At Oil Search party, PNG prime minister seeks bigger slice of cake

Posted by Reuters

MELBOURNE/SYDNEY (Reuters) - Papua New Guinea’s new prime minister used Oil Search Ltd’s (OSH.AX) 90th birthday to press the country’s biggest company and its oil major partners to pay more tax to the impoverished Pacific island nation.

Prime Minister James Marape’s comments come as Oil Search and partners Exxon Mobil Corp (XOM.N) and Total SA (TOTF.PA) face delays on a $13 billion plan to double liquefied natural gas (LNG) exports from the country, with the new government seeking to win more from resource projects.

Oil Search has long prided itself on work it does in PNG communities, including funding health care and literacy programs, but Marape said that was not the company’s job.

“So going into the future we will not be asking much of you in terms of community service obligation, but we will be asking you to pay your fair share of tax,” Marape said in a speech at Oil Search’s 90th birthday celebration in Port Moresby last Friday. Excerpts were released on Tuesday.

“We will be asking of you and others in the industry for a greater participation in ... downstream processing. We’ll be asking of you for a clearer, better definition of what local content is,” he said.

Oil Search had no immediate comment on the speech.

The company on Tuesday pared its full-year capital spending guidance by $45 million to between $500 million and $610 million due to a delayed start to front-end engineering and design work for the expansion of the Exxon-operated PNG LNG plant.

The expansion is due to be fed by gas from Total’s Papua LNG project, the P’nyang gas field and existing fields.

Oil Search said early work has been delayed because talks with the government on developing P’nyang have been put on hold while the new government reviews the Papua LNG agreement, signed in April.

Oil Search shares fell 2.6% in a flat broader market after it reported the delay and second-quarter revenue that missed estimates by a wide margin.

Revenue for the quarter ended June 30 rose to $378.9 million from $262.8 million a year earlier, when a deadly earthquake forced a shutdown of PNG LNG. Citi had expected quarterly revenue of $421 million.

Compared with the first quarter, production was hit by 13 days of slower output in late May to early June amid planned maintenance at PNG LNG. Sales were flat but revenue fell due to weaker LNG pricing, tied to lower oil prices, Oil Search said.

Reporting by Sonali Paul in Melbourne, Tom Westbrook in Sydney and Devika Syamnath in Bengaluru; Editing by Subhranshu Sahu and Richard Pullin

Go to this link for more: https://www.reuters.com/article/us-oil-search-output/at-oil-search-party-png-prime-minister-seeks-bigger-slice-of-cake-idUSKCN1UB01R

MP suspended over fraud allegations

By GIDEON KINDIWA - The National 

MAPRIK MP John Simon, pictured, has been suspended on full pay following allegations of misconduct in office involving more than K1.6 million in public funds.
Simon, recently appointed the Minister of Agriculture and Livestock, is currently defending himself before a Leadership Tribunal appointed by Chief Justice Sir Gibbs Salika. It began proceedings yesterday at the National Court in Waigani.
Public Prosecutor Pondros Kaluwin submitted nine allegations against Simon before tribunal chairman Justice Nicholas Miviri. The other members of the tribunal are senior magistrates Michael Apie’e and Nancy Lipai.
Simon is alleged to have used his office to benefit his own hire car company, benefit his own construction company, benefit a company belonging to him and another person.
He also allegedly misapplied the District Services Improvement Programme (DSIP) funds.
The Ombudsman Commission carried out the investigation and made a reference to the Public Prosecutor on Aug 24, 2016, indicating that it was a prima facie case.
The allegations were made under Section 27 (5) (b) of the Constitution and Sections 13 (a) and 5 (1) of the Organic Law of Duties and Responsibilities of Leadership.
It is alleged that Simon:

• From Aug 2012 to Jan 2014, paid his own hire car company, Extreme Hire Cars, K226,030 from the Maprik DSIP trust account, the Maprik District Treasury Operating Account;
• from Aug 2012 to Jan 2014, allowed the payment to take place without approval by the Maprik Joint District Planning and Budget Priorities Committee;
• from Sept 2012 to Nov 2013, allowed his construction company, Extreme Construction to be paid K1,310,746, from the Maprik District Treasury Operating Account without proper tender processes;
• from Sept 2012 to Nov 2014, allowed the payment to take place without proper tender processes;
• from July 2012 to Nov 2012, paid K48,500 from the Maprik DSIP designated for the District Agriculture Programme to his political supporters;
• from Sept 2012 to Nov 2012, intentionally applied the money to his supporters;
• from Oct 2013 to Dec 2013, allowed a payment of K25,032.20 from the Maprik District Treasury Operating Account to Deborah’s Office and School Supplies Ltd, a company he owned with another person;
• from Oct 2013 to Dec 2013, allowed his associate from Deborah’s Office and School Supplies Ltd to benefit from K20,800 from the Maprik District Treasury Operating Account; and,
• From Oct 2013 to Dec 2013, acted on behalf of his associate and Deborah’s Office and School Supplies Ltd and allowed the payment of K45,832.20.

Simon is being represented by Greg Sheppard and Philip Tabuchi from Young and William’s Lawyers.
Sheppard argued that the reference by the Ombudsmen Commission was supposed to be signed by three Ombudsman.
It was signed by only two.
He also argued that the Ombudsman and the Public Prosecutor were late in pursuing the matter as the reasonable amount of time to file a reference and start a tribunal was four months. “The reference was filed in 2016. We’re in 2019 – a delay of three years,” Sheppard said.
“This is a matter that needs constitutional interpretation.”
Kaluwin said the Ombudsman Commission has had only two members during the filing of the reference.
Kaluwin argued that there was no unnecessary delay in pursuing the case as investigations took time and that facts must be established first.
He said the allegations arose during Simon’s first term as MP and since he was re-elected for a second term, he was again subjected to investigation on his previous term.
Justice Miviri adjourned the tribunal to Thursday for ruling on the preliminary issues raised.

Go to this link for more: https://www.thenational.com.pg/mp-suspended-over-fraud-allegations/

PM willing to take pay cut

Posted on The National

PRIME Minister James Marape is willing to take a 20 per cent pay cut as part of a “cleaning-up process” of the salaries of MPs and top-ranked officers in Government.
Marape, Public Service Minister Westley Nukundji and acting deputy secretary (policy and reform) in the Personnel Management Department William Hapipai were yesterday sworn in by Governor-General Sir Bob Dadae as members of the Salaries and Remuneration Commission (SRC).
He said the commission had to find a balance in salaries and ensure leaders were remunerated properly.
“This ceremony today is just a formality to get the Commission off the ground,” Marape said.
“Speaking from the Salaries and Remuneration Commission perspective, there are other officers highly paid than MPs. This is part of a cleaning-up process.
“If there (has to be) an increase in salaries, it should be for officers working their way up the rank and file as they are in the engine room and (are) the backbone of any organisation.”
Marape said if he had his way, he would have his own salary cut by 20 per cent as part of the “cleaning-up process of overpaid leaders”.
He said the commission was to ensure that “our leaders including politicians, government secretaries, managing directors and chief executive officers of statutory bodies and State-owned enterprises were remunerated properly”.
“We are economically facing harsh times and working within what is provided for us,” Marape said.
“However, there are huge discrepancies (between) overpaid and underpaid (workers) in the various pay systems.”
“He said pay increases “are not the focus of this Commission”.
“Even I as the prime minister am paid less than some chief executive officers and managing directors of various constitutional bodies.”
Hence this will be looked into by the SRC.
“It is only fair for our people to have a genuine balance in remuneration packages.”
Nukundj said he would discourage any increase in salaries for MPs and chief executive officers of State-owned enterprises.
He said even if the time was right (thriving economy), there was no need to increase the salaries of leaders.

Go to this link for more: https://www.thenational.com.pg/pm-willing-to-take-pay-cut/

More soldiers to be sent to Tagali fighting zone

By REBECCA KUKU - The National 

AN additional 30 soldiers will be sent to the fighting zone in the Tagali local level government area of Hela today where 23 women (two pregnant) and nine children were killed in tribal fighting last Monday.
Police Minister Bryan Kramer provided updated death toll figures yesterday following his two-day trip to the area.
PNG Defence Force Commander Maj-Gen Gilbert Toropo told The National that a platoon of 20 men were already on the ground and he was sending 30 more to help maintain law and order in the area. “The situation is still very tense and it is a sensitive topic at the moment,” he said.
“What people need to understand is that this happened in a very remote place.
“And that it is part of a generational tribal warfare that has been ongoing for quite a while and there is a high chance that there may be retaliation attacks or revenge killings, so an additional 30-men platoon will be on the ground in the fighting zone to provide security and maintain law and order.”
Toropo said he had signed the “Rules of engagement order”, giving soldiers powers to use firearms in self-defence or to defend the lives of people they are sent in to protect.
“The declaration of a fighting zone gives security factions the power to arrest and question anyone they believe or suspect to have been part of the massacre.
“And because the area is in a very remote place and has a challenging environment, soldiers will have the power to use firearms if and when required to protect themselves or the people.”
Toropo also called on people around the country and the international community to understand that the incident happened in a very remote area where tribal fighting had been ongoing for decades.
He also condemned the massacre of innocent women and children and called on their families to refrain from retaliation or revenge killings.
“Killing is not the way to resolve this issue, it was a very unfortunate incident and the Defence Force will work with police, local government and the Government to ensure that the perpetrators face the full brunt of the law,” he said.
Toropo also said that the call-out in Hela had been extended to December.

Go to this link for more: https://www.thenational.com.pg/more-soldiers-to-be-sent-to-tagali-fighting-zone/

Potape wants funds for Hela recount

Posted on PNG Breaking News

Prime Minister James Marape has been called on to release the funding for the Electoral Commission to conduct the court-ordered recount for the Hela Regional seat.
With two weeks more to go before the order expires, former Hela governor and petitioner Francis Potape said it was important for the prime minister to help the Electoral Commission to conduct the recount so there was leadership in Hela amid all the lawlessness in the province.
Mr Potape said 16 of the 30 days had lapsed and only 14 days remained as ordered by the court.
“Time is running out and there is no time to delay for the people of Hela,” he said, adding there were planned moves by certain government authorities to delay the recounting process.
“It is obvious that certain people are trying to use delay tactics in releasing the fund at the last minute. This is a clever attempt to force the Electoral Commission to go back to court to give more time.
“With only two weeks to go, it is not fair to allow the Electoral Commission to go back to court for an extension of time. This is not fair for the people of Hela and it is not fair on my side as well. The people of Hela deserve leadership. As the petitioner, I have provided my case so it is now incumbent on the Electoral Commission to run the recount.
“I also call on the Electoral Commission to be neutral and not to be influenced by anyone. Mr Undialu and I should not be visiting EC staff as has happened for two hours last week.”

Find different ways to resolve disputes: Kramer

Posted by The National

POLICE Minister Bryan Kramer says it is important to find a different way of resolving disputes to stop tribal fights.
He returned from visiting the “fighting zone” in the Tari-Pori district of Hela at the weekend with acting assistant police commissioner Operation David Manning to see first-hand the scene of the killings last week.
He said on his Facebook page the massacre of 23 women (two of whom were pregnant) and nine children was “the worst payback killing in our country’s history”.
“While a number of plans are being put into action to ensure peace prevails and to prevent such a devastating act of violence in our communities, it is important for the long term that we find a different way of resolving conflicts that rejects revenge but encourages resolution through dialogue,” Kramer said.
“I intend to return to the province in a week’s time to get an up date.”
He went to Hela on the instruction of Tari-Pori MP and Prime Minister James Marape “to pay respect to those killed and to prepare a brief to the prime minister on circumstances behind the incident”.
“Tribal fights are not new in Papua New Guinea and in recent years they have become more prevalent in the highlands.
However, the rules of engagement have always been that the elderly, women and children have been off-limits,” Kramer said. “So the killing of innocent women and children in tribal conflicts are unheard of.
“Last week’s merciless killings changed everything.” Kramer said there were three separate killings in the Tagali local level government areas last week, which were related to a tribal conflict that was on-going for close to 20 years. He said the violence stopped after the visit last weekend.
Kramer was accompanied by Hela Governor Philip Undialu.

Go to this link for more: https://www.thenational.com.pg/find-different-ways-to-resolve-disputes-kramer/