By Aviation Insider
The information provided herein relates to matters concerning the National Airports Corporation (NAC) of PNG, in particular its administrative, operational and financial status.
NAC is a State Aviation Enterprise established by Section 132 of the Civil Aviation Act 2000 (the Act). Its primary responsibility is to own, operate and administer all 22 national airports in PNG, including Kieta in the Autonomous Region of Bougainville (AROB). The organisations source of revenue comes from funds collected mainly through 1.a component of fees collected from airline ticket sales, 2.terminal facilitation charges and 3.airport facility (concessional) leases, which sustain NAC’s operations, including the periodic maintenance of safety and security systems in all 22 national airports.
In addition to revenue generated from direct aviation activities, NAC’s major project developments are funded through tied grants from the national government or loans allocated by donor agencies and foreign governments. Pursuant to Section 335 of the Act, the Minister for Civil Aviation and Minister responsible for Treasury matters are both shareholders of NAC on behalf of the State and people of PNG.
Accordingly both Ministers may exercise all rights and powers attaching to the shares, including deliberations of matters affecting the organisation.
In recent past, the appalling status of safety and security standards at most national airports were widely reported in the print media, to have the relevant authorities look into the affairs of NAC. The latest media report on NAC was on Friday, 16th April 2015, in The National which ran a story on NAC’s financial status. This story has drawn the attention of NAC insiders, who wished to share additional information on the real status of NAC’s administrative, operational and financial status with the rest of PNG.
Matters of concern involve around the following topics:
• Appointment of Managing Director/CEO;
• Administrative Decisions & Financial Commitments;
• Facilitation of APEC Meetings;
• Executive Staff & NAC Board;
APPOINTMENT OF MANAGING DIRECTOR/CEO
The current acting appointment to the position of MD/CEO of NAC is flawed in view of provisions of law contained under the Regulatory Statutory Authority (RSA) (Appointment to Certain Offices) Act 2004. In accordance with relevant sections of the RSA Act 2004, the appointment of MD/CEO of NAC should have been submitted to relevant authorities for proper screening to ascertain merit based and transparent appointment.
The acting MD/CEO was formerly a banker, having no professional experience in the technical field of civil aviation functions. His appointment by the NAC Board was not based on merit, but through whom you know, particularly by the former Board Chairman, Mr. Malcolm Lewis and his Deputy Board Chairman, Mr. Jerry Angus. This appointment was not done through a Board resolution; instead both the former Chairman and Deputy Chairman of the board took it upon themselves to impose the appointed on other Directors of the Board. Hence the appointment was flawed, while the appointee did not have technical experience to head civil aviation organization like NAC.
The Government has since introduced a new RSA Regulation 2014, Part: IV – Acting Appointments, Section: 18(1) which states clearly that “where a vacancy occurs in the office of a Chief Executive Officer (CEO) for any reason, pursuant to Section 193 of the Constitution and Section: 6 of the RSA (Appointment to Certain Offices) Act 2004, the Board or Commission shall, in the event of any delay in making a substantive appointment, recommend to the Minister a suitable person from within the organization who meets the prescribed minimum person qualification to act for a period not exceeding three months, subject to further review”. It is therefore evident that:
1. Contrary to RSA Regulation 2014, Section: 18(1), upon the position of MD/CEO of NAC becoming vacant with the resignation of former MD/CEO, Mr. Joseph Kintau, the appointment of current acting appointee was not recommended to the Minister for consideration, instead the Board Chairman, Mr. Mal Lewis and his Deputy Board Chairman, Mr. Jerry Angus took it upon themselves to make the appointment of Mr. Joseph Tupiri without the consent of the full NAC Board.
2. The regulation also called for a suitable person from within the organization (NAC) to act until a substantive appointment is made. However, at the time of his appointment, Mr. Joseph Tupiri was not a senior staff of the organization. He was formerly a staff of NAC but was terminated for non-performance, and later brought from outside of the organization and appointed. This is a clear breach of statutory requirements stated under the RSA Act 2004 and RSA Regulations 2014;
3. It should also be noted that the RSA Act 2004 and RSA Regulation 2014, called for a suitable person with relevant experience to be appointed. However the Board Chairman and his Deputy saw fit to appoint a “bank teller” to head the NAC which is a technical organization. This is a clear abuse of powers vested on the Board Chairman and his Deputy, by appointing an unsuitable person for the position;
4. The RSA Act 2004 and RSA Regulation 2014, Section: 18(1) states that an acting appointee shall act on the position for a period not exceeding three months, subject to a review. Mr. Tupiri’s appointment on the position as acting MD/CEO of NAC has exceeded well beyond the three month period, thus a further breach of the RSA Act and Regulations; and
5. That, Mr. Joseph Tupiri was formerly a NAC staff, who was terminated by the former MD/CEO Mr. Joseph Kintau, for non-performance and insubordination against management. It is imminent that the NAC Board did not properly process Mr. Tupiri’s appointment through the established processes and in accordance with the RSA Act 2014. If these statutory requirements were observed, his lack of aviation experience and past track with NAC would have disqualified him from being appointed. The NAC Board, especially the Chairman and his Deputy at that time are at fault.
Furthermore, the industry operators and public are informed that Section: 50 of the Civil Aviation Act 2000 require a CEO of an aviation service provider to undergo a Fit and Proper Persons (FPP) test by the regulator (CASA-PNG), to assess his qualifications and knowledge of aviation safety and security requirements. However, since Mr. Tupiri’s appointment, he has not made himself available for FPP interviews and seems to avoid the regulator, which is a serious breach of Civil Aviation Act 2000.
ADMINISTRATIVE DECISIONS & FINANCIAL COMMITTMENTS
Given the manner and circumstances surrounding Mr. Joseph Tupiri’s appointment and its non-gazettal, it is prima facie that he does not have the mandate and authority to make major administrative decisions or financial commitments on behalf of NAC or the Government. As such, any major administrative decision or financial transaction made by Mr. Joseph Tupiri since his dubious appointment is considered fraudulent and should be investigated by the Police Fraud Squad and Ombudsman Commission.
It will also be very interesting to note what the Asian Development Bank’s (ADB) response or position would be to this situation, because although Mr. Tupiri does not have sufficient mandate and authority he continues to counter-sign on development funds under ADB funded Civil Aviation Development Improvement Project (CADIP).
It has also come to notice that Mr. Tupiri has terminated the services of certain NAC staff for very minor offences. These staffs were not given the benefit of natural justice to exercise their rights. Whether or not Mr. Tupiri had the authority to terminate services of these staff is questionable, because he was not appointed through proper processes.
This situation is further compounded in that since its inception, the NAC currently does not have an established Human Resource Manual to protect the rights of staff and guide the administration and discharge of disciplinary matters within the organisation. The Minister for Civil Aviation should step in and address this matter, to avoid ordinary Papua New Guinean’s from being discharged from service for very minor offences.
FACILITATION OF APEC MEETINGS
It is also of great concern that “The National Newspaper” of Thursday, 16 April 2015, reported the dire financial situation in NAC. The national government should know that certain provincial capitals in the country will play host to lead up APEC meetings in 2015 and 2016. Some airports identified to host the up-coming APEC events include Nadzab (Lae), Tokua (Rabaul), Kagamuga (Mt. Hagen), Goroka and Madang airports.
However if NAC does not have the financial capacity to up-grade aerodrome safety and security systems at these airports in time to facilitate the APEC events, then how can the government assure the safety and security of our very important guests and dignitaries attending the lead-up APEC meetings. This situation will no doubt place in question PNG’s ability and preparedness to host the APEC proper in 2018. Any failure will have a long term effect on the socio-political and economic well-being of PNG.
Comparatively when Indonesia hosted the APEC in 2013, handled over 130 aircrafts on the ground at Bali’s Denpasar International Airport. Given number of aircraft, it brings to question whether Port Moresby (Jacksons) International Airport (PMIA) is ready to handle an influx of aircraft for APEC 2018. Experience is that NAC is struggling with current volume of traffic. If this so, where will NAC park the increased number of traffic during APEC 2018?
Obviously the Managing Director of NAC, the NAC Board, if any or the Minister of Civil Aviation must surely inform the people and government of PNG on how it intends to resolve this matter before the APEC 2018, to avoid major international embarrassment.
EXECUTIVE STAFF & NAC BOARD
The NAC currently does not have an effective and functioning Board to deliberate on the affairs of this technical organisation. The previous Board that was appointed by the Minister for Civil Aviation was disbanded after the former Board Chairman; Mr. Peter Neville successfully took a Court injunction as to the termination of his term as Chairman.
Whilst the current dilemma in NAC continues, the safety and security of the travelling public are placed at risk. Most of this issues can be resolved if the acting MD/CEO settles in the office and limits his private overseas trips (without prior approval of the Chief Secretary) to address internal matters. There is also a certain expatriate NAC employed, who lives at Airways Hotel and with his accommodation fully paid by the company. This person seems to be on a fly-in fly-out package because he is in office for about 2-3 weeks and on break for another 2 weeks abroad. What value is this person adding to NAC now that it is financially in the red?
It should also be brought to the attention of the public at large and the authorities that NAC is spending far too much in non-core activities. To make a point, certain senior management staffs in the commercial area of NAC are engaging security companies to areas that do not necessarily require security protection. A classic example is that the perimeter road of an airport is designed and meant to facilitate unimpeded access for emergency services attending to any aircraft crash within 10 mile radius of the airport operations. However, a certain security company engaged by NAC has since set up road blocks to check vehicles. The civil aviation safety and security regulator needs to check this out, especially the standards pertaining to emergency access.
Further note that this particular security company earns over K160,000.00 per month (annual about K2m) for virtually doing nothing to improve the standard of security at PMIA.
