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Welcome to Sunday Chronicle blogspot. Sunday Chronicle is a leading weekly newspaper in Papua New Guinea. It is a community oriented paper and highlights positive issues and developments of the week. We hope this medium of communication can keep you abreast of the happenings and events in the country and abroad.

Local News

This week's local news - March 29th - 04th April, 2010.



Sunday, April 4, 2010

PNG government trust account controlled privately

By ROBEFRT PALME 

A PRIVATE individual has been a signatory to a Papua New Guinea Government trust account.

And millions of kina from that account were paid to private consultants including payments to the signatory's company.

The Parliamentary Public Accounts Committee(PAC) revealed that the Konebada Petroleum Park Authority Working Group Trust Account (KPPWGTA) is operated outside the Papua New Guinea Government Computerized Accounting System (PGAS).

The PAC report, tabled in Parliament last month, reads: "Effectively this trust money has been handed to private persons and is unaccountable.

"We believe the purpose of this was to avoid scrutiny."

According to the PAC, this person is not a delegated person to be a signatory for the account.
It also reads:"It is notable that millions of kina have flowed to private consultants -including payments to the signatory's company.

"The department Secretary has lost control of Trust management. No records were produced for audit of the KPPWGTA.

"They were apparently kept at a private apartment by the Project Manager."

Meanwhile, the Committee in its report also said Government Trust Accounts should not be managed by the Public Service or Government agencies at any level.

"No Trustees, signatory officer identified as failing to maintain Trust records and accounts or conduct themselves as Trustees, signatories or accountable officers in a proper and lawful manner, should ever again be permitted to assume any degree of responsibility for management of public monies in any capacity-but particularly as a trustee," the PAC said.

The Public Service is patently and demonstrably incapable of lawful managing Trust Accounts and officers of that service are clearly incapable of understanding or performing their duties as Trustees, the report said.

The PAC attributed some of the failures to the inability by the Department of Finance and Treasury to protect the State by properly monitoring and recording the expenditure of public monies through this Trust account and or by requiring and enforcing accountability from its own Department officers.

PNG Parliament to pay K2 million for legal services

THE NATIONAL Parliament will fork out K2 million annually to pay two private law firms when the house itself is rotting away, it has been alleged.

This will see in-house lawyers doing nothing when it comes to providing legal directions and advice for Members of Parliament.

Shadow Minister for Fisheries and Member for Bulolo, Sam Basil revealed this when commenting on the recent amendments to the Ombudsman Commission bill.

"We are not stupid here, but are being misled or deliberately denied legal services by the Speaker of Parliament and if we have less knowledge of the legal implications of bills then we can be easily fooled by the bill sponsors."

Mr Basil said the two law firms that have been engaged on retainer arrangement costing tax payers money is unnecessary and they only work for the interest of the government.

"I personally think the current system works to the best interest of the ruling party (National Alliance) to easily pass bills on the ignorance of MPs by not properly understanding the bills put before them. I think they love it that way; maybe now is a wakeup call for us all to find the loop holes and stop this nonsense."
 
He says as a result most times Members of Parliament are misled or being deliberately denied legal services by the Speaker of parliament when it comes to passing of certain bills on the floor of Parliament.

He therefore renewed calls for Speaker Jeffery Nape to step down.

"Sadly, this is the case and I still stand on my earlier call for the speaker of the national parliament to be replaced soon with a fair and a sound minded candidate from the Government or the Opposition. It doesn't matter anymore which side produces the new speaker, but for the sake of this country's Parliament operations, a change must happen soon. This controversial bill problem can be seen as one of the many problems this house has."

"I think Hon. Moses Maladina should recall his attempt to push for the bill.  The public has said their piece, the majority of the Opposition has admitted being misled and will not support it while some government MPs and political parties have indicated their intention to withdraw their support for the bill.
     
"The next thing we all do not want to happen is the public taking to the streets to protest and I can see it coming if the bill sponsor continues to push.
 
"I would also like to call on the current MPs in parliament who think they will lose out on their stock exchange trading to resign from parliament and become stock brokers because they will take up the voter's time trading on the New York and POM Stock Exchanges and forget their responsibilities as elected MPs.

"PNG is a struggling country, especially its rural population and needs full time MPs and not stock brokers. We may also ask where the millions they acquire to trade in stocks came from with due respect to those were already millionaires before entering parliament."

Former PNG Constitutional Review Committee Chairman says reforms missed intentions

By BENNY SANDEKA

THE then Chairman of the Constitutional Review Committee, Ben Micah has admitted that the Provincial and Local Level Government reforms which he spearheaded in 1995 have totally missed the intentions of the reforms.

Mr Micah said the Provincial Government Reforms which he spearheaded 15 years ago was to improve the delivery of basic services to the masses. However, the new Organic Law on the Provincial and Local Level Government has undergone too many amendments and has made it become ineffective and thus failed to deliver its intentions.

Deputy Prime Minister, Dr Puka Temu said, the government is currently looking at ways to improve the system of government in the country.  While the national government will remain in its current state, the national government is still looking at ways of how to improve the provincial and local level governments further with the same intents of effectively delivering basic services to the rural masses.

"We are looking at retaining all levels of government. But under the District Authority Bill which is yet to go before parliament, we are looking at how we can make the lower levels of government more effective," the Deputy Prime Minister said.

"What becomes of provincial governments is not clear yet. Whether they will be retained as lower legislator or changed to a provincial authority," Dr Temu said.

A Ben Micah Constitutional Reform Committee abolished the 1976 Provincial Government System and replaced it with an Organic Law on the Provincial and Local Level Government. 

The old provincial government system is headed by a premier voted from among elected provincial government representatives who forms the provincial legislature.  The new Organic Law on the Provincial and Local Level Governments, a governor of the Province is the Chairman of the Provincial Assembly. He heads a team of appointed representatives who forms the provincial legislature.
 

Royalty trust accounts in chaos

By ROBERT PALME 

THE PNG Department of Petroleum has breached the Oil and Gas Act by not paying the landowners their royalties monthly.

This was highlighted by the Parliament Public Accounts Committee (PAC)report that was tabled in Parliament last month.

And the PAC said in its report that Royalty Trust Accounts should be given to some agency credible to manage.

A PAC report titled, "The Public Accounts Committee Report on the Inquiry into the keeping of the Government Trust Accounts for the Financial Years 2000-2008", said the case has worsened with the
Department of Petroleum since 2005 where Royalty Trust accounts are in a chaotic state.

"This Department seems to have decided to act precisely as it wants with both public and trust monies and to keep no records of those dealings," the PAC said.

According to the PAC, the AG raised concern that the Department did not compile its bank reconciliation for the six Trust accounts under its control from 31st May 2007 until June 2008.

The PAC said the AG requested records of expenditure from Trust Accounts totaling K29, 426,980 but nothing was received.

Other findings by the AG are;
  •  Payments were made on an irregular basis
  • Trust Accounts for Gobe and Kutubu recorded nil payments since 31st December 2007, and this is a breach of the Oil and Gas Act 1998 which stipulates that all royalties are to be paid monthly.
  • The Trust accounts contain K80 million which should be invested and no interest has been paid into these accounts during the period May 30 to April 30, 2008.
  • The AG could not ascertain whether total payments of K6,724,203 made from Trust Accounts in the period 31st December 2007 to 30 April 2008 were made to correct persons as no disbursement records were produced.
Other areas of concern were that the development expenditure from these Trust Accounts totaling more than K47 million in 2007 showed among others incorrect expenditure vote was used for payments totaling more than K20 million and project payment of over K100,000 had no Central Supply and tender Board compliance.

PNG Deputy Police Commissioner thanks God for recall

RECALLED Deputy Police Commissioner Geoffrey Vaki believes the constabulary needs God to cleanse, transform and renew it to its former past as a distinguished and professional organization.

Mr Vaki, who was suspended last March over an incident involving a lady, was reinstated by Police Commissioner Gari Baki on March 12 this year.

He said much publicity has been made on what is perceived to be a crisis in the Police hierarchy but he has maintained a low profile and have not come out to voice his views and opinion. 

"The inference and perception that the senior management are embroiled in a struggle for position, power and supremacy and prompted me to come out and clarify my position so that the public at large can be given a more balanced understanding of the events that have come to light."

Mr Vaki said his suspension on March 1 last year has had media coverage much of which was biased, unkind and far from the real facts and circumstances that related to the case.

"My name, integrity and standing as a person were extremely tarnished and brought to disrepute - all at the stroke of a pen. All the good one has done in his career to date is simply wiped out in minutes by individual journalists who do not have the decency, ethics and respect to conduct research and come up with balanced reports,"  the Deputy Commissioner said.

He explained that it was the Commissioner's prerogative to suspend him and order an investigation.  However, the party involved withdrew the case and apologized for causing Mr Vaki shame.

"I was never the instigator of the incident. That is what the public did not know about and in retrospect look at the extreme damage done to my name and integrity as a person.  I've always respected protocols of human rights and rights concerning women and children.  I've always maintained ethical standards and discipline.  I've always held my head high as I've been an innocent victim all along."

Mr Vaki was directed by Commissioner Baki to resume office which he did on March 15.  He has thanked both the Minister and Commissioner for his recall and attributes it to divine intervention... "I give praise, glory and honour to God almighty."

His recall, however, has become the subject of court proceedings by Deputy Commissioner Anthony Wagambie had been in the chair left vacant following Mr Vaki's suspension.

Mr Vaki told Sunday Chronicle he respected Mr Wagambie's decision to take the matter to court and he would just wait and see.

In the meantime, however, he believes the constabulary needs cohesive leadership at the executive level to assist the commissioner. 

"It therefore calls for team players to be managers for change to bring about dynamic and tangible differences in the way this organization can carry out its duties to the nation.

"I believe I have the physical status, passion and vibrancy of mind to contribute in this context," Mr Vaki said.

He adds he has no other agenda in mind except to simply want to assume office to serve the government and people of this nation.

"The RPNG needs to seek God almighty's redeeming and healing hand...I sincerely believe in this."