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The break-up of PNG - The real resource curse

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SUSAN MERRELL Like a wet blanket amidst the excitement being generated by the resources boom in Papua New Guinea (PNG), Hillary Clinton during her visit to the Pacific last year gloomily warned of an unwanted potential consequence known as ‘the resources curse’.  A well-documented phenomenon, it points to negative possible outcomes for a national economy that is heavily dependent on resources. It is what caused Sheik Ahmed Yamani, a minister from the oil-rich Saudi Arabian government, to lament: “All in all, I wish we had discovered water.”  Negative consequences of the curse include inflation, revenue volatility and its effects on excessive (good time) borrowings, lack of diversification of the economy, the creation of circumstances conducive to corruption and a draining of human resources away from other areas into the more lucrative resources sector. And PNG is already experiencing some of the aforementioned negative socio-economic effects—like shortage of teachers—some having been

Home Shift in resource ownership

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OP/ED Former prime minister Sir Julius Chan asked three questions yesterday to the parliamentary referral committee on minerals and energy. 1.Can you buy what you already own? 2.Does it make economic or business sense to transfer title in property to someone freely or for a paltry payment of K10,000 and then buy back a 30% interest in that same property for K300 million? 3.Does it make sense for a country to earn billions in income and not be able to improve the lives of its people? To all of these questions, Sir Julius, now governor of New Ireland, answered in the affirmative. He elaborated: “First, the state cedes exploration and production rights to foreign companies for next to nothing. Insignificant licence fees are charged – often K10,000 – and royalties of 2% are levied. “But, for this pittance, the foreign developer gets full control of all the wealth that can be taken from the ground. “The next step is for the state to seek equity in the project, usually 30% in a mining projec

Home Shift in resource ownership

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OP/ED Former prime minister Sir Julius Chan asked three questions yesterday to the parliamentary referral committee on minerals and energy. 1.Can you buy what you already own? 2.Does it make economic or business sense to transfer title in property to someone freely or for a paltry payment of K10,000 and then buy back a 30% interest in that same property for K300 million? 3.Does it make sense for a country to earn billions in income and not be able to improve the lives of its people? To all of these questions, Sir Julius, now governor of New Ireland, answered in the affirmative. He elaborated: “First, the state cedes exploration and production rights to foreign companies for next to nothing. Insignificant licence fees are charged – often K10,000 – and royalties of 2% are levied. “But, for this pittance, the foreign developer gets full control of all the wealth that can be taken from the ground. “The next step is for the state to seek equity in the project, usually 30% in a mining

ARNOLD AMETS CLAIMS ARE BASED ON OUTDATED UK LAWS

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DR SAMUEL MAIMA The attorney-general’s statement in The National that the state owns all resources six feet and more under the ground has to be challenged for the sake of our indigenous and customa­ry landowners of Papua New Guinea. What he endorsed was similar to the resource law that was passed by the British parliament in 1922 which basically exploited all its colonies’ wealth from the Africa to Asia, Australia and elsewhere. It was designed to exploit without due regard to the rights of the native and indigenous landowners. The law that was passed by the British parliament stated that the equity participation of the indigenous landowners was a mere 0.00000125%, almost zero. The same law was inherited when PNG became a colony of the then Australian administration prior to independence. These laws on resources were pre-colonial and pre-constitutional laws. When PNG became an indepen­dent state, we drew our own constitution and all pre-constitutional and pre-independence laws ceased t

ARNOLD AMETS CLAIMS ARE BASED ON OUTDATED UK LAWS

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DR SAMUEL MAIMA The attorney-general’s statement in The National that the state owns all resources six feet and more under the ground has to be challenged for the sake of our indigenous and customa­ry landowners of Papua New Guinea. What he endorsed was similar to the resource law that was passed by the British parliament in 1922 which basically exploited all its colonies’ wealth from the Africa to Asia, Australia and elsewhere. It was designed to exploit without due regard to the rights of the native and indigenous landowners. The law that was passed by the British parliament stated that the equity participation of the indigenous landowners was a mere 0.00000125%, almost zero. The same law was inherited when PNG became a colony of the then Australian administration prior to independence. These laws on resources were pre-colonial and pre-constitutional laws. When PNG became an indepen­dent state, we drew our own constitution and all pre-constitutional and pre-independence laws cea

MORE QUESTIONS FOR NASFUND

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CONCERNED NATIONALIST Mitchel did try to defend himself but his defence raises many more questions. He is lying when he says he came well after Noel Wright. Mitchel was here for at least 6 months working with Noel Wright. I remeber them working together. And anyway, Whistle blower has a point there. Another thing I know is that Mitchel knew Maladina only dealt with less than K3 million ( still a lot), but well over K150 Million was lost elsewhere.  Why did Mitchel try to hang it all on Jimmy and Herman Leahy? That was dishonest wasnt it? Mitchel knew those friends of Mekere and his wife who ripped off the Contributors and the Fund. Yet Mitchel acted to protect those people. What part did Mekere and his wife play to protect these people, I wonder. Interesting isnt it? Who designed the Terms of Reference for the Inquiry to protect these people as Whistle Blower asks. Rod doesnt answer this directly, but he does admit to being close friends of Mekere and Roslyn Morauta. Now the public ar

MORE QUESTIONS FOR NASFUND

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CONCERNED NATIONALIST Mitchel did try to defend himself but his defence raises many more questions. He is lying when he says he came well after Noel Wright. Mitchel was here for at least 6 months working with Noel Wright. I remeber them working together. And anyway, Whistle blower has a point there. Another thing I know is that Mitchel knew Maladina only dealt with less than K3 million ( still a lot), but well over K150 Million was lost elsewhere.  Why did Mitchel try to hang it all on Jimmy and Herman Leahy? That was dishonest wasnt it? Mitchel knew those friends of Mekere and his wife who ripped off the Contributors and the Fund. Yet Mitchel acted to protect those people. What part did Mekere and his wife play to protect these people, I wonder. Interesting isnt it? Who designed the Terms of Reference for the Inquiry to protect these people as Whistle Blower asks. Rod doesnt answer this directly, but he does admit to being close friends of Mekere and Roslyn Morauta. Now the public

WHITE COLLAR FRAUD AT MRDC

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Frank Whippy There is valid evidence to show that MRDC is stink with high level white colar corruption. Hon. William Duma approved a K9 million project for Mendi Munihu Power generation Project under the Homa Pauwa Peoples Association Inc. as MOA commitment Homa Pauwa is in the Moran Project area, in the Hela region and the funding is questionable. Mendi Munihu is in the Mendi Munihu Electorate of Mendi and the current MP is Pastor Isaac Joseph, who is a "BLOOD COUSIN" of MRDC managing director, Mr. Augustine Mano. People may have asked on how Pastor Isaac become millionaire overnight, and I can assure you that he became millionaire by colluding with his cousin brother, Mr. Augustine Mano to access MOA funds. Augustine himself to is aware of this and both can be charged for, misapplication of MAO funds, collusion, and fraud amongst others. See that attached Letter from William Duma, at the request of Mr. Mano for the Mendi -Munihu Power generation project-K9 million. Right th

WHITE COLLAR FRAUD AT MRDC

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Frank Whippy There is valid evidence to show that MRDC is stink with high level white colar corruption. Hon. William Duma approved a K9 million project for Mendi Munihu Power generation Project under the Homa Pauwa Peoples Association Inc. as MOA commitment Homa Pauwa is in the Moran Project area, in the Hela region and the funding is questionable. Mendi Munihu is in the Mendi Munihu Electorate of Mendi and the current MP is Pastor Isaac Joseph, who is a "BLOOD COUSIN" of MRDC managing director, Mr. Augustine Mano. People may have asked on how Pastor Isaac become millionaire overnight, and I can assure you that he became millionaire by colluding with his cousin brother, Mr. Augustine Mano to access MOA funds. Augustine himself to is aware of this and both can be charged for, misapplication of MAO funds, collusion, and fraud amongst others. See that attached Letter from William Duma, at the request of Mr. Mano for the Mendi -Munihu Power generation project-K9 million. Ri

Amet: State owns all rescources

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South Pacific Post ALL petroleum, mineral and gas resources under the ground are owned by the State, according to Attorney-General Sir Arnold Amet. He was responding to lawyer Peter Donigi and Warner Shand Lawyers recent claims that the State does not own the natural resources and as such it was not the proper party to sign the PNG Gas Agreement. That assertion, according to Sir Arnold is “not legally correct.” Sir Arnold is the Madang Regional MP and former Chief Justice of the National and Supreme Court of PNG. “The Petroleum Act and the Mining Act vest the ownership of mineral and petroleum resources in the State. As such, State is a proper party to the gas agreement and has validly executed the gas agreement,” Sir Arnold said in a statement released over the weekend. “Both the Oil and Gas Act 1998 and the Mining Act 1992 vest the ownership of mineral and petroleum resources in the State. These two Acts of Parliament adopted the State’s ownership rights in the minerals and petroleum

Amet: State owns all rescources

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South Pacific Post ALL petroleum, mineral and gas resources under the ground are owned by the State, according to Attorney-General Sir Arnold Amet. He was responding to lawyer Peter Donigi and Warner Shand Lawyers recent claims that the State does not own the natural resources and as such it was not the proper party to sign the PNG Gas Agreement. That assertion, according to Sir Arnold is “not legally correct.” Sir Arnold is the Madang Regional MP and former Chief Justice of the National and Supreme Court of PNG. “The Petroleum Act and the Mining Act vest the ownership of mineral and petroleum resources in the State. As such, State is a proper party to the gas agreement and has validly executed the gas agreement,” Sir Arnold said in a statement released over the weekend. “Both the Oil and Gas Act 1998 and the Mining Act 1992 vest the ownership of mineral and petroleum resources in the State. These two Acts of Parliament adopted the State’s ownership rights in the minerals and petr

Get your Facts Right

Rod Mitchell I write to you in response to the cowardly article posted on your website. There is no evidence for any of the rubbish you have posted. It is highly defamatory. The article is also poorly written and contradictory stating that everyone is innocent until proven otherwise, then one long slanderous attack on myself with no presumption of innocence until proven otherwise. Here are some facts Rod Mitchell never worked as an Investment Adviser – I came in after Noel Wright left. The unrealised losses and excessive debt had already been incurred.  Ian Tarutia was head of operations then. He did not get involved in the full business as general manager until 2001 – Leave him out of you smear  Post Courier conducted the Bring Back Jimmy Campaign – Not Rod Mitchell The massive losses (in excess of K150 million) were documented in the largest commission of Inquiry in PNG history – I was not found to be the problem Rod Mitchell did not have any

Get your Facts Right

Rod Mitchell I write to you in response to the cowardly article posted on your website. There is no evidence for any of the rubbish you have posted. It is highly defamatory. The article is also poorly written and contradictory stating that everyone is innocent until proven otherwise, then one long slanderous attack on myself with no presumption of innocence until proven otherwise. Here are some facts Rod Mitchell never worked as an Investment Adviser – I came in after Noel Wright left. The unrealised losses and excessive debt had already been incurred.  Ian Tarutia was head of operations then. He did not get involved in the full business as general manager until 2001 – Leave him out of you smear  Post Courier conducted the Bring Back Jimmy Campaign – Not Rod Mitchell The massive losses (in excess of K150 million) were documented in the largest commission of Inquiry in PNG history – I was not found to be the problem Rod Mitchell did not have any

PNG land reform is a sham

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OP/ED Is the present Government involved in a conspiracy to take over all customary land in Papua New Guinea? We ask this question because we are alarmed at the manner and rate at which the Special Agricultural and Business Leases (SABLs) are granted to date. According to our records, 5,114,911.85 hectares of customary land have been leased, much of the leases granted in the last two years. The laws governing the use of customary land are specific in their protection of the rights and freedoms of landowners, who own 97 per cent of the land. What is of concern to us is the manner in which the Government was handling the development of the customary land, because it raises serious questions about its commitment and understanding of the law and issues at play at present. People in the rural areas have one big and most valuable asset. This is their land, which is protected by the National Constitution, which is the supreme law over all other laws. The 85 per cent of the 6 million peole in

PNG land reform is a sham

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OP/ED Is the present Government involved in a conspiracy to take over all customary land in Papua New Guinea? We ask this question because we are alarmed at the manner and rate at which the Special Agricultural and Business Leases (SABLs) are granted to date. According to our records, 5,114,911.85 hectares of customary land have been leased, much of the leases granted in the last two years. The laws governing the use of customary land are specific in their protection of the rights and freedoms of landowners, who own 97 per cent of the land. What is of concern to us is the manner in which the Government was handling the development of the customary land, because it raises serious questions about its commitment and understanding of the law and issues at play at present. People in the rural areas have one big and most valuable asset. This is their land, which is protected by the National Constitution, which is the supreme law over all other laws. The 85 per cent of the 6 million

Hugh Laurie to star in Mr Pip film in New Zealand and Bougainville

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The star of United States television medical series House , Hugh Laurie, is on his way to New Zealand and Papua New Guinea to film a feature adaptation of the novel Mister Pip . Mister Pip , written by New Zealand author Lloyd Jones in 2006, tells the story of the last white man left on the strife-torn island of Bougainville, Papua New Guinea. He reopens a school and reads his favourite novel, Great Expectations , to the students, inspiring a gifted 14-year-old named Matilda. Laurie, of Blackadder fame, who now stars in House , will film in New Zealand and on Bougainville in May. The New Zealand Film Commission, New Zealand on Air, TV3 and a number of overseas parties are funding the project. "It's an immensely touching, unique, yet completely unsentimental story of love. It is unlike any script I have read, or any story I have ever heard. Plus I get to go to Papua New Guinea and call it work. I am a very lucky man," Laurie told the Hollywood Reporter . New Zealande

Hugh Laurie to star in Mr Pip film in New Zealand and Bougainville

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The star of United States television medical series House , Hugh Laurie, is on his way to New Zealand and Papua New Guinea to film a feature adaptation of the novel Mister Pip . Mister Pip , written by New Zealand author Lloyd Jones in 2006, tells the story of the last white man left on the strife-torn island of Bougainville, Papua New Guinea. He reopens a school and reads his favourite novel, Great Expectations , to the students, inspiring a gifted 14-year-old named Matilda. Laurie, of Blackadder fame, who now stars in House , will film in New Zealand and on Bougainville in May. The New Zealand Film Commission, New Zealand on Air, TV3 and a number of overseas parties are funding the project. "It's an immensely touching, unique, yet completely unsentimental story of love. It is unlike any script I have read, or any story I have ever heard. Plus I get to go to Papua New Guinea and call it work. I am a very lucky man," Laurie told the Hollywood Reporter . New Zea

Feedback on PNG development plan

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PAUL BARKER Institute of National Affairs It is disappointing that the Papua New Guinea Planning Minister should choose to criticise the feedback being provided by professionals with respect to the 20 year strategic plan (DSP2030), and notably the agricultural forecasts (full page advert in National of 8th April). Constructive feedback should be encouraged, recognised and appreciated, not condemned. Government plans should not be considered sacrosanct, and whilst there was certainly some consultation on the Vision 2050, it was limited for the DSP2030. If these are meant to be national plans, not just government plans, it is critical that there is wide public participation and endorsement. Medium and longer term plans are valuable tools if suitable resources are provided to enable their implementation, but it requires that the targets and forecasts are realistic and well researched. PNG has had many plans and strategies, but, as with the Medium Term Development Strategy (MT