PNGBLOGS

by ROLLAND JAMES Prime Minister Peter O’Neill’s decision to have his two senior Ministers sidelined and a dozen heads of government organisations suspended in connection with the controversial Manumanu land deal is welcomed. In announcing his government’s decision at a media conference Monday, Mr O’Neill said “We want to clearly demonstrate to our country and to our people that our Government is committed to the principles and practises of good governance.” And I thought –really? Is this the joke of the century? Since when did this corrupt government commit to observing the principles of good governance? Is it not a case of convenience and saving face exercise? My suspicion is like a situation of a bank robbery going wrong where the criminals shoot at each other after robbing the bank. Is O’Neill not more concerned about Duma and United Resource Party being resourced for the elections, than a genuine concern to protect the interest of the public? I am led to lean to the former.

PETER O'NEILL HAS DEDICATED THE LAST 4 1/2 YEARS TO PARALYSING ANY DEMOCRATIC INSTITUTION OF GOVERNMENT DESIGNED TO KEEP CHECKS ON ANY LEADER AMASSING TOO MUCH POWER, THEN ABUSING IT:  by JERVIS TEMA He has successfully paralysed the ability of the police, fraud squad, ombudsman commission, auditor general, etc to investigate white collar crime or leader abuse of power by strangling them financially and if necessary, shutting them down physically. He has successfully strangled the court system using his old strategy which has worked so well for his NPF fraud troubles and others in the past. Mounting endless court challenges passes time to the point the public forgets all about the case. That's when Peter O'Neill (and Jimmy Maladina) can make a deal, through bribery or intimidation (whatever it takes) to end the court case in his favour. He has successfully castrated Parliament until it has become an easy to manipulate puppet, usually successfully warding off Vote of

by MICHAEL J. PASSINGAN The Duma-Pok-Eludeme fraud over land at Manumanu is only one of a number of corrupt O’Neill Regime activities that are undermining national security and the national interest. They also include frauds against the Defence Department by Defence Minister Pok and his brother-in-law, Defence Secretary John Asi, and the Prime Minister’s facilitation of the granting of illegal citizenship to Indonesian fugitive Djoko Tjandra (Joe Chan). First, the Manumanu fraud. A very senior PNGDF Maritime Officer has revealed that the Manumanu land fraud is a risk to national security. In a Facebook post Karry Frank, a ranking officer, says the Navy project team for the relocation of Lancron advised the Defence Force Commander, the Defence Minister and the Defence Secretary not to relocate to Manumanu. “The project team recommended moving to Motukea, a move that was previously agreed to by all parties concerned,” he wrote. “Manumanu is absolutely NOT suitable for a Na

by MICHAEL J. PASSINGAN Prime Minister Peter O’Neill lied to Parliament yesterday when he said he needed a brief on the K50-million fraud by his Minister for State Enterprises, William Duma. Mr O’Neill received a comprehensive brief from the chairman of Kumul Consolidated Holdings, Paul Nerau, two weeks ago, which comprehensively exposed the fraud. A whistleblower within the Department of Prime Minister and NEC has provided PNG Blogs with a copy of Nerau’s report. Instead of immediately reporting the fraud after receiving the report, O’Neill went into cover-up mode, with the assistance of Nerau, to protect themselves and their cronies Duma, Defence Minister Fabian Pok and Central Supply and Tenders Board chairman Phillip Eludeme. The PM and NEC source says Prime Minister refused to refer the matter to the appropriate authorities, including the police and the Ombudsman Commission, instead he tried to sweep the evidence under the carpet. For example he wrote to Kina Bank a

by PAUL FLANAGAN SUMMARY The IMF report indicates the O’Neill government has overstated the growth rate in the PNG economy by 12.7 percentage points during its term. Primarily by 5.9 percentage points in 2014 and a further 5.2 percentage points in 2015 (see graph below). The IMF indicates the PNG economy is K6.3 billion smaller in 2017 than claimed by the government (and K5.4 billion smaller in 2016). This means the debt to GDP ratio is 33.5% in both 2016 and 2017 according to the IMF – above the 30% limit set in the Fiscal Responsibility Act. The greatest concerns about economic management relate to BPNG’s control of the foreign exchange rate and reserves with more breaches of international norms than admitted. The Governor of the BPNG should explain serious discrepancies between his statements on 25 January (full page adds in the local press on 26 Janaury) and what the IMF report actually stated on 27 January (see below). While commending the government for its actions in

NIUGINI OUTLOOK  UPNG especially was screaming in December that they had no money left to run the university. It was well known that months ago the PNG government had promised a sizeable amount of money to University of Papua New Guinea, PNG University of Technology and University of Goroka to pay for damages and other expenses that were incurred and not budgeted for by the universities as a result of the 2016 student boycott. The declaration that this money would be given to the universities before classes resumed again last September was supposedly told to university heads by Chief Minister Isaac Lupari in private, and in public by Peter O'Neill and other government officials. It was clearly stated in August 2016 and run on EM-TV news that the following amounts would be paid: UPNG: K12 million   Unitech: K43 million UOG: K8 million In the case of Unitech, this money was essential, being that 4 buildings were burned to the ground in late June 2016, including the all-impo

by NIUGINI OUTLOOK THE MOST SOPHISTICATED LEADERS INTENT ON GRABBING ABSOLUTE POWER IN A COUNTRY AREN'T SO STUPID AS TO TRY IT IN ONE STEP OR A SUDDEN COUPE.   That strategy is very risky and it only gives one chance to get things right More likely to succeed is a slow step by step process on multiple fronts that slowly closes off normal democratic checks and balances. Thats the whole framework of what makes a de mocracy work - the legal mechanisms that keep a leader from grabbing too much power while promoting the spread of power across different sections of government and across many individuals.   Peter O'Neill is a brilliant tactician who has virtually completed pulling the wool over the eyes of most people of PNG. The only challenge remaining is to secure the 2017 election in PNC's overwhelming favour, whether honestly or dishonestly, so that he can proclaim that he has a mandate from the people to rule with absolute power. Following that, he can

NATIONAL BUDGET SPOOKS PRIVATE BUSINESS AND INVESTMENT IN PNG   by WILSON TALAG Economist Paul Flanagan's recent remarks that appeared in PNG Blogs and elsewhere highlight 8 key areas of what looks to be looming financial disaster.  Mr Flanagan's enlightening report is the basis for this discussion and why the performance of each one of the key areas has started to  spook business and investors.  The seriousness of PNG’s current financial situation is becoming very clear.   A little over a week ago the government came very close to failing to come up with the year end public servant pay.  This near disaster occurred despite supplementary budgets designed to avoid such unexpected money shortages.   Another red flag flying high and warning that behind the scenes, PNG's finances are rapidly deteriorating under the O'Neill government. The 8 key areas of concern are (1) Government lies over the actual size and growth of the PNG economy, (2) Discrepancies  ove