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PNG on brink of ruin as government hangs in the balance

Today the Papua New Guinea High Court will hand down a judgment determining the constitutional validity of the PNG government led by Prime Minister Peter O'Neill. If a negative decision is handed down - as many experts expect - the government of PNG could become unworkable. This would be especially unfortunate because the O'Neill government has shown signs of addressing serious governance failures that have plagued the country for more than 30 years. These failures have led some observers to think that PNG may be becoming a failed state. The omens are all there: escalating crime rates (including murder, drunken violence, illicit drugs, prostitution, burglary, carjacking); horrific violence directed at women (rapes, bashings, torture, killings); some of the worst maternal and infant mortality rates in the world; plunging literacy rates; collapsed health and education systems; endemic tribal warfare in the Highlands; land grabs by foreigners; unsustainable ex

PM reference case twist - CJ 'secretly' met with (Arthur) Somare

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Private meeting with CJ? The Chief Justice secretly' met with (Arthur) Somare " at Ela Beach Hotel at 2am on 4th November, 2011 while the Court case was proceeding at Waigani. It is reported on the front page of Post Courier today The Supreme Court will hear an application by Prime Minister, Peter O'Niell, seeking to remove the Chief Justice from presiding as Chairman of the Five-men Bench hearing the Special Reference, challenging the August formation of Government. The application to disqualify the Chief Justice, Sir Salamo Injia, was filed today by Mr. Mr. O'Niell's lawyer and was set to be heard this morning. This new twist in the case may delay the much anticipated ruling of the matter before the court. The high court was to make a ruling on the Reference today. The much anticipated ruling of the High Court on the Special Reference, will be stalled following this new application. Prime Minister Peter O'Neil as alleged an apprehension of bias on Chairman

PM reference case twist - CJ 'secretly' met with (Arthur) Somare

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Private meeting with CJ? The Chief Justice secretly' met with (Arthur) Somare " at Ela Beach Hotel at 2am on 4th November, 2011 while the Court case was proceeding at Waigani. It is reported on the front page of Post Courier today The Supreme Court will hear an application by Prime Minister, Peter O'Niell, seeking to remove the Chief Justice from presiding as Chairman of the Five-men Bench hearing the Special Reference, challenging the August formation of Government. The application to disqualify the Chief Justice, Sir Salamo Injia, was filed today by Mr. Mr. O'Niell's lawyer and was set to be heard this morning. This new twist in the case may delay the much anticipated ruling of the matter before the court. The high court was to make a ruling on the Reference today. The much anticipated ruling of the High Court on the Special Reference, will be stalled following this new application. Prime Minister Peter O'Neil as alleged an apprehension of bias

Compo looms as High Court kills Julian Moti case

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THE Australian government has been exposed as being party to another high-profile "deportation" bungle, after the High Court yesterday found federal officials facilitated the unlawful transfer of former Solomon Islands attorney-general Julian Moti to Brisbane to answer child sex charges. The decision opens the government to a compensation claim from Mr Moti and ends the controversial five-year effort to bring him to trial, under sex tourism laws, for the alleged rape of a 13-year-old girl in Vanuatu and New Caledonia. The Australian understands that the complainant, now in her mid-20s, continues to be financially supported by the Australian Federal Police after being relocated to Australia to give evidence against Mr Moti, along with members of her family. The High Court ordered that the prosecution of Mr Moti be stayed as an abuse of process after accepting that Canberra had connived or colluded with the government of the Solomon Islands in his "unlawful deportation&quo

Compo looms as High Court kills Julian Moti case

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THE Australian government has been exposed as being party to another high-profile "deportation" bungle, after the High Court yesterday found federal officials facilitated the unlawful transfer of former Solomon Islands attorney-general Julian Moti to Brisbane to answer child sex charges. The decision opens the government to a compensation claim from Mr Moti and ends the controversial five-year effort to bring him to trial, under sex tourism laws, for the alleged rape of a 13-year-old girl in Vanuatu and New Caledonia. The Australian understands that the complainant, now in her mid-20s, continues to be financially supported by the Australian Federal Police after being relocated to Australia to give evidence against Mr Moti, along with members of her family. The High Court ordered that the prosecution of Mr Moti be stayed as an abuse of process after accepting that Canberra had connived or colluded with the government of the Solomon Islands in his "unlawful deportati

2012 National Budget Commentary

The 2012 Budget is largely sound, focused as they state upon 'sharing the wealth and empowering our people'. The expenditure focus is inappropriate, focused upon the priorities of education, infrastructure and health (plus some boost to police/law and order); the reduction tax, notably for the lower incomes (esp raising the threshold to K10000) is appropriate, especially considering the considering rise in living costs over recent years. The lowering of import duties, largely from 25-20% and 15-12/5% including of basic foods, like flour/wheat imports, will also ease the inflation rate, along with the appreciating kina. Against that is that some taxation contribution is valuable, including to encourage a sense of ownership of the State by the whole community, and seeking accountability. Also, the downside of the stronger kina is lower local commodity prices, including for PNG farmers, and lower export earnings. The inflation rate remains high and a worry. Low official debt level

2012 National Budget Commentary

The 2012 Budget is largely sound, focused as they state upon 'sharing the wealth and empowering our people'. The expenditure focus is inappropriate, focused upon the priorities of education, infrastructure and health (plus some boost to police/law and order); the reduction tax, notably for the lower incomes (esp raising the threshold to K10000) is appropriate, especially considering the considering rise in living costs over recent years. The lowering of import duties, largely from 25-20% and 15-12/5% including of basic foods, like flour/wheat imports, will also ease the inflation rate, along with the appreciating kina. Against that is that some taxation contribution is valuable, including to encourage a sense of ownership of the State by the whole community, and seeking accountability. Also, the downside of the stronger kina is lower local commodity prices, including for PNG farmers, and lower export earnings. The inflation rate remains high and a worry. Low official debt l

National Budget 2012

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Education and Transport infrastructure take up the biggest chunk of the 2012 10-point-five billion Kina National Budget, which was brought down in Parliament, yesterday. This is 720-million Kina more, than last year's allocation, which the National Government says, was designed to share wealth and empower people. The National Government expects to fund the budget, mostly from taxes on income and profit, as well as grants. Its spending will also be 632-million Kina more, than last year's, taken up by Free Education, Transport infrastructure, the 2012 National Elections, Health and Law and Order. The Development Budget exceeds four-billion Kina for the first time, with major expenditure items being the 2015 Pacific Games, Umbrella Benefits Sharing Agreement and support for small to medium enterprise. The National Government described the budget, as fiscally responsible and does not add to the risk of overheating the economy and increasing inflation. GOVERNMENT REVENUE A signi

National Budget 2012

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Education and Transport infrastructure take up the biggest chunk of the 2012 10-point-five billion Kina National Budget, which was brought down in Parliament, yesterday. This is 720-million Kina more, than last year's allocation, which the National Government says, was designed to share wealth and empower people. The National Government expects to fund the budget, mostly from taxes on income and profit, as well as grants. Its spending will also be 632-million Kina more, than last year's, taken up by Free Education, Transport infrastructure, the 2012 National Elections, Health and Law and Order. The Development Budget exceeds four-billion Kina for the first time, with major expenditure items being the 2015 Pacific Games, Umbrella Benefits Sharing Agreement and support for small to medium enterprise. The National Government described the budget, as fiscally responsible and does not add to the risk of overheating the economy and increasing inflation. GOVERNMENT RE

Budget to focus on education

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Papua New Guinea's government is expected to hand down its 2012 budget on Tuesday, two weeks after it was due. A spokesman for the National Executive council told AAP the budget papers would be handed down during Tuesday's parliamentary session, starting at 2pm local time (1500 AEDT). The budget is expected to be 10 billion Kina ($A4.6 billion), with a particular focus on education. The Port Moresby based National Newspaper reported on Monday that the O'Neill government is set to allocate 900 million kina ($A415 million) for free education for students up to Year 10, as well as a 75 per cent subsidy for students in Years 11 and 12. The government will also add 350 million kina ($A161 million) to this from the nation's education trust account. On Friday, the Supreme Court is due to hand down its decision on whether the August 2 election of Prime Minister Peter O'Neill was constitutional. If ruled unconstitutional, some analysts predict the return of Sir Michael Somar

Budget to focus on education

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Papua New Guinea's government is expected to hand down its 2012 budget on Tuesday, two weeks after it was due. A spokesman for the National Executive council told AAP the budget papers would be handed down during Tuesday's parliamentary session, starting at 2pm local time (1500 AEDT). The budget is expected to be 10 billion Kina ($A4.6 billion), with a particular focus on education. The Port Moresby based National Newspaper reported on Monday that the O'Neill government is set to allocate 900 million kina ($A415 million) for free education for students up to Year 10, as well as a 75 per cent subsidy for students in Years 11 and 12. The government will also add 350 million kina ($A161 million) to this from the nation's education trust account. On Friday, the Supreme Court is due to hand down its decision on whether the August 2 election of Prime Minister Peter O'Neill was constitutional. If ruled unconstitutional, some analysts predict the return of Sir M

Morauta responds to National Newspaper Editorial

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Last week The National newspaper publlished an editorial relating to my decisions and associated comments on various Public Enterprises since becoming Minister in August. It is my duty to the nation to announce publicly the decisions that I make and to be held accountable for those decisions as the Minister responsible. Likewise, the former Minister, Mr Arthur Somare, and the former IPBC management, should accept responsibility for their actions. I regard the performance of the former Minister, and the former IPBC management as grossly negligent. It is beyond argument that they have cost the nation vast sums of money. Allow me to repeat some facts for the benefit of your readers The Abu Dhabi loan negotiated by Mr Arthur Somare and the former IPBC management was found to be insufficient, and an extra K900 million has to be borrowed; Under Mr Somare and the former IPBC management, Telikom engaged in K800 million worth of unauthorised borrowings and expenditure; When Mr Somare and the fo

Morauta responds to National Newspaper Editorial

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Last week The National newspaper publlished an editorial relating to my decisions and associated comments on various Public Enterprises since becoming Minister in August. It is my duty to the nation to announce publicly the decisions that I make and to be held accountable for those decisions as the Minister responsible. Likewise, the former Minister, Mr Arthur Somare, and the former IPBC management, should accept responsibility for their actions. I regard the performance of the former Minister, and the former IPBC management as grossly negligent. It is beyond argument that they have cost the nation vast sums of money. Allow me to repeat some facts for the benefit of your readers The Abu Dhabi loan negotiated by Mr Arthur Somare and the former IPBC management was found to be insufficient, and an extra K900 million has to be borrowed; Under Mr Somare and the former IPBC management, Telikom engaged in K800 million worth of unauthorised borrowings and expenditure; When Mr Somare

Detained Papuan Leaders Speak Out

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West Papuan leaders. In front, from left: Forkorus Yaboisembut and Edsison Waromi. Behind: Dominikus Surabut, Gad Wenda, Agus Senandy Kraar and Selpius Bobii. Photo: West Papua Media New Matilda has obtained the first interview with West Papuan leaders detained after last month's violent crackdown on the Third Papuan People's Congress in Jayapura. Alex Rayfield reports The man who was last month elected President of the ‘Federal Republic of West Papua’ after a declaration of independence by the third Papuan People’s Congress may be behind bars, he may have been savagely beaten by the Indonesian police, but he has not been silenced. From his five by four metre cell in the bowels of the Jayapura Police Station — quarters he shares with five other Papuans also charged with rebellion against the Indonesian state — Forkorus Yaboisembut recently issued a rousing call to action, which was smuggled out of the prison and obtained by New Matilda. "To all the Papuan peopl

Detained Papuan Leaders Speak Out

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West Papuan leaders. In front, from left: Forkorus Yaboisembut and Edsison Waromi. Behind: Dominikus Surabut, Gad Wenda, Agus Senandy Kraar and Selpius Bobii. Photo: West Papua Media New Matilda has obtained the first interview with West Papuan leaders detained after last month's violent crackdown on the Third Papuan People's Congress in Jayapura. Alex Rayfield reports The man who was last month elected President of the ‘Federal Republic of West Papua’ after a declaration of independence by the third Papuan People’s Congress may be behind bars, he may have been savagely beaten by the Indonesian police, but he has not been silenced. From his five by four metre cell in the bowels of the Jayapura Police Station — quarters he shares with five other Papuans also charged with rebellion against the Indonesian state — Forkorus Yaboisembut recently issued a rousing call to action, which was smuggled out of the prison and obtained by New Matilda. "To all the P

Basil spotlights Sir Arnold’s legal inconsistencies

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Basil: Stop preying National Planning and Monitoring Minister Honourable Sam Basil has called on former Chief Justice and Governor of Madang Sir Arnold Amet to stop “preying” on judges’ ‘emotions and opinions’. Mr Basil said that Sir Arnold should realise that he is no longer on the bench as the Chief Justice but a Politician and a member of the Opposition. “His continuous media circus is not only contemptuous but subjudicial to the pending Supreme Court Decision on the validity of the events of August 2 in Parliament,” he said referring to Parliament’s declaration of vacancy and election of Ialibu MP Peter O’Neill as Prime Minister. “Let the Judges do their job and stop preying on their emotions and opinions,“ an incensed Mr Basil said. “The insinuations that he is portraying through the media pre-empts the outcome of the Supreme Court decision and such does not paint a good picture on the independence of the Judiciary. He talks as if the Judiciary is in his steal pocket. That is con

Basil spotlights Sir Arnold’s legal inconsistencies

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Basil: Stop preying National Planning and Monitoring Minister Honourable Sam Basil has called on former Chief Justice and Governor of Madang Sir Arnold Amet to stop “preying” on judges’ ‘emotions and opinions’. Mr Basil said that Sir Arnold should realise that he is no longer on the bench as the Chief Justice but a Politician and a member of the Opposition. “His continuous media circus is not only contemptuous but subjudicial to the pending Supreme Court Decision on the validity of the events of August 2 in Parliament,” he said referring to Parliament’s declaration of vacancy and election of Ialibu MP Peter O’Neill as Prime Minister. “Let the Judges do their job and stop preying on their emotions and opinions,“ an incensed Mr Basil said. “The insinuations that he is portraying through the media pre-empts the outcome of the Supreme Court decision and such does not paint a good picture on the independence of the Judiciary. He talks as if the Judiciary is in his steal pocket.

Taiwan sues diplomatic broker in US over Papua New Guinea scandal

The government filed a suit in the United States to recover funds allegedly stolen by diplomatic broker Ching Chi Ju in the Papua New Guinea scandal, reports said Tuesday. The scandal broke during the final months of the administration of President Chen Shui-bian in 2008, when it became known that the Ministry of Foreign Affairs had paid US$29.8 million (NT$1 billion) to two diplomatic brokers to persuade Papua New Guinea to switch official relations from China to Taiwan. When the change in diplomatic relations failed to materialize almost a year after the money had been wired in 2006, Taiwan asked for its money back but the two men refused. One of the brokers, Singapore citizen Wu Szu-tsai, was detained in Taiwan in 2008 and is still serving a 30-months sentence for committing forgery and making false accusations. Earlier this month, Wu was also sentenced to three years and ten months for breach of trust. Ching, a Taiwanese citizen believed to hold a US passport, disappeared but is wi

Taiwan sues diplomatic broker in US over Papua New Guinea scandal

The government filed a suit in the United States to recover funds allegedly stolen by diplomatic broker Ching Chi Ju in the Papua New Guinea scandal, reports said Tuesday. The scandal broke during the final months of the administration of President Chen Shui-bian in 2008, when it became known that the Ministry of Foreign Affairs had paid US$29.8 million (NT$1 billion) to two diplomatic brokers to persuade Papua New Guinea to switch official relations from China to Taiwan. When the change in diplomatic relations failed to materialize almost a year after the money had been wired in 2006, Taiwan asked for its money back but the two men refused. One of the brokers, Singapore citizen Wu Szu-tsai, was detained in Taiwan in 2008 and is still serving a 30-months sentence for committing forgery and making false accusations. Earlier this month, Wu was also sentenced to three years and ten months for breach of trust. Ching, a Taiwanese citizen believed to hold a US passport, disappeared b