Million Kina abuse of Defence Fund by PNG Defence Minister Pok and Secretary Porti
By JOE BEIG
The Papua New Guinea Defence Force (PNGDF) has for the first time since 1975 enjoys myriad of tangible options to obtain needed financial and material support from Government of Papua New Guinea (GoPNG) and PNG’s main international development partners. The support is essentially to revitalize its outdated and aging equipment and assets including re-equipping and developing of its capability. This development plan has been made possible through PNG’s good political environment and favorable economic future.
The encouraging political and economic environments continue to trigger investors’ confidence. This confidence is reflected from commitment made by renowned investors to invest in the lucrative LNG project. This project is still in its construction phase but progressing extremely well and it is nearing completion. The next phase will see the project geared into full production and revenue starts to flow into PNG’s coffer around 2014/2015. Similar development plans were undertaken to develop the second LNG project in Gulf and Western Provinces. Both of these major revenue making projects will be complemented by various existing and emerging development projects around the country.
The snowball effects of these financial benefits will be used to fund various sectorial and agency development programs. As one of lead government agencies, PNGDF will now benefit from these funds. The following are some programs government has approved for PNGDF to pursue with funds sourced from GoPNG, and its potential selected international development partners. These include funding support from GoPNG of K170 million, K520 million credit facility from Exim Bank of China, undisclosed fund under credit facility arrangement from Exim Bank of New Zealand, undisclosed fund under credit facility arrangement from governments of South Korean and Germany, and unlimited credit facility from the Indonesian President to PNGDF. Once again, this funding support is a result of high level of confidence international development partners’ have on PNG’s positive political and robust economic environments, respectively.
The current Defence hierarchy should use these support as an opportunity to show-case its potential and ability to implement the PNGDF development plans. Similarly, it should apply sound leadership traits in order to use these funds appropriately to ensure PNGDF’s programs are materialized. Unfortunately, it was uncovered recently that Minister Pok and Secretary Porti are allegedly soliciting amongst themselves and their cohorts both domestic and international to siphon both funds and material support elsewhere. The plot to siphoned this fund is contrary to 2013 Defence White Paper focus. This subversive act also infringed and undermined PNGDF’s programs which were sanctioned by the government recently.
The sources of these funds and their intended purposes are briefly outlined below.
GoPNG. The GoPNG funding of K170 million was approved by the National Executive Council (NEC) in December 2012 for PNGDF capability development. The draw-down of K40 million from that fund for capability development for year 2013 was released. In contrary, Minister Pok and Secretary Porti have allegedly diverted K22 million, K10 million, and K8 million respectively to unbudgeted and unplanned projects as detailed below:
Exim Bank of New Zealand. This is an official agreement made between New Zealand (NZ) and PNG governments and has been systematically and transparently pursued by Defence organisation officers. From this funding arrangement, the following fixed wing aircrafts will be procured; 2 PAC 750 for section strength troops transportation, 1 PAC 750 for surveillance, 1 PAC 750 for medical evacuation, and 2 CP4-E for use as trainer aircrafts. Minister Pok and Secretary Porti should vigorously push for this procurement because it is a transparent government to government arrangement and has met all requirements.
Government of Republic of Indonesia. The credit facility from RI was again allegedly pursued by Minister Pok and Secretary Porti. With obvious knowledge of transparent arrangement between governments of PNG and NZ, it is alleged that these leaders have been ignorantly soliciting with their cohorts in PNG and RI to procure the following equipment and items: 2 helicopters, 2 CASA fixed wing aircrafts, undisclosed number of Armored Personnel Carriers (APCs), undisclosed number of small arms and ammunitions, undisclosed number of military uniforms, and undisclosed number of ships.
German Government. There was additional option to conduct visit to Germany for possible negotiation with government of Germany for possible purchase of naval ships. The subsequent trip to Germany was made by officers from Defence and other relevant government agencies. It was agreed in principle that the German government will use its credit facility to progress any procurement process. Consistent with information obtained on ship standards, discussions between government of PNG and Germany were initiated and they are still progressing. The funding will initially come from part of K170 million earmarked by PNG government for PNGDF capability development. Similarly, reasons known only to Minister Pok and Secretary Porti, they continue to pursue unsanctioned plan with RI to procure undisclosed number of ships.
These allegations are very serious. In view of their destabilizing acts, it can be deduced that Minister Pok and Secretary Porti are obvious threat to national security. They both should be immediately replaced as Minister for Defence and Secretary for Defence, respectively in order to stop this insanity including the strategy they have cunningly orchestrated. With the support gained from their cohorts in PM’s Office and Parliament House, other private and government officers in PNG including those who drive this conniving plan in RI, it is likely that they will continue to frustrate and derail smooth procurement processes.
The encouraging political and economic environments continue to trigger investors’ confidence. This confidence is reflected from commitment made by renowned investors to invest in the lucrative LNG project. This project is still in its construction phase but progressing extremely well and it is nearing completion. The next phase will see the project geared into full production and revenue starts to flow into PNG’s coffer around 2014/2015. Similar development plans were undertaken to develop the second LNG project in Gulf and Western Provinces. Both of these major revenue making projects will be complemented by various existing and emerging development projects around the country.
The snowball effects of these financial benefits will be used to fund various sectorial and agency development programs. As one of lead government agencies, PNGDF will now benefit from these funds. The following are some programs government has approved for PNGDF to pursue with funds sourced from GoPNG, and its potential selected international development partners. These include funding support from GoPNG of K170 million, K520 million credit facility from Exim Bank of China, undisclosed fund under credit facility arrangement from Exim Bank of New Zealand, undisclosed fund under credit facility arrangement from governments of South Korean and Germany, and unlimited credit facility from the Indonesian President to PNGDF. Once again, this funding support is a result of high level of confidence international development partners’ have on PNG’s positive political and robust economic environments, respectively.
The current Defence hierarchy should use these support as an opportunity to show-case its potential and ability to implement the PNGDF development plans. Similarly, it should apply sound leadership traits in order to use these funds appropriately to ensure PNGDF’s programs are materialized. Unfortunately, it was uncovered recently that Minister Pok and Secretary Porti are allegedly soliciting amongst themselves and their cohorts both domestic and international to siphon both funds and material support elsewhere. The plot to siphoned this fund is contrary to 2013 Defence White Paper focus. This subversive act also infringed and undermined PNGDF’s programs which were sanctioned by the government recently.
The sources of these funds and their intended purposes are briefly outlined below.
GoPNG. The GoPNG funding of K170 million was approved by the National Executive Council (NEC) in December 2012 for PNGDF capability development. The draw-down of K40 million from that fund for capability development for year 2013 was released. In contrary, Minister Pok and Secretary Porti have allegedly diverted K22 million, K10 million, and K8 million respectively to unbudgeted and unplanned projects as detailed below:
Exim Bank of China. Minister Pok has headed the government delegation to facilitate this credit facility of K520 million from Exim Bank of China. It was alleged that major portion of this fund will be used to fund various activities to re-locate Murray Barracks Area. The presence of Chinese consultants in MBA is a result of that understanding. There are also allegations that few consultants from Prime Minister O’Neill’s Office are engaged in collaboration with Chinese consultants to conduct initial consultancy work at MBA. The PM’s Office also assigned an Aistralian consultant sub-divide MBA.
- K22 million was diverted to upgrade road system within Murray Barracks Area (MBA). This is a National Capital District (NCD) responsibility but why would these two leaders act otherwise.
- K10 million was earmarked for sub-dividing of Murray Barracks Area into sections and allotment for sale. This project has attracted consultants from Australia, China, and few were allegedly sourced from Prime Minister O’Neill’s Office.
- K8 million was diverted for military uniforms from Republic of Indonesia (RI) without diligent quality and price checks.
Exim Bank of New Zealand. This is an official agreement made between New Zealand (NZ) and PNG governments and has been systematically and transparently pursued by Defence organisation officers. From this funding arrangement, the following fixed wing aircrafts will be procured; 2 PAC 750 for section strength troops transportation, 1 PAC 750 for surveillance, 1 PAC 750 for medical evacuation, and 2 CP4-E for use as trainer aircrafts. Minister Pok and Secretary Porti should vigorously push for this procurement because it is a transparent government to government arrangement and has met all requirements.
Government of Republic of Indonesia. The credit facility from RI was again allegedly pursued by Minister Pok and Secretary Porti. With obvious knowledge of transparent arrangement between governments of PNG and NZ, it is alleged that these leaders have been ignorantly soliciting with their cohorts in PNG and RI to procure the following equipment and items: 2 helicopters, 2 CASA fixed wing aircrafts, undisclosed number of Armored Personnel Carriers (APCs), undisclosed number of small arms and ammunitions, undisclosed number of military uniforms, and undisclosed number of ships.
These leaders are adamant that the remaining K130 million from GoPNG for capability development will be used to procure sub-standard equipment and items from RI. This plan is subversive in nature and is totally flawed because it breaches PNGDF’s initial intention to secure this fund.Government of South Korea (SK). The SK government also has state owned credit facility. After initial discussions, it was agreed in principle to facilitate PNGDF’s requirement using its facility. This plan was made based on diligent check on quality of South Korean built ships including their durability standards, maintenance backup as well as training capabilities. The plan is still in its infant stage. The funding will initially come from part of K170 million earmarked by PNG government for PNGDF capability development. Consistent with this arrangement, PNGDF Maritime Element has commenced initial discussions to procure 6 IPU (inshore patrol vessel) and 2 OPU (offshore patrol vessel) from SK. But reasons known only to Minister Pok and Secretary Porti, they continue to pursue unsanctioned plan with RI to procure undisclosed number of ships.
German Government. There was additional option to conduct visit to Germany for possible negotiation with government of Germany for possible purchase of naval ships. The subsequent trip to Germany was made by officers from Defence and other relevant government agencies. It was agreed in principle that the German government will use its credit facility to progress any procurement process. Consistent with information obtained on ship standards, discussions between government of PNG and Germany were initiated and they are still progressing. The funding will initially come from part of K170 million earmarked by PNG government for PNGDF capability development. Similarly, reasons known only to Minister Pok and Secretary Porti, they continue to pursue unsanctioned plan with RI to procure undisclosed number of ships.
These allegations are very serious. In view of their destabilizing acts, it can be deduced that Minister Pok and Secretary Porti are obvious threat to national security. They both should be immediately replaced as Minister for Defence and Secretary for Defence, respectively in order to stop this insanity including the strategy they have cunningly orchestrated. With the support gained from their cohorts in PM’s Office and Parliament House, other private and government officers in PNG including those who drive this conniving plan in RI, it is likely that they will continue to frustrate and derail smooth procurement processes.
