PNGBLOGS

by BRYAN KRAMER MP Prime Minister Peter O'Neill was caught lying and misleading Parliament during question time when it resumed its first session in 2018 on Tuesday. O'Neill was responding to a question raised by the Governor of Western Province, Toboi Yoto asking when his people would benefit from Oktedi Mine and when they would receive the share certificates. Western Governor explained that since the O'Neill Government took over the mine in September 2013 it had failed to transfer the share certificates representing 33% interest in the mine to the Western Province people. Further, still, they had yet to receive their dividends. In response, O'Neill claimed when his Government took over the mine from BHP, who at the time wanted to shut down the mine for not being profitable. He said the Government inherited a loss-making machine. He confirmed his Government has yet to transfer 33% interest to the landowners, claiming it was because of stamp duties issue.

by PAUL FLANAGAN The new Treasurer released his first budget on 28 November. This was an opportunity to demonstrate the second term of the O’Neill government would help turn the corner on PNG’s economic mismanagement. So how did it do? Overall, there are some wonderful sentiments in this first Abel budget. My sense is that he is very genuine in what he is trying to achieve. But he seems to be let down by the realities of PNG politics. Protecting politicians electoral funds, finding money for APEC, trying to regain the upper-hand on the rhetoric of protecting health and education – all within the confines of fiscal responsibility – was simply too much. What has given way in this equation of trying to be responsible while dealing with the political spending pressures has been revenue credibility? Ultimately, he fails in his attempts to explain why we should believe his claim that revenues will suddenly jump by over 20 percent in 2018. This is an increase of over K2.2 billion and

by KIN OPOSEPA Manumanu Land Deal: Aftermath The Manumanu Land deal issue has subsided through time and all stakeholders affected have seemed to move on, the dust has settled. Let me refresh your memories on the issues again. The purported Manumanu Land Deal (MLD) for the relocation of the PNG Defense Force is alleged to involve five different transactions totalling an amount of K46 million. However, the dealings did not comply with established processes. The MLD issue was raised in Parliament by Member for Kairuku –Hiri, Peter Isoaimo that eventually led to the sidelining of 2 Senior Ministers and suspension of 6 Departmental heads, CEO of State Owned Enterprise and chairman of CSTB. In a media statement on the 6th of February 2017 PM, O’Neil had announced a Commission of Inquiry (COI) headed by a retired Judge to investigate the claims made, referred the matter to the National Fraud Squad and the Ombudsman Commission also for potential breaches of the Leadership Code. He further

by KIN POLOWA The appointment of former Assistant Commissioner of Police, Thomas Eluh, as the Acting Provincial Administrator of Southern Highlands Province will not go down well with many of us who have been following him closely in his commitment to combat corruption as a police officer. He was appointed by the National Executive Council on 2nd November 2017. The NEC decision comes a week after Mr Eluh’s court challenge against his dismissal from the police force was handed down. Although the National Court Invalidated Police Commissioner Gari Baki’s decision to dismiss Mr Eluh from the Force, the Court refused to reinstate Mr Eluh –which effectively puts Eluh on the street as an ordinary person. When I heard the NEC decision news, the first thing that came to mind was –Eluh has now been compromised, just like many others. Instead of taking my judgmental rant to social media, as usual, I decided to do some background check on Eluh. You have to know the person and the facts

 by DANIEL TULAPI LLB In my one term of Member of parliament 1992 to 1997 , I , Daniel Bali Tulapi have stood up to Julius Chan ( PM) and foreigners when I was in NEC . I was sacked by Prime Minister Chan as minister for standing up to him for "telling him what to do in NEC. " I told PM Chan.. " I submitted a NEC policy to adopt the Saudi Arabia model of hard KINA policy and not to devalue the KINA at the world market currency trade market." I told National Executive Council (NEC) cabinet not to listen to foreigners and foreign governments. " I said the Kutubu oil when exported will be paid for and purchased by USA our KINA not by USA Dollar. That means and I said " K 1 = 3 USA Dollars. At that time K1 = 1.5 one Dollar 50 cents USA DOLLAR. I said we PNG maintain hard KINA policy and adopt Saudi Arabia model of the Riyal currency of Saudi Arabia 1 riyal = 3 USA dollars. Saudi Arabia was the largest oil exporter in the world at t

by PNG BLOGS 1. Marked Boxes in Kandrian Gloucester in West New Britain were set aside and not counted for Sunday polling WHEREAS all boxes containing votes cast on Sunday for Ialibu Pangia Electorate in Southern Highlands were counted and the winner declared. 2. NCD Election Manager was caught red-handed with more than K180,000 cash and marked ballot papers with a purported agreement between a candidate. Secretary for Finance who administered funding for elections stated that all payments of allowances for electoral officials were directly remitted to their bank accounts WHEREAS Gamato claimed the substantial cash was for allowances for election officials (in a metropolitan area where most have their personal bank accounts???). 3. Joseph Tonde’s declaration for the Port Moresby North East Electorate was rejected because the Returning Officer was not the one on duty WHEREAS Nick Kuman’s declaration by a dead Returning Officer for Gumine Open was accepted. 4. William Duma’

THE TRUE STORY OF THE UBS LOAN AND OTHER DEALS BETWEEN THE O’NEILL GOVERNMENT AND OIL SEARCH Part 2 – Sweetheart  deals cost taxpayers and landowners BY A SPECIAL CORRESPONDENT IN SINGAPORE Comments by Oil Search executives and directors at the company’s annual general meeting earlier this year raise serious concerns about its knowledge of many specific instances of corruption in Papua New Guinea relating to its business, and its corporate behaviour. These instances are separate to the illegal UBS Loan which Oil Search helped to arrange, as detailed in Part 1 How Peter O’Neill and Peter Botten cost Papua New Guinea at least K1 billion. Some of these issues were the subject of questions in in the Australian Senate, but no satisfactory answers were provided by the Australian officials responsible. For example landowners in the PNG LNG project are owed hundreds of millions of kina in royalty payments and other entitlements, much of which is paid to the Government by Oil Se

BY A SPECIAL CORRESPONDENT IN SINGAPORE Part 1 – How Peter O’Neill and Peter Botten cost Papua New Guinea at least K1 billion The Oil Search Annual General Meeting in Port Moresby earlier this year confirmed that the company is acutely aware of the extent of corruption in the Papua New Guinea government of Peter O’Neill. Oil Search executives privately commented to attendees after the AGM closed that "... everything here in PNG is corrupt …" “… the government is so corrupt …”, "… PNG has a lot of corruption issues …" and others in similar vein. The cost of O’Neill Government corruption is high, estimated to be several billion kina a year. Now the contribution of Oil Search’s own questionable dealings with the O’Neill Government has come under public scrutiny. Late last month stockmarket trading announcements revealed that the nation has lost at least K1 billion in an illegal sweetheart deal organised in secret between Prime Minister O’Neill and O

by Belden N. Namah MP As in the game of Chess, O'Neill’s opening in assuming power was indeed truly remarkable because people like me made it possible. While he did not take us all to the moon it was still a remarkable ride. Two major loss he suffered recently may perhaps lead to the beginning of his end game. The two major losses he suffered recently are of his own making. First, by dragging his foot on an Electronic Election with the hope of influencing the outcome of the 2017 O'Neill woke up after the 2017 election results started coming in to see his majority in Parliament decimated from 60 members to only 23. We also saw for the first time under his leadership unprecedented level of election-related violence in the Capital of all the highlands Provinces with over 25 deaths and millions in losses and damages to property. The election violence continues unabated today in his own Capital of Mendi where he remains powerless in restoring normalcy and where the enti

by HOPE PNG The sale of Oil Search shares by UBS resulted in it recovering part of its principal from the US$1.2 billion (K3 billion) loaned to PNG Government to purchase the shares initially. Of that K3 billion loaned to PNG Government, UBS only recovered K2.22 billion from that sale. Simple math dictates that UBS made a loss of K780 million on the principal amount loaned. • The first shipment of PNG LNG was made in the last week of March 2014 (source: PNG Business Advantage) • PNG LNG proceeds were held in a UBS bank account as collateral in Singapore. • The State offloaded (by directing UBS) the Oil Search shares and made a loss of US$250 million (or K780 as stated by Wapu Sonk). • The actual loss would be well over K1.8 billion when calculating collar costs, commissions to advisors and all other costs associated with the UBS loan. • O’Neill claimed Government made a net gain of K100 million from that sale. • The only logical conclusion one can draw is that UBS dippe