PNGBLOGS

Since the new government was formed on Aug 2, it has said and done most of the right things. It has won over the people by tacklin­g corruption and going after the corrupt. On the other hand, some recent decisions and political moves have raised a few questions. These are some of the controversial issues. 1. Merger of Air Niugini and Airlines PNG The proposed merger sponsored by Sir Mekere Morauta has not gone down well with the public and rightly so. It is common knowledge that the merger will create a monopoly and eliminate competition, causing the people to pay more for travel. Regardless of how Sir Mekere justifies his actions, the public will not buy it. His privatisation model is only suitable in developed countries with many players in the market where mergers or acquisitions will improve capitalisation, efficiency in service provision and develop a competitive mature market. Unfortunately, this is not the case in PNG as we do not have many players of similar size and capacity.

Since the new government was formed on Aug 2, it has said and done most of the right things. It has won over the people by tacklin­g corruption and going after the corrupt. On the other hand, some recent decisions and political moves have raised a few questions. These are some of the controversial issues. 1. Merger of Air Niugini and Airlines PNG The proposed merger sponsored by Sir Mekere Morauta has not gone down well with the public and rightly so. It is common knowledge that the merger will create a monopoly and eliminate competition, causing the people to pay more for travel. Regardless of how Sir Mekere justifies his actions, the public will not buy it. His privatisation model is only suitable in developed countries with many players in the market where mergers or acquisitions will improve capitalisation, efficiency in service provision and develop a competitive mature market. Unfortunately, this is not the case in PNG as we do not have many players of similar size and capacit

Affordable air travel – domestic and international – has been given as one of the reasons for the proposed merger of the country’s lea­ding airline Air Niugini with the nationally-owned Airlines PNG. Public Enterprises Minister and chairman of the Merger Implementation Committee Sir Mekere Morauta has followed his agenda of strengthening state and locally-owned companies by announcing last month that the government had endorsed an “in-principle” de­cision to combine the country’s flagship carrier with an airline company that only several years ago had offered shares in its business to the public. Sir Mekere’s rationale is mostly geared toward cost-saving measures which he stated clearly in a full page advertisement taken out in The National yesterday. Ma­king the air travel relatively inexpensive and spreading the service out to more destinations is a key point in the government’s plan. Not surprisingly, however, there have been concerns raised by Public Employees Association president

Affordable air travel – domestic and international – has been given as one of the reasons for the proposed merger of the country’s lea­ding airline Air Niugini with the nationally-owned Airlines PNG. Public Enterprises Minister and chairman of the Merger Implementation Committee Sir Mekere Morauta has followed his agenda of strengthening state and locally-owned companies by announcing last month that the government had endorsed an “in-principle” de­cision to combine the country’s flagship carrier with an airline company that only several years ago had offered shares in its business to the public. Sir Mekere’s rationale is mostly geared toward cost-saving measures which he stated clearly in a full page advertisement taken out in The National yesterday. Ma­king the air travel relatively inexpensive and spreading the service out to more destinations is a key point in the government’s plan. Not surprisingly, however, there have been concerns raised by Public Employees Association presid

DUMPED  IT is official. Royal Dutch Shell Plc is the government’s preferred operator for the InterOil discovered Elk and Antelope gas fields in Gulf. This was categorically stated yesterday following recent exchanges in the media between InterOil and Petroleum Minister William Duma over the size of the second LNG project, its location and who should develop it. InterOil was pursuing a small-scale fragmented pro­ject as opposed to its original agreement with the state for a large LNG plant to be developed by an internationally recognised operator. Acting Petroleum and Energy secretary Rendle Rimua said in a statement that Shell was in a strategic partnership with the state-owned Petromin PNG Holdings Ltd “and is the state’s preferred operator”. He said a National Executive Council submission acknowledged that “Shell is a strategic partner with the state’s nominee, Petromin”. WELCOME Rimua said his minister, Duma, had taken this position which had been endorsed by the NEC and “

DUMPED  IT is official. Royal Dutch Shell Plc is the government’s preferred operator for the InterOil discovered Elk and Antelope gas fields in Gulf. This was categorically stated yesterday following recent exchanges in the media between InterOil and Petroleum Minister William Duma over the size of the second LNG project, its location and who should develop it. InterOil was pursuing a small-scale fragmented pro­ject as opposed to its original agreement with the state for a large LNG plant to be developed by an internationally recognised operator. Acting Petroleum and Energy secretary Rendle Rimua said in a statement that Shell was in a strategic partnership with the state-owned Petromin PNG Holdings Ltd “and is the state’s preferred operator”. He said a National Executive Council submission acknowledged that “Shell is a strategic partner with the state’s nominee, Petromin”. WELCOME Rimua said his minister, Duma, had taken this position which had been endorsed by th

PRIME Minister Peter O’Neill told the United Nations General Assembly that PNG is still endeavouring to achieve the eight-point Global Millennium Development Goals. On some fronts it has done well but in other areas it has fallen behind. The important issue is that the MDG is now firmly on the national agenda and that is something that was not there three years ago. But can the goals be really achieved? That question can be answered only in how the government tackles the fundamental goal of the MDG, which is poverty reduction. The principle goal of the MDG is to half or rid the globe of poverty by 2015, now a mere four years away. Is PNG rich or is it poor? Or is it both rich and poor? Are Papua New Guineans poverty stricken in the way of those in sub-Saha­ran countries or parts of Asia? Poverty is not merely the lack of food but a collection of many factors. One definition might be the lack of that which is essential for the wholesome growth and well-being of the human person or of a

PRIME Minister Peter O’Neill told the United Nations General Assembly that PNG is still endeavouring to achieve the eight-point Global Millennium Development Goals. On some fronts it has done well but in other areas it has fallen behind. The important issue is that the MDG is now firmly on the national agenda and that is something that was not there three years ago. But can the goals be really achieved? That question can be answered only in how the government tackles the fundamental goal of the MDG, which is poverty reduction. The principle goal of the MDG is to half or rid the globe of poverty by 2015, now a mere four years away. Is PNG rich or is it poor? Or is it both rich and poor? Are Papua New Guineans poverty stricken in the way of those in sub-Saha­ran countries or parts of Asia? Poverty is not merely the lack of food but a collection of many factors. One definition might be the lack of that which is essential for the wholesome growth and well-being of the human person or

Exxon-Mobil, developer of Papua New Guinea’s giant $18 billion Liquified Natural Gas project is looking to manage the project’s social and environmental image by sucking in PNG’s notoriously weak and gullible NGO sector with meaningless dialogue and the promise of future cash. Exxon’s strategy to nullify possible opposition and criticism through engagement with civil society organisations has previously been successfully used  in PNG by organisations like Chevron (working primarily with WWF) , by Placer Dome at its controversial Porgera mine (where they established a formal NGO committee) and by the World Bank. From:   steven.j.whisker@exxonmobil.com  [ mailto:steven.j.whisker@exxonmobil.com ] Sent:  29 September 2011 12:58 To:   steven.j.whisker@exxonmobil.com Cc:   ruben.medrano@exxonmobil.com Subject:  EHL Biodiversity Strategy: Multi Stakeholder Meeting Further to meetings held with you earlier in the year, EHL is progressing with the development of its Biodiversity Of

Exxon-Mobil, developer of Papua New Guinea’s giant $18 billion Liquified Natural Gas project is looking to manage the project’s social and environmental image by sucking in PNG’s notoriously weak and gullible NGO sector with meaningless dialogue and the promise of future cash. Exxon’s strategy to nullify possible opposition and criticism through engagement with civil society organisations has previously been successfully used  in PNG by organisations like Chevron (working primarily with WWF) , by Placer Dome at its controversial Porgera mine (where they established a formal NGO committee) and by the World Bank. From:   steven.j.whisker@exxonmobil.com  [ mailto:steven.j.whisker@exxonmobil.com ] Sent:  29 September 2011 12:58 To:   steven.j.whisker@exxonmobil.com Cc:   ruben.medrano@exxonmobil.com Subject:  EHL Biodiversity Strategy: Multi Stakeholder Meeting Further to meetings held with you earlier in the year, EHL is progressing with the development of its Biodivers

Keeping the NCD Governor under tabs in this column should not be viewed as an orchestrated maneuver by this blog to discredit the politician, a man must be given what is due, but in saying that though, not all that meets the eye and is perceived as rosy of the Governor, is a depiction of order and harmony and fiscal discipline in the operation of NCDC. It is therefore in the best interest of public knowledge and good governance to highlight covert and illegal activities which pervade the organization under the hand of the Governor. Of intermittent, is the consistent and persistent abuse of Commission budgetary allocated funds year-marked for projects, which tops the list of some of the worst administration and management interference and blunders a politician could be embroiled in.  According to an insider, "the Governor has consistently hijacked funds year-marked for social services operational activities of NCDC to fund politically hatched and mooted activities at will since bee

Keeping the NCD Governor under tabs in this column should not be viewed as an orchestrated maneuver by this blog to discredit the politician, a man must be given what is due, but in saying that though, not all that meets the eye and is perceived as rosy of the Governor, is a depiction of order and harmony and fiscal discipline in the operation of NCDC. It is therefore in the best interest of public knowledge and good governance to highlight covert and illegal activities which pervade the organization under the hand of the Governor. Of intermittent, is the consistent and persistent abuse of Commission budgetary allocated funds year-marked for projects, which tops the list of some of the worst administration and management interference and blunders a politician could be embroiled in.  According to an insider, "the Governor has consistently hijacked funds year-marked for social services operational activities of NCDC to fund politically hatched and mooted activities at will since b

FOR every step, a sacrifice. And so it is for Air Niugini. The optimist among us would of course say, for every step, a gain. Whether or not the proposed merger of the national airline with Airlines PNG is a step forward or back or whether there are gains or losses only time will tell but immediately there will be one substantial sacrifice. It is a sacrifice that has nothing to do with the bottom line, which seems to dictate all corporate decisions, but it is one that has endeared the traveller to this airline: safety, the airline traveller’s bottom line. If the national flag carrier is merged with Airlines PNG, gone will be its reputation as the safest airline in the world to fly in. Through half a dozen go­vernments, ever shifting boards and management since 1973, Air Niugini has doggedly nurtured that reputation. At the lowest point in its existence that reputation has never been sacrificed. And now, with one fell sweep, without losing an aircraft or a single life in a flying accide

FOR every step, a sacrifice. And so it is for Air Niugini. The optimist among us would of course say, for every step, a gain. Whether or not the proposed merger of the national airline with Airlines PNG is a step forward or back or whether there are gains or losses only time will tell but immediately there will be one substantial sacrifice. It is a sacrifice that has nothing to do with the bottom line, which seems to dictate all corporate decisions, but it is one that has endeared the traveller to this airline: safety, the airline traveller’s bottom line. If the national flag carrier is merged with Airlines PNG, gone will be its reputation as the safest airline in the world to fly in. Through half a dozen go­vernments, ever shifting boards and management since 1973, Air Niugini has doggedly nurtured that reputation. At the lowest point in its existence that reputation has never been sacrificed. And now, with one fell sweep, without losing an aircraft or a single life in a flying acci

Prime Minister Peter O’Neill has directed Attorney-General and Justice Minister Dr Allan Marat to institute a special investigation into the alleged squandering of millions of kina of landowner monies by the Mineral Resources Development Company (MRDC), one of which is the defunct multi-million kina Casino Hotel development. The directive stems from serious allegations of schemes devised to squander landowners’ monies in lieu of investments, royalties and equities from resource projects. The Prime Minister noted that there were also allegations of inflated payments towards the acquisition of properties which do not have clear titles. Similarly, the purchase of 50 percent stake in a helicopter company which appears to have a book value of K30 million (which equates to K15 million) was allegedly purchased and acquired at the cost of K70 million by MRDC. “It is now becoming a concern and we must act fast and address those issues without any further delay. I am aware that these allegations

Prime Minister Peter O’Neill has directed Attorney-General and Justice Minister Dr Allan Marat to institute a special investigation into the alleged squandering of millions of kina of landowner monies by the Mineral Resources Development Company (MRDC), one of which is the defunct multi-million kina Casino Hotel development. The directive stems from serious allegations of schemes devised to squander landowners’ monies in lieu of investments, royalties and equities from resource projects. The Prime Minister noted that there were also allegations of inflated payments towards the acquisition of properties which do not have clear titles. Similarly, the purchase of 50 percent stake in a helicopter company which appears to have a book value of K30 million (which equates to K15 million) was allegedly purchased and acquired at the cost of K70 million by MRDC. “It is now becoming a concern and we must act fast and address those issues without any further delay. I am aware that these allegat

SURE, in the minds of many Papua New Guineans, the liquefied natural gas (LNG) project will bring a lot of changes into our country. Yes, if revenues are managed and used well, it will be a pillar of the economy. Or otherwise. The question is: will our so-called leaders and bureaucrats manage the revenues from this project with the mindset of developing this nation. PNG gained its independence from Australia in 1975 and its 36 years now. I can feel we are going backwards, fuelled by chronic bad attitudes and systemic corruption. We have a lot of self- interested and power-hungry leaders who do nothing but serve themselves. I often ask myself whether the much talked of multi-billion kina LNG project in the Southern Highlands will really change the lives of the people. With no change in the attitude of MPs, leaders and ordinary people, I believe we will never get anywhere. Attitude is a huge problem here in PNG. Much of the infrastructure we see today was built before independence by the

SURE, in the minds of many Papua New Guineans, the liquefied natural gas (LNG) project will bring a lot of changes into our country. Yes, if revenues are managed and used well, it will be a pillar of the economy. Or otherwise. The question is: will our so-called leaders and bureaucrats manage the revenues from this project with the mindset of developing this nation. PNG gained its independence from Australia in 1975 and its 36 years now. I can feel we are going backwards, fuelled by chronic bad attitudes and systemic corruption. We have a lot of self- interested and power-hungry leaders who do nothing but serve themselves. I often ask myself whether the much talked of multi-billion kina LNG project in the Southern Highlands will really change the lives of the people. With no change in the attitude of MPs, leaders and ordinary people, I believe we will never get anywhere. Attitude is a huge problem here in PNG. Much of the infrastructure we see today was built before independence by

Its pleasing to note that the O'Neill-Namah Goverment is really serious about the prevalence of corruption in this country and trying to eradicate it. Corruption is like a cancer that is eating away our country I commend the Goverment for its firm uncompromising stand against this sickness of corruption. In my opinion corruption has become a way of life in PNG and its going to kill this country if we dont join forces and do something positive.  If Mr. Prime Minister is genuine about cleaning corruption in this country, then he must first carry out cleaning exercise in the departments/agencies that are under his jurisdiction. He must start with his wantoks who are corrupting this country. One of the most corrupted agencies under the Prime Minister's jurisdiction is the Mineral Resources Development Company and Group of Companies. This important organisation is headed by Mr. O'Neill's wantok, Mr. Augustine Mano who is alleged to have stolen millions of landowners money in

Its pleasing to note that the O'Neill-Namah Goverment is really serious about the prevalence of corruption in this country and trying to eradicate it. Corruption is like a cancer that is eating away our country I commend the Goverment for its firm uncompromising stand against this sickness of corruption. In my opinion corruption has become a way of life in PNG and its going to kill this country if we dont join forces and do something positive.  If Mr. Prime Minister is genuine about cleaning corruption in this country, then he must first carry out cleaning exercise in the departments/agencies that are under his jurisdiction. He must start with his wantoks who are corrupting this country. One of the most corrupted agencies under the Prime Minister's jurisdiction is the Mineral Resources Development Company and Group of Companies. This important organisation is headed by Mr. O'Neill's wantok, Mr. Augustine Mano who is alleged to have stolen millions of landowners money i