PNG rejects PM’s Paladin $20m-a-month extension

By Ben Packham - The Australian

Scott Morrison’s push to “step up” Australia’s relationship with Papua New Guinea is set to come under pressure over his government’s plan to renew a $20 million-a-month Manus ­Island security contract with ­controversial company Paladin Solutions.

PNG Immigration Minister Petrus Thomas yesterday told The Australian that his government wanted the Paladin contract cancelled and for the work to be given to a locally owned company.

“The PNG government position is to … terminate the Paladin contract by end of this month,” Mr Thomas said.

“The PNG government wants a transparent tender process and most importantly will strongly recommend national content. PNG companies now have the ­capacity and expertise to do the job.”

He said PNG chief migration officer Solomon Kantha had conveyed this message to Peter Dutton’s Home Affairs Department.

However, Mr Dutton yesterday indicated Paladin would have its contract to provide refugee ­facility security services extended beyond its June 30 expiration.

“The likely arrangement is there will be a continuation. I’m not going to comment when the department is in the process of contract discussions, negotiations et cetera,’’ Mr Dutton said.

The Auditor-General is investigating the awarding of $423 million worth of contracts to Paladin without a tender process.

Paladin chief executive Craig Thrupp is also currently banned from entering PNG.

Manus Province Governor Charlie Benjamin also urged against retaining Paladin, which has a partnership with a local landowner company with links to another Manus MP, Job Pomat.

“I think that Australia ought to do the right thing and give it to another company, not Paladin,” Mr Benjamin said. “It doesn’t look good. There is a lot of suspicion.”

He said the facilities housing refugees and asylum-seekers on Manus for Australia were on provincial government land, and any new security provider must ­include the provincial administration as a shareholder.

Mr Pomat, the MP for Manus Open and an ally of former PNG prime minister Peter O’Neill, had earlier praised Paladin for doing business “the Papua New Guinean way” over its deal with Manus landowner company, Peren Investment, which is 60 per cent owned by Mr Pomat’s brothers, Kepo, Allan and Polosong.

New PNG Prime Minister James Marape recently met the Australian high commissioner to PNG, Bruce Davis, saying the ­relationship between the two countries had evolved “to one of equal partnership, with more focus on a comprehensive economic and strategic partnership”.

Mr Morrison was one of the first world leaders to phone Mr Marape, who has vowed to make his country “the richest black Christian nation on Earth”, when he took the leadership last month following the forced resignation of Mr O’Neill.

The Paladin group, which had its Australian headquarters registered to a beach shack on Christmas Island, had its contract to provide “garrison services” at three sites extended in January at a cost of $109m.

The extension, to June 30, lifted the value of its Manus contracts to $423m for 22 months work.

At the time there were about 422 refugees and asylum-seekers housed at the three camps: 213 at East Lorengau, 111 at West Lorengau and 98 asylum-seekers at Hillside Haus.

Labor home affairs spokeswoman Kristina Keneally said Mr Dutton had strengthened Paladin’s hand in any negotiation.

“Paladin can call the government Monday morning and demand whatever they want because Peter Dutton has let the cat out of the bag that the government has no one else, apparently available to continue those services,” Senator Keneally said.

Mr Dutton said he didn’t want any government money spent on Manus Island or Nauru because “I don’t want people there; I want them off as quickly as possible”.

Go to this link for more: https://www.theaustralian.com.au/nation/politics/png-rejects-pms-paladin-20mamonth-extension/news-story/06c0bfb6047aebf4b6d63ad4d2f8e88c

REINSTATE BRIAN ALOIS! One year on, no penalty delivered & he is still suspended

Posted on My Land My Country

In 2018, one year ago,  senior works engineer, Brian Alois was suspended from his job after making a presentation at a National Planning Summit in Lae.

Brian did his job as a senior government engineer.  He highlighted what was wrong in the system and he pointed out how it could be fixed.

Brian is a highly qualified civil engineer.  He could be working in the private sector, if he chose to. But he found his calling in the service of his country and his people.

Brian knew what was coming when he made that presentation in the presence of the Works Secretary, David Wereh.  He spoke, not as a senior officer of the Works Department, but as President of the Institute of Engineers PNG, and as a professional, he had every right to do so.

In summary, this is what Brian Alois covered in his presentation:

• PNG’s road construction costs are inflated (for various reasons stated in his presentation)
• It currently costs up to K3million kina per kilometer of road
• Our education system isn’t producing skilled road builders anymore but focuses on producing engineers with degrees.
• The works department is not conducting prior investigations and assessment to establish the actual cost of new roads
• Contractors are charging more than what should be charged
• The Works Department is underfunded and unable to conduct its duties independently.

If we want to build a strong economy, we have to get our road building  right. We cannot inflate costs and steal from the system and then preach about building an economy. Brian simply said the costs are too high and that the costs  did not need to be that high.

In the following days, Brian received a letter of suspension.  They charged him.  But one year on, he still remains suspended without any actual penalty delivered.  Nobody has had the guts to admit that the Works Department was wrong in suspending him.

Brian Alois represents the voice of the people.  He stated the truth and he was punished for it.

I stand with Brian Alois and I call on the Papua New Guinea government and Prime Minister, James Marape,  to reinstate  him immediately!

Go to this link for more: https://mylandmycountry.wordpress.com/2019/06/16/reinstate-brian-alois-one-year-on-no-penalty-delivered-he-is-still-suspended/

What explains PNG’s 2018 revenue boom?

By Rohan Fox - DevPolicy Blog

PNG’s 2018 Final Budget Outcome, released in April, shows that government revenue increased sharply last year. Not taking into account donor grants, revenues increased by 21.5%, which, after inflation, is the second highest single-year increase in the last three decades (the highest was in 2006). This is good news, as the government in previous years has struggled with revenue at crisis levels. That said, the rise reflects one-off adjustments, and it is too early to say that things are back on track.

Figure 1: Revenue (excluding donor grants) 1989-2018

There are three taxes we can look at that reflect growth in the non-resource sector – where most Papua New Guineans work. Personal income tax, which reflects employment and wage growth, company tax, which reflects private sector growth, and GST, which reflects consumption. GST revenue grew by 5.7% (after inflation), about half the average year-on-year rate of growth since its creation in 1999. Company tax revenue grew by 3%, also around half the average rate of growth over the same time period. Income tax declined in real terms. There was a bill tabled in the 2018 budget to reduce the income tax on termination of employment payments, however the reduction in income tax is also consistent with a fall in formal sector employment. This is a disappointing result, though roughly in line with expectations from the initial budget.

Figure 2: Broad-based taxes 1989-2018

Other economy-wide taxes also increased. After inflation, import-related taxes increased by 54% compared to 2017, and export-related taxes by 26%.

Figure 3 shows the movement in export and import value each quarter since 2010. A number of tariffs were increased in 2018, and this may be driving increased import-related revenues, as imports compressed further in the first three quarters of 2018. The value of exports in the first three quarters of 2018 is roughly the same as in the first three quarters of 2017. We will have to wait for the release of results by the Bank of PNG to confirm whether there was a substantial boost to exports in quarter four to explain the increase in export-related taxes. Though this seems plausible due to the holding of the APEC leaders meeting in November.

Figure 3 shows a comparison between imports and exports, excluding LNG, which is a useful distinction, given the extraordinary size of the LNG project and its related exports.

Figure 3: Import and export value by quarter, Q1 2010 – Q3 2018

Overall, revenue from economy-wide taxes increased, but only by K260 million, or 3%, after inflation. More important were the boosts in resource revenues, and in non-tax revenue.

Figure 4: Break-up of revenue sources by category (excluding donor grants)

Non-tax non-resource revenue reached its second highest level ever, increasing by K820 million, or 206%, after inflation. The new policy forcing statutory authorities to hand over most of what they earn worked well, with the National Fisheries Authority in particular having to hand over hundreds of millions of Kina. In all, state services and statutory authorities provided around half a billion Kina to the budget in 2018, or around 5% of total revenue, up from less than one million the prior year!

Resource revenues (from taxes and dividends) are still low by historical standards, but are recovering after severe compression in 2016. Compared to the prior year, in 2018 they increased by K622 million, or 88%, after inflation.

Total revenue is higher in 2018 than was expected in the 2018 budget, however, as shown in Figure 5, expenditure was also higher than budgeted. The value of the increase in expenditure is lock-step with the increase in revenue.

Figure 5 Revenue and expenditure 1989-2018

The government has successfully found ways to increase its revenue, something necessary to improve its budget situation. However, the growth in revenue hasn’t been due to a recovery in the non-resource economy, which would affect the lives of the majority of Papua New Guineans. The stronger performance has largely been due to better performance from the resource sector, higher tax revenue from international trade, and a one-off increase in the contribution to the budget from statutory authorities. Neither the PNG budget nor the economy is out of the woods yet.

The PNG Budget Database has been updated to include the 2018 FBO and is available here.

Go to this link for more: http://www.devpolicy.org/what-explains-pngs-2018-revenue-boom-20190614-2/

30,000 TB cases a year makes PNG a regional health issue

Lady Roslyn Morauta - "8.5 million people face very serious development and public health challenges"

ROSLYN MORAUTA | The Mandarin

PORT MORESBY - Investing in health is one of the best ways to build a better future. Healthy societies are more stable and equal and have stronger and more productive economies.

In today’s increasingly interconnected world, improving public health is a global common good.

Because microbes do not stop at borders, an infectious disease threat in any corner of the world can be a threat everywhere. No one is safe until everyone is safe.

Take the example of Papua New Guinea, where I have lived and worked for many years.

Since the turn of the century, there has been significant progress in the fight against HIV and malaria in PNG.

Investments by international donors and partnerships with faith-based organisations and other civil society groups have reduced the number of malaria cases and deaths through national mosquito net distribution campaigns.

The country has also made big strides against HIV by making lifesaving treatment available to thousands of HIV-positive people.

The achievements are impressive if you think of them in the context of PNG, a country with over 800 languages and cultures, high illiteracy rates, very few roads and far-flung rural communities.

However, PNG’s 8.5 million people continue to face very serious development and public health challenges.

We have the highest malaria burden in the world outside Africa, with the entire population at risk, affecting primarily pregnant women and children under five.

We also have the highest number of new tuberculosis cases in the Pacific Island region – around 30,000 new cases each year, with TB now the leading cause of death in PNG.

We have alarming rates of drug-resistant TB, a more aggressive form that does not respond to existing medications, resulting in fewer treatment options and increasing mortality rates for illnesses that would ordinarily be curable – including TB.

With PNG only four kilometers from Australia at its nearest point, failure to address TB or an outbreak of any infectious disease is a threat to the health and economic security of my native Australia.

TB is airborne and highly contagious, so a raging TB epidemic could easily destabilise the Asia Pacific region. One weak link can affect everyone.

Such health challenges are not unique to our region. Globally, 10 million people fell ill with TB in 2017, making TB the world’s deadliest infectious disease.

Drug-resistant TB is part of a growing global problem posing a potentially catastrophic risk to global health security. In 2017, there were approximately 558,000 cases of drug-resistant TB.

While causing tragic deaths and suffering, infectious diseases can also damage economic growth.

The Economist Intelligence Unit predicted recently that drug-resistant TB will cost the global economy approximately US$17 trillion by 2050 if the problem is not addressed.

Addressing these regional and global health challenges requires partnership.

After years of remarkable progress in the fight against HIV, TB and malaria, new threats have pushed the world off track from meeting the Sustainable Development Goal target of ending the epidemics by 2030.

The Global Fund to Fight AIDS, Tuberculosis and Malaria has played a vital role in global health, supporting programs to save millions of lives and investing US$366 million in 14 island countries in the Pacific region, supporting strong efforts by Australia’s bilateral investments to build resilient and sustainable systems for health.

The Global Fund model increases accountability and shared responsibility and helps countries on their road to self-reliance by fostering domestic investments in health.

I have witnessed first-hand the transformation that investments by the Global Fund partnership have brought in Papua New Guinea.

But we need to keep working hard.

Papua New Guinea’s health system is very weak.

We also need to continue investing and working with our partners to address the high rates of gender-based violence and promote gender equality.

Just a few months from now, the Global Fund will hold its next replenishment conference, with the goal of raising at least US$14 billion for the next three years.

The Global Fund is calling on the world to step up the fight to maintain the progress that has been achieved through partnership, innovation and effective interventions and to end the three diseases by 2030.

Australia is a longstanding partner of the Global Fund and has invested heavily in fighting diseases and in supporting countries in the Indo-Pacific region to prepare for emerging health threats.

This week, when Sydney hosts the first International Global Health Security Conference, it will be a great opportunity to stress how we all need global health security, and share responsibility.

Our global health security is only as strong as our weakest link.

Lady Roslyn Morauta, vice-chair of the Board of the Global Fund, is visiting Australia to attend the International Global Health Security Conference

Go to this link fo more: https://asopa.typepad.com/asopa_people/2019/06/30000-tb-cases-a-year-makes-png-a-regional-health-issue.html

Australian-based company’s PNG mine could pose big environmental risk

Lisa Martin | The Guardian 

A gold and copper mine proposed for the Sepik region in Papua New Guinea by an Australian-based company threatens to destroy the health of a major river system, poison fish stocks and cause violent unrest, a report has found.

The Chinese-owned company, PanAust, says the Frieda river project could have a 45-year life span and generate A$12.45bn in tax, royalties and production levies for the PNG government and landholders.

But the report, from research centre Jubilee Australia and Project Sepik, raises serious environmental and social concerns about the mine.

“The lack of information released by the company about its environmental management plans are continuing to cause uncertainty about whether the company’s environmental management plans will be fit for purpose,” it says.

“The potential for this project to lead to damaging social conflict and unrest is real and must be taken seriously.”

Papua New Guinea has a chequered mining history, including an environmental disaster when the BHP Ok Tedi copper mine’s tailings dam failed and the decade-long civil war on Bougainville, which was triggered by the Rio Tinto majority-owned Panguna copper mine and cost an estimated 20,000 lives.

The report notes that one of the PanAust project’s biggest challenges will be building a safe storage facility for the mine’s tailings (waste material left over after separating the valuable mineral from the ore) to prevent acid rock drainage.

That occurs when mine waste is exposed to oxygen and produces sulphuric acid, which dissolves heavy metals such as mercury from nearby rocks, which can then leach into rivers.

The report says the size of the ore body, combined with the relatively low grade of copper in the deposit, means the mine will generate substantial tailings.

Locals protest against the proposed mine project at the Sepik river in Papua New Guinea. Photograph: Project Sepik

“The inaccessibility of the terrain will pose challenges when it comes to finding a large enough site or sites for storage,” it says.

“The extremely high rainfall in the area and the fact that the area is a site of seismic activity add to the risks of a dam collapse. The technical complexity of the feat facing the mining engineers, the extremely large costs involved, and the weather and seismic situation all adds up to a very expensive environmental management problem and one with considerable risks.”

Locals also have concerns about environmental damage from an increase in the number of large vessels operating on the Freida river.

PanAust promised in April it would shortly release an environmental impact statement to nearby villages, but researchers say it has not done so.

In response to to questions from Guardian Australia, the company said PanAust had not received a copy of the Jubilee report and “as such, the company is not in a position to comment on its contents”.

It did however say that PanAust had submitted its plans and an environmental impact statement to PNG regulators and was working with them on its approval.

The report also accused PanAust of a flawed consultation process with indigenous communities downstream from the mine which has created an “atmosphere of animosity and lack of trust” and resulted in acts of sabotage.

“There are reports of official (mainly police) intimidation of anti-mine activists,” the report says.

Map showing the location of the proposed Frieda River mine. Photograph: Jubilee Australia

“In 2017 a youth leader from Oum 2 village led a group of young men to attack a tugboat and pontoon with homemade wire sling shots.”

In October researchers visited 23 nearby villages, where locals repeatedly raised concerns about river and fish health as a result of increased sedimentation from increased tugboat traffic connected with the project.

The Freida river joins the 1,126km Sepik river, which flows across the provinces of West Sepik and East Sepik provinces.

The local economy is built on the sale of sago (starch from a tropical palm stem), fish, freshwater prawn, eels, turtles and crocodile eggs. Crocodiles are also harvested for their skins and teeth. Locals are worried about the mine affecting their food security, the report says.

In a company announcement in December, PanAust characterised the mine project as a “nation building development”.

It has promised 5,000 jobs in construction and 2,100 in mining, and estimates there may be 30,000 more indirect jobs.

“Host communities, especially in rural areas, will benefit from access to improved transport, telecommunications, health, education and government services that will support a higher quality of life and greater social participation,” the company said.

“More broadly, training and employment of Papua New Guineans will provide the skills and capacity to support the nation’s future development and prosperity.”

The company said a final investment decision would be linked to financing and fiscal terms agreed with the PNG government during the approvals phase.

Go to this link for more: https://ramumine.wordpress.com/2019/06/17/australian-based-companys-png-mine-could-pose-big-environmental-risk/