Category: 20 Cases Report

The Border Development Authority (BDA) Act was passed by the National Parliament in 2008. It was created by the Somare government to coordinate development activities in all border provinces and primarily focused on Sandaun, Western, Manus, New Ireland, Milne Bay and the autonomous region of Bougainville (AROB).

Treasury Minister Patrick Pruaitch announced in October 2009 that there is K2.2 billion funding for the development of six border provinces over a 10-year period. Sandaun, Western, Manus, New Ireland, Milne Bay and the AROB were to benefit from that budgetary support, which was factored into the authority’s corporate plan 2009-2012 and 10-year development plan (Nicholas, The National, 2009).

However in July 2010 former minister and Vanimo-Green MP Belden Namah alleged in the National Parliament that the BDA purchased six vessels at inflated prices, paying K2 million for each boat when the actual price was K600,000 (Nicholas, The National, 2010).  Other allegations include a company contracted to set up a satellite communication facility lacking the technical capacity and a contractor’s failure to implement a K15 million town plan for Aitape.

It is not known if the authority accessed and used portions of the K2.2 billion funding for the six provinces in the last seven years. Again, just like the K55 million funding allocated to the NID project in 2014, there appears to be no publicly-available documents showing how the funding was used and if it was used for its intended purposes.

Update as of 2018

The Border Development Authority (BDA) Act was passed by the National Parliament in 2008. It was created by the Somare government to coordinate development activities in all border provinces and primarily focused on Sandaun, Western, Manus, New Ireland, Milne Bay and the autonomous region of Bougainville (AROB).

Treasury Minister Patrick Pruaitch announced in October 2009 that there is K2.2 billion funding for the development of six border provinces over a 10-year period. Sandaun, Western, Manus, New Ireland, Milne Bay and the AROB were to benefit from that budgetary support, which was factored into the authority’s corporate plan 2009-2012 and 10-year development plan (Nicholas, The National, 2009).

However in July 2010 former minister and Vanimo-Green MP Belden Namah alleged in the National Parliament that the BDA purchased six vessels at inflated prices, paying K2 million for each boat when the actual price was K600,000 (Nicholas, The National, 2010).  Other allegations include a company contracted to set up a satellite communication facility lacking the technical capacity and a contractor’s failure to implement a K15 million town plan for Aitape.

It is not known if the authority accessed and used portions of the K2.2 billion funding for the six provinces in the last seven years. Again, just like the K55 million funding allocated to the NID project in 2014, there appears to be no publicly-available documents showing how the funding was used and if it was used for its intended purposes.

Part 4 of the Auditor-General 2016 Report dated 11 August 2017 contained a Disclaimer of Opinion on the financial statements of BDA for the year ended 31 December 2013(Auditor-General’s Office, 2017). That is, the Auditor-General was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. In addition, the BDA had not submitted its financial statements for the years ended 31 December 2015 and 31 December 2016 for the Auditor General’s inspection and audit (Auditor-General’s Office, 2017).

In June 2018, Minister for National Planning and Monitoring Richard Maru, when visiting the Wutung Border Post complex with other government delegates, labelled it as unacceptable and suggested that Minister for Inter-Government Relations Kevin Isifu should take control of it (Loop PNG, 2018). The Wutung complex has been lying idle since it was built in 2014 under the K90 million Wutung Trade and Investment Program managed by the BDA, and has a few defects and needs installation of necessary utilities like water and power (Loop PNG, 2018). The delegation was informed of the outstanding commitments under the social commitment of the K90 million which include rural electrification, sanitation and water supply (Loop PNG, 2018).

Hence, the Minister for Inter-Government Relations Mr Isifu stated in the media that the Government had made a decision to abolish the BDA (Faiparik,The National,  2018). He said that it is now the responsibility of the Provincial and Local Level Government to complete the multi-million kina project. Also, on 24 October 2018, it was reported that the Government was planning to abolish 16 agencies and merge roles(The National, 2018). BDA was one of them; its functions would go to the Departments of Local Level Government, National Planning and Monitoring and Treasury (The National, 2018).

Since the inception of the commitment to build the casino hotel, there have been changes in the powers that be – within the CMSS as well as the government that has drastically affected the progress of the casino hotel. However, the major concern here is not that of the morality, nor the other concerns or scrutinies surrounding the construction of the casino-hotel, but rather the injustice that surrounded the construction of the casino-hotel, a plight in which implicated the two landowner incorporated land groups – Petroleum Resources Gobe Ltd and Petroleum Resources Moran Ltd.  These two ILG’s investment of K22 million translated into a loss when the completion of the project was not realised upon lack of funding by CMSS.

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The PNG National Identification (NID) card project was launched in November 2014 and slated to become a universal ID card for all Papua New Guinean citizens. The card would contain information on births, marriages, and deaths and become ID registers. It was a joint project with the Electoral Commission, Civil Registry and the National Statistical Office (NSO) (Yama, 2014).

The former Minister for National Planning and Monitoring, Charles Abel, said K55 million had been allocated in the 2015 National Budget to fund the project. The new ID cards would enable its holders to open bank accounts and access small business loans, subsidized health care and school fees. In February 2016, Mr Abel announced that over 150,000 people registered with the NID with the office rolling out offices in various provinces including Morobe, Eastern Highlands and East New Britain (Post-Courier, 2016).

However in January 2016 it became clear that it was not possible to get all the NID cards issued before the start of the 2017 General Election. National Capital District governor Powes Parkop led the criticism, saying the project should have started immediately following the 2012 general election as this would have given it enough time to register all eligible voter (Loop PNG, 2016).

It is not clear how the K55 million in public funding was expanded in the 2015 financial year and if the failure of the project to register all eligible voters before the start of the 2017 General Election warrants further examination by oversight institutions. To date, the project partners Electoral Commission, Civil Registry and the NSO are yet to release public documents showing how the K55 million was expanded.

In 2018, the NID Project once again came under the spotlight when the National Chief Statistician Roko Koloma of the National Statistical Office (NSO) refused to surrender to police when he was called in for questioning for an alleged misuse of K24 million assigned to the NSO (Zarriga, Post Courier, 2018). Mr Koloma’s refusal sparked calls for his suspension by organisations such as Transparency International Papua New Guinea where TIPNG Chairman Lawrence Stephens called for Mr Koloma and all citizens to comply with the efforts of legal authorities who are exercising constitutional powers on behalf of us all (Loop PNG, 2018).

The police obtained a warrant of arrest on April 13, 2018 but was not in effect after Koloma obtained an interim stay order and made an application to the Waigani Committal Court. In July, 2018 the application was refused by Magistrate Cosmas Bidar who stated that the police are entitled to apply for a warrant of arrest at any court and are entitled to carry out their constitutional duties (The National, 2018). In September 2018, the Public Service Minister Mr Elias Kapavore announced the suspension of Koloma as the National Statistician and said that a Government team led by Chief Secretary Isaac Lupari will investigate the alleged misuse of K24 million in the NSO (Faiparik, The National, 2018).

Although the NID registration has continued, there are complaints that the serious lack of funding for the project has hindered the progress in several parts of the country such as Morobe which needs K200 000 annually to successfully implement the project in the province (Ukaha, The National, 2018). There is currently an ongoing Teacher NID registration Project aimed at registering the teachers nationwide which began on the 24^th of December 2018 and is expected to be completed by the end of March, 2019 (Loop PNG, 2019).

In January 2019, at the opening of the new NID office at Waigani, the Minister for National Planning and Monitoring Mr Richard Maru announced that by the end of 2019, the Department aims to have no less than two million people registered and have NID cards (Wali, Post Courier, 2019). To ensure there are no delays in reaching the target, Mr Maru has directed the registrar general to investigate and secure printers capable of printing 5000 NID cards a day.

Despite these efforts, members of the public continue to raise concerns on the lengthy and slow processes involved in registering and acquiring an NID card. These concerns have prompted Minister Maru to urge the NID officers to fast-track the delivery of the project in the country (Gerega, Post Courier, 2019). Reports reveal that the NID registration of 120,000 adults and 39, 000 children are still pending however Minister Maru announced that the new NID Office at Waigani is expected to operate 24 hours a day with three shifts employing new graduates (Gerega, Post Courier, 2019). This is welcoming news as hundreds of people including recent graduates from universities will be employed to work in the successful delivery of the project.

The NID Project has had its fair share of media coverage in recent times and most citizens are looking forward to the successful completion of the project. However, the lack of funding and logistics are some of the problems that continue to seriously affecting the operations of the project. The Government should divert more resources to the NID Project to successfully complete this project. Minister Maru’s recent comments on the employment of more workers in the registration process and the increase of NID card production per day will certainly be a positive step in the right direction for the project.

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~ Reference/Bibliography ~

National Identity Project a failure. Loop PNG. (2016, January 12). Retrieved from http://www.looppng.com/content/national-identity-project-failure

Zarriga, M. (2018, February 11). Koloma Invited by Police to be Interviewed. Post Courier. Retrieved from https://postcourier.com.pg/koloma-invited-police-interviewed/

Koloma’s actions rebuked. Loop PNG. (2018, February 15). Retrieved from http://www.looppng.com/png-news/koloma%E2%80%99s-actions-rebuked-73469

Court refuses Koloma’s application. The National. (2018, June 28). Retrieved from https://www.thenational.com.pg/court-refuses-kolomas-application/

Faiparik, C. (2018, September 28) Team to Investigate claim K24mil misused at NSO. The National. Retrieved from https://www.thenational.com.pg/team-to-investigate-claim-k24mil-misused-at-nso/

Ukaha, J. (2018, May 23) Lack of funding holds up NID project. The National. Retrieved from https://www.thenational.com.pg/lack-funding-holds-nid-project/

Teachers’ NID registration underway. Loop PNG. (2019, January 10). Retrieved from http://www.looppng.com/png-news/teachers%E2%80%99-nid-registration-underway-81765

Wali, M. (2019, January 15) New Moale Haus to up NID Registration. Post Courier. Retrieved from https://postcourier.com.pg/new-moale-haus-nid-registration/

Gerega, L. (2019, January 15) Maru – Speed up NID. Post Courier. Retrieved from https://postcourier.com.pg/maru-speed-nid/

Gerega L. (2019, January 15) NID Registration for 120,000 Adults, 39,000 Children Still Pending. Post Courier. Retrieved from https://postcourier.com.pg/nid-registration-120000-adults-39000-children-still-pending/

On January 31, 2017 Opposition MP Ben Micah revealed details of a K46.6 million land deal involving the PNG Defence Force and a cabinet minister in the O’Neill-Dion government (Yapumi, PNG Loop, 2017). The revelations on the floor of the National Parliament triggered a series of events over a two month period, headlined by the National Executive Council’s suspension of the Ministers for Defence and State Enterprises, Dr Fabian Pok and William Duma respectively, and the start of an official investigation by the police and the Ombudsman Commission (EMTV, 2017).

Others who were suspended included the Department of Defence Secretary Vali Asi, Lands and Physical Planning Secretary Luther Sipison, Central Supplies and Tenders Board chair Philip Eludeme, Kumul Consolidated Holdings (KCH) managing director Gary Hersey, Motor Vehicle Insurance Limited (MVIL) managing director Joe Wemin, Lands Title Commissioner Kutt Paonga,   Valuer-General Gabriel Michael and the State Solicitor Daniel Rolpagarea. The investigations were to focus on a portion of land at Manumanu which was allegedly sold for  K46 million and the decision by the Department of Defence to purchase three portions of land for K15.4 million, K7.2 million and K9.2 million.

The revelation triggered an outcry by traditional landowners in the Central Province who demanded that a commission of inquiry be set up to investigate the land acquisitions (Naime, PNG Loop, 2017). Close to four months after the announcement of the investigations by the PM and the public is yet to be given a progress report.

The involvement of the Department of Lands and Physical Planning in yet another controversial land acquisition transaction should compel Mr O’Neill (or the incoming government) to consider sacking the current minister and reviewing all decisions made under his tenure in the past five years.

Update as of 2018

On 31 January 2017, Opposition MP Ben Micah revealed details of a K46.6 million land deal involving the PNG Defence Force and a cabinet minister in the O’Neill-Dion government (Yapumi, PNG Loop, 2017). The revelations on the floor of the National Parliament triggered a series of events over a two month period, headlined by the National Executive Council’s suspension of the Ministers for Defence and State Enterprises, Dr Fabian Pok and William Duma respectively, and the start of an official investigation by the police and the Ombudsman Commission (EMTV, 2017).

Others who were suspended included the Department of Defence Secretary Vali Asi, Lands and Physical Planning Secretary Luther Sipison, Central Supplies and Tenders Board chair Philip Eludeme, Kumul Consolidated Holdings (KCH) managing director Gary Hersey, Motor Vehicle Insurance Limited (MVIL) managing director Joe Wemin, Lands Title Commissioner Kutt Paonga,   Valuer-General Gabriel Michael and the State Solicitor Daniel Rolpagarea. The investigations were to focus on a portion of land at Manumanu which was allegedly sold for  K46.6 million and the decision by the Department of Defence to purchase three portions of land for K15.4 million, K7.2 million and K9.2 million.

The revelation triggered an outcry by traditional landowners in the Central Province who demanded that a commission of inquiry be set up to investigate the land acquisitions (Naime, PNG Loop, 2017). Initially, it was announced by the Prime Minister Peter O’Neill that a Commission of Inquiry would be set up to investigate the controversial Manumanu land deal; however, it was then downgraded to an Administrative Inquiry (Loop PNG, 2017).

On 11 August 2017, William Duma in a media statement said the allegations made against him pertaining to the Manumanu land deal are baseless and damaging as the land is not customary land but state land according to the records of the Department of Lands (Post Courier, 2017). He said the land was acquired through the compulsory process under Land Act 1996 where the Government is required to pay compensation (Post Courier, 2017). Hence, the Memorandum of Understanding between Kurkuram Estates Ltd (KEL) and the state entities (i.e. Kumul Consolidated Holdings Ltd (KCH) and the Department of Defence) on 19 October 2016 (Post Courier, 2017).

The MOA came into existence as a result of an agreement for settlement reached by KEL, KCH and Department of Defence on which KCH agreed to pay (and did pay) KEL K46.6 million (Kurkuramb Estates Ltd v Sipison [2017] PGSC 18; SC1595). This came about when KEL filed a proceedings in the National Court against the Secretary of Department of Lands and Physical Planning and the State on 15 August 2016 based on the deed of release when no compensation was forthcoming following the acquisition of the land by the State (Kurkuramb Estates Ltd v Sipison [2017] PGSC 18; SC1595). The parties then entered into discussion while the proceedings was still pending which resulted in the MOA (Kurkuramb Estates Ltd v Sipison [2017] PGSC 18; SC1595).

Not long after the payment was made KCH filed a proceedings in the National Court against KEL seeking return of K46.6 million (Kumul Consolidated Holdings v Kurkuramb Estates Ltd [2017] PGNC 404; N7429 ). KCH pleaded that there were express and implied terms that KEL breached; they “concerned the State Lease for the KEL Land being obtained by KEL by fraud, and the unimproved value of it being K84,400.00 and not K 46.6 million” (Kumul Consolidated Holdings v Kurkuramb Estates Ltd  [2017] PGNC 404; N7429). The National Court, on 8 May 2017 dismissed the proceedings made by KCH as the claim was untenable, frivolous and bound to fail. That is, under Clause 4 of the MOA between KEL and the state entities, all parties are barred from filing court or any other proceedings against the other party concerning the matters covered under the MOA (Kumul Consolidated Holdings v Kurkuramb Estates Ltd  [2017] PGNC 404; N7429). KCH, under the MOA, does not have a remedy against KEL and is barred from instituting the said proceedings (Kumul Consolidated Holdings v Kurkuramb Estates Ltd  [2017] PGNC 404; N7429).

After the 2017 general election, Prime Minister Peter O’Neil when forming the new government, re-appointed Mr Duma and Dr Pok as the Ministers for State Enterprise and Defence, respectively. The Prime Minister on 28 September 2017, justified his controversial decision to reappoint Mr Duma and Dr Pok to ministerial portfolios on the floor of Parliament when responding to questions by stating: “We will address the issues that may come to light at the end of the enquiry, it’s no point me pre-empt the outcomes of the enquiry under our jurisdiction, the members should know all citizens are innocent until proven guilty” (Loop PNG, 2017).

This was seen as a direct contradiction of the Prime Minister’s statement made in February 2017 in the media when he stated that the two ministers

“will step aside from their ministerial responsibilities pending the conclusion and outcomes of the Commission of Inquiry [which was reduced to an Administrative Inquiry] …[he further said] it is now clear that these agencies of Government have not worked together in a coordinated way to facilitate the implementation of the 2012 Government NEC decision. The acquisition of this land has been done in a clear violation of the Government’s decision and resulted in K78.4 million being paid.” (Loop PNG, 2017).

In reaction to the Prime Minister’s statement made on 28 September 2017, Chairman of TIPNG, Lawrence Stephens, said in a media release that: “Papua New Guineans know that if a Minister is being investigated, he or she must step down to preserve the integrity of the office they hold, the PM must follow through his earlier commitment  to integrity and revoke the appointments of Duma and Pok until the Administrative Inquiry into the Manumanu Land Deal is completed and results made public (Loop PNG, 2017). Regardless, the reappointments of the two ministers were not revoked until the inquiry was completed and tabled in the Parliament in April 2018.

In February 2018, Minister for Lands and Physical Planning Justin Tkatchenko announced that the Manumanu land file had gone missing but did not reveal where it was last seen (Patjole, Loop PNG, 2018).  When he was questioned in the Parliament by the Kairuku-Hiri MP Peter Isoaimo regarding the Manumanu land files and the Administrative inquiry, he said the file of the Manumanu land deal in question was last in the possession of the former Secretary for Lands and Physical Planning Luther Sipison, (Post Courier, 2018). This was described by TIPNG as ‘extremely shameful’, stating: “it is simply not acceptable that Prime Minister Peter O’Neill and Minister Tkatchenko are prevented from delivering on promises they have made to the nation and shamed by public servants who failed to secure documents essential to delivering of these promises” (Loop PNG, 2018). Chairman of TIPNG was reported in the media saying: “if the inquiry is deficient due to missing documentation, then it is clear that a much more robust investigation, even a Commission of Inquiry, should be established and the matter reviewed by appropriate investigators and by the judiciary” (Patjole, Loop PNG, 2018). TIPNG was concerned about the preservation of the integrity of the process of inquiry and upholding of good governance in the Manumanu case (Patjole, Loop PNG, 2018). It further stated that, “if the likely evidence of fraud can be tempered with when in the care of public officials, citizens lose trust in the Government system and can began to doubt the sincerity of promises made to them … The people need to know that government exists for them, to protect and advance their interests” (Patjole, Loop PNG, 2018).

In March 2018, it was reported in the media that the Administrative Inquiry report into the Manumanu land deal was received by the Prime Minister Peter O’Neill (Zarriga, Post Courier, 2018). He was reported saying: “I have received the administrative report from the commissioner who was appointed to investigate and will be tabled in April” (Zarriga, Post Courier, 2018). In April, the report was tabled in the Parliament, however; copies of the report were not available to the media (The National, 2018). The Prime Minister was reported stating, “[t]he administrative inquiry found evidence that processes were not followed in some cases [therefore] [t]he inquiry recommends further investigations to be [undertaken] by appropriate State agencies” (The National, 2018). He further said that:

“These processes of implementation of Government decisions to relocate the army facilities, and especially the valuation and determination of the land, and of course the operation of the Department of Lands and Physical Planning and its oversight, need to be fully investigated.

This is necessary because all the files into the land portions went missing at some stage, and at some stage it needs to be investigated further.
…
The Government has now received this particular report, and the only way to conclude is that this report be tabled and referred to Government agencies to deal with its recommendations.” (The National, 2018)

The Administrative Inquiry into the Manumanu land deal cost Papua New Guinean taxpayers K2 million (Loop PNG, 2018). TIPNG, in a media release, called on the Chief Secretary (as custodians of Commissions of Inquiry) and the Department of PM and NEC to make available the full Manumanu report for public scrutiny (Loop PNG, 2018). TIPNG chairman, Lawrence Stephen was reported saying: “Now that the report has been tabled in Parliament, the people of Central Province, the general public and the media outlets must have access to the findings of the Manumnau Administrative Inquiry and we must reflect on whether it meets its original Terms of Reference” (Loop PNG, 2018). TIPNG further stated that, “for the Manumanu Inquiry to be completed it must include documents pertaining to the valuation and sale of the land as well as the NEC decision resulting in the K46million purchase with funds from the implicated agencies and leaders” and “if the report is deficient in any of these aspects [,] it is difficult to see how it exonerates the two Ministers or eight Heads of Departments” (Loop PNG, 2018).

However, the Administrative inquiry manager Matthew Yuangu was reported in the media saying that the Government was not going to release to the public the Manumanu Administrative Inquiry report, which was published on 17 October 2017 and presented to the Prime Minister on 19 October 2017 by John Anthony Griffin, QC, whom led the inquiry (The National, 2018). Mr Yuangu said that there were state agencies seriously implicated in the report however, it was only an Administrative Inquiry and not a Commission of Inquiry (The National, 2018). That is, “[its] findings are currently subjected to further investigations. The report is only with the Ombudsman Commission, police and the prime minister. The Prime Minister received the report and referred it to police and the Ombudsman Commission to do further investigations.” (The National, 2018). The Commission of Inquiry’s report findings, on the other hand, are binding and available for public view, with disciplinary actions taken against those implicated through its recommendations (The National, 2018).

On 26^th April 2018, media reported that Luther Sipison was reinstated following a court decision on 16 April 2017 which squashed his suspension (Patjole, Loop PNG, 2018) . In a press release he made a statement regarding the missing Manumanu file which was said to be in his possession when missing, said he had left everything when he was suspended and that he had no knowledge of it and denied any wrong doing (Patjole, Loop PNG, 2018). He said the Manumanu report at page 77 paragraph 13.21, stated that there was no material to sustain a conspiracy alleged against him (Patjole, Loop PNG, 2018). After four months of being reinstated, Mr Sipison was suspended again over 16 allegations of mismanagement in office (Tarawa, 2018).

In August 2018, in a media report, there was great concern about the Manumanu report not being released to the public after  it had been tabled in the Parliament by the Prime Minister four months ago (Kolma, 2018). The Finance Secretary Dr Ken Ngangan explained that this was because the Cabinet was yet to deliberate on the controversial report and also, the call by PM to continue the Manumanu investigations (on 13 April 2018 during the Parliament session) which he said at that time the report was incomplete and needed furnishing with respective implicated state entities (Kolma, 2018). These implicated entities, in a media report, were Department of Lands and Physical Planning, Kumul Consolidated Holdings and the Central Supply and Tenders Board who were found to have had “multiple veins of unethical conduct and corrupt practices during the Manumanu land acquisition” (Kolma, 2018). The media report revealed that one of the main issue with the land deal was that, upon acquisition, the land value was grossly exaggerated (Kolma, 2018). In addition, the report showed that “no feasibility studies were carried out on the land prior to acquisition and that there was no evidence to suggest the Defence council approved of the endeavour in the first place” (Kolma, 2018).

However, in the same month, the two ministers (William Duma and Dr Fabian Pok) alleged to be involved  into the Manumanu land deal were cleared of any wrongdoings according to a report from the Director of the National Fraud and Anti-Corruption Directorate Detective Chief Superintendent Matthew Damaru to Police Commissioner Gari Baki (Zarriga, Post Courier, 2018). It was reported that there is no evidence implicating anyone involved in the transaction to defraud the Government and Kumul Consolidated Holdings Limited thus the police will not pursue the case (Zarriga, Post Courier, 2018). Police Commissioner Gari Baki said he had sent a letter to Prime Minister Peter O’Neill and the complainant KCH chairman Paul Nerau informing them of the police fraud squad’s recommendations (The National, 2018).  He said, in addition to no evidence to substantiate the fraud allegation, the fraud squad found no merit in any complaint (The National, 2018). The report stated that:

• The payment of K46.6 million by KCHL to KEL was in compliance with due processes and procedures and therefore was in order.
• Payment to KEL by KCHL was in order with all the processes under the Land Act 1996 regarding the compulsory acquisition of KEL’s land were exhaustively complied with by the DL and PP and the Valuer General.
• The investigations failed to establish any nexus in the land deal and in the involvement of Ministers William Duma and Dr Fabian Pok.
• No decision, and or actions of both men were questionable or corrupt contrary to the Lands Act or even contrary to the Criminal Code Act chapter 262.

In light of the findings, recommendations have been made citing no merit for further criminal fraud investigations and action.

The police have now recommended that the:

• Investigation be closed and investigation file be written off.
• No further investigation or action is required or warranted. (Zarriga, Post Courier, 2018)

The National Judiciary when concluding the high profile cases of 2018, the Manumanu land deal was one of the most controversial cases mentioned (Arnold, Post Courier, 2018). It was not because it made it to the court but because it did not (Arnold, Post Courier, 2018).

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The Konebada Petroleum Park was a Government initiative introduced to promote the petroleum industry to employ people, create jobs and revenue for the country (Tarawa, The National, 2018). The Konebada Petroleum Park Authority Act 2008 was passed by Parliament which established the Konebada Petroleum Park and the Konebada Petroleum Park Authority providing for an appropriately managed and serviced industrial precinct for operation of large scale green fields petroleum processing and energy products to add value to the resources of PNG, promote and develop downstream processing and export industries, and enable land to be used for commercial activities (Dentons, 2017).

The project has seen little development since its creation as the overseer of a free trade zone connected to the PNG gas export sector and initially came under the spotlight in 2010, when it was reported that around K8 million of funds allocated had disappeared without a trace after receiving K29 million, one third of it disappeared (the K8 million mentioned above) and of the known amount, 83% went to consultants (Kolma, The National, 2010).

In August 2015, the Petroleum and Energy Minister Nixon Duban announced the appointment of a board to oversee the development of the Konebada Petroleum Park (KPP). However, the NRI in April 2017 released a report describing the KPPA as a ‘scam’ and called for its immediate abolishment. The report said the Lands and Physical Planning Minister – by putting over 23,000 hectares of land under the administration of the KPPA – failed in his ministerial responsibilities by not consulting the affected traditional villages and businesses within the area (Naime, Loop PNG, 2017).

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~ Reference/Bibliography ~

Tarawa, H. (2018, February 21). State wants land back. The National. Retrieved from https://www.thenational.com.pg/state-wants-land-back/

Dentons Lawyers. (2017, April 24). Implications of declaration of boundaries of Konebada Petroleum Park. Dentons. Retrieved from https://www.dentons.com/en/insights/alerts/2017/april/24/implications-of-declaration-of-boundaries-of-konebada-petroleum-park

Naime, Q. (2017, April 6). Is Konebada Petroleum Park Authority a scam? Loop PNG. Retrieved from http://www.looppng.com/png-news/%E2%80%98-konebada-petroleum-park-authority-scam%E2%80%99-56125

Kolma, F. (2010, May 20). No trace of Konebada Petroleum Park’s K8mil. The National. Retrieved from https://www.thenational.com.pg/no-trace-of-konebada-petroleum-park%E2%80%99s-k8mil/

Abolishment a step in the right direction. Post Courier. (2018, March 9). Retrieved from https://postcourier.com.pg/abolishment-step-right-direction/

~ Photograph ~

Looppng, Quintina Naime

On July 21, 2011 the then Acting Prime Minister Sam Abal announced the establishment of a Commission of Inquiry to investigate 77 land leases which were issued under the Somare government’s Special Agriculture & Business Leases (SABL). The inquiry, which was later extended by Prime Minister Peter O’Neill in October 2011 for a further five months, discovered that over 90 percent of the leases totalling over 5 million hectares were illegally obtained from traditional landowners (Zealand, 2015).

The inquiry recommended that the leases be cancelled and the land returned to the landowners. But to date the National Government is yet to make progress on this policy decision. In September 2016 National Research Institute (NRI) director Dr. Charles Yala described the SABL as a system that promoted land grabbing (Mou, 2016). In March 2017 the Lands and Physical Planning Minister Benny Allen was criticized in an NRI blog, which accused him of releasing misleading statements on the findings and recommendations of the commission of inquiry (Yapumi, 2017).

In March 2017 Mr O’Neill confirmed that all SABL licenses were cancelled in a 2014 National Executive Council (NEC) decision, and asked the querying journalist to check with the Department of Lands and Physical Planning, to ascertain why investors still had their licenses (Orere, 2017). In April 2017 Mr Allen announced in a ministerial statement that the National Government has revoked all SABL titles and will now work with customary landowners to transfer them under a new voluntary customary land registration system (Patjole, 2017).

Two years after the NEC decided to revoke and cancel all SABL licenses in 2014 there is still no progress on this particular issue. There also appears to be a disconnect between the Office of the PM and the minister, in the face of public concern and criticism. If the PM had publicly assured the public of the cancellation of all SABL licenses then it is time to deal with the cabinet minister who continues to defy prime ministerial directives.

Update as of 2018 – Understanding the Delay in the Pursuit of Justice in SABL

The Special Agricultural Business Lease (SABL) is a controversial theme that has been the concern of most Papua New Guineans since its inception. Customary land in PNG accounts for more than 90% of the total land mass within the country. Since customary land cannot be sold, the only way an external party could have access to the land for the purposes of development was through a specialised agricultural business leases.

A SABL is a temporary acquisition of customary land for a fixed period of time for the purpose of establishing a plantation or other agricultural business. This was made possible through an amendment to the Forestry Act 1991. The amendment facilitated a massive and debilitating land and timber grab, primarily due to rampant corruption and the weak rule of law, coupled with the unyielding pursuit of timber by logging companies.

The controversial business leases granted to foreign companies has increased the impetus of illegal logging in PNG. Where trees are cut under the guise of clearing the forests for purposes of the SABL, soon after which, they are shipped off illegally. This is increasingly becoming common in Papua New Guinea, with lesser repercussions by the law.

Investigations into the controversy surrounding SABL would necessitate the involvement of an independent investigative body. Unfortunately, independent watchdogs like the Ombudsman Commission and the Public Accounts Committee are under resourced and suffer political interference. That was why a Commission of Inquiry was set up to investigate the different cases of SABL within PNG in 2011. The Prime Minister (O’Neil) has promised an independent commission against corruption to deal with this matter but no meaningful progress has been made to establish such a body.

A recent report was published by UK based charity War on Want and ACT NOW! The reports highlight various instances of human rights abuse and violation brought about to local communities affected by the SABL. The report highlights that the Royal PNG Constabulary have frequently been found protecting the interests of powerful SABL actors using brute force and intimidation to suppress resistance by customary landowners.

In seeking to address the problem, despite the findings of the Commission of Inquiry – that there were widespread abuse, fraud and a lack of coordination between government agencies, along with government officials to ensure compliance.[1] John Numapo, an investigator within the COI concluded that:

“The overall recommendation of the COI is that the current SABL set up is a complete failure and must be abolished. The current set up is riddled with loopholes, shortfalls and inadequacies – so much so that corrupt public officials and unscrupulous individuals are taking advantage of it to enrich themselves. There is simply no transparency and accountability in the whole process, starting from application to processing to the final issuing of SABLs.”

What has originally been a matter of illegal logging has now evolved into a matter of modern day slavery where our people are being subjected to human rights abuse

The PM instated a ministerial committee to facilitate the nullifying of the SABL cases deemed illegal; but this committee comprised of members of parliament who were previously involved with the introduction of SABL into PNG. The ministerial committee’s report which was said to be submitted to the PM was already crippled from the start.

The current concern of this issue is the effectuation of the admonition of the SABL as expressed by the Prime Minister and the NEC. The Department of Lands have initiated an investigative committee to look into these different cases and also where possible, nullifying the leases that are illegal. In recent reports, about 60 to 70 SABL files have been stolen from the lands department; it is unclear at this stage as to the identity of the perpetrator/s.

The Minister for Lands – Justin Thatchenko has publicly expressed his displeasure as to the recent incident, but little has been revealed as to how these files would be recovered. This blow to the Lands Department’s SABL committee is concerning, being that this department does not observe proper archiving procedures – or rather digitize their copies for convenience as well as security.

Little has been done to redress the SABL land scheme that is still in effect in certain remote parts of PNG. There have been reports of police being sanctioned by the logging companies as well as the corrupt government officials to protect the logging sites. Much of the government’s effort towards resolving the issue of SABL has been grounded by further malpractice and corruption by the government. There has to be an independent committee set up investigate the different leases and given the prosecutorial powers to nullify and desist illegal SABL operations in PNG. TIPNG and its partners must reach out and raise its concern that there must be an independent commission dedicated towards resolving this issue, current measures taken by the government to implement the decisions made by the government.

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Photograph:

A road created by a SABL operation in Pomio, East New Britain. , Credit : Global Witness

In the lead up to APEC 2018, the city of Port Moresby underwent major transformations that changed the face of the nation’s capital. New infrastructure and roads were constructed and projects were introduced as investors in partnership with the National Government made preparations for the APEC summit which was held in November, 2018. The Star Mountain Plaza Project was a major project developed during this period and the Hilton Hotel and Kutubu Conference Centre were two of several venues used during the summit for accommodations and meetings.

In September 2015, the Mineral Resources Development Company (MRDC) entered into an agreement with Hilton Worldwide to construct a 5-star hotel to be known as the Hilton Port Moresby (National, 2015). The hotel is part of the Star Mountain Plaza, which the project proponents have hailed as PNG’s first integrated commercial development.

The Star Mountain Plaza, according to the project’s page on a website belonging to Australian firm Ignite Architects, is a joint venture company owned by landowner companies Mineral Resources Star Mountain (MRSM), Mineral Resources Ok Tedi (MROT), and Petroleum Resources Kutubu (PRK). The three entities come under the trusteeship of the MRDC. The project costs a total investment of K1.5 billion and will support the National Government to host the APEC 2018 (Architects, 2017).

Prime Minister Peter O’Neill praised the development stating that the project will create more than a thousand jobs for Papua New Guineans during and after construction (The National, 2015).  During the construction of the Hilton Hotel, the Managing Director of MRDC, Augustine Mano said that 400 local residents will be employed to work on the Star Mountain Plaza development as the site workforce expands by 60 percent (PNG Today, 2017). The construction of the project brought employment opportunities to around 800 workers, a feat praised by Mr Mano describing it as a legacy asset for future generations of Papua New Guineans which gave the local workforce an opportunity to be trained in a variety of trades (Loop PNG, 2018). Apart from providing free meals, bottled water and Workers Compensation Insurance, the project also helped the local workers and their nominated family members receive health benefits such as free vision testing and electrolyte supplements to prevent dehydration (Post Courier, 2018).

The project consists of three stages. The first stage of the project is the development of the 5 star Hilton Hotel, the Kutubu Convention Centre and the car park structure which was completed and officially opened on October 12, 2018 and subsequently used as accommodation for the leaders and the delegates of Russia, Chile and Indonesia attending the APEC meeting in Port Moresby (James, 2018). The second stage is the construction of 160 luxury apartments, a club, restaurants and other facilities while the third stage involves the establishment of a retail precinct, commercial offices and the building of a second 4 star business hotel.

In March 2017 Prime Minister Peter O’Neill announced that the National Government will invest K316 million in the project and become a shareholder, taking a 20 percent stake to leave the landowners with 80 percent (Kero, 2017). But the participation of the landowners through the MRSM, MROT and PRK should cause alarm and compel landowners to ask whether the custodian of their funds (MRDC) undertook a consultative process before committing them to the project. Also what is the track record of the MRDC in similar hotel projects using landowner funds? Has there been good returns on investment for landowners in projects such as the Pearl Resort in Fiji where the MRDC reportedly invested K107 million (Kero, The National, 2015)?

The announcement by the Prime Minister of the investment amount of K316 million compels one to ask whether Papua New Guineans are now shareholders in the project and when can the people expect a return on their investment? Although the country saw a successful completion of stage 1 of the Star Mountain Plaza project, questions still remain on the lack of transparency relating to the acquisition of the land that now hosts the project also raises questions about who its legitimate owners are and whether they were rightfully compensated. The people and landowners are yet to fully benefit from their investments and time will only tell whether stage 2 and stage 3 of the project will eventuate now that Papua New Guinea’s major international event APEC is over.

The question still remains: how will the landowner companies involved in the deal be redressed for the K22 million loss incurred as a result of the bad business deal that had transpired between the parties involved? And being that the board of CMSS is still active (given their representation in the CMSS case in the national court), how can these landowners companies recoup their loss from MRDC or CMSS? Shouldn’t CMSS be subject to civil proceedings regarding the non-performance on their part of the agreement, and shouldn’t MRDC be an additional party to these proceedings being the trustee for the two landowner companies?

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~ Reference/Bibliography ~

Project to create more jobs, PM says. The National. Retrieved from https://www.thenational.com.pg/project-to-create-more-jobs-pm-says/

James, D. (2018, November 13) Hilton Hotel opening in Port Moresby a ‘key story’ for Papua New Guinea says MD. Business Advantage PNG. Retrieved from https://www.businessadvantagepng.com/hilton-hotel-opening-in-port-moresby-a-key-story-for-papua-new-guinea-says-md/

Star Mountain Plaza Development to Expand Local Workforce by 60%. (2017, August 1). Papua New Guinea Today. Retrieved from https://news.pngfacts.com/2017/08/star-mountain-plaza-development-to.html

PNG Workers and Families to Benefit from New Healthcare Initiative. (2017, September 25) Post Courier. Retrieved from https://postcourier.com.pg/png-workers-families-benefit-new-healthcare-initiative/

PNG’s APEC Venue on Track. (2018, June 15). PNG Loop. Retrieved from http://www.looppng.com/png-news/png’s-apec-venue-track-77395

~ Photograph~

Credit: Star Mountain Plaza, Photo Credit: ww3.hilton.com

Work on the Sir Hubert Murray Stadium to prepare it to host sporting events connected to the 2015 Pacific Games began in September 2013 under a public-private-partnership (PPP) between the PNG government and local firm Curtain Brothers. The redeveloped stadium was to cater for 15,000 people, host rugby and soccer matches and be the home for the PNG weightlifting squad (EMTV, 2013).

The incomplete state of the stadium forced the authorities to move all the Pacific Games track and field events including the opening and closing ceremonies to the Sir John Guise Stadium at Waigani.

In January 2016 the Sports Minister Justine Tkatchenko assured the public that work on the historic stadium would be completed by October 2016, in time to host the FIFA U-20 Women’s World Cup (Yagi, 2016). In January 2017 the stadium remained incomplete with the media revealing it will cost K40 million to complete and that the government is seeking corporate sponsorship to get it done   (Lavett, 2017). In June 2017 Mr Tkatechenko told an  election-focused  television show  that the National Capital District Commission (NCDC) will provide funding to get the stadium completed (TVWAN, 2017).

There is no doubt that the PPP between the State and Curtain Brothers failed, leaving a multimillion Kina project incomplete which ultimately impacted on the organisation of the 2015 Pacific Games. For  a PPP to be successful both parties should agree on an appropriate legal and regulatory framework to govern their partnership.

Were there flaws in the legal and regulatory frameworks that led to the abandoning of the project? International experience suggest that the principles of equity, transparency and mutual benefit should be  at the core of any successful partnership. The Sir Hubert Murray Stadium saga should compel the PNG government to review its current frameworks to ensure that any partnership should be done transparently and results in the most effective use of resources committed by both parties.

Update as of 2018

Work on the Sir Hubert Murray Stadium to prepare it to host sporting events connected to the 2015 Pacific Games began in September 2013 under a public-private-partnership (PPP) between the PNG government and local firm Curtain Brothers. The National Government budgeted K11 million for the project while the Curtain Brothers was to provide labour and machinery for free (EMTV, 2016) . The redeveloped stadium was to cater for 15,000 people, host rugby and soccer matches and be the home for the PNG weightlifting squad (EMTV, 2013).

The incomplete state of the stadium forced the authorities to move all the Pacific Games track and field events including the opening and closing ceremonies to the Sir John Guise Stadium at Waigani.

In January 2016 the Sports Minister Justine Tkatchenko assured the public that work on the historic stadium would be completed by October 2016, in time to host the FIFA U-20 Women’s World Cup (Yagi, 2016). In January 2017 the stadium remained incomplete with the media revealing it will cost K40 million to complete and that the government is seeking corporate sponsorship to get it done (Lavett, 2017)  . In June 2017 Mr Tkatechenko told an  election-focused  television show  that the National Capital District Commission (NCDC) will provide funding to get the stadium completed (TVWAN, 2017).

In May 2018, NCDC City manager Benard Kipit announced that NCDC has taken over the incomplete stadium and the contract with Curtain Brothers; and executed new terms to resume the stadium construction at the cost of K40 million (Post Courier, 2018).  Mr Kipit confirmed that K35 million was allocated through the part sale of the sea park land, while K5 million through BSP financing (Post Courier, 2018). He said that this will see the completion of Sir Hubert Murray Stadium with fully fiited western grand stand, car parking, fencing and other ancilliary works that will enable the stadium to be fully operational (Post Courier, 2018) . In relation to the new terms executed, there is no publication of information showing these new terms.

In July 2018, NCD Governor Powes Parkop stated that the money for building the new 2000-seat amphitheatre (which is part of the Ela Beach Park Development) had been put into the Sir Hubert Murray Stadium to Complete it (Post Courier, 2018). It was stated that the Stadium would be completed in November, before the APEC Summit (Post Courier, 2018). The APEC Summit has just ended and the stadium remains incomplete.

There is no doubt that the PPP between the State and Curtain Brothers failed, leaving a multimillion Kina project incomplete which ultimately impacted on the organisation of the 2015 Pacific Games. For  a PPP to be successful both parties should agree on an appropriate legal and regulatory framework to govern their partnership.

Why was the project abonded by the Curtain Brothers? Was it because the death of  its owner Sir Michael Curtain in September 2016(Loop PNG, 2016)? Or were there flaws in the legal and regulatory frameworks that led to the abandoning of the project? International experience suggest that the principles of equity, transparency and mutual benefit should be  at the core of any successful partnership. The Sir Hubert Murray Stadium saga should compel the PNG government to review its current frameworks to ensure that any partnership should be done transparently and results in the most effective use of resources committed by both parties.

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In September 2011 the media broke the story on a dispute between landowner companies Petroleum Resources Gobe Ltd (PRG) and Petroleum Resources Moran Ltd, the PNG Government and Korean company CMSS (PNG) Ltd. CMSS signed a contract with the government and the two landowner companies to finance, build and complete the Port Moresby Casino Hotel at Four Mile.

But three years later the project stopped due to the lack of funding, triggering condemnation from the landowner companies and the then commerce and industry minister Charles Abel (Robby, 2011). The developer was to contribute K164 million for a 90 percent stake in the project. The State had provided the land and a 10-year tax holiday as a partner in the project.

The Mineral Resources Development Company (MRDC), as the custodian of landowner funds held in trust on behalf of PRG and PRM, engaged an architectural firm to check the integrity of the under-construction building to ascertain how much more should be done to get it completed. There has been no progress at the project site since the government intervened in 2011. The failure of the project now translates to a loss of K22 million belonging to landowners in the Southern Highlands Province.

The loss of a return on investment raises questions as to whether the MRDC subjected the project (including the developer) to an exhaustive due diligence process before committing the landowners. Now that the project has come to a halt will the Department of Trade and Industry and the MRDC take legal action to ensure the landowners are compensated for breach of contract and loss of income?

Update as of 2018

The case of the 5 Star casino hotel has been the subject to much public scrutiny by the mediaand the general public about its viability in contributing towards the PNG economy. However, the media attention has long since waned over the years. It has been a decade since the inception of this business venture by the CMSS, MRDC and the Government of PNG.

Since the inception of the commitment to build the casino hotel, there have been changes in the powers that be – within the CMSS as well as the government that has drastically affected the progress of the casino hotel. However, the major concern here is not that of the morality, nor the other concerns or scrutinies surrounding the construction of the casino-hotel, but rather the injustice that surrounded the construction of the casino-hotel, a plight in which implicated the two landowner incorporated land groups – Petroleum Resources Gobe Ltd and Petroleum Resources Moran Ltd.  These two ILG’s investment of K22 million translated into a loss when the completion of the project was not realised upon lack of funding by CMSS.

Since the inclusion of this concern in the 20 cases report, there has been little to no progress regarding the loss of funds incurred by the landowner groups implicated in this dilemma. Media reports only reveal concerns about the demolition of the construction as it would be an eyesore to APEC delegates (Kolma, Demolish Building before APEC Says Development Expert, Post Courier, 2017)

In 2014, the case of CMSS (PNG) Ltd v State [2014] PGNC 111 was held in the National Court. The case was between CMSS, the NCDC and the Independent State of Papua New Guinea. The case concerns the non-issuance of license by the State prior to the construction of the casino hotel. In 2013, the NCDC building board was of the view that the construction was not in compliance with the standards of the NCDC Building Board and the building was constructed defectively. The Building Board then publicised a notice of its intention to demolish the partly constructed building.

In a letter dated 29^th November, 2013, the CMSS purported to give a section 5 notice pursuant to the Claims Act section 5. The section 5 notice was intentioned by the CMSS because it has alleged that the State had breached its agreement in a pertinent clause within the agreement. The notice however shows the intention of CMSS, and that is to attain funds from the government. The company may be in financial turmoil and lacks the necessary funding needed to complete the construction of the project.  The case was not in the favour of CMSS as the section 5 notice breached the time bar set.

As far as the completion of the casino hotel is concerned, there hasn’t been any progress reflected in the media concerning this issue. Although there has been a purported investigation by the police under the guise of fraud into the matter (Tarawa, Probe on K62m Casino Case, The National, 2016), an update into the investigation is yet to be published or reflected in media reports.

The involvement of MRDC into the matter has been clarified by a press release issued by MRDC, which had reportedly contained the mitigating strategies to rescue the project. These different strategies had however necessitated the structural audit of the building. The firm engaged – Kramer Ausenco, to assess the building’s integrity; the assessment proved to be in the negatory as the structural integrity of the building was compromised (as seen in the CMSS case).

The question still remains: how will the landowner companies involved in the deal be redressed for the K22 million loss incurred as a result of the bad business deal that had transpired between the parties involved? And being that the board of CMSS is still active (given their representation in the CMSS case in the national court), how can these landowners companies recoup their loss from MRDC or CMSS? Shouldn’t CMSS be subject to civil proceedings regarding the non-performance on their part of the agreement, and shouldn’t MRDC be an additional party to these proceedings being the trustee for the two landowner companies?

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~ Reference/Bibliography ~

• CMSS (PNG) Ltd v State [2014] PGNC 111; N5717, accessed at http://www.paclii.org/cgi-bin/sinodisp/pg/cases/PGNC/2014/111.html?stem=&synonyms=&query=cmss%20png%20ltd
• F. Kolma, Demolish Building Before APEC Says Development Expert, Post Courier, 1.12.17, accessedat https://postcourier.com.pg/demolish-building-apec/
• H. Tarawa, Probe on K62m Casino Case, The National, Nov. 18, 2016, accessed at  (https://www.thenational.com.pg/probe-k62m-casino-case/)
• Mineral Resources Development Company Press Release, accessed at http://www.mrdc.com.pg/files/casino.pdf

The Pacific Marine Industrial Zone (PMIZ) was approved by the National Executive Council (NEC) as a concept in 2004 but was not officially commissioned until November 2015 when Prime Minister Peter O’Neill travelled to Madang and declared it open (Albaniel, 2016). A concessional loan was obtained from the Chinese government’s Exim Bank to fund what later became known as the Pacific Maritime Industrial Zone (PMIZ).

The Chinese state company China Shenyang International Economics and Technical Cooperation Corporation was appointed project manager. Information from Madang indicates that the first tranche of the concessional loan was used to clear and build the fence around the site at Vidal, north coast Madang for a township to be established (Journalist, 2017).

Just like Bautama, the project proponents did not publish information showing the terms and condition of the concessional loan, the expenses list, and the repayment schedule. According to China Aid Data, an online platform that provides information on Chinese development finance earmarked for Africa, the China Exim Bank gave $US74 million to PNG in January 2011 for the project. The total cost of the project was $US95 million with the other $US21 million to come from the PNG government (AidData, 2016).

The project was to be completed on November 24, 2015 but to date there is little to show on the ground, raising questions as to whether the first tranche of the concessional loan was accessed and disbursed. In March 2017 Trade and Commerce Minister Richard Maru revealed that the PNG government is negotiating a new $US150 million loan from the Exim Bank of China for the same project (National, The National, 2017).

Update as of 2018

The Pacific Marine Industrial Zone (PMIZ), later became known as the Pacific Maritime Industrial Zone, was approved by the National Executive Council (NEC) as a concept in 2004 but was not officially commissioned until November 2015 when Prime Minister Peter O’Neill travelled to Madang and declared it open(Albaniel, 2016). Initially, a concessional loan of US$74 million was obtained from the Chinese government’s Exim Bank to fund the PMIZ project (Post Courier, 2016).The initial total cost of the project was $US95 million with the other $US21 million to come from the PNG government (AidData, 2016).

In July, the Secretary for the Department of Commerce and Industry Andrew Liliura said that the initial loan was cancelled after only 10 percent of it was released by the Exim Bank (i.e. US$9.5 million) as per the loan contract (Post Courier, 2018). The PMIZ project was then re-scoped and a new and revised loan was confirmed at US$156 million (K484 million) for the operation of the first phase (Post Courier, 2018).

Under the initial concessional loan of US$74 million, contract for phase one of the PMIZ was not processed through the Central Supply and Tenders Board, but was instead awarded to a Chinese state company China Shenyang International Economics and Technical Cooperation Corporation under a condition of the concession loan(Post Courier, 2017). Information from Madang indicates that the first tranche of the concessional loan was used to clear and build the fence around the site at Vidal, north coast Madang for a township to be established (Journalist, 2017). However, a review of the government management and expenditure on the ground work on PMIZ project by the Department of Commerce and Industry revealed a K30 million expenditure with very little to show for (Post Courier, 2017). Commerce and Industry Minister Wera Mori stated during a presentation that shockingly K4 million was spent on the main gate alone (Post Courier, 2017). He further stated that, “despite sufficient funding, the status of the 2.47 kilometer access road is unsatisfactory, including a 400m segment of the road for which K5.5 million was already paid”; and that, “survey and physical zoning remains incomplete, despite K2.25 million paid to land mark valuers eight years ago” (Post Courier, 2017). This is a clear indication of the mismanagement of public funds.

Just like Bautama, the project proponents did not publish information showing the terms and condition of the initial concessional loan, the expenses list, and the repayment schedule.

In July 2018, the Secretary for the Department of Commerce and Industry Andrew Liliura said that  as soon as the process and loan requirements of the revised US$156 million are completed, operation for phase one will go ahead (Post Courier, 2018).

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The Central City Project at Bautama, a 30-minute drive from Port Moresby, headlines the list of risky State investment projects in the last decade. The project was commissioned by the Central Provincial Government with the support of the National Government on October 9, 2007 with the aim of establishing a provincial headquarters for the Central Province (Government, 2007). The actual amount of funds allocated by the National Government for this purpose is still unclear.

In a National Executive Council (NEC) meeting in 2013, the NEC endorsed a proposal by the Department of National Planning and Monitoring for the Central City Project where Prime Minister Peter O’Neill said that the Department would facilitate an independent project review and audit of the project (The National, 2013). Plans for the establishment of Central City in Bautama was welcomed by members of the public where in March 2013, the business community in the National Capital District backed the development of the new township as the capital for Central Province, saying they were ready to give their support (Wapar, 2013). However, successive governments have not published information showing details of firms that submitted bids, provided the description of the services provided, contract value and terms and conditions.

During the opening of the Sir Reuben Taureka Highway prior to the General Elections in 2017, Prime Minister O’Neill made a commitment to the people of Central Province that the PNC-led Government will build Central City after the elections saying that he was aware of the misuse of millions assigned for the project by past governments and assured the people that the current government will complete the project (PNG Today, 2017). However, since the elections there has been no attempt by the Government to revive the project and the status of the project remains.

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~ Reference/Bibliography ~

Central to launch City Project. The National. (2018, January 5). Retrieved from https://www.thenational.com.pg/central-launch-city-project/

PM O’Neill Commits To Building More Infrastructure Including Central City. PNG Today. (2017, May 18). Retrieved from https://news.pngfacts.com/2017/05/pm-oneill-commits-to-building-more.html

Central City Plan Endorsed. The National. (2013, April 3). Retrieved from https://www.thenational.com.pg/central-city-plan-endorsed/

Agarobe wants a second look at projects. The National. (2017, August 23). Retrieved from https://www.thenational.com.pg/agarobe-wants-second-look-current-projects/ Wapar, D. (2013, March 12). Business backs Central City. The National. Retrieved from https://www.thenational.com.pg/business-backs-central-city/

~ Photograph Caption ~

Upgrade of Magi Highway to four lane – an unprecedented development for the National Capital of Papua New Guinea, Photo credit: Ken Atasoa, Twitter feed.