PSHOP Money Trail Leads to Prime Minister Peter O'Niell

by PAUL J REINBARA

The Prime Minister was quoted in the Post Courier of 21st August 2012 as announcing the National Executive Council decision to terminate the K31.52 million Public Service Home Ownership Program (PSHOP) contract and the contractor, Australasia Pacific Panel Limited (AUSPAC), has offered to repay the money in full. Mr O’Neill said significant increases in property development and building costs over the last five years had made it impossible for the contractor to deliver fully serviced land and 200 houses at Eight Mile in the National Capital District.

Mr O’Neill commended Australasia Pacific Panel Limited for its offer to repay monies it had received from the State for the PSHOP project. “The vast majority of cancelled contracts with the State end up costing the State millions of Kina. It is to the credit of the contractor and its executives and affiliates that the monies advanced by the State are being repaid in full,” he said

Although the announcement to repay was admitted under immense public scrutiny, to this date nobody knows whether the K31.52 million was actually reimbursed.

The PSHOP was a signature project of PM O’Neill when he was the Minister for Public Service. Under this project, the Somare Government earmarked K200 million. K120 million of this was allocated for direct construction whereas K80 million was to be deposited with a commercial bank to provide concessional loans to public servants who are first time homebuyers.

K39.08 million fixed price contract was awarded to a controversial and relatively unknown company, Auspac PNG Ltd to build 200 houses at 8 Mile outside Port Moresby. Auspac was awarded the contract because it provided two hundred land blocks titles to the land. Under the agreement with the State, Auspac was supposed to file the titles with Bank South Pacific as security and transfer to the State nominated public servant but that did not happen. Auspac still has the titles.

The contractor received well over K31.52 million and built only 12 houses which equals to K2.6 million per house. Upon realising that they were unable to live up to the terms of their contractual obligations, the contractor raised unreasonable and unjustified contract variations only to frustrate the contract to its ultimate termination.

Who is this Auspac PNG Ltd (Strongbond)? we see Mr Jimmy Maladina, Sir Fredrick Reiher and Sir Ninian Morgan Lourdenadin as shareholders from the company extract. Two are knights whilst one is still hanging around with the Prime Minister and you can trace them back to NPF saga. So it looks like PM O’Neill helped his mates to unjustly enrich themselves. The money trail might lead to him as well, who knows.

The K80 million that got deposited into BSP still remains a mystery. No official records of who in the public service obtained the loan. It is believed no one has benefitted from the money. Secretary John Kali of Department of Personal Management should have some answers for this. The Grand Chief and others were vouching for the K80 million to be deposited with the National Development Bank. However, O’Neill being the former Chairman of PNGBC, he used his close connections with BSP to have the funds (free extra cash for BSP) with BSP. It is interesting to note that after the transaction, PM O’Neill’s company Remington technology was awarded a lucrative contract by BSP to install ATM/Eftpost machines around the country.

PM O’Neill’s conduct was also dishonest in that he directed payment to a company which he had close connections. Even if they repaid, a crime of dishonesty has already been committed.

The Real Benefactors of PSHOP are: Auspac and BSP and off course,  PM Peter O’Neill.


Robin Fleming (believed to be a long time employee of BSP since PNGBC times when PO was the Chairman of Finance Pacific, was the Chief Lending Officer who was in charge of the PSHOP funds). In September last year (2014) the same schemers (BSP and O'Neill) cooked up another home ownership project. This time, loans would be granted by BSP for up to K400,000 at the all-time low interest rate of 4%. BSP Group CEO Robin Fleming when officiating the deal said the shortage of quality and affordable housing in Papua New Guinea (PNG) has been recognised by the Government of Papua New Guinea as having a fundamental impact on many Papua New Guineans.


“BSP believes that home ownership is a means for ordinary Papua New Guineans to establish an asset base that can be passed onto their children. So it is with pleasure that we here today with the Prime Minister to announce this joint initiative, the First Home Ownership Scheme,” he said. "First time home ownership?.


The National Government has given the first contribution of 200-million Kina to kick start the scheme. (That is another K200 million for the same project)

Read more: http://www.pngfacts.com/44/post/2014/09/oneill-launches-home-ownership-scheme.html#ixzz3hIQCPJR2

O'NEILL LAUNCHES HOME OWNERSHIP SCHEME
Prime Minister Peter O'Neil yesterday, signed a Memorandum of Understanding with Bank South Pacific, to enable the country's first Home Ownership Scheme. The National Government has given the first...pngfacts.com

Todate, no one knows the report of the previous PSHOP where K80 million was given to BSP. This time it is another K200 million. Men, this guys never cease to scheme!

Auspac was more or less a K2 company but with the help of O'Neill, he enriched his close cronies like Reiher and Maladina. They got the land at 8 Mile and the capital injection to start them off. Free start-up cash for his boys to start off course.

After they used up the cash to stand on their feet, they then frustrated the contract which was eventually terminated.

For the recent K200 million, nobody knows how much O'Neill has made. He (O'Neill) never strike a deal for nothing. He is always on the take

Popular posts from this blog

HIGHLANDS FRAUD F*CKS RUNNING GOVERNMENT AGENCY,,,

Image
A Fraudster and unqualified person has been shortlisted for NEC submission for the position of CEPA Managing Director. The candidate in question is Jude Tukulyia. His academic credentials are subject to scrutiny. Further investigation is required to verify the authenticity and legitimacy of his qualifications, particularly the reported diploma in accounting, Bachelor of Laws, MBA from Divine Word and UPNG respectively. It is very suspicious and unprofessional  when the Minister for Environment Conservation and Climate Change, Hon Simo Kilepa, wrote to UPNG Vice Chancellor asking to confirm Jude’s questioned education qualifications. This very due diligence work is the core responsibility of the Public Service Commission and Department of Personnel Management. What authority does the portfolio minister have to write to the Universities? Dumbfounding indeed if one asks. Ulterior motives written all over the letter. This amounts to  Questionable Academic Qualifications of Mr Tukulyia.    
Read more

AUGUSTINE MANO PNG'S PREMIER CORPORATE CROOK

Image
by  MICHAEL J. PASSINGAN In a significant setback for Mineral Resources Development Corporation (MRDC), the Supreme Court of Papua New Guinea has dismissed the company's appeal to stop criminal investigations into its dealings with landowner funds held in the Pacific Balance Fund (PBF). The court ruled that MRDC's appeal was an "abuse of process" and ordered the company to pay costs of the proceedings. MRDC, a unit holder in PBF, had taken legal action against the National Court's decision to dismiss its case, arguing that the court had no jurisdiction to hear the matter. However, the Supreme Court disagreed and held that MRDC's appeal was nothing more than an attempt to interfere with the police's criminal investigative process. The court found that MRDC had no authority to conducted its own investigation into the activities of the Melanesian Trustee Services Limited (MTSL), the fund manager of PBF, and that its actions were in violation of the Trust Deed
Read more

PNG, VERY RICH YET STILL A VERY VERY POOR COUNTRY

Image
by GARY MONDULAME Papua New Guinea (PNG), a nation blessed with abundant natural resources, continues to grapple with economic challenges that belie its potential wealth. The nation's economic narrative is a paradox—rich in resources yet burdened by poverty. The explanation for this paradox lies not only in economic mismanagement but also in deep-seated corruption that has permeated the political landscape since independence in 1975. Following its independence from Australia, PNG was entrusted to leaders who lacked a vision for a holistic national development. This absence of foresight is evident from the lack of long-term development plans that could have distributed the country’s wealth fairly across all regions and communities. Successive governments failed to establish foundational strategies such as building satellite townships or creating robust rural housing schemes. Instead, they resorted to short-term, reactive measures that did not foster sustainable growth. The nascent l
Read more

BLIND LEADING THE BLIND, WHY THE PNG ECONOMY STILL SUCKS

Image
Elizabeth Genia, Acting Governor Bank of PNG (BPNG) by MICHAEL JOSEPH PASSINGAN The economy of Papua New Guinea (PNG) is at a crucial juncture. Despite some signs of recovery, the country faces several structural challenges that continue to impede its economic progress. The March 2024 Monetary Policy Statement from the Bank of Papua New Guinea sheds light on these issues, providing a comprehensive overview of the economic landscape and the policy responses being implemented to navigate through these turbulent times. In 2023, PNG's economy grew by a modest 1.4%, a significant slowdown from the 5.2% growth witnessed in 2022. This tepid growth is largely attributed to delays in major projects and ongoing economic issues that have not been fully resolved. The anticipated growth for 2024 is around 3.0%, buoyed by the resumption of production at the Porgera gold mine. While this marks an improvement, it remains subdued compared to the potential of this resource-rich nation. One of the mo
Read more

James Marape's Missteps Openly Exposed at Australian Forum

Image
by  MICHAEL J. PASSINGAN  In a recent event that highlighted the complexities of international diplomacy and governance, Papua New Guinea's Prime Minister, James Marape, faced a challenging situation during his appearance at the Lowy Institute in Sydney, Australia. The Lowy Institute, known for its role as an independent think tank focusing on international policy, particularly in the Asia-Pacific region, provided a platform for a candid assessment of Marape's governance. Following his formal address, Marape engaged in a dialogue with Dr. Michael Fullilove AM, the Executive Director of the Institute. Dr. Fullilove, a respected figure in public and international policy, scrutinized Marape's past promises and statements, contrasting them with the current state of affairs in Papua New Guinea (PNG). The discussion took a critical turn as Dr. Fullilove revisited Marape's 2019 speech at the same venue, where Marape had outlined his vision for PNG in a speech titled “A New Boo
Read more

MARAPE & PAITA ABOUT TO SIGN AWAY PNG GOLD

Image
By: Andrew Arthur Prime Minister Hon. James Marape and his planning minister Reinbo Paita are the parties behind the theft of all Papua New Guinea’s gold for the next 100 years! They have given approval for the STATE of Papua New Guinea to sign away all gold rights to an Australian paper company in Refinery Holdings PTE LTD. First, they have done the deal with a paper company even before there is a LAW that says they have the right to do the deal. We see how the real manipulation works out. Marape and Paita now need to get the law passed by Parliament. The law is before the Parliament to set up Papua New Guinea’s first National Gold Corporation. The National Gold Corporation Bill first surfaced in 2012 but successive Government of Sir Michael Somare and Hon. Peter O’Neill, in their wisdom, had refused to pass this Bill as there have been some sinister motives and constitutional issues associated with the Bill. The new bill will allow Refinery Holdings LTD PTE to own 70% of the National
Read more

A Call for Local Ownership and Fairness

Image
by JUSTIN PARKER In recent discussions surrounding the establishment of a gold refinery in Papua New Guinea (PNG), concerns have been raised regarding various aspects of the proposed project. Spearheaded by foreign investors, the initiative has sparked debates over ownership, exclusivity, tax concessions, underwriting, management rights, control over currency, legal protections, and historical failures. These concerns, if unaddressed, could potentially undermine the interests of PNG and its people, particularly the hardworking alluvial miners who form the backbone of the nation's mining sector. At the heart of the issue lies the question of ownership. The proposed ownership structure, favoring foreign investors with a substantial 70% stake, raises eyebrows, especially considering PNG's past experiences with failed ventures like seabed mining. Instead of ceding majority control to foreign entities, many argue that PNG should assert full ownership over the refinery. With the coun
Read more