PNGBLOGS

by PAUL FLANAGAN Deputy Prime Minister and Treasurer Charles Abel’s credibility was on the line. Did he actually deliver on the 100 Day Plan promised reduction in PNG’s 2017 budget deficit from unsustainable levels? The answer is almost certainly “no”. The actual 2017 budget deficit is conservatively estimated at over K1 billion larger than claimed – largely due to not paying bills or GST refunds. The conservative estimate would lift the size of the 2017 Budget deficit from 2.4% to just under 4% of GDP. However, the upper bound deficit estimate is K2 billion larger – or more than double – the K1.8 billion budget deficit reported in the 2017 FBO. Even a 4% outcome would have better than the budget deficits of 2014 to 2016. However, the reductions were made in the wrong way. Expenditure was cut entirely in areas key for PNG’s future growth and concessional loan projects were delayed. Even using FBO figures, the blow-out in operating expenditures entirely consumed the claimed incre

by PAUL FLANAGAN PNG’s new Treasurer and DPM, Charles Abel, has released the promised 100 Day Economic Stimulus Plan (see  here ). Overall, there are some positives in the plan. But politics is already circumscribing necessary actions to get PNG back onto the right economic path. Starting with the positives, even having a 25 point plan is a useful statement that the new government recognises PNG’s economic challenges. The five elements of the plan are appropriate. There is a focus on raising revenues as well as fiscal discipline. Population policy is given priority.  The plan announces the suspension and review of some scary micro-economic policies in areas such as land, agriculture, bio-security and mining. Some politically brave action is foreshadowed to at least temporarily reduce politicians’ discretionary electorate spending (PSIPs and DSIPs). There seems a commitment to on-going sensible strategic budgetary and planning processes. There is no mention of the absurd “gold bu

PRESS RELEASE by  Rt. Hon SIR MEKERE MORAUTA MP Former Prime Minister and Member for Moresby North-West Sir Mekere Morauta said today that at last some members of the PNC Government have admitted that the Papua New Guinea economy is in difficulty.  Sir Mekere referred to the media statement by Deputy Prime Minister and Caretaker Treasurer Charles Abel, who said that the focus of the government in its first 100 Days would be on “economic recovery”. Sir Mekere noted that this was an interesting admission and use of words by Mr Abel, because the Prime Minister has consistently refused to recognise that the economy is in recession, and has mismanaged public finances in such a way that has allowed the recession to intensify. “My advice to Mr Abel is that before he launches into any “recovery” measures, he needs to repair the budget and reform his Prime Minister and curb his extravagant and uncontrolled spending and borrowing,” Sir Mekere said. “The non-mining sector, on which the

by PAUL GENIA In the first quarterly NSO Reform Steering Committee meeting held in April 2015, Mr Koloma was instructed to table the expenditure report which he never did. However, in the last meeting on the 25th August 2015, he lightly briefed the members that it was expanded on the salaries and wages of the NSO Policy and Coordination Division's staff of around K1.3 million and NSO's Goods and Services of K1.7 million Facts at NSO that may relate to abuse of NSO Reform Funds. NSO's Policy & Coordination Division staffs are fulltime employees with employment file number paid through the normal government salary system by the DPM since 2012. It is 100% not from NSO reform funds. NSO utilities such as telephone, email, fax have been out since 2013. Why is NSO engaging alot local consultants some of which are computer illiterate. ? There is a super consultant, a failed Director for 2011 Census. This particular consultant has no apparent use at all. He has been e

by NSO INSIDER National Statistician Roko Koloma has been engaging a company called Data Fix. This company is brought in by Koloma for - Aircon Maintenance - NSO office partitioning - Providing hire vehicles - Providing printing services.  When asked by his close associates of the company's dominance in NSO, he vigorously maintains that he is following orders from the Minister Charles Abel's office to engage the company. Datafix has grown at NSO since Koloma took office. It is engaged with PNG NID project, NSO recurrent and now the Domestic Health Survey. The Deputy national statistician Henao Kari's company has been engaged to replace a door for K80,000.00. Imagine a door costing K80,000.000.  The Accounts Manager Lohia Micheal is providing the catering services to the DHS project. He has his vehicle engaged in NSO for hire. All these dubious deal are happening before the employees of NSO. They talk about it but the buck stops with Minister Charles A

OP/ED   Is Somare leading PNG to a Totalitarian State? On the 24 November, the Speaker of Parliament, Jeffery Nape wrote to Bart Philemon, the Deputy Opposition leader and MP for Lae. The subject of the letter was the notice of the No-confidence motion in the Prime Minister Sir Michael Somare. “The Private Business Committee met today and considered the notice of Motion of No-Confidence submitted. Following its deliberations, the Committee decided that the notice of Motion of No-Confidence was not in order,” the letter stated. Mr Nape went on to explain that even though the procedural requirements under the Standing Orders and Constitution were met, the subsequent withdrawal of four supporting members to the Motion means the requirements under Section 145 (1) (b) of the Constitution were not met. The MPs that withdrew their support were Charles Abel, Powes Parkop, Paru Aihi and Fr John Garia. Mr Philemon gave the notice on the Motion of No-Confidence to the PM on 20 July 2010, in acco

OP/ED   Is Somare leading PNG to a Totalitarian State? On the 24 November, the Speaker of Parliament, Jeffery Nape wrote to Bart Philemon, the Deputy Opposition leader and MP for Lae. The subject of the letter was the notice of the No-confidence motion in the Prime Minister Sir Michael Somare. “The Private Business Committee met today and considered the notice of Motion of No-Confidence submitted. Following its deliberations, the Committee decided that the notice of Motion of No-Confidence was not in order,” the letter stated. Mr Nape went on to explain that even though the procedural requirements under the Standing Orders and Constitution were met, the subsequent withdrawal of four supporting members to the Motion means the requirements under Section 145 (1) (b) of the Constitution were not met. The MPs that withdrew their support were Charles Abel, Powes Parkop, Paru Aihi and Fr John Garia. Mr Philemon gave the notice on the Motion of No-Confidence to the PM on 20 July 2010