PNGBLOGS

by  M.V LASIA PNG has recently made the headlines across the globe for being in a financial debt crisis and struggling to pay its debts and expenses. It is no secret the O'Neill Government has had cash-flow crisis and only managing to keep its head above water. What little tax income it earns each month is being used to ensure public servants are paid every fortnight and any difference is directed to propping up its free education policy and partly pay for its inflated contracts. Meanwhile Peter O'Neill claims the country's financial crisis has been caused by dramatic fall in world commodity prices placing a strain on economies around the world. So is Peter O'Neill telling the truth? Short answer is No.  The PNG Government funds its operations, development projects and services its debt obligations through the collection of taxes and overseas grants (donor funding). Tax collection or revenue is categorized into three main parts. 1) Tax on Income and Profit

Former Prime Minister Sir Mekere Morauta said reported attempts by the Prime Minister to secretly sell valuable public assets to foreign interests, if true, are a sign of his desperation for cash to save his sinking ship. “Ad hoc decision-making like this, not as part of a comprehensive package of rescue measures, will make the nation’s problems worse and reduce the options for properly considered reconstruction in the future.” “We are virtually in the caretaker government period, at which point no significant decisions should be made, especially decisions that rob shareholders and landowners of their rights and the general public of their assets.” Sir Mekere said he had been given reliable information on three asset sales that are allegedly being negotiated behind closed doors – of the State’s 67% share in Ok Tedi Mining Ltd, the State’s 20% share in the Star Mountains Plaza hotel and 100% of APEC Haus. These sales involve very valuable assets, and the risk of selling them

by JOHN ENDEMONGO KUA The prime minister Peter O'neill and his legal advisors Powes Parkop and Ano Pala , who had so far successfully deluded , many constitutional issues since the unconstitutional formation and conduct of government since the 2nd of August , 2011, when executive government powers was usurped by a rogue and defacto government, undermining the Constitution and the decorum of the rule of law as supreme. A Supreme Court Reference filed by the East Sepik Provincial Assembly was ruled on by the court as null and void , which yet again was ignored, with yet another unlawful conduct in passing defective legislation which barred the entry of the incumbent prime minister , Sir Michael Somare , refered to as a "stranger" in the house by the member for Bulolo, and ordered removed by the Speaker ( Nape ) in order to seize power. A second election was conducted illegally to create confusion and by time , with lawyers , for the government and a cheap and conte

PRESS RELEASE Former Prime Minister Sir Mekere Morauta said today the proposed visit to Papua New Guinea by Australian Prime Minister Malcolm Turnbull is hard to fathom at this time, on the eve of PNG’s national election. Mr Turnbull came to office in September 2015 – over eighteen months ago.  In all that time, he has visited many countries, all over the world.  He has not found time to visit Papua New Guinea, one of Australia’s most important neighbors.  Why come now?  What is so important now that cannot be dealt with by officials? “The two Prime Ministers met in Australia a few weeks ago,” Sir Mekere said.  “They have met countless times at APEC, Pacific Islands’ Forum Leaders’ meetings, UN meetings, and I am sure they talk on the phone from time to time.  What is so pressing now, when Papua New Guinea is suffering at the hands of this corrupt, incompetent, uncaring Government headed by Peter O’Neill?” “It is insensitive and interfering for Mr Turnbull to pay homage to Mr

by PAUL FLANAGAN The Final Budget Outcome provides surprisingly frank numbers on the O’Neill government’s inexcusably poor management of government revenues, expenditures and debt. This document confirms a budget deficit and debt blow-out during 2016. PNG has never before -even during much worse falls in commodity prices – had such an appalling string of huge budget deficits. The government has no credible path out of the budget mess. Deficit levels are getting larger, not smaller. PNG Treasury states the debt to GDP ratio is 32.6% and so exceeds the 30% limit set out in the Fiscal Responsibility Act (and using the GDP series when this benchmark was created, it is now 42.7% of GDP). As a result of the failure to manage this fiscal crisis, PNG’s debt in 2016 is 258% of its 2012 levels. This will be a painful legacy for  PNG’s future as little of the debt blow-out has been properly invested. The 2016 Supplementary Budget assumed that revenues would increase by K928 million

[PRESS RELEASE] Former Prime Minister Sir Mekere Morauta said today the skeletons in the closet that the Prime Minister has been trying to hide have now been laid bare for all to see. “Mr O’Neill can no longer pretend that everything is OK,” Sir Mekere said. “He must drop the spin and the deception and let the people of Papua New Guinea know the full scale of the economic and financial disaster that he has caused.” Sir Mekere said Friday night’s speech by the Treasurer, Patrick Pruaitch, and the release at the same time of the 2016 Final Budget Outcome, demonstrate conclusively that the Prime Minister has been misleading the nation. “Everything that I have been saying for the past five years, along with Opposition Leader Don Polye, his deputy Sam Basil, and respected economists and other commentators, cannot now be denied,” he said. “The nation is in crisis, and the only solution is to get rid of the Prime Minister and his advisers who are responsible. The longer it takes for

by PATRICK PRUATCH Greetings and welcome….Sir Michael, Party President and executives, NA candidates, members and supporters.. Introduction: After serving as the Ruling Party for two consecutive terms in 2002 and 2007, the National Alliance Party was ousted in a parliamentary coup in 2011. Subsequently, a Government led by the Peoples’ National Congress took office in 2012. Looking back it is clear that management of the PNG economy was at its best during NA’s two terms in office from 2002 to 2011. I intend today to help all NA members and candidates to cast away any doubts that this may not be the case. This is an important part of our claim that NA deserves to form the next Government. NA and its candidates need to campaign in a confident and purposeful manner to ensure the return of an NA-led Government. I am confident that as head of the next Government, and with the right team behind me, National Alliance will once again be able to restore sound economic policies and ris

by TERRY SEMBO STEP BACK MENTALLY AND CONSIDER FOR A MOMENT WHAT OUR GOVERNMENT IS DOING IN THE NAME OF FOREIGN INVESTMENT: They have opened the door to every Tom, Dick and Harry foreign invader to come into the country. Too many are worthless carpetbaggers smelling the prospects of big profits for their pockets and not giving a damn about PNG or its peoples. The reason why we attract so many unscrupulous investors is because our country is, overall, a poor investment prospect in terms of high risk. Yes, high profits, but only if you get around all the risks. The government acts like the Supreme Pamuk in dealing with foreign investment and foreign investments. There is a story from the early 2000s when InterOil came sniffing around PNG and had a meeting with Mining and Petroleum Engineer department top cats. The InterOil representatives apparently were neither polite nor tolerant of melanesian niceties. They got straight to the point and said, you either do things the InterOil wa