Thursday, April 17, 2014

Prime Minister's Impropriety - Direction for Immediate Payment of K50 Million to Israeli Company

I am a senior officer with PNG Power Limited (PPL) and I seek your understanding that I remain anonymous on the above matter

Attached herewith please find documents on the above transaction which appear to be serious. I view PPL was used as a vehicle to facilitate the payment of KSO million paid to an Israeli company in the pretext of acquiring two generators for Port Moresby and Lae power operations.

It is for the first time a Prime Minister (PM0 has Used PPL to transact a substantial amount of money (K50 million ) using PPL· There were no due diligence, cost benefit analysis, compatibility of technology analysis  and budget and financing arrangements as such are important procedural requirements to making decisions to acquire goods and services. PPL has a comprehensive procurement process in place in acquiring goods and services and it has been long administered by highly qualified staff. There was never a consultation between PM and PPL to acquire the power generators for the two cities.

The PPl Board and the senior management were not  made aware of the transaction. It was a transaction concluded outside of the PPL systems and processes which I believed the PM only used PPL name for his personal gain. As I have full knowledge, PPL has not made a request to the government for the purchase of power generators.

I have done further research and ascertained the K50 million was released on 18 December by cheque No# 004621 to the Bank of PNG (BPNG) as per PM’s instruction of 4th December 2013. There  are warrant authority and cash fnd certificate attached herewith which showed that the K50 million was released to BPNG by Acting Secretary for Treasury Dairi Vele.

I am also astonished to learn that a commercial invoice No# AL3001 was issued to the Independent State of Papua New Guinea by LR Group (Israeli company) for US$20,400,000.00 (K50 million). This is appalling because there is no contract of engagement for services to be rendered by the mentioned foreign company nor there was any services rendered to the state which warranted the invoice.

The document showed that Prime Minister instructed for a transaction to occur between BPNG and Federal Reserve Bank of New York on 20 December 2013 for US$20,400,000.00. The money was transferred via JP Morgan Chase Bank, New York, USA to Bank Leumi CE Israel B.M Tel-Avis Main Branch in the account of LR Group Limited.

This is serious breach of the laws pertaining to application of public monies. In particular the Public (Finance) Management Act which stipulates for strict compliance of the procurement process which was violated. There is also breach of the IPBC Act and Constitution pertaining to the use of people’s money.

Mr Chairman the amount of K50 Million of tax payers money was sent to foreigners. The Government’s normal and prescribed procurement process were not complied. This is absolutely corruption and such act must be investigated and the PM and those involved must be fully investigated and they must face the full force of the law.

I am also wondering on the rationale behind the governments purported assistance for PPL as IPBC board has not approved such transaction as PPL is 100% owned by IPBC. Commercially it would appear that the assets (generators) would be later converted to equity in PPL and IPBC has every right to be involved in such transactions from a shareholder’s perspective.

The above case is far more serious than the convicted leader Paul Tiensten’s case. Mr Tiensten only footnoted for the payment of K10 Million when he was Minister for National Planning. In this case the PM had written to Acting Secretary for Treasury with specific instructions with an intended purpose.

Having had said the above, it is urgent the Taskforce Sweep Team arrest the PM and prosecute him under criminal law for his direct involvement in the transaction.

Yours sincerely

Silent Whistleblower

Tuesday, April 15, 2014

The cries of Kopiago are being heard


This is a story that needs to be told. According to the World Health Organization report ‘ Country cooperation strategy at a glance’ published in 2013 stated that 88% of Papua New Guinea’s population still lives in the rural settings. The report is also quite alarming as it further emphasized that PNG is ranked 156th out of the 186 countries of the United Nations Human Development index.

When I read the report, I was astonished as the report turned my mind into one of the least developed districts in the country called Lake Kopiago sometimes regarded as Mula Range or Mula flavour, a description that best fits the people of Lake Kopiago in the Hela Province. The report was quite interesting as it eluded me to the struggles and the pain that the rural people in most part of the country face in the name of service delivery.

Lake Kopiago is regarded as one of the least developed districts in the Hela Province. The district has a total population of approximately thirty thousand people most of them are farmers, fisherman and hunters. Discovered by the early explorers in the late 1950s, the first patrol post was set up in 1964. Within the vicinity of the patrol post was a low constructed district office and not far was the district aid post, recently in the late 1980s upgraded its status to a health centre without much improvements to its purpose of existence. The Health centre has two buildings erected back then now still stands with very minimal improvements at all.

Travelling by road to Lake Kopiago from the recently approved Hela Province which houses 80 percent of the much talked about LNG Project is such a nightmare. Sometimes described, as the road to hell is the experience to most of the road users nowadays. Steep terrains, muddy gorges with two log bridges fits in the description to the road itself even though the road is mapped as the last frontier to the famous Highlands highway. This itself adds sore to the chores of development as the high level of fragmentation is visible between the three arms of government in the name of service delivery and the district remains the same even after 39 years of independence.

The WHO report also stated that the leading health problems are communicable diseases such as malaria, TB, diarrheal diseases, HIV, infant mortality are a major cause of morbidity and deaths. Lake Kopiago is no exception and contributes a significant number to the country’s tally. Mothers give birth in the night with candlelight with very little assistance from a health worker while the husbands pray to the good Lord for strength to endure such a pain. Subsistence farmers die young while working due to respiratory diseases and TB while plouging in the garden to make ends meet for their children’s school fees. This is some story that needs to be told. Elections have come and go, the people of Lake Kopiago were promised by candidates and the high level government delegation that service delivery will reach the electorate, the road will be built and the health centre will be refurbished, nothing has transpired. I have been an advocate of service delivery in my electorate and does contribute in a little way using the mass media to preach about the lack of services reaching my people and this write up is not a political gimmick. I did this to educate our people on some of the good work that some of our leaders are doing that is worth mentioning without any political affiliations or whatsoever kind. I read with interest about the recent visit to Lake Kopiago Health Centre the local Member for Koroba Lake Kopiago Philip Undialu initiated which saw Department of Health heavies led by Deputy Secretary of Health department Dr. Paison Dakulala and his team. This fascinated me as I have actually written project submissions under the various project development grants requesting funding for the hospital rehabilitation over time but nil funding have been received. Attention have been given to other landowners as the government’s attention shifted. I am sure my proposals are becoming cockroach’s shitting ground somewhere in Waigani now but thank the good Lord for the nature and the continuous blessing to my people, the trip was worth it.

Dr. Dakulala was accompanied by his department’s facility manager Ambrose Kwaramb and Mr. Undialu brought some of his local level government council presidents with him to show them the site of the deteriorating state of the Lake Kopiago health centre. Unlike Tari and Koroba districts where the team had to travel by road and visit the place, the trip to Lake Kopiago was in a chopper due to the poor road conditions. People turned out in numbers to receive the delegation, as this was the first of its kind a parliamentarian has brought in a heavy delegation from the health department itself to assess the current condition of the forgotten health centre. The team especially Dr. Dakulala could not believe what they had seen.

The health center ward, rotting away in tatters, leaking roof, shortage of medicine and lack of professionals on the ground to attend to the people are only the tip of the iceberg. The health center itself is the center that serves the population of the district and its quite daunting especially in the night as the only power house that assembles the district generator has fallen apart some 10 years ago due to non-repairs. Unlike in the past where these sorts of visits are celebrated with feasting and pig killing, Mr. Undialu opted for a quite reception as in fact everyone was caught by surprise.

I am sure Dr. Dakulala will agree with me to the calamity of the health services that the people of Lake Kopiago face with reference to service delivery. The local MP Philip Undialu has done the right thing by bringing the government leaders to assess and get first hand information of how the level of health services are reaching his people. Funds are being sourced by people and organizations through various government funding to rehabilitate the health centre but if there is any report that can have weight and serve the purpose of alleviating the standards of the people in essential health service delivery is what Mr. Undialu has already started by allowing leaders to see for themselves without hearing from others in the corridors of Waigani.

I wish to do another write up in the near future mentioning the improvements that the people of Lake Kopiago have faced as some infrastructural development has taken shape especially in the deteriorating health sector and I am sure its not too long. I am sure you have your own story too where infrastructural development have not been visible to reach out to the very people and place you call family and home and this is my story.

Monday, April 14, 2014


By Former PNG Journalist

As the Unitech saga fades into time, it leaves positive thoughts in the minds of thousands. Most of us will not forget the dedicated young people who bravely stood up and spoke out against corruption.  The government repeatedly threatened the students hoping to frighten them into submission. Through the government's two mouthpieces, The National and Post Courier, we read the many smug editorials that belittled the students
as foolish and irresponsible, then telling them to behave themselves and go back to class.

But students held their ground and spoke out despite being surrounded and discouraged by a sea of older people who displayed varying degrees of cowardice when challenged to join the fight for two basic principles of decent humanity:  truth and justice. The Unitech boycott was a brilliant success, but why?  We need to know
so that the techniques can be applied later and elsewhere. 

Effective activism at all levels of society against the growing dictatorship and corruption of our government is badly needed. I explored what made the Unitech Saga 2014 so successful by interviewing a number of student and staff residents, as well as outsiders who are connected to the university.   Their responses revealed 12 key activities or ways of doing things that led to this victory.  They are presented here in the order of occurrence.


After the failed 2013 boycott brought humiliation to the SRC president 
Livingstone Hosea, it was in his selfish interest to get everyone to forget about all that.   Not surprisingly, when SRC elections were around the corner, Hosea supported candidates who didn't speak out about the Saga, including Hosea's chosen successor, Eddie Nagual. During campaign week, hardly any intending candidates mentioned the Saga. However, some people refused to follow the leaders and saw the Saga as a battle of good versus evil.   Christian radicals and others went to work, covering the campus with information papers.   The Saga and Schram ended up being the talk of the campaign.  This people power activism in defiance of the SRC was the first key action that eventually led to victory.


In December 2013 Sir Nagora Bogan and his interim council voted unanimously to declare Schram the innocent and legitimate VC and invite him back.   This brave act inspired all who felt that Schram was being treated unjustly and brought him much new support.

3. THE SCHRAM ISSUE WASN'T FORGOTTEN (AGAIN) (November 2013-February 2014)

During the school holidays Facebook was filled with comments supporting Schram.    Activist students established a Facebook page dedicated to the Saga.  They fortified each other, organised, and pushed the new SRC president to make clear how he would work to bring  back Schram.   More than once Nagual as a facebook administrator erased postings in a futile attempt to stop the criticism.  When classes began and the SRC president remained quiet (partly because he was attending a family matter), the activists did not wait.   At the
start of the school year, radicals at Unitech defied the SRC and pushed the issue back into the open.

4. DAVID ARORE SACKED (February 2014)

How powerful was the social media was in causing Minister Arore's downfall?  All we know is that  his sacking came after a series of PNGBlogs articles on Arore's corruption and incompetence.   The print media published nothing and thus can take no credit. When Arore fell, it inspired many students to believe for the first time that they could defeat the government.


Unitech staff member Ken Polin risked his job and livelihood to deliver an inspirational speech to students and staff and in the process became Unitech's symbol of genuine Christian consciousness. His one man awareness forum for students and staff outside the administration building defied the foot dragging senior executive
management.   Polin's bravery may have pushed SRC president Nagual into action to start holding student forums to plan strategy.


STRATEGY USED AGAINST THEM (March 2014) How many governors threatened to withdraw school fee support if students didn't return to class?  What about Minister Delilah Gore's (actually David Kavanamur's) threats to expel boycotting students, deny scholarships to those who continued to strike, and cancel the academic school year?  It turns out that before any of this happened, students were educating each other about the "divide and conquer" tactic   When the tactic was carried out by the Unitech administration and the government, the students were ready.


Unitech student power did not come from being students, or because they represented thousands of warm bodies, or even because they stopped attending class.  The power was created by their nonviolent refusal, time and time again, to back down. Adding to that initial power was the growing support that students were given by ex-unitechs and anticorruption activities as well as parents of the students, and even a few politicians.

While the students' power grew, the government's power was falling apart.  Behind her threat, Minister Gore didn't have the option of shutting down Unitech because of the severe financial and logistical repercussions this would bring to the government.   As the day of no return for salvaging the school year drew nearer, the government
became increasingly desperate to settle with the students.

Despite all this, in the end it was chance and chance alone that gave the students victory after only 5 weeks of boycott.   The chance occurrence was the appearance of several national issues that built up public anger throughout PNG, namely the suspicious K3 billion UBS loan and sacking of Minister Don Polye.  Anti corruption groups raised their voices, with the prospect of a UPNG student boycott. If this new anger had combined with what was already present at Unitech, the resulting people power might have brought down the government, just like in 1996 with the Sandline Scandal.   The fear of a large people power movement is what ended the last battle of the Saga.  O'Neill used surrender instead of victory to put Unitech out of action.   It was more important to secure his government than plot further against the Unitech VC.    The government surrendered, Schram returned, the boycott ended, and with the end of the boycott came the collapse of Unitech student power.  This then freed O'Neill to neutralise other movements against his government.


Refusing to negotiate isn't usually a winning strategy and Nagual's refusal to negotiate with both the Unitech management and the government could have been a disaster.  Nagual's stubbornness only worked because it was backed up student power that was overwhelming compared to that of the government. Nagual maintained his 'no negotiation' stance during two high pressure Unitech meetings held between SRC and government ministers.  If he had compromised during either, the government would have reached an agreement with the SRC that would have brought Schram back to PNG on a tourist or business visa and not being able to set foot on campus nor
resume his VC job for weeks if not forever.   The Saga would have ended up in failure for the students.


Until the 2014 boycott began, Nagual showed little sign of wanting to lead a fight to bring back Schram but once he got going, he usually made the right moves.   His youthfulness was poor preparation for such a challenge, but Nagual never displayed the oversized ego of his predecessor.  His mind was genuinely open to listening to and
following sound advice.


There is evidence that radical, nonviolent elements at Unitech significantly defined the saga even though they held no leadership positions.  If not for them, the majority conservative SRC leadership would have implemented more policies resulting in there being no boycott, limited boycott, or a negotiated end to the boycott, all of
which would have made the Saga a failure. Conservatives within the SRC became obstructionists because they were afraid to take risks, afraid of being sued in court, and generally afraid of doing anything innovative or strong.   Nagual stayed away from many SRC coordination committee meetings during the hottest point of the boycott. This  freed him to ignore the conservatives and maintain a more radical approach. The conservatives did  help to keep the boycott nonviolent, but most Unitech radicals seemed nonviolent anyway. Radicals operating outside the SRC did extensive awareness and succeeded at pushing more radical actions. In the end, victory for
Unitech was won by the radicals since only the radicals were fully committed to the no negotiation demand of "No Schram, No Class".


Our culture has a big problem with keeping information hidden that should be public knowledge.  A big reason why our country is so corrupt is that we don't speak out when we witness corruption and we don't make things transparent in a way that exposes corrupt people and shames them the way  they deserve.   Even people who consider themselves committed Christians usually will not speak out when they see others doing immoral or illegal activities. Unitech Saga is probably unique in the nation's history because of the strong display of transparency and exposure of wrongdoing.  People reported on unethical and corrupt activities right and left.  The
results were exactly what Transparency International always predicts: corruption cannot operate or be sustained when exposed to light. It's safe to say that if it were not for the fact that the world could read what was going on at Unitech, much would have been covered up and the Saga would have been a failure.   Spreading information gives power to all who want justice and truth to prevail.  PNGBLOGS led the way.


It appears that Eddie Nagual was far from being the only person who stubbornly refused to back down on centimetre on the "No Schram, No Class" demand.  Threats against those supporting Schram came from all
directions but obviously were ignored.   Only through amazing perseverance did the passing of 2 years fail at fading interest in the Saga.


High school students learn about Gandhi, King and Mandela and in the Bible we learn about the activism of Jesus Christ who spoke out on behalf of the poor and mistreated.  All these great men were social radicals who took risks and in all but one case, paid for justice with their lives. Most of us don't follow the ways of these great people even though we admire what they achieved.  But we will never outgrow the paralysing effects of corruption and the bad reputation it brings to all of us if we do not start becoming real activists.  We cannot allow those with
power continue to abuse that power and take advantage of us.  We must stop being afraid to take risks.  We must speak out no matter what those above us tell us to do. That is what democracy is all about.
Before the boycott, Unitech SRC President Eddie Nagual's behaviour seemed to best fit the definition of a conservative afraid to take risks.  Some say the Unitech saga's radicals succeeded in radicalising him.  
Let us pray this is true not only for him, but for all of us.