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Showing posts with the label Loi Bakani

BANK OF PNG PRINTING MONEY AND FUELLING CORRUPTION

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The latest data released by the Bank of Papua New Guinea shows that the central bank has been printing money for the government, fuelling its wasteful spending.

“The central bank has irresponsibly financed the Budget deficit, covered up and facilitated Prime Minister Peter O’Neill’s waste and mismanagement,” former Prime Minister Sir Mekere Morauta said today.

“It has contributed to the growing mountain of public debt created by Mr O’Neill – in other words the central bank has colluded in the imprudent financial activities of the O’Neill Government.”

In 2016, according to data in the BPNG’s Quarterly Economic Bulletin, the bank lent almost K2 billion to the Government. Net lending to the government was K800 million in December alone.

The Central Bank has lent that money to the Government because there is no appetite in the private sector – commercial banks, superannuation funds and other investors - to buy its debt instruments such as T-Bills.

“The new data from the Bank of Papua New Gui…

PLANNED MOVE BY BAKANI TO PROP PNC WITH UNTRACEABLE WAR CHEST OF K124 MILLION

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byMICHAEL PASSINGAN

Its not Rocket Science, Papua New Guineans should know that the country is crumbling.

Bank of PNG Governor Loi Bakani’s explanation of the theft of K124 million in demonetised banknotes, and their illegal distribution across the country and on EBay, is pathetic.

The theft is clearly an inside job and Bakani’s statement is an attempt to cover that fact up.

It could only have been carried out with detailed knowledge of the bank’s practices for the destruction of notes that have been taken out of circulation.

Even more alarming is that the scandal – yes, another one in the O’Neill Regime, one of the most corrupt governments in the world – comes at election time.

It won’t be long before the money starts appearing in the Highlands as election bribes by PNC candidates and coalition cronies

Some stories circulating in Highlands centres indicate that that is already happening.

It’s an easy thing to do, as PNC’s crooked strategists surely know. Villagers in remote areas are unli…

PNG STRONGLY DEFENDS WITHHOLDING OF IMF ARTICLE IV REPORT TO COVER FOR MISSING K6.3 BILLION KINA

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by PAUL FLANAGAN

SUMMARY
The IMF report indicates the O’Neill government has overstated the growth rate in the PNG economy by 12.7 percentage points during its term.
Primarily by 5.9 percentage points in 2014 and a further 5.2 percentage points in 2015 (see graph below).
The IMF indicates the PNG economy is K6.3 billion smaller in 2017 than claimed by the government (and K5.4 billion smaller in 2016).
This means the debt to GDP ratio is 33.5% in both 2016 and 2017 according to the IMF – above the 30% limit set in the Fiscal Responsibility Act.
The greatest concerns about economic management relate to BPNG’s control of the foreign exchange rate and reserves with more breaches of international norms than admitted.
The Governor of the BPNG should explain serious discrepancies between his statements on 25 January (full page adds in the local press on 26 Janaury) and what the IMF report actually stated on 27 January (see below).
While commending the government for its actions in the 2016 Su…

IMF Article IV Suppression – A Poor BPNG explanation - MORE GOVERNMENT COVERUP

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by PAUL FLANAGAN

The Bank of PNG, the legislatively independent central bank for the country, lost significant credibility in its recent justification for why PNG has joined the bottom 2 per cent of countries in refusing to release the standard IMF Article IV report on countries (see here).  It remains the only country in the East Asia and Pacific not to release an IMF Article IV report undertaken in 2016.
BPNG provided six “critical issues” for refusing to release the report.  However, on closer examination, there was only one critical issue (fake GDP numbers used by the PNG Treasury).  And that should be the responsibility for the PNG Treasurer to release a statement on why the PNG was suppressing an independent assessment  by the IMF of the PNG economy.
What is the O’Neill government trying to hide on its management of the PNG economy?
International investors will easily through see this statement. PNG’s economic standing and credibility has received a severe down grade wi…

THE ILLEGAL UBS LOAN MATURES ON 13 JUNE 2016

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THE LNG LANDOWNERS OPPORTUNITY TO BUY 4.22 % EQUITY FROM THE STATE ENDS ON 30 JUNE 2016;
WILL PETER O’NEILL FIND THE MONEY TO MEET THE OBLIGATIONS?
by ANDRE BILAK STEVEN

PNG is already having a serious cash flow problem, and nothing can be more evidenced than the Minister for Finance James Marape’s statement few weeks ago that all MPs (who supposed to receive K15m DSIP funds) will receive K1 million each for this year. The cash flow crisis is affecting business houses, government departments and households like never before. The Bank of Papua New Guinea has about less than US$1.4 billion in reserves against pending foreign exchange orders of around K4 billion plus and the situation is not improving any sooner. The endless cue for sending funds overseas is unbearable and killing many import reliant businesses in this import-reliant economy. Many learned experts in economic management have advised O’Neill, since early signs of doom emerged, to take remedial actions immediately includ…

INTERNATIONAL BONDS MARKETS AND BANKS DON'T TRUST O'NEILL LIES AFTER SOVEREIGN BOND FAILURE

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by MICHAEL JOSEPH PASSINGAN

On 17 March PNG Blogs revealed that Peter O’Neill has secretly begged the World Bank for a loan of up to K1 billion.

On 22 March we revealed that international agencies are about to downgrade Papua New Guinea’s credit rating once again – after already being downgraded late last year.

Now some good news – the economy and national finances have been damaged so badly by O’Neill’s reckless borrowing and wasteful spending that his proposed $US1 billion sovereign bond issue is dead - D.E.A.D.

This is good news because it means the nation’s indebtedness will not increase by $US1 billion in the immediate future. It means the long-suffering people will not have more debt to repay each year.

IT MEANS THERE WON’T BE $US1 BILLION FOR O’NEILL TO STEAL AND WASTE

The failure of the bond issue proves that international money markets won’t lend a toea to O’Neill’s corrupt regime unless it is at unaffordable penalty interest rates.

Such unaffordable interest rates would have taken …

BANK OF PNG: WIPING THEIR HANDS OFF THE ECONOMIC MESS THEY ASSISTED IN

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by SAM BASIL MP 
Deputy Opposition Leader

As Deputy Opposition Leader (DOL), I have continuously criticised the mismanagement of the economy by the O’Neill government and their continuous lies that the economy will recover back to pre-2012, when PNG was in a surplus budget.

My predictions on the negative high spending and reliance on oil and gas prices, from as far back as 36 months ago when the 2013 Budget was handed down, is now very real; the citizens of Papua New Guinea (PNG) don’t have to look far on the basic figureswhen they’re experiencing:

i) The high costs of goods and services acknowledging the high inflation rate that I predicted which current figures don’t acknowledge, and

ii) The rapid devaluation of our exchange rate reflecting a slowdown in the economy because-

a. The exporters aren’t getting the revenue they used to get, as well as

b. The importers awaiting their products to reach our shores because there is a lack of foreign reserves available, to pay off these produc…

BE AN AGENT FOR CHANGE AND CHANGE THIS BAD GOVERNMENT

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by YAKAN LEPAKAILI

ACT NOW AND BE AN AGENT FOR CHANGE AND CHANGE THIS BAD GOVERNMENT FOR BETTER PNG - OR RECOVERY ROAD WILL BE LONG, HARD AND TOUGH. BE RESPONSIBLE LEADERS AND DON’T BE IRRESPONSIBLE. 

Isaac Lupari (the Chief of Staff to the Prime Minister Peter O’Neil), Dairi Vele (Secretary to Treasury Department) and Loi Bakani (Governor of Central Bank of Papua New Guinea), the trio are highly educated and most learned people in this era. They are of venerating career and distinguished people revered for contributing immensely to the country’s developments.

Given their expertise in the economy, since the down turn of PNG’s economy and its continued downward slide, people like Paul Flanagan of ANU projects the gloomy outlook of PNG’s economy with comprehensive comparative tables and all these analysis never been challenged.

In bewilderment, what’s intriguing is, none of the above trios, in their rebuttals, had the guts to rebut line by line and graph by graph. In Paul…

WHERE ARE LANDOWNERS, LLGS AND PGS LNG EQUITY FUNDS KEPT?

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By Nemo Yalo: Principal of Nemo Lawyers former Acting National Court Judge
former Chief Legal Counsel for Ombudsman Commission

There is in an ongoing public debate between the Government and the Opposition in Parliament regarding the receipt and application of the proceeds from the sale of the LNG. In its 2015 first half Environmental and Social Report, Exxon Mobil states that its US$19billion project loaded the 100th LNG shipment on LNG carrier Methane Spirit on 15 June 2015. The first LNG cargo was shipped on 25 May 2014 destined for Tokyo Electric Power Co. Inc. (TEPCO) in Japan delivered on 2 June 2014. The LNG Project is expected to produce nine (9) trillion cubic feet of gas over 30 years. It has the capacity to produce 6.9 million tonnes per year. The report reads in part:
“The Papua, the first custom-built LNG carrier for EMPNG, arrived at the LNG Plant Marine Terminal on 22 February 2014 to begin loading its first cargo. The 172,000-cubic metre, 290-metre-long LNG carrier is th…

LR GENSET SCAM - What you were not told.

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by JOSEPH KAWAGE So a warrant for the arrest of Treasury Secretary Daire Vele has been issued and is to be enforced. Not before time. As Treasury Secretary he has been running a number of illegal operations for the Prime Minister, the two biggest ones being the illegal UBS loan and the illegal purchase of two mobile power generators. Police want to arrest him on charges of official corruption, misappropriation and fraud. The basis of the charges is documents provided to the police, the Attorney-General, the Ombudsman Commission and Task force Sweep by a whistleblower at PNG Power Ltd, and these documents show that a very serious and widespread fraud conspiracy took place at the highest levels of Government, business and State-Owned Enterprises. Most of these facts were detailed In Parliament in early 2014 by the then Opposition Leader, Belden Namah. Responses were supplied by the Prime Minister himself, and his office, in a number of statements. All of the PM’s official statements furthe…