WARNING ON ARTIFICIAL INCREASE IN KINA

By JUSTIN PARKER


My fellow country men and women, please be aware that their is a secret meeting between the Central Bank and the Bankers in PNG to artificially increase the Kina, which to my reliable source claim that an increase of around 20 plus %, which the Central bank will most likely make effect tomorrow depending on their judgement by early tomorrow.

This artificial increase means that the majority of PNG grassroots which makes up 80% of the population who depend mostly from their commodities like coffee, cocoa, copra and small scale gold mining will loose 20% in the value of their product overnight.

During the development stage of the LNG the Kina gained 30% to which the importers were the greatest beneficiaries. During that time the only company that passed on the Kina gain to the grassroots was Trukai, every other importers pocketed the money, while during that time our commodity exporters were getting less and paying more.

You have all heard of the DUTCH DEASES, well we are now going to face the same similar situation as our economy is too small to absorb the influx of the tax and royalty component of the LNG income.

This country is now making laws and regulations to benefit the corporate entities and we the grassroots who think we are owners of this country will pay the dearer price for our stupid leaders decisions.

Try sell your commodities tomorrow and find out, Im as of this afternoon have suspended all buying pending the outcome tomorrow afternoon. Good luck PNG and the GrassRoots.

***************
PNGLoop is now reporting the following;
"With the continuous decline in kina value, the central bank is taking some measures to address the situation.

One such a measure is the restrictions on offshore bank accounts

The central bank of Papua New Guinea (PNG) has imposed restrictions on opening offshore bank accounts, licensing gold exports, licensing foreign exchange dealers and removing cash in excess of K20, 000.

The bank announced that repatriation payments can be made in foreign currency.

However, the bank states that if the remittance exceeds K200, 000, or cumulative amount of K200, 000 per year by a residence taxpayer, a tax clearance certificate should be obtained from Internal Revenue Commission"

****************
We have reported that the economy is already showing signs of stress, and the Outlook merely confirms what we all know.

The price of basic foods such as bully, tinfish, rice, bread, milk and so on is skyrocketing as the value of the Kina collapses because of Mr O'Neill's mismanagement of the national economy and his gross irresponsibility and disregard for the laws of the nation.

The huge fall in the kina began shortly after he stole the Ok Tedi mine from PNGSDP - the market was factoring in its fears about  the ability of the now  State-owned mine to be able to generate a profit.

How right the market was. PNGSDP's public comments show that Ok Tedi had confirmed annual dividends of approximately $US350 million to the company and to the State for the next few years.

Those dividends in effect represented Ok Tedi's net profits. A few months ago Ok Tedi announced that its profit had fallen  from about $US350 million in 2012 to just under $US20 million in 2013.

The Prime Minister has provided no credible reason for the fall, blaming various factors ranging from bad weather to the copper price.

Even put together, the factors he has blamed cannot account for such a huge loss. The public has a right to know where all this money - more than K1 billion - has disappeared to.

The effects of the Prime Minister's disastrous and illegal expropriation of Ok Tedi can be seen in the Outcome.

These official figure show that Government finances got hammered by shortfalls in mining and petroleum taxes (K540 below Budget) and dividends (K132 million below budget at ZERO).

In 2012 Ok Tedi contributed about 15 percent of Government revenue. Last year it contributed nothing!

This is an important reason to keep the State out of private business;. Ok Tedi is now in the same mess as all the other SOE's, and the people are paying for it through lower services and higher costs.

The worst spot of the figures in the Outcome is that ORDINARY PAPUA NEW GUINEANS ARE PAYING FOR THE INCOMPETENCE AND IRRESPONSIBILITY OF THE PRIME MINISTER.

Personal income taxes were higher than budgeted for by K200 million.

The Outcome also show that at the end of 2013 the fiscal deficit was K3 billion, almost K500 million above budget.

So all the shady deals that the Prime Minister has personally ordered and arranged all by himself  - including but not limited to the USB loan and the Chinese ExIm Bank loan - are also eating the heart out of the nation's finances.

There is no improvement in sight for long-suffering Papua New Guineans.

Papua New Guineans have to wake up and start questioning the government.

With the continuous decline in kina value, the central bank is taking some measures to address the situation.
One such a measure is the restrictions on offshore bank accounts
The central bank of Papua New Guinea (PNG) has imposed restrictions on opening offshore bank accounts, licensing gold exports, licensing foreign exchange dealers and removing cash in excess of K20, 000.
The bank announced that repatriation payments can be made in foreign currency.
However, the bank states that if the remittance exceeds K200, 000, or cumulative amount of K200, 000 per year by a residence taxpayer, a tax clearance certificate should be obtained from Internal Revenue Commission
- See more at: http://www.pngloop.com/2014/06/03/central-bank-intervenes-falling-kina/#sthash.IGjNWoQr.dpuf
With the continuous decline in kina value, the central bank is taking some measures to address the situation.
One such a measure is the restrictions on offshore bank accounts
The central bank of Papua New Guinea (PNG) has imposed restrictions on opening offshore bank accounts, licensing gold exports, licensing foreign exchange dealers and removing cash in excess of K20, 000.
The bank announced that repatriation payments can be made in foreign currency.
However, the bank states that if the remittance exceeds K200, 000, or cumulative amount of K200, 000 per year by a residence taxpayer, a tax clearance certificate should be obtained from Internal Revenue Commission
- See more at: http://www.pngloop.com/2014/06/03/central-bank-intervenes-falling-kina/#sthash.IGjNWoQr.dpuf

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