by Martyn Namorong

All political leaders at Laguna have done Papua New Guinea proud by reflecting our Melanesian hausman value of decision making by consensus.

Whilst many outside Laguna may have anticipated the western practice of casting a secret ballot, our wise leaders at Laguna borrowed from our own traditional values.

Our consensus based decision making is what has kept our societies strong and united for much of the 50,000 years of our existence on our Mother Land.

With the introduction of the western adversarial decision making where the winner takes all, we have seen many problems. We see problems during our western styled elections, western styled court decisions and every other western influenced decision making process.

In choosing Marape by consensus instead of a secret ballot, the Alternate Government has consolidated its unity and resolve for a common purpose -replacing the PM and Saving PNG.

Consensus brings leaders together instead of creating winners and losers. Everyone is a winner.

In making their first most important decision, the Alternate Government is sending a strong signal to the nation that the Constitution is Supreme and we must reflect PNG' s Five National Goals and Directive Principles in how we govern our great nation.

PNG's Fifth National Goal and Directive Principle calls on every Papua New Guinean to reflect Our Papua New Guinean Ways in how we conduct our selves and govern our country. The Alternate Government leaders have paid homage to this National Goal and Directive Principle.

I am pleased that the Party of one of our Founding Father Grand Chief Sir Michael Somare (National Alliance) continues to promote that legacy of the values and principles upon which this nation was founded.

It is also great to see that someone like Sir Mekere Morauta who was leading parts of the executive government during early years of Independence is helping to restore the Supremacy of the Constitution after it had been destroyed by O'Neill in 2011.

But lets not steal the limelight from James Marape and his people of Hela.

The Hela were some of the last people in PNG to have European contact. One of the first Europeans to meet them was Jim Taylor during his patrol in 1937. His daughter Dame Meg Taylor would decades later follow in his footsteps to visit the Hela people. In her documentary In My Father's Footsteps, she would describe the Hela as being thrust into the 20th century at the speed a bullet that her father fired.

Today James Marape and his people are being thrust to the pinnacle of national leadership in Biblically prophetic terms -for the last shall be first.

PNG has a proud history that has brought us to this unique moment. Let us hope all our leaders in Parliament do not throw away this golden opportunity to restore our nation and secure a prosperous future.

Congratulations Hon. JAMES MARAPE, MP. Member for Tari Pori on your selection as nominee of the Alternate Government for PM post.

....UNDER CURRENT CIRCUMSTANCES AGAINST SURGING NATIONAL ALLIANCE TACTFUL AND CUNNING SUPPORT SCHEME

by BEKEI YESA

The graceful return of James Marape in the guise of a sudden saviour to court Patrick Pruaitch is just another National Alliance merry go around the twist.

James Marape, Sir Puka Temu and Douglass Tomureisa are all previously National Alliance party members who dumped Patrick Pruaitch to join Peter O’Neill. They have no credibility in their standing and should fade out of PNG politics.

When National Alliance was running the kitchen cabinet they were all having a good laugh. Just like Belden Namah who squandered millions of Kina through timber concessions with his master tactician Patrick Pruaitch brings nothing feasible to the helm of our national politics.

James Marape was a low-grade apprentice who got parked as Education Minister and made little until Prime Minister Peter O’Neill elevated his taste buds. Today he claims impropriety and insanity on the part of Peter O’Neill. One thing he forgets is that he has a dead conscience who only wakes up when he wants to ejaculate.

Sir Mekere Morauta who rode on the Structural Adjustment Program imposed by IMF and World Bank sold the people’s PNGBC to his cronies under privatization reforms. He even engineered the PNGSDP as his retirement exit occupation and cannot be trusted. A white collar neo-classical modern-day conservative who brought so many miseries to the plight of  Western Province people to this day.

These leaders have not offered any tangible solution in terms of policies and economic recovery package in their current so-called position as an alternate government. They have centred debates on one man and continue to drive hatred without innovation. They are nothing more than another Bryan Kramer’s version on social media.

Kerenga Kua another Simbu scammer who represented Grand Chief Somare paid himself more than K10 million Kina worth of legal bills is still shouting for more.  He brings nothing more than personal interest to match competing firms like Paraka Lawyers. He is just another screaming clown on the floor of parliament.

Look at the yo-yo Douglass Tomureisa who was the puppet for Patrick Pruaitch before entering politics. His task was to bring cash and manage National Alliance MPs as Chairman of Border Development Authority. When he became Forest Minister he could not plunder enough money as O’Neill kept him under full scrutiny. He has no integrity. He just did another backflip.

Solan Mirisim who got appointed Defence Minister and now defected was one of the worst performing ministers. He cannot even construct the national security language and wasted time trying to learn the art of ministerial oversight. He was put there out of respect although he never had the merit to occupy that office.

So they all arrive at Laguna in front of the camera and media just like the Hunters Football Club and strut their stuff by reasoning Peter O’Neill as being too dominant and very dictatorial. They expressed poor consultation, greed and bad management but forget that they stood by that same order for the last seven years without any concern.

James Marape goes for a lockout to draw the alternate government agendas. Patrick Pruaitch who orchestrated the squandering of K100 million Green Revolution under the National Agriculture Development Plan still does not have any development options to offer. It’s a shame. So both gentlemen try to draw a big circle of confusion against the speed of chaos and complications.

This year we have 6 months to tick off 2019 fiscal responsibilities as set by James Marape and Charles Abel themselves. James Marape for the last 7 years has been designing the National Budget just like his friend Patrick Pruaitch. They are now claiming mismanagement. How about K10 Million Aitape Township feasibility studies? What happened to that story and funding?

How about Tari Pori District Office for K20 million? Under National Alliance Government and as Education Minister James Marape got the highest RESI funds totalling K13.5 million. Under Hela Transitional Authority James Marape got K33 million and there is nothing to show on the ground! A young, articulate and possibly corrupt MP who made Governor Philip Undialu and himself win the 2017 National Election.

James Marape is dangerous for public finance management. He has no track record of managing wisely the people’s money. His combination with Patrick Pruaitch is the worst partnership designed to syphon off huge public funds. Prime Minister Peter O’Neill has seen James Marape’s lust for money and prevented his full access.

This is the core reason why James Marape left People National Congress Party. If you look
at a couple of National Budget under James Marape, he has actually put in more money for his district. Projects like roads, district office and many different sectoral interventions were funded in millions at the request of James Marape.

Prime Minister Peter O’Neill is smart. He never trusted James Marape’s handling of big-ticket items. James Marape’s fervent loyalty to the Seventh Day Adventist does not leverage his accountability level above human desires. His exposure level makes him a standout catch 22.

He never cares about other leaders. He was so greedy. That is why Prime Minister Peter O’Neill created a strong mechanism to evaluate all funding requests and expenditure requirements. Imagine getting the National Budget to fund his District office in millions while other districts are watching and suffering? He is nothing more than an insatiable leader.

Many people are praising James Marape but he is not a saintly candidate to bypass the public fit and proper person’s test. In terms of Kroton Equity James Marape has to be honest. Prime Minister respected the decision of landowners acquiring more percentages into their current shareholding. The landowners did not agree on free carry equity so they are stuck in raising the equity finance.

This was an issue created by the National Alliance Government. The same government who allowed Exxon Mobil for not fulfilling the requirements of the Oil and Gas Act in doing the social mapping. The very reason why landowners could not get paid their outstanding royalties. James Marape and Patrick Pruaitch were the ring leaders who screwed the whole people of Hela, Western, Gulf, Southern Highlands and Central.

This nation must not forget the past because so many things went wrong under the same proposed leadership. Whilst Prime Minister Peter O’Neill is subject to the mercy of his parliamentary wing poor James Marape just does not meet the criteria for the nation’s top post. His hands are full of cobwebs and ashes of the fire that he needs to remove before anything.

With 2 years to go before the 2022 General Election, there will not be time to fix anything. Big announcements can be made but the time is too short to achieve anything. What is certain to take charge is witch-hunting and an attempt to lock in all opportunities for 2022 General Election. This will basically mean no clear guidance and focus over the economic conditions and socio-political aspects of this nation.

The people of this country must remember there are very few honest leaders who are not able to speak the truth but remain silent. This country also cannot afford to have another highlands leader as Prime Minister. The leadership must go to other regions. We are a diverse country. James Marape if nominated on the floor will not attract strong political support but regional sentiments.

The best alternative that James Marape has is to court Charlie Abel and work from within the government. Charlie is well placed to trigger a leadership change and keep James Marape as his number 2 if it is the wish of the PNC Party caucus.  Peter O’Neill can agree to this position without much hassle of debating why or how!

The loophole that James Marape and his defecting PNC rebel MPs must pass is the resignation issues which has to be dealt with by law. The Organic Law on the Integrity of Political Parties and Candidates are very clear on endorsed candidates having won and voted for the Prime Minister. The MPs must vote in support of Constitutional laws, Budget and Votes of No Confidence. If they disagree then they can abstain.

But resigning from a political party is rendered as more complicated and will push them away from their core intention. They cannot effectively have peace since their individual matters can be referred to the Ombudsman Commission. The provisions for their resignations are clear. So far they have jumped without reasoning the law. It is likely that the Speaker and Registrar of Political Parties will come out clear on these matters.

The vote on the motion of no confidence is by party resolution only. Most of the MPs defecting have indicated resigning and still have no party. If they think they can vote on the nominated candidate on the floor of parliament then their votes cannot be counted. This is a serious concern and cannot be fixed with the way the leaders are behaving.

So the question now is can James Marape survive the test with Patrick Pruaitch? Well for the sake of our public they can but if they are guided properly. Otherwise, the numbers are tricky and record of changing the government in any vote of no confidence does not favour their rush hour drive to secure a feasible change.

In view of the current movement of MPs to Crown Plaza and Laguna, there are few things that must be noted. On Tuesday a notice to introduce a motion of no confidence will be introduced. This notice goes through a committee to screen its grounds. Then the committee will advise the sponsor or proponent.

The danger is that once the notice is issued the Speaker is likely to advise the house that matters before the Supreme Court relating to section 145 are before the courts. In that order, it would be wrong for Parliament to deliberate on those matters. Otherwise, it would be sub judice and the notice will be rejected outright.

Furthermore, the Organic Law on the Integrity of Political Parties and Candidates is very clear on the provision for resignation. There is a danger where those who resigned will have to have their resignation referred to the Ombudsman Commission. This means MPs cannot withdraw their resignations while under investigation.  They will remain part and parcel of the political party awaiting the outcome of the Ombudsman Commission’s investigation.

As it stands James Marape, Sir Puka Temu, Douglass Tomuriesa and Solan Mirisim are placed in a huge dilemma right now. They cannot vote against the Prime Minister and effectively are part of the People’s National Congress Party. Their resignations will have to be referred to the Ombudsman Commission. This process requires a longer period beyond the motion of no confidence. The same may apply to Sam Basil and his sudden Melanesia Alliance leadership.

In terms of the splinter People’s National Congress Party faction, their participation on the vote of no confidence are further derailed. They cannot vote against the Prime Minister. Besides they are bound to go by the party resolution. For those who are not comfortable with the votes, they can abstain. These are critical procedures that will denigrate James Marape’s chances.

Further away from conventional platforms James Marape has more headaches to manage. His candidacy will be belittled by the regional politics of this diverse nation whereby one Highlander cannot take it from another Highlander. That’s a dead end for James Marape. On that basis, Patrick Pruaitch and his team know well that James Marape is stuck.

The rush by National Alliance to support James Marape is tactical. National Alliance with its 24 member opposition must surround James Marape first and foremost. They blow the horns of psychological momentum and engineer the numbers whilst hoping for a crack in the government numbers. They know James Marape will be stuck so he has to relinquish his dreams to National Alliance .

So poor James Marape has a big wall to climb. He cannot be a strong Prime Minister candidate anymore. This means National Alliance must sell the comfort of taking him onboard and giving him the credence. In essence that opens the door for those opportunists embroiled inside Laguna to dash for freedom again after noticing their favourite brother is doomed.

by DON POLYE

My observation on the most recent development on the two camps regarding the two camps vying to form the next government.

It is me Don Pomb Polye again. I have been out of participating in the forum for some time,

Some very relevant but Outstanding issues that need to be addressed immediately. It is unfair and misleading for the people of PNG if not brought to the surface:

1. If Hon Charles Abel is the Government choice for PM, obviously he will be a PNC member candidate for PM. If O'Neill remains then O'Neill and PNC remain in power by number strength.

2. Hon. James Marape being now nominated as the Opposition's nominee for the PM'S position, NEEDS to inform PNG if he is still PNC Party MP, or has joined another Party or formed a new Party. Likewise, all the 29 PNC party defect MPS need to determine their positions immediately.
To overlook this issue is not in the best interest of PNG. We all need to lead by example of developing a political Party culture in PNG. It is the political Party system that develops and implements policies when in Government. The PNC MPs under Marape in structuring themselves into a Party is a Political NEED for crafting and executing policy platforms.

3. At present it appears the whole of PNG is dragged into PETER O'NEILL PNC PARTY CAUCUS MEETING WITH HIMSELF, CHARLES ABEL AND JAMES MARAPE ALL MEMBERS OF THE PNC PARTY FIGHTING FOR LEADERSHIP OF THEIR PARTY. Looks not right to the Nation.The silence of the PNC Party MPs defects creates a variety of misperceptions when they all appear to be either independent or still Members of the PNC Party.

4. We need Hon James Marape and the 28 or so defects from PNC Party to join a party or form a party of their own. They NEED to assure the nation that they will eradicate or minimise all forms of corruption the PNC Party policies and ideologies have brought about that destroys the nation. We need the following done by the new government::

- prosecute UBS loan and those...who perpetrated illegal and corrupt activities, The illegal loan must be made illegal and the K3billion loan money repaid with interests.

-apply the Proceeds of Crime Act to recoup all stolen money, stolen by anyone regardless of Party affiliations etc

- cancellation of the Papua LNG Project Agreement. A national gas Agreement needs to be done properly.

- prosecute and jail lawbreakers. All lawbreakers whether be national or expatriate, local or foreigner must be punished ...

- restore the rule of law and institutions of governance.

- corruption, poor Governance and lack of accountability must be addressed promptly and perpetrators of poor governance etc need to be tried etc,

-many other crimes need prosecution as well.

Therefore the question is;

Can PNC party members do the above and move against a PNC Party regime that ??? Can the PNC Party do justice against itself??? Most unlikely that PNC Party will prosecute PNC Party.

PNG needs a different Party to address such and other issues. Definitely, NOT PNC PARTY to address its own shortfalls.

5. Today, on their first day on the floor of Parliament, I am sure the defected PNC Party MPs felt it was psychologically difficult to address issues whilst still being members of PNC Party.

Therefore I urge PM Nominee Hon James Marape and his colleagues to consider the issues that I have raised

The people of PNG want to hear them sell their POLICIES on their New Party platform.

Don Pomb Polye

by WILSON PUNIM

This country has been kind to many, non more so then the two senior statesmen, Sir Julius Chan and Paisa Wingti.
.
Who they are, their names, reputation, respect and the wealth they have acquired is because PNG as a country exists.
.
The very least one would expect from these two very senior statesmen in the twilight of their careers is to repay a nation and a country which has been so kind to them.
.
To continue to support a prime minister who has lost the plot and despite knowing very well that this one man is running the country like a private company and running it to the ground, is beyond any reasonable and sane person's comprehension, given the fact that they have been prime ministers before.
.
Isn't it not time to take the back seat and mentor the young and upcoming, like James Marape or others for the interest of the country and the people?.... Or is that too much of an ask?
.
Chan and Wingti, you both will have been nothing without this country. Can you at least give back a little to a nation which has been so kind to you please.
.
Cut the old school politics, forget your egos and prides, PNG is on the brink of collapse and takeover by foreign powers because of the massive loans. The kina is so weak. What more do you want before you stand up for the people?
.
Can you for once return the favour and repay PNG and its people for being kind to you?
.
When PNG collapses, you will run off to Australia where your investments are, but the people that made you and the country that has embraced you and made you who you are will still be floating on the Pacific Ocean.
.
Whether you like it or not nature will rescue PNG and if you try to stand in the way, history will never be kind to your names forever...you will be recorded as two power hungry former prime ministers to have come after Somare and before the worst prime minister the country has ever had thus far.
.
Corruption had its genesis at the time when the two of you became prime ministers. It has now been taken to grand heights by this prime minister the two of you so unshamedly support.
.
Make your power plays now, but nature will give it to the young for it is now their time to take a country battered by greed and personal interest forward and to the next level.
.
With or without the two of you, mark my words, PNG WILL RISE FROM THIS MESS AND BE COUNTED IN AMONG THE NATIONS OF THE WORLD!
.
GOD of Abraham, Issac and Jacob, please bless this nation that has been used by the powerful as a springboard to accrue and acquire wealth through greed. Amen!

by A CONCERNED CITIZEN
Let me say this. I got news for the likes of DPM Charles Able and Sam Basil, who think they can make it up the ladder in the PO controlled empire. You will be disposed just like Duma and Don and made irrelevant.

PO is so ruthless he does not believe in loyalty. Come on! What about the Melanesian culture of consensus and loyalty? After all, did not these men (Duma and Don) make PO who he is now? Isn’t it a little too early to chuck these men out. How can PO forget so easily what these men did for him?

The memories of two and half years ago, how these men fought tooth and nail to get PO the PM’s post. Even after the elections in 2012, didn’t these two men play a crucial role in securing PO the PM’s job? Well remember that PO is only half-Melanesian. The culture of loyalty and consensus does not run in his blood. If he can dispose, Don and Duma and then Kua, I think the rest of you should be ducking for cover.

The likes of Charles and Basil, you are currently good to PO as long as you sing to his tune. The second you are out of tune with PO, or you reach higher up the ladder to PO’s likes, you are out the back window faster than you can blink.

PO is a very cunning Politician as far as I can see now. Make no mistake about this man, my elected Leaders. Soon this man will wield so much power, that none of you will dare question nor query any of his grander agendas/scams. PO has used the K9.0Billion Loan (USB and Chinese loans) to consolidate incredible wealth for himself. He will use this wealth to remain in power till he dies. Make no mistake this is his ultimate goal, and he is using all MPs as pawns and puppets to further his agenda.

He is on his way to controlling all Sate owned Enterprises (SoEs), though the revamped Kumul structure. Remember soon he will be the only trustee that controls this massive business empire of the state. Why do I say he is the only trustee? Well didn’t PO conveniently include only ex PMs as trustees? Just look at how he cleverly, included the soon to pass on, ex PMs as trustees.

Please MPs, let’s not fall asleep and treat this matter lightly. The country needs you to stand up against this tyrant. Like it or not, you are all complicit towards destroying our beautiful country by giving this man free reign. Soon PO will be the only person controlling K6.0 Billion of state owned assets (in SoEs), on top of his own thriving personal business empire, though his Remington Group.

by DR PATRICK ONGUGLO
The stitched up act in Parliament last week all a lie... Peter O'Neill used his position as PM to put PNG into more debt, read how O'Neill drummed up this idea back in 2014.

Prime Minister Peter O’Neill (‘aka O’Steal) has personally and unilaterally directed that the State of PNG borrow US$1.2 Billion Dollars through international financiers syndicated by the Swiss UBS Bank, to buy 10% of Oil Search Limited (OSL) shares. It is believed this transaction is motivated by personal gain. Therefore, this loan is believed to be for a corrupt outcome. This corruption is perpetrated by UBS and other international banks lending the money. 

PNG does not need the loan. It is Peter ONeill who needs the loan for his own corrupt gain. He is using the country’s assets to obtain a personal benefit. This must be made very clear to the international lenders. On this basis, no future PNG Government will be liable to repay the funds, lent for an illegal purpose. 

As of this article, the international lenders will be deemed to be aware of the allegations I make here.( I invite the Prime Minister to contradict me if he can). 

This is not an ordinary share purchase (investment) made by the Prime Minister on behalf of the people of PNG. What I am about to reveal is only known to a few key people in government circles.

In 2013 Total, the French Petroleum conglomerate entered into a deal with InterOil Limited wherein it purchased 60% stock in InterOil with the intention to develop the Gulf/Elk-Antelope LNG Project. Total benchmarked the price of the InterOil shares against the known oil and gas reserves of InterOil’s Gulf/Elk LNG reserves and international price indicators.

Interoil was started by two men in this country, Phil Mulacek and Gayland Baker in early 1990s. These two men, one a Texan and the other from California walked into Port Moresby government offices with empty briefcases promising to build an Oil Refinery in PNG out of one abandoned by Chevron in Alaska. While Curtain Brothers offered the Motukea refinery, these two men with very slick marketing skills and Gayland Baker’s position as a director of conservative Fuller Christian Seminary gained the upper hand. 

The rest is history, of the way they manipulated government decision-making processes, public announcements, to gain every benefit, favour, approval, license and a free lift up in every other step of that company’s development. 

Interoil today is a testimony to how Phil Mulacek has carefully and deliberately manipulated the goodness of the people of PNG and their government, how he has ruthlessly and unscrupulously exploited the weaknesses of key leaders of PNG, to build a personal fortune worth several hundred Million Dollars for himself and his extended family. Mulacek has been ably assisted by Christian Vincent, the Frenchman, his brother-in-law who acts as Phil’s main go-to man who has also gained in the hundreds of Millions.

In a small town, things can get a bit incestuous, as Christian Vincent’s long term girlfriend in PNG happens to be the Fijian-Indian Lady with the short skirt who is the CEO for Peter O’Neill insurance company. Peter O’Neill is no stranger to Vincent and Mulacek having had many private dinners and meetings over the years when Mr O’Neill was a Minister in the Somare Cabinet.

Having sold 60% of InterOil to the French Company for several hundred Million dollars, Mulacek and co have been holding out the balance of the shares of 40% for a price that is almost triple what the French have paid for per share previously. The French having pre-emptive rights could not pay the price that the Mulacek camp has been asking for the balance of the shares. Meanwhile, the Gulf-Elk LNG Project is not going anywhere fast.

The Mulacek camp has been trying to play Total against Exxon and Oil Search Ltd, who both also expressed interest in a piece of the action. Mulacek had hoped Total would pay the price to own the whole lot or Exxon would pay a premium to participate. No one took the bait. Over the years people have become tired and weary of Mulacek and his antics, always trying to profiteer and gain unreasonably, when he came to PNG with nothing. The InterOil project could have been fully financial 5 years ago had Mulacek not been greedy and held out. 

This game has developed into a stalemate with Total holding majority stock and can't fund the project until it took the rest of the stock. It required a game breaker.

This is where the creative genius of Phil Mulacek came to the fore once again, and perhaps for the last time against the people of PNG. He approached Peter O’Neill through the lady with the short skirt for a private meeting. In that meeting, it was laid out to ONeill that someone should assist Oil Search Limited (who has expressed interest ) to buy the balance of the 40% shares in InterOil for the exorbitant price that even Total would not pay. That Oil Search Limited had already been sounded out on this and provided someone funded OilSearch Limited for the price of the Interoil Shares they would do the deal to further fortify them against any corporate raid. The State of PNG taking the shares would surely be a poison pill for the Dubai based Arabs seeking to do a raid on OilSearch Limited. The aggregate agreed price for 40% InterOil shares and OilSearch 10% shares was in the vicinity of USD1.0 Billion with enough fat to go around.

What was put to O’Neill in that meeting was that if he could get the Government of PNG to borrow USD$1.2 Billion from international commercial lenders, and buy 10% of Oilsearch Limited shares, Oilsearch Limited would use the proceeds definitely to buy the 40% shares from Interoil at its ridiculous asking price, AND THERE WOULD BE A VERY TIDY KICK BACK OF USD$100 MILLION FROM MULACEK & CO TO ONEILL for making this happen.

This was the game breaker. ONeill became the game breaker. He became Peter O’Steal.

Having shook hands on the deal in last quarter of 2013, Phil Mulacek has been working feverishly with Peter Botten of Oil Search Limited, to get international lenders to lend to the State this huge sum of money, while Peter ONeill has been carefully moving the right people into right places to take the decisions for him, and to cover his arse in the State agencies. The last act was to move the Minister for Petroleum William Duma aside and put his own man Duban in place to approve the deal. ONeill knew Duma would see through the deal as unfair, unreasonable and corrupt and not approve it.

This week Peter ONeill has had lawyers and Financiers and bankers camping all over town feverishly working to finalize the deal. The only Minister working closely with ONeill to close the deal is Ben Micah, who will support ONeill because he needs ONeill to turn a blind eye to his own stealing.

Most of the Members of Parliament in the Government side do not know about this very juicy and lucrative deal that is going down just this week.

In fact, most of the Cabinet Ministers do not even know. The Opposition does not have the manpower or the resources to keep up with Peter O’Steall’s very active life of carrying on private business deals while pretending to be Prime Minister of Papua New Guinea. Only a few people close to him only know some of the deals, but not all.

This Prime Minister has made more money using his position as Prime Minister of this country than any other leader in the history of this country, and that folks, is the understatement of the Century. Nothing over K10 Million passes the Tenders Board, for example, without the Prime Minister getting a look in first. His fingers are so sticky that it is now common knowledge among all his Coalition Party colleagues that this man is not good for PNG.

Papua New Guineans need to ask, and ascertain very clearly that:

1. The State does not need 10% of OilSearch Limited Shares. Oilsearch Limited is a public company. It can bloody well raise its own money and buy the shares. When Peter Botten was first approached to buy the Interoil shares he baulked at the sale price as he knew what Total paid. Interoil was asking far too much. When he was again approached with State Offer, he realized it would be a poison pill to have the State to hold substantial shares in OilSearch, so he happily agreed. Oilsearch quickly overpriced its batch of 10% shares and was also gaining from the sale of the shares to the State. Everybody gains from the State.

2. The Deal and the Loan is not in the best commercial or financial interests of PNG and its economy. The Country has already pledged its assets, including the previous Oilsearch Shares (18%), to the Dubai based financiers of our LNG interests. Why borrow more to get into debt with Swiss Banks this time and park the interest encumbered (shares) in the same commercial entity (Oilsearch) that the Dubai lenders already have priority in call over? Putting all our LNG eggs (revenue stream) in one basket is not a wise move. 

3. Why didn’t Peter ONeill opt to use the money to allow the State to exercise its option to acquire 22.5% of the Gulf Elk LNG Project?

4. Why is Peter ONeill helping to protect OilSearch which is a public company- unless there is a catch?

5. Has Peter ONeill relied on a fair and commercial valuation of the shares of Oil Search Limited to justify the price, despite the prevailing share price? Where is the professional valuation?

6. Why is Peter ONeill borrowing USD1.2 Billion to fund shares when the money can be best spent on health and education and infrastructure?

7. How can the PNG economy which is already burdened by debt and currently underpinned by 2 consecutive years of massive budget deficits afford to shoulder this huge debt burden? Why has Peter ONeill further mortgaged our future?

8. Why has Peter ONeill further exposed the PNG economy to the LNG Project? All the hopes of the politicians are on the LNG Project. This is a huge and monumental gamble; particularly because the State has failed to honour its agreements with the Landowners, and the State ( Arthur Somare) has failed to explain what happened to the 3% of the State’s 22.5% in the PNG LNG Project. What happened to the 3%? Mr ONeill was Finance Minister. He knows what happened to the 3% in the Dubai deal. Perhaps he can explain? The Landowners will not allow leaders to trick and mislead them anymore. They are wiser by the day.

9. Why didn’t Peter ONeill allow the USD1.2 Billion to be borrowed by Kumul Holdings or National Petroleum Company or even the IPBC, for it to buy outright the shares of Interoil? Why gift Oil Search Limited this money at the expense of the people of PNG? Why does OilSearch have to own the InterOil Shares (thereby the Gulf-ELK LNG Project) when the State could easily acquire it and own it- and not for that price!

10. What is the underlying rationale and underlying value in the exorbitant price (of the loan) of the InterOil Shares? Who has done independent industry benchmarked valuations based on which Peter ONeill has agreed with Mulacek to do this deal?

11. What is the nature of the Mulacek-ONeill kickback and how was it designed to be delivered?

12. Is it true this major investment decision worth approximately K4 Billion was made by one man, Peter ONeill, without Cabinet or Parliamentary approval or debate? If so then it is clearly an abuse of the office of the PM, and he should be referred to the Ombudsman for investigation.

There are many things absolutely and seriously wrong with this investment decision. The Prime Minister has no power to unilaterally commit this country like he has done with Manus Asylum seekers etc. It has become an abuse of power. He has become dictatorial.

ONeill is currently getting government agencies and Departments to approve this transaction for which even the Finance & Treasury officials and the Bank of PNG have not done any formal prior appraisal of this loan. He is trying to railroad the proper government agencies to approve this transaction when they haven’t even done any proper evaluation of this loan against the country’s other commitments and debt levels.

I call on Ministers of Cabinet, Government Coalition Partners and Leaders to demand full briefing on this transaction, and all documentation on this transaction be tabled in Cabinet and Parliament for public scrutiny. I call on the Cabinet Ministers and coalition partners to block this stupid loan.

I call on Senior Ministers to feel sorry for this country and its people, to take their oaths to serve the people seriously. I call on responsible Ministers to stand firm and not endorse this deal even it means their sacking. It is time for principled leaders to stand up to this PM and his greed.

Already the PM has set it all up so that he does not sign any documents himself. He is using quiet pressure through other people including, once again Ministers Marabe, Polye, Micah and Duban to sign and endorse this deal that Parliament and Cabinet did not approve. Even if Cabinet approved it, it seems they would have been misinformed. When the shit hits the fan, the PM will naturally go after these Ministers and once again, blame them, as he did with the Paraka deal.

This is a stupid deal, designed to benefit a few greedy and selfish people. IT MUST BE STOPPED!

The Prime Minister needs to declare his interest in this matter publicly and resign. He has taken far too much from this country and the small people. He has to learn that enough is enough!

Prime Minister Peter O’Neill’s failure to set up a Sovereign Wealth Fund, leaving national revenue flows to be plundered and wasted, means any recovery plan by an incoming government will take years to implement because of a lack of money.

No money has ever flowed into the proposed SWF – in fact it has not even been constituted and does not have a board of directors despite all the trumpeting by Mr O’Neill and his accomplices. There is no SWF with any money or any assets – it is toktok tasol.

“If the SWF had been set up, as proposed by me in 2011 and legislated in 2012, an incoming government would have a powerful tool to help with the rebuilding necessary after seven years of economic and financial mismanagement by Mr O’Neill,” the Member for Moresby North West, Sir Mekere Morauta, said today.

“Instead, the irresponsibibility and negligence of Mr O’Neill have thwarted the purpose of the SWF - to help bring national economic growth and financial stability, to be the foundation of national savings in good times for use in bad times, and to provide for responsible expenditure on productive infrastructure.

 “What should have gone into the SWF has been wasted on monuments to promote himself in Port Moresby such as roads to nowhere, showpiece buildings that are now standing empty and unused, and self-promotional events such as the K3 billion APEC party for his cronies and rich foreigners. (The Maseratis and Bentleys still have not been sold.)”

Compare Mr O’Neill’s miserable performance with that of tiny Kiribati, population 110,000. It has a SWF holding the equivalent of K2.5 billion. Timor L’este, population one million, has a fund worth K57 billion through wise use of its oil and gas revenue. PNG Sustainable Development Program Ltd, which is in effect a SWF, has saved K5 billion for the people of Western Province. And instead of allowing PGSDP to get on with helping provide services and infrastructure for Western Province, Mr O’Neill has wasted millions of kina of public money on legal challenges in attempts to get his hands on PNGSDP’s money.

Mr O’Neill has not even bothered to implement his own version of the 2012 SWF legislation, Sir Mekere said, making recent boasting by him and his accomplices nothing but noise from empty drums.
As a result of not establishing a SWF, the gas revenue boom experienced between 2011 and the collapse of the oil price in late 2014 was not captured, nor was revenue from the construction of the K65 billion PNG LNG project.

“The riches that should have flowed into the SWF and its associated Infrastructure Fund from the house of Kumul have just disappeared into thin air,” Sir Mekere said.
“Mr O’Neill, who is the sole shareholder of Kumul, must explain what he has done with all that money. For example, in 2016 Kumul Petroleum had revenue of K1.8 billion at today’s exchange rate, and in 2017 it had revenue of K2.2 billion.

“Not one toea has flowed into the SWF, as required by law. Revenue comes into Kumul and then mysteriously disappears, resulting in massive losses to national development.”
Sir Mekere said there was an urgent need for another well planned and properly funded reform and reconstruction program, as in 1999 when he became Prime Minister and initiated the reforms that saved the nation from bankruptcy.

“At that time I was able to repay the large national debt created by the recklessness of Mr O’Neill’s PNC mentor, Bill Skate, by reallocating the scarce resources he left behind and with help from friendly countries and financial institutions,” he said.
“But without an SWF, the nation has no financial reserve to call on today to repay Mr O’Neill’s mountain of debt or to stop the budget from wild swings.

“A new Government should give high priority to the establishment of a Sovereign Wealth Fund so that the foundation for sustainable growth and budget stability can be laid, and savings can be made for future generations.”

by Dr Sam Yockopua

PNGeans will sink below the poverty line, more will die of lifestyle & preventable diseases and plunge into anarchy as long as we continue to be ignorant and arrogant.

It is not too late now to stop, think and turn before we fall down the cliff if we keep walking without seeing. We are looking but not seeing, a blind man will look at you but not see you. We are listening but not hearing, a deaf will listen to you but not hearing you.

Not too long from here, all our natural riches will have been evaporated into thin air. We the owners will be left high and dry. In the big mumu pit at Waigani, our leaders keep giving us kumu and leftovers while they feast by themselves and their friends as we continue to become malnourished. And yet we choose not to complain in a proper way. Only a handful do taking huge risks.

There are countries in history that took to the streets to fight for what is rightfully theirs. Many have sacrificed their own lives so others could benefit equally from the mumu pit. We don't realize that we are the owners of the mumu and we should choose to have the head, back bone and the good chunks of meat, but we wait around like dogs to be fed anything and then we fight over it, just like the blind man who looks but does not see. Our own ignorance is the greatest enemy.
Violation of the Constitution, the Organic Law and other Laws that govern our existence must be protected by our people instead of being that blind man.

If Vote of No Confidence (VONC) is indeed a Constitutional requirement, then no one should blatantly twist, turn or convolute it, much to the dismay of the citizens. If bribery of our elected leaders is indeed great insanity to the conscience, then we the people must raise the volume of our concerns instead of being that blind man. If the provision of basic services that maintain life such as health, education, law & order, and other essential services are obliterated; then we the people need to put our heads together instead of being the blind man. Because wrong is wrong, there is no two ways about it.

A wrong thing requires correction accordingly. If people have to March to the Parliament Haus on 28th May 2019 to emphasize these points, it is indeed the Democratic process in exercising their Constitutional Rights to express the freedom of assembly, speech and movement. No police, no army, no one should interfere with this as long as it is non-violent.The due processes must be compiled to which includes seeking clearance from police, and that no damages are done to properties or lives.

There is nothing wrong for a disgruntled worker expressing frustrations by not turning up for work or demands an explanation for any mishaps, similarly in such situations, employees should not heavily penalize the workers for doing justice to the country.

Otherwise, let us continue to live in this vicious cycle indefinitely. Another definition for stupidity is doing the same things over and over and expecting different results. Best wishes to you all and a safe Monday. Keep working or doing the same things again and again like that blind man!

PRIVATE & CONFIDENTIAL - The Ombudsman Commission recommends that the Prime Minister, Hon Peter O‘Neill, CMG be referred to the Ombudsman Commission to be investigated under the Leadership Code.

•The Prime Minister, Hon Peter O‘Neill, CMG, MP committed the State to purchase 149, 390,244 shares in Oil Search Ltd without prior approval from the NEC.

•The Prime Minister, Hon Peter O‘Neill, CMG, MP failed to present the Government‘s proposal on the borrowing of a loan from UBS AG (Australia Branch) on the floor of Parliament for debate and approval as required by Sections 209(1), 211 and 212 of the Constitution.

•The Prime Minister Hon Peter O‘Neill, CMG, MP personally sponsored and submitted NEC Policy Submission No. 67/2014 and misled the NEC to approve the borrowing of AU$1.239 Billion from UBS AG to buy shares in Oil Search Ltd when evidence revealed that proper procedures were not complied with in regard to the engagement of the Financial, Legal and Technical Advisors pertaining to the laon.

•The Prime Minister Hon Peter O‘Neill, CMG, MP failed to consult Petromin Holdings Ltd to be the State‘s subscriber and nominee to acquire shares in Oil Search Ltd when it was clear under the Petroleum PNG Holdings Limited Authorization Act 2007 that Petromin Holdings Ltd shall be consulted on such matters.

•The Prime Minister Hon Peter O‘Neill‘s, CMG, MP committed a misconduct  in office when he committed the State to a borrowing of UBS AG Loan of AU$1.239 Billion to buy shares in Oil Search Ltd. That is, the Prime Minister deliberately did not comply with the relevant laws and procedures leading up to the borrowing.


5.RECOMMENDATIONS


[5.1]CONSTITUTIONAL FRAMEWORK FOR MAKING RECOMMENDATIONS
As indicated in Chapter 1, the general purpose of this investigation is to determine whether any of the conduct under investigation was wrong, or whether any laws or administrative practices were defective.

The Commission is expressly authorized to form such opinions by Section 22(2) of the
Organic Law on the Ombudsman Commission.

If, after making its investigation, the Commission comes to the conclusion that some of the conduct was wrong or that any law or administrative practice was defective, it is authorized to make recommendations. Such recommendations are made under Section 22(2) of the Organic Law on the Ombudsman Commission.

Section 22(2) OLOC:


If in any case to which this section applies the Commission is of the opinion that any service, body, person or other appropriate authority should –
(a)consider the matter further; or
(b)take certain specific action; or
(c)modify or cancel any administrative act; or
(d)alter any regulation or ruling; or
(e)explain more fully any administrative act; or
(f)do any other thing,

the Commission shall report its opinion and the reasons for its opinion, to the Minister responsible for the relevant service, body or person and to the Permanent Head or statutory head responsible for the service, body or person, and may refer the matter to the Public Prosecutor if action by him is warranted and may make such recommendations as it thinks fit.


In this chapter, recommendations are made based on the findings of wrong conduct and defective administration referred to earlier in the report.

Each recommendation is set out as follows:
oThe recipients (i.e. the persons to whom the recommendations are directed) are identified.

oThe main reason for making the recommendation, are stated.

PRIVATE & CONFIDENTIAL


[5.2]RECOMMENDATIONS CONCERNING PARTICULAR INDIVIDUALS
We recommend that some individuals have their continuing public employment carefully reviewed. The Ombudsman Commission is of the opinion that holders of public offices must continue at all times to be accountable for their actions, even if they have left the position in which they were found to have committed the wrong conduct and are occupying new positions.

[5.3]RECIPIENTS OF RECOMMENDATIONS
When we make recommendations we are obliged by Section 22(2) of the Organic Law on the Ombudsman Commission to identify the service, body, person or other appropriate authority who has to carry them out.

We are also obliged by Section 22(2) of the Organic Law on the Ombudsman Commission to report our recommendations to both the Minister and, if appropriate, the permanent or statutory head responsible for the service, body or person who has to carry out the recommendations.

In relation to each recommendation made in this Chapter, recipients of the recommendations are listed as follows:

•first, the service, body or person we are asking to do things is identified;
•secondly, the Minister responsible for that service, body or person is identified;
•thirdly, if appropriate, the permanent or statutory head responsible for that service, body or person is identified.

[5.4]RESPONSIBLE MINISTERS
Section 148 of the Constitution provides that each department, section, branch or function of government must be the political responsibility of a Minister. The Prime Minister has the power to determine the titles, portfolios and responsibilities of the Ministers.

At the time of the preparation of this report, the service, body or persons to whom specific recommendations are being directed were the responsibility of the Ministers set out in the table below.

[5.5]MINISTERS RESPONSIBLE FOR FOLLOWING UP ON THE IMPLEMENTATION OF RECOMMENDATIONS
Prime Minister Speaker of Parliament Minister for Finance Minister for Treasury
Minister for Public Enterprises & Investment Minister for Justice & Attorney-General.

PRIVATE & CONFIDENTIAL

In the event that the title or responsibilities of the Minister changes after the date of this report, the responsibility for notifying the Ombudsman Commission of the steps being taken to give effect to its recommendations will pass to the Minister who, from time to time, has political responsibility for the services, bodies or persons who received our recommendations.

[5.6]DUTIES OF RECIPIENTS TO ACT ON THE RECOMMENDATIONS
The fact that our opinions on things to be done are expressed in the form of
―recommendations‖ does not mean that recipients are entitled to ignore them.

Each recipient is required under Section 22(3) of the Organic Law on the Ombudsman Commission to notify the Ombudsman Commission in writing within 30 days after the day of the service of the report, of the steps proposed to be taken to give effect to our recommendations.

Section 22(3) states:


If the Commission so requests, the responsible Minister, Permanent Head or statutory head as the case may be, shall, within such period as is specified by the Commission, notify the Commission as to the steps (if any) that he proposes to take to give effect to its recommendations.


Accordingly, there is a duty placed on each recipient of a recommendation to notify the Commission; and if it is proposed not to implement any recommendation, there is  a further duty to give cogent and convincing reasons why the recommendations cannot or should not be implemented. These duties arise due to the combined effect of the Constitution and the Organic Law on the Ombudsman Commission.

A failure to comply with these duties may result in the Ombudsman Commission commencing enforcement proceedings in the National Court pursuant to Section 23 of the Constitution.

The Ombudsman Commission made eleven (11) recommendations against those individuals and entitities that have been found to have committed wrong conduct. Below are the recommendations.

[5.7]RECOMMENDATIONS
In line with the above findings, the Ombudsman Commission formulated thirteen (13) recommendations. These recommendations are outlined in the following pages.

PRIVATE & CONFIDENTIAL



[5.7.1]RECOMMENDATION No. 1


Receipient

1.Chief Ombudsman
2.Prime Minister
3.Chief Secretary to the Government of Papua New Guinea
4.Secretary for the Department of the Prime Minister & National Executive Council.

Reasons

•The Prime Minister, Hon Peter O‘Neill, CMG, MP committed the State to purchase 149, 390,244 shares in Oil Search Ltd without prior approval from the NEC.

•The Prime Minister, Hon Peter O‘Neill, CMG, MP failed to present the Government‘s proposal on the borrowing of a loan from UBS AG (Australia Branch) on the floor of Parliament for debate and approval as required by Sections 209(1), 211 and 212 of the Constitution.

•The Prime Minister Hon Peter O‘Neill, CMG, MP personally sponsored and submitted NEC Policy Submission No. 67/2014 and misled the NEC to approve the borrowing of AU$1.239 Billion from UBS AG to buy shares in Oil Search Ltd when evidence revealed that proper procedures were not complied with in regard to the engagement of the Financial, Legal and Technical Advisors pertaining to the laon.

•The Prime Minister Hon Peter O‘Neill, CMG, MP failed to consult Petromin Holdings Ltd to be the State‘s subscriber and nominee to acquire shares in Oil Search Ltd when it was clear under the Petroleum PNG Holdings Limited Authorization Act 2007 that Petromin Holdings Ltd shall be consulted on such matters.

•The Prime Minister Hon Peter O‘Neill‘s, CMG, MP committed a misconduct  in office when he committed the State to a borrowing of UBS AG Loan of AU$1.239 Billion to buy shares in Oil Search Ltd. That is, the Prime Minister deliberately did not comply with the relevant laws and procedures leading up to the borrowing.

PRIVATE & CONFIDENTIAL


[5.7.2] RECOMMENDATION No. 2


Recipients

1.Chief Ombudsman
2.Minister for Finance
3.Secretary for Department of Finance.

Reasons

•Hon James Marape, MP, Minister for Finance was aware at that material time NPCP was not a legally established entity as the PNG Petroleum Company (Kroton) Act had not been certified by the GGPNG in order to be fully in force.

•With the knowledge that his actions were improper, Hon James Marape, MP, Minister for Finance still signed and approved the Memorandum of Approval, thereby enabling NPCP to enter into the Transaction Documents.

•Hon James Marape, MP, Minister for Finance also approved for NPCP to entere into Payment Direction Deed.

[5.7.3]RECOMMENDATION No. 3


Recipient

1.Prime Minister
2.Chief Secretary to the Government of Papua New Guinea
3.Secretary for the Department of Prime Minister & National Executive Council.

Reasons

•Amb Isaac Lupari has no authority to issue advice or instructions to the IPBC or to any Government Agency regarding decisions made by the NEC, as this is the role and the function of the Secretary to the NEC Secretariat or the Chief Secretary.

PRIVATE & CONFIDENTIAL


[5.7.4] RECOMMENDATION No. 4


Recipient

1.Minister for Finance
2.Secretary for the Department of Finance.

Reasons

•The APC Form is a mandatory requirement that qualifies for funds to be released from the Department of Finance to implement services provided by the Legal, Finance and Technical Advisors.

•The Head of the DoF approves that APC Form indicating that funds are available and that the Chairman of the CSTB endorsed the APC Form and a CSTB file number allocated indicating that a Contractor had been awarded the Contract.

•Dr Ken Ngangan failed to indicate on the APC Form where the funds to pay the Legal, Finance and Technical Advisors would be derived from.

•Dr Ken Ngangan approved the APC Form without Mr Philip Eludeme‘s  endorsement indicating that a Contractor was awarded the Contract to provide Legal, Finance and Technical advisory services to the State.

•Therefore, the APC Form that was approved by Dr Ken Ngangan was null and void in the circumstances according to the fine print at the bottom of the APC Form that stated the following:

1.This Authority to Pre Commit form does not become active until it has been registered and the APC No. has been allocated by the Department of Finance / Provincial Treasury.
2.This Authority to Pre Commit is not valid until a Supply & Tenders Board file number is allocated.

PRIVATE & CONFIDENTIAL



[5.7.5]RECOMMENDATION No. 5


Recipient

1.Minister for Treasury
2.Secretary for the Department of Treasury
3.Governor of the Bank of Papua New Guinea.

Reasons

•The borrowing of the UBS AG loan was a new arrangement that required the Department responsible to comply with the Public Finance (Management) Act 1995 and the Attorney-General Act 1986.

•Since this was a new loan, it was the responsibility of the DoT to request the assistance of the BPNG to invite interested Financial Advisors and Lead Arragngers to bid for the Contract to provide financial and technical advice in regard to this particular loan to purchase new Oil Search Ltd Shares.

•Mr Vele assumed that since Norton Rose Fulbright the Legal Advisors were retained by IPBC and already working on the IPIC Exchangeable Bond, it was proper for Mr Vele to engage them to provide legal services relating to the UBS AG loan.

•Amongst many roles and functions that the DJAG plays, one such function is to give clearance for State Departments and Agencies to engage Law Firms or private lawyers. In this case, Mr Vele failed to seek advice and clearance from the DJAG on the Brief-Out of legal services to private legal practitionners.

•Mr Vele should have engaged the assistance of the CSTB to conduct the procerment process and awareded the contract of providing Financial, Legal and Technical advice in relation to the securing of the UBS AG loan to purchase new Oil Search Ltd Shares to the best Bidder.

•Mr Vele approached the CSTB after he had already engaged the Legal, Financial and Technical Advisors and the Lender of the Loan. It was evident that the CSTB‘s role in this particular matter was to enable the issuance of the COI and to request the CSTB to apply the COI retrospectively.

PRIVATE & CONFIDENTIAL


[5.7.6] RECOMMENDATION No. 6


Recipient

1.Minister for Treasury
2.Secretary for the Department of Treasury.

Reasons

•The borrowing of the UBS AG Loan was a new arrangement that required the DoT to comply with relevant laws and regulations in the borrowing and facilitating the transaction to purchase the Oil Search Ltd shares.

•These laws; the constitutional requirements of Section 209 of the Constitution, the Public Finance (Management) Act 1995, the Attorney-General Act 1986, the Papua New Guinea Petroleum Company (Kroton) Act, PNG Fiscal Responsibilities Act 2006, Sections 2(3) of the Loans (Overseas Borrowing) (No.2) Act (Chapter 133A), Oaths, Affirmations and Statutory Declarations Act (Chapter 317) and the Finance Management Manual, should have been complied with by consulting the appropriate authorities.

•Mr Vele‘s ignorance of the laws and regulations was a deliberate act as he had already made up his mind to comply with the Prime Minister‘s directives.

•The State through the DoT, IPBC, Petromin Holdings Ltd and the Office of the GGPNG moved to attain the UBS AG loan to purchase shares in Oil Search Ltd, thereby securing the 10.1% of ownership of Oil Search Ltd.

[5.7.7]RECOMMENDATION No. 7


Recipient

1.Minister for Finance
2.Secretary for the Department of Finance
3.Chairman for the Central Supply & Tenders Board
4.Secretary to the Board, Central Supply & Tenders Board.

PRIVATE & CONFIDENTIAL


Reasons

•The issuance of the COI is regulated by the Public Finance (Management) Act 1995 and
Finance Management Manual.

•There was no CSTB meeting to deliberate on whether the application for a COI was relevant in this particular matter.

•There are four (4) specific situations that can only warrant the issuance of a COI and these are outlined below:

a.Natural Disaster, or
b.Defence Emergency, or
c.Health Emergency, or
d.Situation of Civil Unrest.

•A COI cannot be issued to retrospectively cover a contract already executed.

•Mr Eludeme issued the COI and approve for its retrospective application in order for the DoT and DoF to raise cheque payments to those Legal, Finance and Technical Advisors that had rendered their services. After the payments were made, Mr Eludeme then ordered for the COI to been withdrawn.

[5.7.8]RECOMMENDATION No. 8


Recipient

1.Minister for Finance
2.Secretary for the Department of Finance
3.Chairman for the Central Supply & Tenders Board
4.Secretary to the Board, Central Supply & Tenders Board.

Reasons

•The issuance of the COI is governed and regulated by Sections 39 and 40 of the Public Finance (Management) Act 1995 and Clauses 13 and 14 of the Financial Management Manual.

•Mr Eludeme‘s conduct on the issuance of the COI to enable the DoF to release the funds to the DoT to pay service providers and then later withdraw the COI after the payments were made was improper and wrong.

PRIVATE & CONFIDENTIAL


[5.7.9] RECOMMENDATION No. 9


Recipients

1.Minister for Public Investment & State Enterprises
2.Secretary for the Department of Public Investment & State Enterprises
3.Chairman of Kumul Consolidated Holdings Limited Board
4.Managing Director for Kumul Consolidated Limited
5.Chairman of the Kumul Petroleum Holdings Limited Board
6.Manaing Director for Kumul Petroleum Holdings Limited.

Reasons

•The NEC approved for IPBC to direct NPCP to direct GloCo to make payments to NPCP in order for NPCP to pay off the UBS AG loan.

•On 9 March 2014, Mr Erastus Kamburi, the Chief Legal Officer for IPBC, requested the IPBC Directors to meet and discuss the Circular Resolutions and Explanation and directives from Minister Micah and the NEC Decision No: 79/2014.

•On even date, the NPCP Special Board of Directors Meeting No: 02/2014 resolved that the Company enter into any Transaction Document to give effect to the Payment Direction and authorised Mr Sonk and Mr Wato with the Power of Attorney.

•Mr Sonk signed the Payment Deed and directed any distributions payable to NPCP from the PNG LNG proceeds to be paid to UBS AG (Singapore Branch), with full knowledge that the National Petroleum Company of Papua New Guinea (Kroton) Act was yet to be certified.

•This is not proper as NPCP‘s existence and involvement in the Loan transaction is questionable as it is not legally established as the proposed Papua New Guinea Petroleum Company (Kroton) Act has not been certified by the Speaker of Parliament in order to be fully in force. Thus the involvement of NPCP in this whole process maybe improper.

•NPCP did not have a sound Balance Sheet to handle transaction of such magnitude.

PRIVATE & CONFIDENTIAL


[5.7.10] RECOMMENDATION No. 10


Recipients

1.Minister for Finance
2.Secretary for the Department of Finance
3.Minister for Justice & Attorney-General
4.Secretary for the Department of Justice & Attorney-General
5.Mr Carl Okuk
6.Papua New Guinea Law Society.

Reasons

•Mr Vele engaged Mr Carl Okuk as a Legal Consultant for the DoT.

•Mr Carl Okuk acted as the Commissioner of Oath and withnessed the signing of all the legal documentations on the borrowing and the payments to be made to UBS AG and Contractors.

•However, it was established later that at that material time, Mr Okuk Lawyer was not registered with the Papua New Guinea Law Society.

•Therefore, the engagement of Mr Carl Okuk to witness the signing of all legal documents on the UBS AG Loan borrowing was improper.

[5.7.11] RECOMMENDATION No. 11


Recipients

1.All Government Bodies and Agencies.

Reasons
•The Departments and Agencies mentioned in this Report deliberately ignored the relevant sections of the Public Finance (Management) Act 1995 and Clauses within the

PRIVATE & CONFIDENTIAL

Finance Management Manual dealing speciafically with the procurement and tender of government sanctioned projects.

•The UBS AG loan documentations were signed separately and not in one place with all the parties present. That is, Representatives of the GoPNG and the State signed the loan documentations here in Port Moresby and then sent copies of the same documents to Sydney, Australia where Representative of UBS AG signed.

•The GGPNG and Mr Vele signed the Letter of Engagement witnessed by Mr Carl Okuk engaging UBS AG as Lead Arranger and Facilitator to facilitate the borrowing. Mr Carl Okuk signed as witness not in the presence of both GGPNG and Mr Vele. His conduct was not in compliance with Section 12A of the Oath, Affirmation and Statutory Declarations Act (Chapter 317). See page 246.

•The UBS AG documentations were not included as part of he GGPNG‘s list or items to be executed on that day. The GGPNG himself was not fully aware of the proceedures that were bypassed by Mr Vele to have the UBS AG loan documentations presented before him to approve and sign.

•After the GGPNG had signed the UBS AG loan documentations, Mr Vele sent the same documentations to Sydney, Australia. This act alone exposed and put to risk Papua New Guinea‘s independence and sovereignty.

•The Office of the State Solicitor was not a party to the sgning and eventual engagement of UBS AG as sole Arranger and Facilitator for the State to borrow K3 Billion from UBS AG to purchase shares from Oil Search Ltd.

•Neither the DoT or Mr Vele or Minister Micah wrote back to Mr Bakani and BPNG to advise that the State had decided to engage UBS AG. Hence, Mr Loi Bakani and BPNG were not aware that the State had engaged UBS AG to facilitate the borrowing and that UBS AG was to lend AU$1.239 Billion to the State to purchase shares in Oil Search Ltd.

[5.7.12] RECOMMENDATION No. 12

Recipients

1.All Government Bodies and Agencies.

Reasons
•Those Departments and Agencies mentioned in this Report deliberately ignored the relevant Sections of the Public Finance (Management) Act 1995 and Clauses within the

PRIVATE & CONFIDENTIAL

Finance Management Manual dealing speciafically with the procurement and tender of government sanctioned projects.

•The Prime Minister committed the State to purchase 149,390,244 shares in Oil Search Ltd prior to the NEC Policy Submission that was prepared by Mr Vele with assistance from the Technical, Finance and Legal Advisors.

•The NEC Policy Submission that requested the NEC to approve the issuance of the COI was misleading on several grounds, namely:

a)There was no situation present at that material time that warranted the issuance of the COI to award the contract to the Contractors and make facilitate payments.

b)The NEC can only deliberate and award contracts where the amount is K10 million and above. Any contract less then K10 million is delegated to the CSTB and other Supply Tenders Boards.

c)The COI cannot be applied retrospectively as it is a breach of the Public Finance (Management) Act 1995 and the Finance Management Manual

•The CSTB Chairman issued the COI that facilitated payments made to the Legal, Finance and Technical Advisors and to those who assisted in preparing a NEC Policy Submission.

[5.7.13] RECOMMENDATION No. 13

Recipients

1.Prime Minister
2.Minister for Treasury
3.Minister for Justice & Attorney-General
4.Minister for Public Enterprises & State Investments
5.Chief Secretary to the Government of Papua New Guinea
6.Secretary for the Department of the Prime Minister & National Executive Council
7.Secretary for the Department of Treasury
8.Secretary for the Department of Justice & Attorney-General
9.Secretary for the Department of Public Enterprises & State Investments
10.Office of the State Solicitor.

PRIVATE & CONFIDENTIAL


Reasons

•The UBS AG was a new loan arrangement that required new contracts to be awarded to legal advisors engaging them to provide legal advice to the State on the borrowing.

•It was not proper for Mr Vele to have engaged Norton Rose Fulbright and other law firms who were already engaged by IPBC and working on the IPIC loan.

•Mr Vele should have formally written to the DJAG to do a Brief-Out for the State to engage private Lawyers or Law Firms to act on behalf of the State.



6.CONCLUSION


Good and desirable governance of the public institutions as well as the nation is dependent upon good and sound management and decisions being made by those placed in responsible positions. Virtuous public officials and managers understand their roles and responsibilities and perform their duties within the ambit of the laws that governs their conduct. Public officials who are empowered by law to make decisions that will affect the lives of individuals must ensure that they carry out their duties in good faith and in compliance with the laws.

Public officials must exercise due diligence, honesty and dedication in the work they are entrusted with. Inconsistency in decision making or non-compliance with relevant laws creates doubt in the minds of the public that the decision maker has been influenced by outside sources and forces not conducive to good governance and accountability. Professional negligence must be dealt with seriously.

Some characteristics of good governance necessary to eliminate bad administrative practices include honesty, diligence, consistency, competency, compliance with established laws and procedures, and standing up to political interference.

This Report highlights irregularities in the borrowing of the UBS AG Loan and payments made to the Contractors; Pacific Legal Group Lawyers, Pacific Capital Ltd, UBS AG, Ashurst Lawyers, Norton Rose Fulbright of Australia and KPMG to provide finance, legal and technical services to facilitate documentations on the borrowing. It also highlighted that the Department of Treasury failed to request a Brief-Out from the Department of Justice & Attorney-General to engage private Lawyers or Legal Firms. It further highlighted the abuse of the Certificate of Inexpediency by the Central Supply & Tenders Board and the Department of Treasury.

The National Executive Council, the Office of the Prime Minister, Department of Treasury, the Department of Finance, the Central Supply & Tenders Board failed to live up to the expectation of the people and State in complying with the administrative processes and procedures and the Acts governing the operation of the Department.

The officers of the Department of Treasury are to take note of the findings and recommendations made in this Report and make special effort to correct the irregularities for the good of the Department and the people of Papua New Guinea.

The leaders to whom the Ombudsman Commission directs its recommendation are to carefully consider the recommendations and implement them.

OC RECOMMENDS PM TO BE INVESTIGATED UNDER LEADERSHIP CODE... The Full Report will be made available online tomorrow.



Paul Reinbara
PNGBLOGS

by BRYAN KRAMER MP

To-date Prime Minister Peter O'Neill has yet to issue an official statement disputing my claims he is an Australian citizen and holding an Australian passport.

Yesterday, when O'Neill's Australian Chief Media Officer, Chris Hawkins was asked if the Prime Minister would provide a statement in response to my article, Hawkin's responded "the Attorney General has addressed this obvious fake news"

Interesting enough Hawkin's is solely charged with authoring and issuing press statements on behalf of Prime Minister Peter O'Neill.

However, on this particular issue he remains silent suggesting the Attorney General Alfred Manase will deal with it.

So how is the Attorney General Alfred Manase addressing it?

Yesterday, he staged a press conference to announce a veil threat that he will not hesitate to refer me for prosecution for spreading fake news concerning O'Neill citizenship status.

"Members of Parliament and more particular the Member for Madang who is spreading such fake news that are intended to mislead the members of the public." Manase said.

What evidence does Manase base his statement that my claims are fake news?

Short answer is none?

Manase says I made it without any substantive proof and he therefore encourages all media organisations to be careful how they perpetrate scandalous comments by responding it.

Where it gets rather amusing is that Manase goes on to say in light of the very the Facebook post he is believes is fake and warning the media not to report on, he has written to Minister for Immigration Petrus Thomas to initiate a review and citizenship status of all 111 Members of Parliament.

Manase goes on to explain that if they are found to have dual citizenship status then they will be dealt with according to the Constitution and laws of Papua New Guinea.

When questioned by members of the media on the status of O'Neill's citizenship Manase says:

"Prime Minister does not have dual citizenship"

When asked but how does he you know this, Manase pauses then responds:

"that is the advise I received from the Prime Minister"

My Response:

So there is no confusion, Attorney General, Chief Legal Officer of the Independent State of Papua New Guinea declares that my claim Peter Charles O'Neill is an Australian Citizen is fakes news because I made it without any substantive proof.

Meanwhile when asked how does he know Prime Minister Peter O'Neill is not a dual citizen of Australia he says because he told him so.

So what substantive proof did O'Neill provide Manase when making that claim of innocence? None.

I've heard of some dumb responses but this one certainly takes the cake.

One would think the Attorney General would have said he has received written letter from the Australian Immigration confirming Peter O'Neill is not and never has been an Australian citizen.

In response to the Attorney General's threat to prosecute me over my post, he may need to get in line behind O'Neill. As I noted earlier O'Neill has filed enough complaints against me, problem he will have is that I can prove them.

What was the purpose of the Attorney General press statement about reviewing citizenship status of 111 Members of Parliament?

In my view, firstly to misdirect the issue away from Peter O'Neill and secondly, I'm aware that are there numerous other Members of Parliament who also have dual citizenship status, given the vote of no confidence is a week away O'Neill may use it as political leverage against those who may vote against him.

In the meantime I'd like to advise the good Member for Kandep and recently appointed Attorney General Alfred Manase the last place he wants to find himself is between myself and Peter O'Neill.

While he says I have no substantive proof, last time I checked he the Chief Legal officer of Government of Papua New Guinea and not personal lawyer of accused Peter O'Neill's. Citizenship issues are personal matters and nothing to do with the State.

It is an issue O'Neill will be required to answer to on the floor of Parliament and in a Court of Law.

2pm today Members of Opposition including Shadow Minister of Foreign Affairs & Immigration Dr Allan Marat who I have briefed on this issue will stage a press conference to make our position clear regarding O'Neill's citizenship status.

If there is one thing I know about Peter O'Neill is that when he is guilty of some thing he will always go into hiding, as he has done in this case.

by PAUL REMA

Peter O’Neill’s drinking is getting worse and worse, and the drunker he is the worse his violent temper becomes, with bashings and assaults even against his own political friends and the family of people he knows.

It is only a matter of time before his unbecoming behaviour creates an international incident. His most recent drunken rage came very close to a diplomatic incident because his victim this time was an expatriate businessman.

The incident took place after the Yacht Club Commodore’s Ball at a private residence on Touaguba Hill when the expat and his partner, who is from a well-known PNG family, was returning home. Shortly after arriving Mr O’Neill assaulted them, severely bashing the expat in the company of a senior police officer and a senior Defence Force officers. The bashing was witnessed by people nearby.

Although the incident has been hushed up and the victims have been threatened to stay silent, it is well known amongst certain circles, including in the police, and in the expat community where Australian officials have been told.

Such behaviour is unbecoming of the Prime Minister, and reflects on his occupancy of such a high office, and also the international reputation of Papua New Guinea.

O'Neill has already provided evidence IN HIS AFFIDAVIT which confirms he is an Australian citizen by DECENT.

Peter O'Neill is an Australian citizen by DESCENT. His own affidavit in court confirms that. He was not a fatherless child abandoned by his father. His Australian father helped raise him. He knew his father as confirmed in his statement.

"My father was born in Melbourne Victoria Australian and was an Australian citizen"

PO goes on to make a FALSE DECLARATION in his affidavit "I am not a citizen of Australia. I have never been a citizen of Australia." HE DID NOT PROVIDE EVIDENCE HE RENOUNCED HIS CITIZENSHIP OF AUSTRALIA BY DESCENT. WHERE IS THE EVIDENCE??? He has had two opportunities in his life to do this. First time when he turned 18years old. Second time before he went to 2002 elections when he became a member of Parliament.
***********************
PO's case is exactly similar to former Australian Deputy PM Barnaby Joyce
The only difference is that O'Neill all the time knew his father was a citizen of another country (Australia). And Barnaby Joyce didn't know.

by SAIPO SIKIPRIS

O'Niell with his lawyer Tiffiney think we in this country are all stupid and only them are the wise, mighty and gatekeepers of knowledge and wisdom.

They think that because O'Neill has a PNG passport and has been issued with an Aussie visa to travel to Australia means he is not an Aussie citizen. This is a fundamentally flawed premise because the issue here is not about which passport he is using or what country's visa he has been issued with. The issue here is, "Is O'Neill a dual PNG and Aussie citizen?" He says in the papers that he is a PNG citizen but does not deny or confirm also being an Aussie citizen?

Of course, we know he is a PNG citizen, it's a no brainer but is he also an Aussie citizen? The issuance of visa is not an issue because it depends on which passport he is using. In O'Niell's case, he has been using the PNG passport so it's only logical that he has been issued an Aussie visa. When travelling he would have to tick NO on the question of "Are you an Australian citizen?" on the immigration form available on all international flight in/out of this country.

This doesn't mean he can't be a dual citizen but the question is limited to the passport being used on that particular occasion. O'Neill doesn't need an Aussie passport to be an Aussie citizen, he can be an Aussie citizen without a passport. He only needs one passport for international travel purposes and in this case, he would obviously use the PNG passport because he is the CEO of PNG and therefore has to have Aussie visa to travel to Australia.

We don't issue passports to all the 8.5 million people of this country to prove their citizenship. Passports are optional for ID and travel purposes only. I have friends who are dual citizens of Australia and other countries and they don't all have 2 passports but the only one which they use for travel purposes. What they have published today on the papers is a litany of technical lies to deceive and sway public opinion. In the midst of this

I also give credit to O'Neill and his lawyer Tiffiney for telling us that you need a visa to travel to Australia using a PNG passport because that part is true which is a very rare thing for a pathological liar but that does not address the dual citizenship issue which is at the crux of Krammes social and mainstream media onslaught. My personal judgement for now is: O'Neill is a dual citizen and has been illegally occupying office not only as PM but also for the seat of Ialibu/Pangia electorate.

by WILSON PUNIM

Marape made the first move that broke the ruling PNC Party that has now led to the stepping aside/down of Peter O'Neill. Only he could have done it and he did it, putting the final nails to the coffin with the defeat of the stay application.
.
James Marape was the first one to come to the aid of the Opposition and it's 24 kwilas' attempt to move a Vote of No Confidence against Peter O'Neill. He moved when the chips were down for the Opposition and brought energy and momentum with him.
.
James Marape gave impetus to the Opposition's plans, moving with conviction and not out of convenience. He boosted the Opposition's plans to save and take back PNG.
.
James Marape unselfishly withdrew his nomination as the alternate PM, which has led to the defeat of a stay application and the defection of many to the Opposition's fold and now to O'Neill's stepping aside/down.
.
James Marape's two moves have now led to the stepping aside/down of Peter O'Neill and perhaps the tendering of his resignation to the Governor-General. This would otherwise have not been possible if James Marape had not moved.
.
The position of the Opposition all along was for any one to come with the numbers and take over the Prime Ministership. Their only objective was to remove and rid Peter O'Neill from the Prime Minister's chair.
.
The Opposition must now stand behind James Marape and allow him to finish Peter O'Neill off in the floor of Parliament.
.
It is only two and a half years before the national elections in 2022. I say nominate James Marape and help him fix the mess created by Peter O'Neill.
.
It is obvious that nominating of one of the 24 kwilas will not go down well with those that defected.
.
It is also obvious that the nomination of one of the other defectors, other than James Marape will not go down well with the 24 kwilas.
.
As much as I have my own preference, THE ONLY LOGICAL CHOICE NOW IS JAMES MARAPE.
.
The quality and calibre of MPs among the 24 kwilas must now be prepared to stand with Marape and truly take back our country in the two and a half years they have left.
.
James Marape, if you are reading this, give the lion's share of ministries and other portfolios to the 24 kwilas. They deserve the treatment after suffering with their people for two and a half years.

Press Statement by JAMES MARAPE MP
"We have intelligence that the government might sabotage the Parliament sitting process. We are not stupid lame sitting duck, we have heard that they are trying to use sabotage as a way of disturbing parliament on Tuesday, The numbers have shifted, just to the fairest thing, I appeal to Prime Minister Peter O'Neill, do not drag the country to unnecessary stress, by the shift of numbers, the majority of people in this country are being this camp. Don't stress yourself and do not stress government agencies, just complete the process of resigning that you have announced today, don't bring someone who is a founding father of the nation and put him as a face up there, honor your word, by 9 o'clock tomorrow go to Government Haus tender your resignation.

Governor General signs off, gazette it, hold the gazette, announce to the country that I've done the most honorable thing, I have 14 ministers of my cabinet resigned, I got governors of my regions resigning, I got 63 members who are no longer with me and I have resigned and that is very honorable, you have said many many times that leadership is not about you, its about the country, now we asking you to do the honorable thing, complete the process of resignation that you have announced.

All state agencies, Secretary Ngangan (Finance) I am looking at you, Secretary David Were (Works) I am looking at you, they (Pruaitch) was polite in not calling your name, you are now dealing with a man who fights, every other secretary just play by the books"