller businesses, including regional SMME summits, and efforts to promote greater economic inclusion of young entrepreneurs and women.

Through these activities and many more, ABAC is focused on assisting governments achieve growth, greater economic integration and stability across the region.

Bid dream over

By FRANK SENGE KOLMA   

THE O'Neill government is not interested in pursuing the K20 million NRL Bid.
That comes from the headman himself, Prime Minister Peter O'Neill.
He told the media on Wednesday: "Rugby league is important for us Papua New Guineans. However, the proposal (NRL Bid) is not feasible because the NRL CEO David Gallop has said he will accept no more teams. We are not going to chase a dream that might or might not become reality."
O'Neill said when the time was right and a feasible proposal was put before it, the government would consider a bid but that time was not now.
His attention is diverted more towards building up sports and sporting facilities in the country.
For that he said the government would be using funds available from the National Gaming Control Board.
Money from the gaming board would be used to develop sports and infrastructure for the 2015 Pacific Games in PNG (Port Moresby) and for the PNG Games in East New Britain (Kokopo) next year.
O'Neill also expressed concern about the use of the K20 million that had been allocated the NRL Bid team.
He said there had been reports that the money had been misused, and that an investigation would be conducted to establish a full accounting for the money.
The Bid under the chairmanship of former sports minister Philemon Embel had set up an office in Port Moresby employing Australian staff as well as experienced local rugby league officers on a casual basis since its inception in 2009.
During that time the Bid board underwent several controversial changes of personnel with the most notable being Australian league legend Mal Meninga's resignation as a member of the board.
Gold Coast Titans board member Paul Broughton and wife Beverly held a position on the board for a period but stepped aside, citing a conflict of interest with their association with the Titan franchise.
The PNG Bid was always an outside chance at best to get an NRL licence and the timeframe initially suggested was fiver years but the reality was it could take the country anywhere from a decade to be fully prepared to launch a team into the world's best professional rugby league competition.
Classified as a special government project by the former National Alliance-led government the Bid's dossier  as stated on the official website was to  "secure a licence to enter a team into the National Rugby League competition and promote rugby league to deliver positive social and economic benefits for the people of PNG".
However with entry an unlikely possiblilty in the foreseeable future calls have been made to re-focus on other options like entering a team into the Queensland Cup.

Basil wants natural resources to be processed downstream

MINISTER for National Planning Sam Basil says all natural resources in the country must be processed downstream and the final product exported, The National reports.
Speaking at the opening of the National Development Forum hosted by the Consultative Implementation and Monitoring Council at the Parliament House State Function Room, Basil said renewable and non-renewable resources must go under downstream processing onshore so that the country benefited from it.
"When we have downstream processing here, we will add value to our export commodities and maximise economic returns and benefits back to our country," he said.
"And most importantly, it will create employment, transfer skills and technology to Papua New Guineans and spin-off benefits apart from main revenue gain from the resources."
Basil said the traditional role of the government was to create an enabling environment for indigenous people to empower themselves and own and control the bulk of economic activities in their country.
He said for too long foreign-owned corporations had been ripping off the country's natural resources, leaving nothing for Papua New Guineans.
"Now there is a policy change under the O'Neill-Namah government whereby the indigenous people will have the upper hand in any resource development so that the bulk of the rural majority can see some changes in their living standards," he said.
Referring to the exports of round logs, he said they had the potential to collect billions of kina if they could be processed here.
 "We need a policy shift to have a downstream processing in the country so that all our natural resources can be processed here so that we maximise the benefits," Basil said.

Pagelio: Free education a relief

FREE education will be a big help to parents, acting education secretary Dr Joseph Pagelio says, The National reports.
He said despite the challenges the department could face, the policy would enable more students to gain access to education.
Pagelio said more than 30,000 additional teachers would be needed for elementary and primary schools.
He said the department had yet to work out the number of teachers needed for secondary schools.
Pagelio said another challenge was to open more Grade 9 classrooms to cater for the number of Grade 8 students who would be coming through.
Pagelio said with the introduction of free education, the department would be considering shift-hours for teachers and classes.
He said the first classes would be in the mornings, while the rest would attend classes at night.
He said it was cost-effective and possible.
Pagelio told the national development forum yesterday in Port Moresby that the number of schools soared from 3,000 in 1991 to 10,000 last year.
"The number of school students has increased from 500,000 in 1992 to 1.5 million this year," he said.
He said the number of teachers had grown from 18,000 in 1992 to 40,000 this year, a growth rate of 4.5%.
Pagelio said the number of elementary schools and teachers increased respectively from 5,000 to 14,000 between 1992 to this year.
He said the three national education plans had enabled the department to make significant progress in the delivery of education in Papua New Guinea.
These are the national education plan 1995 to 2004, national education plan 2005-14 and universal basic education plan 2010-19.

Somare tribunal adjourned

By JULIA DAIA BORE

THE Leadership Tribunal on Arthur Somare has been adjourned indefinitely pending the outcome of a judicial review hearing to begin on Monday, The National reports.
Somare had asked the tribunal to review its earlier decision in which it rejected his application to have his case dismissed. He had based his application on the fact that the reference from the public prosecutor's office to the Leadership Tribunal was to have been signed by the acting public prosecutor Camillus Sambua and not by any other person. It was instead signed by state prosecutor Kathwa Umpake.
The tribunal ruled last month that Umpake had jurisdiction to sign the reference which contained 11 allegations against Somare and which the tribunal had accepted on July 4.
Somare who was not satisfied asked the tribunal to review that decision.
Justice Les Gavara-Nanu granted this and said the judicial review would be heard in the National Court.

State gives Falcon jet to Air Niugini

By FRANK SENGE KOLMA

THE government's K120 million Falcon jet was on Wednesday given away to Air Niugini to use, or sell, The National reports.
Prime Minister Peter O'Neill announced the cabinet decision on Wednesday in the company of Public Enterprises Minister Sir Mekere Morauta and Air Niugini chief executive officer Wasantha Kumarasiri.
O'Neill has been quite concerned, according to his minders, that the aircraft's continued use by government ministers was putting the lie to his earlier announcement to sell the executive aircraft. So he made a joint submission  with Sir Mekere to cabinet to transfer its ownership to Air Niugini.
Cabinet approved the move yesterday.
"This is not a cosmetic change," O'Neill said.
"We are transferring ownership to Air Niugini and Air Niugini can dispose of it on the market or do charter business with it."
A method of payment to the government by Air Niugini was yet to be determined, he said.
O'Neill said Air Niugini was already owed some K40 million by the government for its management, crew, fuel and food.
He said should the aircraft be sold, Air Niugini would take what it was owed and the balance  be given to government to be used in health and education.
The government is of course free to charter the Falcon Jet if it so wishes – at a rate of US$10,000 per hour (about K24,000).
This might be the first of a number of government assets to be put up for sale, including Telikom and PNG Power, reading from comments made by Sir Mekere yesterday.
"These utilities are vital to support social and economic development, he said.
"We cannot ignore the state they are in any longer.
"In the short time the O'Neill-Namah government has, I am determined to find solutions and effect change."
Sir Mekere was instrumental in setting up the Independent Public Business Corporation during his tenure as prime minister in 1999 to oversee the privatisation and corporatisation of non-profitable state-owned enterprises.
He said the Somare government had "weakened the role of IPBC from being a house of rehabilitation to a warehouse storing junk".
It would appear he is all for moving back to his original goal for the IPBC, adding he had taken a long hard look and knew what had been going on and what needed to be done.

Resource transfer not government policy, says PM

TRANSFERING ownership of mineral and hydrocarbon wealth from the government to landowners is not a government policy yet, Prime Minister Peter O'Neill said on Wednesday, The National reports.
O'Neill made the comment to allay fears among industry parti­cipants following statements from two ministers that the new administration would change the fiscal regime governing the mining and petroleum sector.
The statements by Mining Mi­nister Byron Chan and Planning Minister Sam Basil had jittered stocks of PNG mining companies and elicited strong protests from the industry.
O'Neill said yesterday: "This is not yet government policy. Cabinet and parliament are yet to discuss the matter."
The prime minister assured stakeholders that they would be consulted fully before any policy or law was considered.
This was the second time in as many days the prime minister has had to correct the impetuous words and actions of his new ministers.
On Tuesday, he said cabinet had not made any decision to withdraw or suspend the powers of any provincial governments inclu­ding East Sepik and Morobe.
The two second-tier governments had gone to court on the basis of "speculations" based on an internal memo from Minister for Finance and Treasury Don Polye.
The mineral and hydrocarbon ownership issue was sensitive and one industry watcher said any change by the current regime "will be the single biggest mistake" and would cripple the economy.
The Chamber of Mines and Petroleum was understood to have written to O'Neill ex­pressing the concerns of its members.
The current push was to change section 5 of the Mining Act and section 6 of the Oil and Gas Act to transfer ownership of mineral and hydrocarbon wealth from the state to landowning groups.

Prime Minister cracks the whip

By FRANK SENGE KOLMA   

THE managing director of the Independence Public Business Corporation (IPBC) Glen Blake has been sacked and a new board appointed, The National reports.
Blake was on Wednesday replaced by Thomas Abe and the new IPBC board is headed by Dr Thomas Webster.
These were the decisions of cabinet announced by Prime Minister Peter O'Neill on Wednesday.
The move on the IPBC is so severe that it promises a complete shake-up of the present state of affairs including the welfare and operations of the multi-billion-kina state-owned enterprises starting with PNG Power and Telikom, the possible dismantling of the Department of Public Enterprises, and the reversal of the corporation's focus and role of the past 10 years.
Flanked by Public Enterprises Minister Sir Mekere Morauta, Fisheries Minister Job Pomat and Air Niugini chief executive officer Wasantha Kumarasiri, the prime minister said the decisions had been made to correct past abuses and inconsistencies.
Sir Mekere said cabinet had terminated Blake for misconduct in office.
He accused Blake of paying himself millions of kina a year illegally on an unapproved contract and without the approval of the Salaries and Conditions Mo­nitoring Committee (SCMC).
Blake was also cited for inves­ting K31 million illegally in failed American investment house, Lehman Brothers.
Blake was said to be on sick leave in Australia but spoke through a friend to answer the charges yesterday, saying that his contract had the approval of the IPBC board, SCMC and the state solicitor before it was signed by the governor-general.
He said the K31 million investment had been done on the advice of BSP Capital in an investment house which, before it collapsed in 2008, was rated double "A", the best rating offered corporations.
Sir Mekere said Lehman Bro­thers had become insolvent and all the money was lost.
He said legal advice had been sought to recover money paid from Blake and also the money invested by him.
"All the investment was made without prior approval of the IPBC board.
"I find it difficult to believe that former minister Arthur Somare was not aware of this illegal investment," Sir Mekere said.
The auditor-general had ob­served that the investment was made without assessment of risk last year but the report was not tabled by Somare, he said.
Sir Mekere said: "The IPBC under Somare and Blake ope­rated under a thick veil of secrecy. The amendments to the IPBC Act that Somare cham­pioned stripped IPBC of transparency and accountability.
"It is my job to restore open honest governance to the operations of IPBC.
"Somare keeps telling the nation that all state-owned enterprises are performing fabulously as a result of his policies and actions. Nothing could be further from the truth.
"All are grossly under-capitalised. Some are bumbling along. Others are dead, but refusing to fall down.
"Somare mutated IPBC into an octopus with tentacles everywhere. This has weakened the central role of IPBC from being a house of rehabilitation to a warehouse storing junk.
"He has turned IPBC into a petroleum house in competition with ExxonMobil, Oil Search and Petromin."
Correcting the alleged mis­takes and putting the house in order would be the first big task of the new board, Sir Mekere said.
The new board headed by Webster included Felecia Dobunaba, Peter Aitsi, Aho Baliki and two members to represent the Insti­tute of Directors and the PNG Chamber of Commerce and ex-officio members in the managing director, the secretary for trea­sury and the secretary for justice.

Massive search for missing researchers in West New Britain

Caption: PNGIMR director Prof Peter Siba… 'massive search going on'

 

By MALUM NALU

 

Management of the PNG Institute of Medical Research has refuted "malicious allegations" on EMTV that it was not doing enough with the search and research and rescue efforts for its missing researchers.

 The five missing staff from the PNGIMR - Tanya Oakiva, Gibson Gideon, Leonard Vavana, George Dogoya, and Lydia Petrus - departed Milimala on mainland West New Britain destined for Bali Island on Aug 1 and have never been seen since then.

 "There seems to be lack of communication between relatives here in Goroka and other centres, and this has led to relatives getting emotional and over-sensitising the issues in the media," PNGIMR director Prof Peter Siba said today.

 "Since receiving news of the missing team, IMR has provided huge financial support towards the search operations.

 "This is of the biggest search operations in the history of PNG with the assistance of West New Britain provincial disaster office and the administration, National Disaster Office, National Maritime Safety Authority, Digicel, New Tribe Mission, Islands Airways, North Coast Aviation, Niugini Helicopters, Police and NBC West New Britain being engaged in search and rescue efforts.

 "The efforts include aerial searches along the New Britain island and the smaller islands within the West New Britain waters, Islands as far west as Long Island, Siassi islands, Bagbag, Karkar Island and along river tributaries on the main West New Britain mainland.

 "Provincial disaster offices in other provinces including East New Britain, New Ireland, Autonomous Region of Bougainville, Manus, Madang and Morobe have been informed and are doing what they can to assist."

 Prof Siba said as the area where the boat went missing was known for piracy-related activities, police had now been engaged.

 "Due to the sensitivity of the situation, much of the information on police activity is not available," he said.

 "Boat sightings have been reported, but, many of these stories are second, third or fourth-hand news and difficult to pinpoint the person who saw the boated and reported it initially.

 "The IMR management appeals to the locals to assist us in providing factual information about any sightings of the boat or missing people.

 "Search and rescue efforts are now concentrating on land as piracy becomes the main focus of investigations by police.

 "PNGIMR, in dialogue with the West New Britain provincial disaster office have since put a reward for information leading to recovery of its staff.

"The search is still continuing and we ask the relatives to understand the magnitude of this search operation and provide positive contributions and not malicious and negative attacks against the IMR.

 "The missing staff are employees and 'family' members of the PNGIMR, which is a State entity of the Government of PNG.

 "The IMR management and staff sympathise with the families of the missing staff, and are regularly updating the relatives."

 Prof Siba said the 2011 PNG Medical Symposium in Kimbe was still on, and could not be dictated by anybody other than the PNG Medical Society.

 "As usual, the IMR, as the premium research institution in the country, is sending a large group of participants to attend the symposium," he said.

PNG gets low literacy rating

By DULCIE OREKE

PAPUA New Guinea is placed at 148 out of 182 countries in a United Nations listing on national literacy rates, National Literacy Awareness Secretariat Willie Jonduo says, The National reports.
He said according to census 2000, of the six million people, "43.8% are illiterate".
"These statistics are alarming because when PNG is compared with the rest of the
countries in the world, using the United Nations human development index, its placing is 148th out of 182 listed countries," he said.
Jonduo said the Education Department, national library and the national literacy awareness secretariat had joined forces to improve the national literacy rate every year.
He said while the rest of the world would be celebrating International Literacy Day on Sept 8, PNG had extended that to a week given the language complexity and cultural diversity.
"The world is keeping an eye on PNG's education to ease and eventually eradicate illiteracy," he said.
Jonduo said PNG was a signatory to United Nations' declaration on education for all (EFA), and the country had to report on the achievements of EFA goals in 2015.
He asked if the country had evidence to show that it had done anything to achieve the EFA goals.
He said these goals included:

•   Expanding and improving comprehensive early childhood care and education, especially for the most vulnerable and disadvantaged children;
• Ensuring the learning needs of young people and adults were met through equitable access to appropriate learning and life skills programmes;
• Ensuring that by 2015 all children had access to free and compulsory primary education of good quality;
• Achieving a 50% improvement in levels of adult literacy by 2015; and
• Improving all aspects of the quality and excellent of education with measurable learning outcomes.

PNG gets low literacy rating

By DULCIE OREKE

PAPUA New Guinea is placed at 148 out of 182 countries in a United Nations listing on national literacy rates, National Literacy Awareness Secretariat Willie Jonduo says, The National reports.
He said according to census 2000, of the six million people, "43.8% are illiterate".
"These statistics are alarming because when PNG is compared with the rest of the
countries in the world, using the United Nations human development index, its placing is 148th out of 182 listed countries," he said.
Jonduo said the Education Department, national library and the national literacy awareness secretariat had joined forces to improve the national literacy rate every year.
He said while the rest of the world would be celebrating International Literacy Day on Sept 8, PNG had extended that to a week given the language complexity and cultural diversity.
"The world is keeping an eye on PNG's education to ease and eventually eradicate illiteracy," he said.
Jonduo said PNG was a signatory to United Nations' declaration on education for all (EFA), and the country had to report on the achievements of EFA goals in 2015.
He asked if the country had evidence to show that it had done anything to achieve the EFA goals.
He said these goals included:

•   Expanding and improving comprehensive early childhood care and education, especially for the most vulnerable and disadvantaged children;
• Ensuring the learning needs of young people and adults were met through equitable access to appropriate learning and life skills programmes;
• Ensuring that by 2015 all children had access to free and compulsory primary education of good quality;
• Achieving a 50% improvement in levels of adult literacy by 2015; and
• Improving all aspects of the quality and excellent of education with measurable learning outcomes.

9-Mile alcohol ban on

By JUNIOR UKAHA

NCD metropolitan commander Supt  Joseph Tondop has placed a total ban on alcohol sale and consumption at the 9-Mile settlement outside Port Moresby, The National reports.
This follows the killing of John Sine Kaupa, the operations manager of Kuima Security Services, during an alcohol-related violence on Sunday.
Tondop warned the 2,000-plus settlers of portion 2219 Moitaka Ridge and the Tari community yesterday that anyone selling or consuming alcohol would be dealt with by his officers.
A drunken brawl between a Tari man and a Kuima Security guard ended in Kaupa's death, and later triggered off a fight between the Chimbu and Tari groups.
He said the ban would be in place as long as he was the city's police chief.
Community leader James Mogia promised Tondop and NCD operations chief executive Andy Bawa that anyone selling alcohol in the area would be reported to the police.
Kaupa, who was allegedly killed by the Taris, was believed to have been drunk when he took his shotgun and left to retrieve a company bus that was damaged by a group of men that morning.
His younger brother Anthon Kaupa, who flew in from Lae, Morobe, on Monday, said there was no need for further violence as the matter was in the hands of the police and those responsible for the killing of his brother would be brought to justice.
Tondop said the police had set up camp in the area and would try their best to get the two groups together to live peacefully in the area.
Meanwhile, it is believed that at least four high-powered guns were among weapons used in the ethnic clash, including two M16 assault rifles and pump-action shotguns.
Tondop admitted that guns were used in the fighting but he could not verify the type of weapons used.
"Reports we received is that guns were fired in the night but that could not be verified," he said.
All stores in the area including 9-Mile's Sigirap market had remained closed and no buses were operating in the area due to the tension.

Sir Salamo asked to disqualify himself

By JULIA DAIA BORE

CHIEF Justice Sir Salamo Injia has been asked to disqualify himself from hearing the East Sepik provincial executive council's special reference case because of an "apprehension of bias", The National reports.
Lawyer Manuel Varitimos, of Young and Williams, representing Prime Minister Peter O'Neill, made the submission to the Supreme Court presided by Sir Salamo yesterday. But no detail of the "apprehension of bias" was presented to the court.
The East Sepik council is questioning the legality of the process used by the national parliament on Aug 2 to vote into office the Peter O'Neill-Belden Namah government.
Varitimos' application was submitted to the court during the second directional hearing to confirm the interveners in the proceedings who were named in this order from first to seventh: Attorney-General Dr Allan Marat, Jeffery Nape as speaker of parliament, the Ombudsman Commission, Sam Abal, Peter O'Neill, Belden Namah and National Alliance Party.
The counsel will argue Varitimos' application today.
Sir Salamo said "time was of essence" and ordered that the parties be served the necessary documents by 6pm last night and their response should be filed with the court registry by 9am today.
Sir Salamo will decide after hearing the submissions from both sides whether he should disqualify himself from the case.
It is understood that O'Neill is taking the issue with the fact that lawyer Terry Injia, the son of Sir Salamo, is employed by Steel Lawyers, the law firm of Rimbink Pato who is assisting lawyer Ian Molloy, representing the East Sepik council.
O'Neill's lawyers are expected to raise the issue of "apprehension of bias" on this basis.
They are raising issues because Injia had stated in an affidavit submitted to the court that he would be assisting Pato.

Somare case deferred

ANGORAM MP Arthur Somare's judicial review challenging his referral to the leadership tribunal has been adjourned yesterday to Monday, The National reports.
Presiding judge Justice Panuel Mogish said he did not have the files for the case.
The review was to have been listed yesterday.
Somare's lawyer Ian Molloy disrupted Mogish's hearing of criminal matters to have the matter heard.
But Mogish said he had other matters to deal with and that the file was not before him.
The matter is in relation to Somare being referred to the leadership tribunal.
The argument in the review was to question the legal powers that acting public prosecutor Camillus Sambua exercised in appointing state prosecutor Katwa Umpake to sign the referral.

Govt clarifies appointment policy

By ISAAC NICHOLAS

THE national government will not make wholesale changes to the heads of departments and statutory bodies.
Prime Minister Peter O'Neill yesterday said there would not be any political appointments, The National reports.
"We are making two changes in the public service because they did not follow proper procedures."
Department of Personnel Management secretary John Kali said on Monday that more heads of government departments and statutory bodies would be removed.
Senior government officers who had been removed since the O'Neill-Namah regime took office were Margaret Elias as chief secretary and Gabriel Yer of finance.
Manasupe Zurenuoc took over from Elias while Stephen Gibson was appointed acting finance secretary.
When asked about the confusion the changes would create if a Supreme Court reference challenging his election as prime minister, and the validity of his government, was upheld, O'Neill said parliament had spoken.
He said democracy was demonstrated by the parliamentary process which was determined by more than 50 votes to put a new government in office.
State Enterprises Minister Sir Mekere Morauta said parliament and the courts were independent institutions.
"The government must move on. It cannot wait for the courts to make a decision," he said.
But Sir Mekere said a decision on the matter by the courts would be respected.

Court to hear bid to restrain govt today

By JACOB POK

THE East Sepik provincial government's bid to obtain an interim injunction to restrain the government from withdrawing its financial powers will be heard in court today, The National reports.
The matter was heard yesterday at the Waigani National Court but adjourned because state lawyers were not present.
Despite the urgency of the matter, and the provincial government's move to have the matter heard ex-parte (only one party), presiding judge Justice Ambeng Kandakasi ruled that all parties should be present in court to properly deal with the matter.
He then adjourned the matter and told state lawyers present in court to advise their colleagues to appear today.
The Finance and Treasury had last week proposed to withdraw the financial powers of the Morobe and East Sepik provincial governments because of alleged abuse and mismanagement of funds by executives.
The Morobe provincial government successfully obtained interim restraining orders on Monday at the Lae National Court, temporarily stopping the government from signing instruments that would effect the decision to remove its financial powers.

O’Neill puts stop to withdrawal of powers

By FRANK SENGE KOLMA

PRIME Minister Peter O'Neill has directed a halt on all moves to withdraw the financial powers of provincial governments, The National reports.
O'Neill said yesterday:  "There is no NEC decision directing suspension or withdrawal of powers of any provincial government.
"If there is any allegation of financial mismanagement, there should be proper investigation conducted into the allegation first.
 "We do not want to appear to be vindictive."
The prime minister's directive comes as the East Sepik and Morobe provincial governments go to court to challenge the withdrawal of their financial powers, apparently by a ministerial edict on Aug 12. The order is said to have been issued from the Finance and Treasury ministry.
The Morobe government, on Monday, sought and got an injunction preventing the national government from withdrawing its powers.
The East Sepik provincial government's bid to obtain a similar injunction was heard briefly yesterday and postponed to today.
The prime minister's stance is likely to affect these matters on foot and will prevent future moves against provincial governments without any good cause.
Meanwhile, Southern Highlands Governor Anderson Agiru said yesterday cabinet had no authority to withdraw financial powers of a provincial government except in a state of emergency or during a war.
He said this was established beyond any doubt by the Supreme Court when he challenged the suspension of his provincial government in October 2000 by the Mekere Morauta regime.
The court voided division 8 of the Organic Law on Provincial and Local Level Governments which purported to authorise the National Executive Council to withdraw powers or suspend provincial governments.
That provision, in its entirety, was found to be contrary to the dictates of the Constitution and was declared null and void.
Agiru said the purported withdrawal of financial powers of the East Sepik and Morobe provincial governments went against that Supreme Court decision.
He further said the purported action had sent fear and instability racing up and down provincial administrations nationwide.
"There has been no investigation into the financial affairs of provincial governments, no natural justice accorded .... just generalisations about misuse and abuse of powers and finances.
"As I have said before, the prime minister has all the credentials but his ministers are going astray and he needs to pull them into line."

Natschol in, OBE out

By FRANK SENGE KOLMA

NATIONAL scholarship for tertiary students will be reintroduced by January next year, Prime Minister Peter O'Neill said yesterday, The National reports.
Among sweeping changes the government is introducing for the education sector under its free education policy:

• The controversial outcomes-based education (OBE) would be scrapped by January;
• Government to pay all tuition fees for students from elementary to Grade 10;
• Government to subsidise 75% of fees for Grades 11-12;
• No drop-outs at Grade 8; and
• Payment of K350 million into a special trust held by the Education Department by November this year for distribution to all schools by January.
  

O'Neill met with education, finance and treasury executives on Monday to thrash out the finer details of the policy.
He said he was confident that despite "early teething problems", the policy was on secure ground.
He said the OBE had failed and would be scrapped as well as the user-pay and the student loan policies for tertiary students.
"As a person who benefited from Natschol (national scholarship) with the K13 per fortnight allowance, I strongly believe that everybody has to get a chance," O'Neill said.
"The cost estimates that have been given to us for free education are well within our expectation.
"Education have estimated K610 million when we have planned for K700 million."
O'Neill said on Sept 20, the government would bring down a supplementary budget during which K350 million would be allocated and parked in a special trust account held by the Education Department for this purpose.
He said in order to avoid delays in payment, the government would start releasing payments by November and December so that, by Jan 1, all schools would have received their fees.
On school drop-outs, the education officials wanted to maintain a hybrid structure where some drop-outs are allowed at Grade 8 but the prime minister was dead against that.
"We are using the same infrastructure so I cannot see why we cannot accommodate more," he said.
"We have to utilise what we have smartly.
"We have a good environment. We can have classes under coconut trees.
"I do not see why we should not have night classes in places where there is electricity.
"Why should we deny our children the right to education just because we have capacity issues?"
O'Neill said for the first time, the 2011 development budget allocation for education would be fully utilised.
At present, about 20% of the entire recurrent and development budget goes to education.
By the time the free education policy was implemented, it would be closer to 30%, which puts education spending among the highest in the world, he said.
The prime minister assured that such heavy emphasis on education would not take money away from other priority government areas such as health, infrastructure and law and justice.
"We have the money. We just need to spend it right," he said.

Goroka girl having time of her life in San Antonio, USA

Caption: A proud ambassador for PNG... Goroka girl Serah Gahuno meets Rotary International president Ray Klinginsmith at the New Orleans Rotary International convention in May.-Picture courtesy of SERAH GAHUNO

By MALUM NALU

Goroka girl Serah Gahuno is having the time of her life in San Antonio, Texas, United States of America, as an exchange student at Providence High School.

The 18-year-old former Goroka Secondary School student is the first-ever exchange student sponsored by the Rotary Club of Goroka, District 9600 (which covers parts of Queensland, Solomon Islands and Papua New Guinea), for this unique scholarship.

"The Rotary District 9600 Youth Exchange Programme is designed to give young people aged 14-17 years with the opportunity to study overseas," explains Port Moresby-based Rotarian Rio Fiocco.

"The programme allows young people to develop their leadership potential and gain experiences that will assist them in forming their own values and moral standards.

"The program builds confidence, self-esteem and broadens one's cultural, social and academic horizons.

"Serah is being home hosted by various Rotarians in San Antonio, Texas.

"During her 12 months study in the USA, Serah has been visiting various Rotary clubs in Texas where she has been telling people about her country and her people's culture."

Gahuno is part Nagamiza and Kerefa villages in Eastern Highlands province, was born on Feb 7, 1993, and is the oldest and only girl in a family of three younger brothers – Emmanuel, Wayne and Abraham – as well as stepbrother Osbourne.

Her father is Raymond Gahuno and mother is Stella Gahuno.

Gahuno did her elementary school at Goroka Christian Academy in 2002-2003, primary at East Goroka Primary School in 2004-2008, and secondary at Goroka Secondary School in 2009-2010 when she was selected to go to the USA.

She remembers that last year, she was awarded the scholarship after it was awarded to her school, requiring students aged 16-18 to fill out a paper and then write a short essay on how much they knew about Papua New Guinea.

"Several of my class mates, plus other students,   filled out the application plus having our parents to sign the paper we handed in to the school's administration," Gahuno told me from San Antonio this week.

"Later that same day, my mum got a call from the Rotary Club of Goroka that I would attend an interview at the Bird of Paradise Hotel.

"It was not only me who went for the interview, but two boys from my school, so we were three altogether.

"In the interview, the Rotarians gave us few minutes to stand up and talk about what we know about Papua New Guinea and how we could tell other people about the country.

"They gave us few days to wait and then, again, my mum got a call that I finally won the scholarship.

"That's how I was told I would come to US.

"My exchange year is form 2011 to early 2012.

"It's a year's exchange."

San Antonio is the seventh-largest city in the USA and the second-largest city within the state of Texas, with a population of 1.33 million.

It's a world away from home sweet home in 'kol peles' Goroka, however, Gahuno is enjoying every minute of it

"Well, San Antonio is one of the top cities in Texas with lots of beautiful attraction like Alamo Riverwalk," she says.

"It has the influence of mostly Mexican-American culture, which makes me love the TexMex food, especially tacos.

"I am attending a Providence Girls Catholic School, San Antonio, Texas.

"My thoughts of being an exchange student challenged me as to how well I can become a good ambassador of my country, and also helped me to improve my skills of communicating with people of different occupations, religion and people from different parts of the world.

"Being here in USA is very different to me and it makes me feel a lot different.

"When seeing things here, it makes realise how long I've been missing all these technologies, which I'm just now trying to explore.

 "Almost everything seems to be my first time experience!

"All I can say about the difference is, here is a developed nation as the world knows, and Papua New Guinea we are developing but I still love my country.

Gahuno says being an exchange student gives her the greatest opportunity to explore the world and also enables her to broaden her knowledge.

"Everyday, there is more to learn, see and talk about," she tells me.

"Being here in San Antonio, Texas, United States, was a surprise for me.

"I have met other exchange students from almost all parts of the world and that helps me to understand the diversity of people we are.

"One of the interesting facts is that while being here for my exchange year, it has been a great opportunity for me to be an ambassador of my country and to share the diverse culture PNG has.

"Everywhere I went, people thought I was from Africa, which sounded strange to me.

"When they asked me where I'm from, I told them I'm from Papua New Guinea but they couldn't figure out where exactly it was located,

 "I told them it was an island off Australia, and from there they started Googling and learned more about the country.

"This was the case not only with the Rotarians but also in the school that I attended, and families that I stayed with.

"Now I am glad at least people know where PNG is.
 
"One thing that I can never forget is carrying my country's flag at the Rotary International convention in May at New Orleans.

"That time was the first time in my life that tears fell from my eyes while walking with the flag in front of thousands of Rotarians from around the world.

"When I took my seat I said, 'Thank God here I am a Papua New Guinean carrying my own flag and not a representative'.
 
"Being here is a challenge for me as well as a stepping stone.

"Not because of what I've done but because of God's plan in my life.

"The things I see help me to think further beyond.

"Personally, I would like to thank my loving parents who are always there for me, my cheerful brothers, all my family, friends and most importantly to Goroka Rotary Club and its members, especially Lesley Ririka.

"Last but not the least, thanks to the 9600 Rotary District in Australia and my host club San Antonio Mission Trails in District 5840.  

"My words to young people of Papua New Guinea is Phillipians 4:13: 'I can so all things through Christ who gives me strength'."

Gahuno says she would love to continue college studies in the USA if given the opportunity.

"I would love to do my college here if I get a chance to and go into medical school," she adds.

"In the future, I would like to work in the medical field and help my own people.

"I have been set up by the Rotarians at the hospital so I can do hospital tours and I really love it.

 "Big thank you to Goroka Rotary Club and the Rotary International for their work of 'Service above Self'."

Wartoto: ‘I have nothing to hide’

By MALUM NALU

Kokopo businessman Eremas Wartoto (pictured above with his Fokker 50) today declared that he had nothing to hide about the K10 million he received from the government to help start his Travel Air company.

He said this after arriving in Port Moresby from Madang on a training flight on his Fokker 50 with his pilots, a day after its arrival from Amsterdam in the Netherlands.

The F50 is one of seven plans that Wartoto plans to bring in to Papua New Guinea.

However, shortly after talking with reporters on the tarmac at Jackson Airport, Wartoto was seen being questioned by police detectives before he flew back to Madang

The K10m has been the subject of much controversy lately, with accusations of foul playing involving Wartoto and former National Planning Minister Paul Tiensten.

"I won't waste time," Wartoto told reporters.

"I'm going straight into training and infrastructure.

"I have no shame in spending some of that money in training our pilots and our engineers.

"The (K10m) subsidy was given to me.

"I applied for it from the government through normal processes and I was given the money.

"I thank the government for that subsidy.

"Today, you can see how that subsidy is being spent.

"The money is auditable and traceable.

"The K10m is not about buying the plane – it's about the infrastructure."

Wartoto said his new airline would travel into remote areas of the country such as Maprik in East Sepik, Palmalmal in East New Britain and Kandrian in West New Britain. 

He also has plans to spend K150m on a new hangar in Madang and on setting up an aviation college.

"This is not about Eremas Wartoto," he said.

"This is about PNG infrastructure.

"This is about 200 national employees."

Wartoto said of the six additional aircraft to come, three would be from Malaysia on lease purchase while three would be from the USA on operating lease.

Asked about his move into aviation, he replied: "It's painful and the publicity doesn't help.

"I'll be based in Madang because that's the centre of PNG.

"Such an infrastructure drives development to the rural areas."