PNGBLOGS

by PAUL FLANAGAN The Bank of PNG, the legislatively independent central bank for the country, lost significant credibility in its recent justification for why PNG has joined the bottom 2 per cent of countries in refusing to release the standard IMF Article IV report on countries (see here ).  It remains the only country in the East Asia and Pacific not to release an IMF Article IV report undertaken in 2016. BPNG provided six “critical issues” for refusing to release the report.  However, on closer examination, there was only one critical issue (fake GDP numbers used by the PNG Treasury).  And that should be the responsibility for the PNG Treasurer to release a statement on why the PNG was suppressing an independent assessment  by the IMF of the PNG economy. What is the O’Neill government trying to hide on its management of the PNG economy? International investors will easily through see this statement. PNG’s economic standing and credibility has received a severe down

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

PNGBLOGS WHO IS RESPONSIBLE, LUPARI, THE CHINESE, OR WHO? IF PNGBLOGS GOES BLACK ON PNG COMPUTER SCREENS NEXT WEEK, WE WILL KNOW WHY - IT WILL BE THE RE-CREATION OF A P AUL PARAKA BANANA REPUBLIC STYLE THREAT THAT FINALLY WORKED: In 2010, Paul Paraka, the number one corrupt lawyer in the country according to the Commission of Inquiry into Department of Finance fake payment scams, did something that even today goes down as one of the most banana republic kinds of reactions ever seen in PNG. Here's what happened. When the government Commission of Inquiry on massive theft totally hundreds of millions of kina submitted their report in Parliament, Paraka immediately obtained a court injunction to make it illegal for any Papua New Guinean to read or be in possession of the report and learn about the allegations against him and 18 other lawyers. Included amongst the accused is current Chief Minister Isaac Lupari, alleged to have stolen more than K2.7 million. Paraka's strateg

by JASON P KANGOMA Treasurer Patrick Pruaitch is scheduled to hand down the 2017 Budget in Parliament this week. Given that 2017 is election year, the Budget is certain to be dominated by the usual O’Neill Regime spin and deceit, along with wasteful and irresponsible spending measures. But the central feature will be drastic cuts to essential social services such as health and education, and further suffering for ordinary Papua New Guineans. Every successive O’Neill Budget has been a failure, creating more problems than they solve, and driving the nation further towards total collapse. This special PNG Blogs report reveals the ongoing damage Prime Minister Peter O’Neill’s corruption, greed and mismanagement is doing to Papua New Guinea.   POVERTY INCREASING UNDER O’NEILL REGIME The new announcement by the O’Neill Regime that it has obtained a K1 billion rescue package from the Asian Development Bank proves that Prime Minister Peter O’Neill’s economic and finan