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2018 BUDGET: NICE WORDS POOR NUMBERS

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by PAUL FLANAGAN The new Treasurer released his first budget on 28 November. This was an opportunity to demonstrate the second term of the O’Neill government would help turn the corner on PNG’s economic mismanagement. So how did it do? Overall, there are some wonderful sentiments in this first Abel budget. My sense is that he is very genuine in what he is trying to achieve. But he seems to be let down by the realities of PNG politics. Protecting politicians electoral funds, finding money for APEC, trying to regain the upper-hand on the rhetoric of protecting health and education – all within the confines of fiscal responsibility – was simply too much. What has given way in this equation of trying to be responsible while dealing with the political spending pressures has been revenue credibility? Ultimately, he fails in his attempts to explain why we should believe his claim that revenues will suddenly jump by over 20 percent in 2018. This is an increase of over K2.2 billion and

BOARD CHAIRMAN OF TELIKOM PNG LTD MAHESH PATEL IS A FRAUDSTER

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Outlined below are some of the most serious allegations that warrant the immediate termination of Mahesh Patel and appointment of a new Board chairman to take charge of the SOE. We will provide evidence once an internal investigation is set up. SERIOUS ALLEGATIONS AGAINST MAHESH PATEL.(Evidence Available) 1.    2012- VES (voluntary exit scheme). Mahesh Patel, being chairman of HR Sub- Committee went ahead and implemented the VES under the pretext of Government Reforms. The exercise was poorly planned and executed, which resulted in the termination of employment of approximately 500 qualified technical staff, engineers and support staff from their employment. As a result a skills gap was created, Telikom never recovered and recorded consecutive loss in revenue and never declared profit and paid dividends to the state up till 2017. The affected staff under VES in 2012 took Telikom PNG to court seeking damages to be awarded to them. In 2017, a three men Supreme Court Bench upheld the N

Real estate development is the push behind Port Moresby’s growth - Not Government

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by DAVID LEPI Descending into Jackson’s on a hot shimmering Port Moresby afternoon I see the once peculiar sun tanned brown savannah is now replaced by sprawling suburbs after suburbs of modern design of compelling style. The mirage or an optical illusion created by the hot surface below made it look like undulating waves of melting steel and glass cascading into an unforgiving white-hot furnace of the fast approaching tarmac. On the hills to the left, you see excavators carving terraces and flattening land for trenches for foundations, utility conduits, and drainage piping. And swarming with carpenters, electricians and plumbers and all manners of tradesmen eager to pitch in to permanently change the once periphery of National Capital District. This is the growth of a remarkable landmark that is now fast defining the Port Moresby landscape. And who is behind all these concrete pouring and sounds of rhythmic hammers and whining power saws? Is it by some charity group or some long-

PAPUA NEW GUINEA: THE PACIFIC'S NEW HAITI

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by KLEO LEORNADE With improvements in Health, Wealth, Education and Justice in the 20th and 21st Century most countries in the world have to a large extent moved on from accusing and burning of witches in medieval Europe to accepting Wica (witchcraft) and sorcery in the west as mere “curiosities” that in reality are non-existent extensions of a warped mind. However, in few emerging (or ‘yet to emerge’) states where poverty and social oppression within an environment plagued with deficiencies in Health, Wealth Education and Justice, there continue to be strong beliefs in witchcraft, sorcery and the occult.  This is because the people find comfort in the supernatural to explain their ill fates because of their ignorance or deficiency in explaining the causes of deaths, loss of jobs, exam failures, passing the blame, bad luck, bad weather patterns, and crop failures, are all easily explained by Science nowadays. There is a regression in society’s development with people embracing

O'NEIL AVOIDS QUESTION ON EVIDENCE OF FRAUD

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by BRYAN KRAMER MP This morning I put the question to Prime Minister Peter O'Neill who I should submit evidence to establish he had misused public funds. On account I had material evidence supporting the view he was guilty of conspiring with the former Member of Madang and a key member in his party to commit bribery and undue influence during 2012 General Elections. My question was in response to O'Neill's statement the day before in Parliament when responding to Member of North West Sir Mekere Moratua. O'Neill announced to Parliament that he would resign should the opposition produce a single shred of evidence that he has misused or benefited from a single toea of public funds. In March 2012 Peter O'Neill signed a letter in his capacity as Prime Minister to the then Chairman of Gaming Board instructing that the Board consider funding Yagaum Rural Hospital's project submission. Gaming Board issued a K300,000 cheque payable to Yagaum Rural Hospital.

Manumanu Land Deal: Aftermath

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by KIN OPOSEPA Manumanu Land Deal: Aftermath The Manumanu Land deal issue has subsided through time and all stakeholders affected have seemed to move on, the dust has settled. Let me refresh your memories on the issues again. The purported Manumanu Land Deal (MLD) for the relocation of the PNG Defense Force is alleged to involve five different transactions totalling an amount of K46 million. However, the dealings did not comply with established processes. The MLD issue was raised in Parliament by Member for Kairuku –Hiri, Peter Isoaimo that eventually led to the sidelining of 2 Senior Ministers and suspension of 6 Departmental heads, CEO of State Owned Enterprise and chairman of CSTB. In a media statement on the 6th of February 2017 PM, O’Neil had announced a Commission of Inquiry (COI) headed by a retired Judge to investigate the claims made, referred the matter to the National Fraud Squad and the Ombudsman Commission also for potential breaches of the Leadership Code. He further

INSIDE THE SOMARE BRIBERY SCANDAL

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by:  PROFESSOR  Kristian Lasslett     In 2016 eyes turned to Singapore. Close personal friends of Sir Michael Somare were imprisoned, for among other things, defrauding the PNG public. It was claimed American national, Philip Doehrman, and his Singaporean wife, Lim Ai Wah, defrauded the country in order to bribe Sir Michael, his son, Michael Somare Jnr, and a number of Chinese business people. Understandably, at the time, coverage focused on the scandalous nature of the case, given that it implicated the country’s greatest political grandee in a bribery scandal. But the devil is in the detail. Image:  Sir Michael Somare, one of the nation’s founding figures. For the first time, full access to the court decision is now provided. Delivered by Judge Hong, the decision features evidence which appears to show how elites amass fortunes, through practices that significantly increase the cost of living for the PNG public, and distort how national resources are applied. The case of

Did the Lands Secretary grant six leases to himself?

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In the National Gazette for 15th August 2016, the then Secretary for the Department of Lands, Luther Sipison, published a notice stating that he was granting, apparently to himself, substitute leases over six parcels of land at Erap in Morobe Province. The leases were each for a term of 99 years with no rent payable and no improvement covenant. The grant of the leases was subsequently evidenced by an entry in the Titles Register Lease Book. Is this a case of the Lands Secretary granting leases to himself? If so, there are a number of important questions that need to be answered: Why did the Secretary apparently grant the leases to himself? How were the rather obvious potential conflicts of interest managed? Were the proper notices of the intention to grant the substitute leases ever published? Were all the relevant parties consulted including the landowners and previous lessees? Are all the relevant documents on file in the Department? Are the

AUSTRALIAN GOVERNMENT BLAMES PNG GRASSROOTS FOR CORRUPTION

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by PNGI BLOG The Australian Department of Foreign Affairs and Trade (DFAT) in February this year, issued a country report on PNG. One of the issues addressed is corruption. The old saying that the fish rots from the head down, is reversed by DFAT. They suggest that in PNG, the rot begins at the tail, within grass-roots communities, slowly travelling up the spine, to rot the head – senior politicians and public officials. This is how the argument is framed by DFAT: Corruption in PNG takes a number of forms. What outsiders call corruption may often reflect the wantok obligations of the individuals concerned. For example, virtually all politicians need to reward their supporters in material and tangible ways, ranging from providing projects to villages and districts which voted for them, to ensuring contracts are directed towards leading supporters. MPs (and candidates) are also under considerable pressure to assist their constituents pay school fees, funeral costs, bride prices and

ELUH AS S.H. PROVINCIAL ADMINISTRATOR?

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by KIN POLOWA The appointment of former Assistant Commissioner of Police, Thomas Eluh, as the Acting Provincial Administrator of Southern Highlands Province will not go down well with many of us who have been following him closely in his commitment to combat corruption as a police officer. He was appointed by the National Executive Council on 2nd November 2017. The NEC decision comes a week after Mr Eluh’s court challenge against his dismissal from the police force was handed down. Although the National Court Invalidated Police Commissioner Gari Baki’s decision to dismiss Mr Eluh from the Force, the Court refused to reinstate Mr Eluh –which effectively puts Eluh on the street as an ordinary person. When I heard the NEC decision news, the first thing that came to mind was –Eluh has now been compromised, just like many others. Instead of taking my judgmental rant to social media, as usual, I decided to do some background check on Eluh. You have to know the person and the facts

PNG ON A DRIP

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by SIR MEKERE MORAUTA The Member for Moresby North-West, Sir Mekere Morauta, said today that Papua New Guinea is like a patient lying on a sick-bed being drip-fed – one arm with a foreign exchange drip; the other arm with a cash flow drip. “The patient is likely to get weaker if the drip-feeding continues,” he said. “What the patient needs are large doses of the medicine given in one hit, to allow the patient to recover, gain strength, start walking and begin gardening for the future. “However, without appropriate action by the Government, it is possible that one or both of the medicine bags will drain completely, endangering the patient’s life.” Former Prime Minister Morauta said that every fortnight the Government is scratching everywhere to find the K200 million needed to pay public servants’ salaries in full and on time. “I understand that the Government has been milking state-owned agencies such as Kumul Petroleum and the Gaming Board, to enable it to pay fortnightly wages

K3MILLION DPE CVP FUNDS TO KPHL

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PNG be informed that the Department of Petroleum & Energy was appropriated from the 100 days supplementary budget through the NEC of K3m to implement the S.47 of the Oil and Gas Act 1998 to compliment S. 167 & 168 benefits to be disbursed across the Png Lng affected Landowners, Provincial Governments and the LLG's. There are also other associated benefits available in the various agreements (Gas Agreement, UBSA & LBSA). Sadly, the K3m will be transferred to KPHL to run the CVP/LOBID at the interest of DPE acting secretary & may be the responsible Ministers'. This is a gross abuse of the Public Finance Management Act. KPHL is an entity created to manage the commercial Kroton Equity for PG's & Landowners investment per the UBSA Clause 6 in Kokopo. Therefore if KPHL is willing to manage this funds, they must call for an immediate NEC review through submissions to transfer the K3m LOBID fund so they can manage this funds. This might be the right way

We finally know the results of Papua New Guinea’s elections

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  by ZOE MEERS & KIM YI DIONNE - WASHINGTON POST Papua New Guinea’s parliamentary elections took place June 24 to July 8, and there was significant controversy. During the election, officials went on strike in the capital city, Port Moresby, and violence broke out at polling stations in Enga province, where at least 20 people died. Election officials worked slowly to tally the votes, delaying the announcement of results as a way to protest lack of payment. It wasn’t until late September that the last undeclared seat was filled. Despite these and other setbacks, Prime Minister Peter O’Neill formed a new government in Papua New Guinea in early August. Here’s what you need to know about this country’s complex voting system. The electoral contest was particularly crowded In Papua New Guinea’s ninth election since independence from Australia in 1975, 3,340 candidates ran in races for 111 parliamentary seats. Half of those candidates came from 44 political parties — including