PNGBLOGS

by PAUL FLANAGAN PNG is a high-taxing and very high-spending country relative to its Asia Pacific peers . Most of any adjustment to the fiscal balance should therefore occur on the expenditure side. PNG is planning to do this with a drop in the expenditure to GDP ratio from the highest level ever, of 38.1% in 2013, to its lowest level ever, of 24.6% in 2020. PNG has never attempted such a fiscal consolidation – not even to recover from the fiscal crises of the 1990s. Putting this into an international perspective, PNG is seeking to adjust government expenditure by 13.5% of the economy. This is more than double the government expenditure reductions undertaken by  Greece  of 6.3% (from 51.4% of GDP in 2010 to 45.1% of GDP in 2015). Of course, PNG is not facing a Greek-style fiscal crisis (at the start of its crisis Greece had a broadly similar deficit of 11%, but a much higher public debt level of 170% of GDP), but it is planning a similar or more draconian response. PNG is seekin

by PAUL FLANAGAN   Papua New Guinea’s budget , released on 3 November and rushed through Parliament the same day, could have been so much better. Given the country’s record deficit levels, fiscal consolidation was vital even before the fall in international commodity prices. However, the proposed expenditure cuts do not match the government’s stated priorities of protecting health, education and infrastructure. They are also excessive – even more than those imposed on Greece as part of its structural adjustment program. Further, the budget suffers from factual errors relating to GDP and the external accounts, a lack of revenue effort, and inadequate transparency. This is the first of two posts providing a detailed analysis of the 2016 PNG Budget. GDP errors The budget makes a serious error in calculating PNG’s nominal GDP – and this affects all the key ratios and messaging from the budget. The nominal GDP budget estimates assume there has been no fall in LNG

by FREEDOM HOUSE   The Political Rights rating declined from 3 to 4 due to Prime Minister Peter O’Neill’s increasingly autocratic leadership style, including his disbanding of an anticorruption task force after he became subject of a corruption investigation. Overview:  In January 2014, Prime Minister Peter O’Neill and other lawmakers faced allegations of wrongdoing involving $28 million in government fees paid to a private law firm. Taskforce Sweep, O’Neill’s special anticorruption investigation body, first concluded the allegations were unfounded, but later said new evidence supported an arrest warrant for O’Neill. Following this development, O’Neill declared Taskforce Sweep to be politically compromised and disbanded the group in June, putting the police in charge of the investigation. Acting Police Commissioner Geoffrey Vaki was arrested soon afterward by fraud investigators for interfering with the course of justice in relation to the case against O’Neil

CYRIL GARE A picture tells a lot of story. Likewise I present pictures here to tell about the state of students’ and lecturers’ housing facilities on campus at the University of Papua New Guinea. From the outset let me attest unreservedly that there is no malice or prejudice behind this publication except that the truth must be told.  It’s been over 20 years since I left UPNG and correctly student dormitories including all the Toa blocks (1-6), Talaigu, Poroman, Kapandu, and Niomoru as well as all the girls’ dormitories – Luavi house, Lasitawe and Dame Mary Kekedo building - have succumbed to depreciation and years of general wear and tear. At Toa 5 & 6, stocks of rubbish lie uncollected for weeks if not months, betelnut spittle everywhere. A room has stocks of empty soft drink cans piled up outside, a perfect attraction for Papuan black snakes.  At Fort banner where lecturers live, streets are filthy with rubbish and over grown trees and grass, used shopping plast

by PNGBLOGS William Titipe Powi contested for Southern Highlands Provincial Seat under Peter O’Neill’s party – People’s National Congress (PNC), in the 2012 election. On the race with him were Joseph Kopol (independent), Vincent Mirupasi (independent), Silvester Harry Komba (independent) and others. They were contesting for the seat left vacant by Anderson Agiru (current Hela Governor). At the end of the final elimination, Powi was declared winner on 27 July 2012 with a total votes of 139, 308. Before switching code into politics, Powi has been the serving as the Southern Highlands Provincial Administrator for about 10 years. Under his belt as the administrator, he delivered absolutely NOTHING to the province. He only manipulated and controlled all the administrative functions of the provincial government to suit his business and political interest. Development funds were used to pay ghost projects and then diverted into personal account to run election. For i

by YAKAN LEPAKAILI In this post-modern era, the controversial infamous Prime Minister of Papua New Guinea namely Peter O’Neil, has failed to walk the talk. Peter O’Neil has threatened to withdraw the visa on arrival arrangements PNG has with Australia unless visa rights are reciprocated. This in record, broadcasted through radio Australia on the 15th of November 2013, titled “O’Neil threatens to scrap visa on arrival rights for Australians”. He (PO) unequivocally made the statement on the floor of Parliament and rest of the script is cut and pasted as follows: “Speaking in parliament, Mr O'Neill said he is disappointed with how long it takes Papua New Guineans to get an Australian visa. He says he is also upset with reports about inconvenient questions being asked by the Australian High Commission during the application process. "This visa on arrival business for all Australians will be withdrawn by the following year if we don't get a similar arrang

CHANGING PORT MORESBY CITY LANDSCAPE WITH INFRASTRUCTURE DEVELOPMENT, COMPLACENCY IN COMPLIANCE AND STANDARD COMPROMISED. INCOMPLETE STADIUMS: by LEKEM LAKI The metropolitan city of Port Moresby is booming in construction in all form and shape. Contrasting with rest of the country, the scale of construction happening in Port Moresby is unprecedented. The economic values of all gigantic infrastructure developments are in alarming proportion. If not doubled, it is tripled the factual cost of putting up the projects. Should independent expertise is engaged to study and do variation on the costing; surely extravagance unscrupulous spending would be revealed. Particularly sporting venues, in haste, trying to meet the deadline and delivered incomplete jobs and remain as such. Sir Hubert Murry stadium is progressing at snail’s pace. The sport’s Minister exaggerated and today date, he over exaggerate claiming, under his ministry, he has delivered world class stadiums

Madang Sunrise ; Photo Credit Jan Messersmith by MARINA WAITA PMIZ promises spin-off business for landowners but would not allow locals to participate. When one talks of project development, three major parties are involved; the investors, the government and the landowners.  There would be consultation and understanding before any agreement is signed, finalized and launched before operations begin. But has this been the trend here in Papua New Guinea? For the case of Pacific Marine Industrial Zone (PMIZ) in Madang Province, the answer is a big NO. There has never been proper consultation between the National Government and investors with the landowners of the Vidar site where the PMIZ project is located. The landowner’s constant struggles to make the government understand that they do not want the project seem to be falling on deaf ears. As they continue to raise concerns for the environment, potential creation of social problems and lack of real benefit in regards to

by YAKAN LEPAKAILI   The action of the deputy and acting Speaker of Parliament in the last Parliament session was well calculated and his action is not surprising but demeans the parliamentary process and democracy to say the least. This is in the light of opposition moving the motion of no-confidence notice. Initially, when deputy opposition leader sponsored the MONC, acting Speaking called it defective. The approach acting Speaker taken to make the ruling was it proper and followed the tenets of the Parliamentary Standing Orders leaves lot to be desired. The acting Speaker then returned the defective MONC notice to the sponsor to rectify the anomaly and surely resubmitted. In the second time, acting Speaker, on a Thursday, received the amended MONC notice. Whilst the opposition camp was throwing heart and soul into moving the MONC, those in the opposing team had counter plans on foot to outpace opposition. Typically, with Westminster system of governance

by PAULUS KANAMBO Peter O’Steal, the biggest liar, thief and konman in PNG history, has been exposed again by new facts revealed about the 2016 Budget. He said the 2016 money plan was “a conservative budget that carefully manages spending to ensure essential services are delivered to the people. Core services for our grassroots including school fees and access to healthcare will continue to be properly funded. “Our law and order programs will continue with more funding for police, the courts and correctional services. “Funding for critical infrastructure will be maintained in order to provide ongoing stimulus for business and for job creation.” Each and every one of these statements by O’Steal is a lie, as shown by the latest economic research by the prestigious Lowy Institute in Sydney. THE FACTS ABOUT PETER O’STEAL’S LIES Core services for grassroots have in fact been savagely cut because of O’Steal’s corruption, waste and mismanagement. Education sp