PNGBLOGS

by WILSON TALAG “For a small country whose economy is heavily dependent on volatile commodity prices to  borrow heavily hoping that commodity prices will remain high is the pinnacle of stupidity.” Smart investors are not anywhere as dumb as the average Papua New Guinean citizen whenever  Prime Minister Peter O’Neill speaks.   O’Neill can utter complete lies about the PNG economy and government budget to the public and people will take his words at face value.  Foreign investors and the foreign owned private sector in PNG make good money because they are not so gullible.  They check things out and what they have learnt is disturbing.  The Prime Minister himself does not understand this reality and continues to present only information he wants the investors to hear.  But the investors are wise to his tricks and overall investor confidence in PNG has plummeted close to nil if the side comments of investors are to be taken at face value.    Papua New Guinea’s Prime Minist

by PAUL FLANAGAN PNG’s government must be embarrassed by the International Monetary Fund’s (IMF) assessment of its economic performance. In an extraordinary step, and the first time in PNG’s 41 year history of Independence, the PNG government has refused to release the IMF’s 2016 summary of the PNG economy. 98% of countries agreed to release this information in 2015 – so the PNG government has moved to the bottom 2% of governments when it comes to economic transparency. In the IMF’s final press release (see here) before Christmas (generally seen as a good time to bury bad news), the International Monetary Fund indicated that “The [PNG] authorities need more time to consider the publication of the staff report and the related press release.” This appears to be polite IMF diplomatic speak for the PNG government not wanting to release the information. The IMF mission visited in mid-2016. An early draft asking for PNG government comments would have been provided about two months ago

by PAUL FLANAGAN In an article for the ANU’s Development Policy Centre eighteen months ago (see here) , I congratulated PNG’s central bank (BPNG) for its very constructive stance in stopping its effective printing of money to fund the government’s budget deficit. I noted how this reflected positively on the independence of BPNG, an independence built into its charter by Sir Mekere Morauta (PNG’s former Prime Minister) and Sir Wilson Kamit (PNG’s central bank governor from 1999 to 2009) in response to PNG’s last major economic crisis in the late 1990s. Unfortunately, this independent role appears to have been reversed from the start of this year. Based on the latest Quarterly Economic Bulletin released on 18 November 2016 and its accompanying tables (esp Table 2-3 for BPNG’s assets sheet see here ) PNG appears to have returned to a very slippery slope of effectively printing money by back-stopping auctions in government securities – a practice initially warned about in September 2

by Ephraim Curtis Different people have different perspectives. I have watched as some of my friends have applauded the new highrise apartments popping up in Moresby even though the rents they charge is out of reach of most Moresby residents. They have also gazed with approval when the new roads and Kumul flyover were built though they will certainly never own a car, they make to little money. These same people approve of the changes to the city only because they think someday the change will reach them. As for now they have no money to pay admission to the various festivities that the NCDC has put on. They have been to Vision City now and again just to look because they have no money to buy. They dream in the hopes there will be change in their life. The dreams become more important as they look around them and see that they are being left further behind each day. I do not live in a settlement, instead in a government house. I am a lucky one although th

Open Letter to Sir Michael Somare    by JAMES PARAKISAN     Grand Chief, before you bow out of the picture, we need you.  We realize you are 80 years old and you will be retiring from PNG politics in June 2017.  At the same time your influence, stature and leadership is essential during this time of unparalleled corruption.       The current administration is knee-deep in pekpek of its own making.  They’ve done a masterful job of sidelining and silencing Sam Koim, leader of the Task Force Sweep.  Koim was hand-picked by the O’Neill government to spearhead the drive against the corruption pervasive in all levels of government.  Then, ironically, when Koim starts making some headway in addressing government fraud, O’Neill neutralizes him.       Sir Michael, please address two or three of the major corruption issues of the last several years.  Shout out from the rooftops about the abuse of power of the current administration.  It’s been reported once before, but the people o

  by PNGBLOGS STAFF WRITERS AI YI YI YI!    CHINESE AGENTS SLEEPING WITH PNG POLLIES, BRIBE-PAYING CHINESE GOVERNMENT OWNED COMPANIES WELCOMED TO PNG, NPF SCANDAL TAINTED AGENTS IN LINE FOR THEIR PAYOUTS, PAUL PARAKA AND MORE:    UNPRECEDENTED SYSTEMATIC AND SYSTEMIC GOVERNMENT CORRUPTION IN PAPUA NEW GUINEA NOW CENTRES AROUND POWER GENERATION SCAMS This story has been long in the making.   PNG BLOGS rarely witnesses events that we report.   We serve instead as a reporting body that does the job that the Post Courier, The National, and other PNG traditional media should be doing, but run away from, even though they operate with far greater resources than we will ever have.   We do the best we can with very little so as to break open the secrets surrounding government corruption.     Contact us on Facebook or e-mail us on pngblogs@gmail.com if you can provide evidence, firsthand detailed accounts and the like to expand the peoples knowledge on this and other gov