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Showing posts with the label LNG

DEVELOPMENT AND ‘ECONOMIC HITMAN’ CAN OUR NEW NATIONAL TRADE POLICY ESCAPE THESE ‘LOOTERS’?

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by CYRIL GARE
One of the greatest challenges for our new first time politicians is to acquaint themselves with and understand the country’s foreign policy among others. It is even challenging for a first-time Minister. In many democracies in the world, a first-time politician does not become a Minister immediately. The reason is obvious. He or she must first understudy and learn the trade skills of the game before taking on a ministerial responsibility in Government.

Last week, we boasted about the launch of PNG’s first ever National Trade Policy (NTP). In time, many Papua New Guineans including myself will be able to read and understand the NTP from an available copy. For now, let’s just deduce from information provided in media reports that the NTP now “gives an upper hand to negotiate trade with its partners”.

In essence, trade involves supply and demand; i) we supply others with what they do not have, and ii) in reciprocate buy from them what we do not have such as medicine and fue…

Where is the PNG LNG money? Did PM skim K6Billion and gave K21Billion to PNG?

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by GREG KONDE

THE first liquefied natural gas cargo of the PNG LNG project was loaded onto the Spirit of Hela ship on May 14, 2014.  The three markets for the PNG liquified natural gas are Japan,  China and Taiwan (primarily Japan).  The project sends 6.9 million tons of LNG to the three Asian markets per year.
Founding father of the nation Sir Michael Somare said in the July 22, 2016 Post Courier that he “cannot understand how our economy is managed. Despite 250 shipments of Oil and Gas so far, there is nothing to show for (it).” He said one shipment is around USD$220 million and questioned why the government keep borrowing.  He stated that Prime Minister Peter O'Neill should tell the people the truth about the economic situation affecting the country.
Exxon Mobil receives the largest portion of the income – that is to be expected as they invested far more than anyone else, an amount of $US20B (K50B).

Through Kumul Petroleum Holding Limited, Papua New Guinea holds a …

PNG IS NOW LOOKING MORE LIKE A FAILED STATE - TREASURY MINISTER PATRICK PRUAITCH

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Speaking to the Sunday Chronicles, Treasurer Patrick Pruaitch made the following statements.
1. PNG will have budget deficits for next 5 years;
2. PNG govt borrowed up to K21.6 billion excessive borrowing;
3. Formal sector jobs have fallen since 2014;
4. K3 billion govt borrowing to buy Oil Search shares hidden in Kumul Holdings books;
5. Govt owned entities such as PNG Power, PNG Ports, Telikom, Air Niugini, NAC, Eda Ranu, etc owed millions by govt and struggling to exist even to pay their employees' salaries;
6. PNG Embassies in overseas whose staff are not paid their salaries for 10 months. As a result their children kicked out of schools and offices closed for non payment of rentals;
7. PNG LNG Landowners after 3 years of Spirit of Hela making shipment gas to Asian markets not even a toea is paid as a royalty to landowners;
8. Spending in extravagant projects built at highly inflated costs;
9. Employers reducing their staff level because foreign exchange crises;
10. Inability of Ce…

STATE SPONSORED DESTRUCTION OF THE PRIVATE SECTOR

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by BIRE KIMISOPA MP The economic malaise created by the government is constricting the private sector to the point that it is now sponsoring the gradual destruction of the private sector in Papua New Guinea.
Company profits are shrinking, an increase in retrenchment and job losses, a general fall in valuations on businesses, rising cost on consumables as a consequence of the falling kina, and a soaring debt burden where the government is hoping would be paid off by some innocuous tax measure such as the controversial residential accommodation tax.
The Central Bank is equally to be blamed for the demise of the private sector given the fiscal failings of this government.  The central bank monetary interventions have exacerbated the pain inflicted on the private sector through the rationing of the foreign currency where it is the sole arbiter between winners and losers in the supply of foreign currency in Papua New Guinea.
The managed float of the PNG kina has no end in sight. The deprec…

FRIGHTENING GOVERNMENT PERFORMANCE IN 8 KEY AREAS OF THE ECONOMY

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NATIONAL BUDGET SPOOKS PRIVATE BUSINESS AND INVESTMENT IN PNG

byWILSON TALAG Economist Paul Flanagan's recent remarks that appeared in PNG Blogs and elsewhere highlight 8 key areas of what looks to be looming financial disaster.  Mr Flanagan's enlightening report is the basis for this discussion and why the performance of each one of the key areas has started to  spook business and investors.  The seriousness of PNG’s current financial situation is becoming very clear.   A little over a week ago the government came very close to failing to come up with the year end public servant pay.  This near disaster occurred despite supplementary budgets designed to avoid such unexpected money shortages.   Another red flag flying high and warning that behind the scenes, PNG's finances are rapidly deteriorating under the O'Neill government.

The 8 key areas of concern are (1) Government lies over the actual size and growth of the PNG economy, (2) Discrepancies  over GDP economic gro…

Open Letter to Sir Michael Somare

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Open Letter to Sir Michael Somare   
byJAMES PARAKISAN

Grand Chief, before you bow out of the picture, we need you.  We realize you are 80 years old and you will be retiring from PNG politics in June 2017.  At the same time your influence, stature and leadership is essential during this time of unparalleled corruption.  
The current administration is knee-deep in pekpek of its own making.  They’ve done a masterful job of sidelining and silencing Sam Koim, leader of the Task Force Sweep.  Koim was hand-picked by the O’Neill government to spearhead the drive against the corruption pervasive in all levels of government.  Then, ironically, when Koim starts making some headway in addressing government fraud, O’Neill neutralizes him.  
Sir Michael, please address two or three of the major corruption issues of the last several years.  Shout out from the rooftops about the abuse of power of the current administration.  It’s been reported once before, but the people of PNG need to hear it again.��…

OPEN LETTER TO DON POLYE - "You are one of the few who understand that in excess of K100M – maybe as high as K500M – is missing and unaccounted for in the UBS loan alone"

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Congratulations, Mr Polye, on winning the re-count for Kandep district!  We realise sinister political forces were at work to bring about the re-count.  Thankfully you won.

PNG needs your leadership now like never before.  As you know we are currently saddled with a limping-along economy that is likely due to corrupt government.  The eyes of all Papua New Guineans are on you to take the lead in challenging the O’Neill administration.

One year ago in the October 8, 2015 edition of the Post Courier you were spot on in your claim that the PNG LNG funds were being parked in an account in Singapore, and not in the Bank of PNG as claimed by the O’Neill administration.  Thank you for bringing that to the light of day.

You can’t rest now.  You need to continue to hammer away and demand transparency of  government finances.  In particular you need to focus on the UBS loan, now rolled into a Credit Suisse loan.  Secondly you need to demand full disclosure of the PNG LNG income.

You are aware o…

WHY THE LNG RESOURCE OWNERS SHOULD BE CONCERNED WITH TRUST FUNDS HOLDING THEIR ROYALTY MONEY

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by KARK SEMANU

WHAT ARE TRUST FUNDS
Outside of PNG trust funds are normally established as either medium term holding accounts whose contents at a specified date are turned over to a beneficiary, or to an account maintained in perpetuity, where the principal is never touched and only the earned interest monies are ever withdrawn.

CORRUPT USAGE OF TRUST FUNDS:

1. LEAVING THE PRINCIPAL BUT STEALING THE EARNED INTEREST
In PNG, the trust account concept has been corrupted in many directions. The most common reason for a politican or a government bureaucrat to want control of a trust account is to steal the interest monies accrued. That is a corruption of the traditional trust account in that they have no authorisation to do this. The interest monies earned belong to the government. The corrupt government official's actions escape the government's attention in many cases in this way: A government disbursement of a quite large amount of money is secured, let's say K20 million. Tha…