Category Archives: Corruption
Mark Haihuie | The National aka The Loggers Times | April 20, 2017
ILLEGAL mining in Porgera, Enga, is the result of a lack of opportunities for locals to participate in small to medium enterprises, according to Porgera Chamber of Commerce and Industry.
President Nickson Pakea was responding to questions from The National on locals taking part in illegal mining activities.
He said the ineffective government presence in the district in creating business opportunities, had created a dependency on the Porgera joint venture for basic services and business opportunities.
“According to the business perspective, the mine area is the land in which the seven clans gave to the developer. It’s the property of the company,” he said.
“If someone enters into this prohibited area then it is criminal.
“The cash flow in the district is mainly from the Porgera mine.
“The Government institutions within the district responsible for the growth of small to medium enterprises and the avenues is all moving backwards.
“The Porgera Development Authority was misused and was closed for more than three years.
“Paiam Hospital closed as well.
“Porgera Health Centre closed with no reflection of government services except the Barrick Porgera joint venture that people of Porgera rely on. The service delivery there is minimal. The non-government organisation groups need to represent the bulk of population on such corruption affecting many lives.”
Who is it persuades politicians to grant tax concessions without consulting relevant government departments?
Is it the mining companies directly influencing Ministers to make decisions against the national interest, disadvantaging ordinary people?
The National aka The Loggers Times | April 20, 2017
DECISIONS to grant tax concessions and incentives to resource projects should be made with the involvement of government entities and relevant organisations as well, an official says.
Internal Revenue Commission commissioner-general Betty Palaso told the meeting of department heads in Mendi, Southern Highlands yesterday that the Government should consider the other entities.
“An important factor that we can factor into preparations for the new parliament is how government deals with tax concessions and tax incentives, etc,” Palaso said.
“A lot of time, submissions go directly to Cabinet, approving certain tax concessions and incentives before coming to IRC, Department of Treasury or Papua New Guinea Customs. And we are then told to implement it.
“For example, LNG has a lot of tax incentives.
“Therefore, we have not been able to get revenue in terms of corporate income tax for a long time.
“And that is because decisions were made to allow these kind of incentives to large multi nationals.
“We have to seriously think about it. And then we have another developer in the same sector coming in to say we want the same concessions given to this particular developer given to us as well.”
Palaso said once that was done, it reduced the country’s revenue base.
“So when that is done again, the revenue base is much more reduced,” she said.
“Now we can see the impact of the reduction in the commodity prices which is now impacting on how much revenue is being generated and coming into the Government to date.”
Post Courier | March 05, 2017
PRIME Minister Peter O’Neill has come under fire again from the Opposition on the benefits from LNG’s more than 200 shipments.
Mr O’Neill said bigger benefits were looming for the country in the next LNG projects at Port Moresby’s inaugural petroleum and energy summit.
Opposition Leader Don Polye said the Department of Treasury projected that annual proceeds from the first LNG would be up to K4 billion.
“Our alternative government’s question is who will benefit the most? We know these benefits looming in the petroleum and energy sector.
“This is not the first time we will see them coming in from such an international project.
“Our resource owners have missed out on benefits which are rightfully theirs in the first LNG project,” he said.
Mr Polye said the government had betrayed the people.
“Talking about projects after projects will not solve the real problems. There is nothing from the LNG project reflected in national budgets.
“Budget books show nothing. With such disarray in the management of the resources, pushing for another LNG project is unheard of,” he warned.
Sovereign wealth fund, he said, was established outside of the international best practice Santiago principle.
Mr Polye added that the Extractive Industry Transparency Initiative was not fully established within the standard frameworks as well.
“We cannot justify discussing another second or third LNG project. We are afraid their proceeds will also go down the same trend.
“I must boldly tell the nation that Prime Minister Peter O’Neill has mismanaged the country’s proceeds from the first LNG project.
The country is in the red. I would like to advice the forum to address these issues,” Mr Polye said.
He warns Total, ExxonMobil and other players that whilst bidding to increase their profitability to serve the interest of shareholders, they have a moral and legal obligation to PNG as well.
“We would like to see responsibility on the part of the developers to create a sustainable economy for PNG.
“When we are in government, we will not only bid for maximum benefits for our resource owners, we will fix SWF and EITI, minimise law and order, restore rule of law and alleviate corruption to make PNG become an attractive investment destination,” Mr Polye said.
The National aka The Loggers Times | February 13, 2017
ILLEGAL gold dredging operations have ceased in the mid-tailings region of Panguna, according to an official.
Autonomous Bougainville Government Minister for Minerals and Energy Resources Robin Wilson told The National that the operations of Jaba Resources Limited in the area were not compliant with the Bougainville Mining Act 2015.
This resulted in the company being instructed to cease operations in December last year.
“This company’s operations came about as a result of the Bougainville Executive Council approval of a proposal for a brick production and gold extraction project submitted under the Department of Economic Development in August 2015,” Wilson said.
“On inspection of the site, and given the nature of the operations, it is clear that Jaba Resources Limited needs to be the holder of a small-scale mining lease under the Bougainville Mining Act 2015 for its operations to be lawful.
“Even if no metalliferous minerals such as gold were being extracted, Jaba Resources would still need to be the holder of a quarry lease. There are obviously other requirements under National laws as well, such as environmental approval.
“On the basis that the Jaba project has not complied with the relevant laws, the Executive Council has rescinded its decision to support the project.
“For these reasons, I have directed the Acting Secretary for Mineral and Energy Resources to take all necessary steps to bring this company’s operations to an immediate stop.
The bankrupt PNG government does not have the money to pay LNG royalties and is desperate to try and keep a lid on the issue ahead of the National election in June. The truth is Duban and his Ministerial colleagues in government have stolen so much money there is none left for LNG landholders and they will get nothing! In the meantime, Duban and the PM will keep rolling out the excuses…
Landowner royalties to be paid together: Duban
Charles Yapumi | Loop PNG | February 4, 2017
All landowner royalty payments for the LNG Project will be made after issues regarding landowner identification and clan vetting processes are completed, says Minister for Petroleum and Energy Nixon Duban.
The Minister said landowners from the resource areas, pipeline and plant site areas will be paid together after all landowner issues are dealt with, and no preferences will be given.
Duban said the Court of Alternative Dispute Resolution (ADR) will be dealing with landowners’ disagreements with the department’s identification and clan vetting processes.
The minister was responding to questions from Kikori MP, Mark Maipakai, in Parliament on Friday.
Maipakai asked when his people along the LNG pipeline areas will get their royalty payments because all their landowner identification and clan vetting processes had already been completed.
Gynnie Kero | The National | January 17, 2017
TRUST funds for Community Mine Continuation Agreement (CMCA) villages in the South Fly district of Western are still frozen by a court case, according to Ok Tedi Mining Ltd (OTML).
But despite that, OTML continued to contribute money into the trust every year, deputy chief executive officer and general manager employee and external relations Musje Werror said.
As at December last year, the company paid more than K9.8 billion in benefits to the people of Western since 1982.
He revealed that 50 per cent of these funds were currently tied up in court.
Addressing people at a village in South Fly last Friday, Werror said the village was among others in the district whose projects would be delayed.
The Sepe/Auti village in South Fly was the final village in the CMCA corridor to sign the CMCA Extension Agreement (CMCAEA) last Friday.
“Your benefits start today (last Friday) after signing of the agreement.
“But your name (Sepe/ Auti) is among all South Fly villages, project delivery will be delayed. Until the (court) case is over, we cannot draw down from the trust,” he said.
Werror also told the locals that the compensation package for the 158 CMCA communities in Western was reviewed over the years.
“In 2001, the compensation package at that time was K175 million.
“That was revised in the 2006 memorandum of agreement (MOA) to close to K1.2 billion and now the CMCA extension agreement nearly K600 million.”
Werror urged Sepe/ Auti locals to cooperate with the miner and the Ok Tedi Development Foundation and the provincial government if they wanted to see real change in the village.
“To achieve sustainable development is not easy but it can and will happen if we all work together. I encourage the people of Sepe/Auti through your leaders to work closely with OTML, OTDF and the Fly River Provincial Government (FRPG),” he said.
“There will be disagreements along the way but we must never lose focus of our dream and our desire to develop our village, our region and our province.”
Ok Tedi Mining Ltd also presented two outboard motors and sporting equipment worth K70,000 to the village last Friday.
It is understood that two 23-foot dinghies would be delivered to Sepe/Auti later.