PNGBLOGS

by MICHAEL J PASSINGAN Prime Minister Peter O’Neill reckless, corrupt and unnecessary borrowing is hurting families and crippling the nation with debt that future generations must pay. In 2015 actual Government debt reached K18,571.40 per household under O’Neill. That number will increase with new borrowings proposed by the Prime Minister, including the $1 billion sovereign bond issue. Families must repay O’Neill’s debt whether they like it or not. Repayment will require new domestic revenue-raising and cost-savings: Higher personal and corporate taxes as well as a 50% increase in the GST Increases in SOE fees and charges such as O’Neill’s secret rises for all MVIL services including registration and insurance A further decline in government services and outsourcing of service provision to the Prime Minister’s colleagues and cronies A fire sale of government assets and equity including SOEs such as PNG Power and Air Niugini to the Prime Minister’s col

by BRYAN KRAMER Deputy Secretary of Treasury Mr. Aloysius Hamou was formally charged by Fraud Squad yesterday (28/1/16) for allegedly approving and facilitating the unlawful procurement of K50 million to purchase two turbine generators. The funds were drawn from the Department of Treasury back in December 2013 at the direction of Secretary of Treasury, Dairi Vele acting on the instructions of Prime Minister Peter O'Neill. Hamou w as charged under Section 91(1)(b) of Criminal Code, (False Claims by Officials). The provision states that a person employed in the Public Service who makes a return or statement touching any such matter that is, to his knowledge, false in any material particular, is guilty of a misdemeanour. Penalty: Imprisonment for a term not exceeding three years. Current Secretary of Treasury Dairi Vele is also facing criminal charges in relation to the same matter after the District Court issued a warrant for his arrest in July 2015. To-date V

by MARK AMBANE Prime Minister Peter O’Neill’s illegal and corrupt deal with UBS to buy 10 percent of Oil Search is now a full-scale disaster. It is threatening the viability of the 2016 Budget and could further undermine Government finances, which are already at crisis point. The State’s 150 million shares were bought in March 2014 for $8.20 each. That is a total $A1.2 billion, or about K3 billion at the exchange rate early that month. A few days later, on 14 March 2014, the Prime Minister boasted that the country had already made a profit on the shares of $A75 million (about K170 million). Today, the losses on the purchase are stupendous. Those 159 million shares were worth slightly less than $A5.70 today. That is a loss of $A400 million. At today’s exchange rate that is about K850 million. Peter O’Neill, Peter Botton of Oil Search and UBS have cost Papua New Guineans almost a billion kina. Worse still, the disastrous slide in the value of Oil

by JACK NAIME Another independent international assessment of Papua New Guinea’s financial management has contradicted the spin and deception by Prime Minister Peter O’Neill, Treasury Secretary Daire Vele and the mainstream media led by the Post-Courier. The report, Poor Financial Management in PNG: Can It Be Turned Around? Is available here: http://devpolicy.org/pngs-financial-management-can-it-be-turned-around-20160112/ . It was written by PFMConnect, a respected international consultancy specialising in developing country financial management. The report slams the O’Neill Government’s financial management and reinforces the criticism of other independent international observers who have exposed the corruption, incompetence and waste that is rife under Peter O’Neill and Daire Vele. Papua New Guinea ranks 21st out of the 24 assessments of Public Financial Management conducted by the IMF last year, according to the report. Most alarming is the fact that under Mr O’N

by BARRY PISIMI On or around September 2012, immediately after Peter O’Neill was installed as the Prime Minister, he (O’Neill) took a huge delegate to China, organised by his sidekick, Ni Cragnolini. It was openly reported that a loan of K6 billion was obtained from the Chinese Export-Import Bank (Exim Bank) to fund certain rehabilitation of ailing infrastructures. One would have thought that PNG Powers rundown and incompatible power generation and distribution equipment would be first priority. NO! The K6 Billion was never appropriated in the 2012 National Budget, nor was it captured in the subsequent budgets in 2013, 2014 and 2015. We really don’t know whether that loan was obtained and if so, did the money ever enter PNG? One of the mandatory conditions of Exim Bank loans is that a Chinese multi-national corporation, mostly State owned enterprises, has to be nominated to deliver the projects identified by the recipient country. Under this arrangement, the funds remain in Chi

by KOMBOL GIBSON   PNG is endowed with a $19bn oil and gas industry. The size of this industry is set to double and almost triple. It’s an exciting prospect for PNG but challenges remain for delivering that blessing to every man, woman and child in PNG. In fact the opposite is happening. PNG should be concerned. There is a large focus on Government-funded programmes in the Hela and Southern Highlands Provinces instead of a more equitable arrangement for all 21 Provinces in PNG. That is a story for another day and a subsequent article, but the upshot of this focus on Hela and SHP is that the vast majority of it ends up in the hands of elites from these Provinces that reside elsewhere, access health services in Port Moresby or overseas, send their children to school overseas, maintaining multiple wives and mistresses and invest in Port Moresby or overseas. So roughly 80% of funding that gets diverted to Hela and SHP ends up in the pockets of Ministers, MPs, senior public servants, a

by PAULUS KANAMBO Peter O’Steal, the biggest liar, thief and konman in PNG history, has been exposed again by new facts revealed about the 2016 Budget. He said the 2016 money plan was “a conservative budget that carefully manages spending to ensure essential services are delivered to the people. Core services for our grassroots including school fees and access to healthcare will continue to be properly funded. “Our law and order programs will continue with more funding for police, the courts and correctional services. “Funding for critical infrastructure will be maintained in order to provide ongoing stimulus for business and for job creation.” Each and every one of these statements by O’Steal is a lie, as shown by the latest economic research by the prestigious Lowy Institute in Sydney. THE FACTS ABOUT PETER O’STEAL’S LIES Core services for grassroots have in fact been savagely cut because of O’Steal’s corruption, waste and mismanagement. Education sp

by BRYAN KRAMER It seems Digicel has not taken heed of my last article in relation to ripping off its customers nor have they taken corrective measures to discontinue violating our consumer rights. In recent weeks I've been busy taking to task the head of Government, a Prime Minister who evades arrest and facing corruption charges over misuse of public funds. I would rather commit all of my time pursuing that cause than expend my time bringing to account a billion kina foreign company on allegations of corrupt and deceptive practices, stealing from our illiterate and impoverished people. I intend to write two in-depth articles about Digicel: The first under the above headline and the second to discuss in detail the legal process of a class action lawsuit. We will look into their earnings, profits and capital expenditure. We will consider the facts that support my opinion that Digicel has been ripping off PNG, its No.1 earner. Both articles will leave Papua New Guineans gri

STATEMENT by Rt Hon Mekere Morauta, KCMG November 4 2015 The Prime Minister of Papua New Guinea has once again singled me out for attack for expressing a view on current national issues. My assessment and analysis of the severe economic and financial difficulties facing the nation and the adjustments that need to be taken are entirely my own. My statements were made to promote public discussion and were published at my personal expense. Every citizen has a right to speak about national issues and challenges, and those rights should be respected by the Government.  The Prime Minister’s extraordinary attacks on me as an individual should be seen as part of a broader campaign of intimidation and attempts to shut down dissent, by force if necessary. Dissent is a sign of a healthy society. It is a sign of a robust democracy. The right to freedom of speech and the freedom to gather together publicly to express our views are precious public commodities. The Prime Minister claims t

by BRYAN KRAMER This Part 2 of a two part series providing an insight into the looming vote of no confidence (VNC) against Peter O'Neill planned by the Opposition during the current session of Parliament. Part 1 covered the constitutional and procedural process that must be followed before Parliament may consider a VNC. To recap, the Constitution (section 145) stipulates that a motion of VNC may be proposed by any member of Parliament; however it must name the next Prime Minister, be signed by no less than 12 MPs, and give no less than one week’s notice in accordance with the standing orders of Parliament. Standing Orders stipulate the notice of VNC must be delivered to the Speaker of Parliament and tabled before Private Business Committee on a Wednesday to determine the motion is of national importance. It must then be delivered to Clerk of Parliament to be listed on the Notice Paper on a Thursday sitting (Private Business Day). This article will discuss ho

by NEMO YALO*  The National (19.10.15) in its editorial labelled the Opposition’s move to bring a motion of no confidence against the Government as “premature”. Referring to the speculated motion of no confidence it opened with the line: “Has Papua New Guinea gone to the dogs?” This is a seriously preposterous and bias characterization of a healthy process of democracy. Whether a motion of no confidence in the Prime Minister is tabled or not and what the outcome will be if it is voted is a matter for Parliament. What must not go unchallenged is The National’s lopsided and politically biased editorial. The editorial attempted to demonstrate balance by quoting what the Opposition and its members said in a recent press conference and then quoted the Prime Minister’s response to the Supreme Court ruling on 4 September 2015 which nullified the so-called “grace period” Constitutional amendment. The invalidated constitutional amendment granted a government 30 months i

FRANCIS AWESA SUING O’NEILL AND MALADINA OVER FRAUDULENT TRANSFER OF OWNERSHIP OF COMPANY by MICHAEL J. PASSINGAN As things get heated up in Waigani for the looming Vote of No Confidence, one of Prime Minister O’Neill’s close confidante and Minister for Works, Hon Francis Awesa is having a bitter split with his Prime Minister and close associate Jimmy Maladina,  The tales of fraud involving O’Neill and Jimmy as main characters never ceases to end. In this new drama, Works Minister Francis Awesa is taking the duo to court for illegally and fraudulently transferring his interests in one of the biggest construction companies in PNG –Global Construction Ltd. Global Construction was started in 1994 and the registered shareholder then was Kandy No. 7 Limited owned by Derek Michael Jepson, who is casually referred to as Mick Jepson.  On 1st August 1996, Mr Awesa, through his family company called Allestree No. 10 Ltd purchased about 24,999 shares from Kandy No. 7 to be a part own

by  BRYAN KRAMER   Director of National Fraud & Anti-corruption Directorate Mathew Damaru was formally charged by Police under Section 197 of Criminal Code for allegedly making a false declaration and statement. The provision is in the following terms; "(1) A person who, on any occasion on which he is permitted or required by law to make a statement or declaration before a person authorized by law to permit it to be made before him, makes a statement or declaration before that person that is to his knowledge false in a material particular is guilty of a misdemeanour." "Penalty: Imprisonment for a term not exceeding three years." "(2) A person cannot be convicted of an offence against Subsection (1) on the uncorroborated testimony of one witness." The charges relate to Contempt of Court proceedings filed against the Commissioner of Police Gary Baki by Damaru and his Deputy Director Timothy Gitua. Both Damaru and Gitua filed the pro