Kerebi DAVID

With the ongoing issue faced by Puma Energy and its latest notice to reduce the size of its operations and fuel supply proportionate in the country, Exxon Mobil affiliates has put its hand up and has shown commitment to supply fuel to the country. For the past 102 years an ExxonMobil affiliate, Mobil Oil New Guinea Limited, has reliably supplied quality fuels and lubricants to Papua New Guinea. Chairperson and Managing Director of ExxonMobil PNG, Tera Shandro said its current fuel supply operations are normal as they primarily come from ExxonMobil’s world class refinery in Singapore. “Today, ExxonMobil and its affiliate companies’ commitment to Papua New Guinea remain firm.” “We are actively collaborating with the PNG Government to increase our imports of fuel products into the country and look forward to working with our customers on their fuel needs.”

Puma Energy is taking a step to reduce the size of its operations and fuel supply proportionate to the capacity of its remaining banking channels. As part of this process, Puma Energy has begun to issue termination notices to customers and will aim to negotiate contract with new terms for lower volumes. In the meantime, remaining fuel stock in PNG will be allocated to emergency services and critical infrastructure as a priority until a long term, viable solution can be put in place to return the business to its full scale. Puma Energy’s decision to reduce its business in PNG comes after careful consideration and extensive engagement with various government stakeholders, including the Bank of Papua New Guinea (BPNG) to find a long-term and sustainable banking solution. Puma has exhausted all currently available avenues to maintain the full scale of their operations, and they also need to suspend their previously planned US$159M growth investment program. Given the imminent fuel shortage that will inevitably result from the reduction of their operations, Puma once again urges the government to form a task force with the utmost urgency to ensure the country can continue to be supplied with fuel and to minimize the impact on communities and the economy. Despite Puma Energy ‘s reduced business, they remain committed to PNG and will continue to work with various government entities to find both long- term and short- term solutions. Since year 2024, Puma Energy has been a committed partner in PNG, investing significantly in its operations to improve energy security, affordability, and access across the country. During this period Puma employed over 500 direct skills workers and created over 2,500 indirect jobs in PNG through its supply chain. The Puma Energy group works with over 50 banks around the world to support its operations across more than 30 countries worldwide, and these banks include some of the most stringent and globally recognized financial institutions.

Former Prime Minister, and Member for Ialibu Pangia, Peter O’Neill, highlighted the series of questions he asked Prime Minister today on the floor of parliament relating to the Connect PNG Project. This was said during a brief conference today held by the Opposition. O’Neill said he tabled the Integrated Financial Management System payments totalling to almost K1.96 billion of contracts and payments made to various companies and institutions and asked PM Marape to disclose his relationship with the company owners.  O’Neill expressed disappointment that PM James Marape in his usual manner had tried to deflect and avoid the question on the floor of parliament, trying to make it seem as if it is irrelevant to the nation’s well being. “I am sure the company records I mentioned today will reveal that these people are known to the Prime Minister and to the Minister for Works and they are very close to them,” O’Neill said. “We are talking about hundreds of millions of Kina, amounts unheard of in PNG.” O’Neill added that Marape has confirmed that his government did issue up to K7 billion under the Connect PNG Program, but he failed to answer O’Neil’s questions regarding the Connect PNG Project contractors. He further added that the Opposition is not afraid to indicate the names and if the contractors feel upset about it then they can go to court for this. “But the records will speak for itself on what we tabled today, and we will publish all this reports in the public forum for public consumption.”  O’Neill further stated that this Connect PNG Project is a scam, and it is not going to go away. “This is a scam; therefore, we will continue to highlight the irregularities of the approval of contracts and the approval of payments that the government is making.”  “Skilfully the government is making payments to contracts under K10million to avoid scrutineer.”  O’Neill expressed concern that if other members of the parliament think this is a joke, then, these members are in the wrong place and are not protecting the interest of the people of this country. “Prime Minister must be honest, truthful and be factual because the K1.93 billion is almost 10% of the country’s actual budget.”

The case of prominent lawyer Paul Paraka, slapped with a 20-year prison sentence by the National Court for misappropriating K162million of State monies, has been labelled as “biggest scandal in Papua New Guinea”. Former Attorney-General Kerenga Kua, who recently held the portfolio of Petroleum Minister in the Marape-Rosso Government, stated this in an exclusive interview with PNG HAUSBUNG. Paraka was sentenced on October 2023, and transported immediately to Bomana Correctional prison just after his sentence. He is the owner of one of the oldest Papua New Guinea (PNG) law firms, which at one time was the biggest and most prestige in the country. Kua, who resigned from Marape’s government side, stated that it is unfortunate that the court had no power to make orders for restitution of the huge sum of State monies misappropriated. Kua said he first initiated the investigation into the Paraka case when he was Attorney-General. Consequently he was fired as the Attorney General for the actions he took in relation to Paraka. Kua said the case then came to a standstill, with no progress on the case until recently, which Paraka being sentenced. Kua further stated it is a scandal that Paraka was paid as an outside legal contractor in which the payment process was implemented through people in the government at the political level for leadership and at the bureaucratic level. Kua also said that it was disappointing that those who facilitated and colluded to ensure Paraka received the huge sum of monies have not been arrested yet, except for Mr. Jacob Yafai, then Deputy Secretary of the Finance Department. Yafai was responsible for the payments made to Paul Paraka law firm. He faced four misappropriation charges; four charges of conspiracy and fraud; four charges of corruption; and four charges of abuse of office. “Yafai represented the administration level, but what about the political heads who were involved?” Kua asked. “What about the people who issued the orders and why have they not been arrested yet?” Kua also queried why political facilitators and ministers involved have not been arrested, including the current Prime Minister (PM), James Marape. He claimed that Marape had written a letter directing these payments. Kua further queried why the Police Commissioner, David Manning, who was appointed in 2019, did not conduct a full investigation into all parties involved. “Why has he suppressed this for 5 years and counting?” “The police Commissioner has got a lot to answer to the people of this country regarding the Paraka Scandal.” “If I am wrong, the Police Commissioner has to prove me wrong openly, otherwise Manning better start doing what he has to do.” Kua added that the conviction and sentencing of Paraka was evidence enough to do a proper investigation. He went on to highlight three (3) components to the Paraka scandal: Facilitators- Administrators and Political leaders who were involved this is Paraka scandal; Recipient- Paul Paraka (The middle person); and Beneficiaries – Big group of people who benefitted from the proceeds of this K162million. He said the question still remains in doubt as to who these beneficiaries are; the investigation is still incomplete. He stressed that Paraka, whilst in prison already, needs to answer who he invested the money in because there is no investment under Paul Paraka’s name, so clearly some people have benefitted from these money and the names need to be put out. “The beneficiaries – (politicians and or administrators) need to be named, arrests need to be made and all these beneficiaries from it must all go to trial.” “The country needs to know who got the money (K162 Million belonging to the State) and benefitted from it because it is the people’s money.” "That is a big incomplete story that needs to be completed.” Kua added that Mr. Manning needs to be an independent Police Commissioner and do his job, and complete this investigation.  

The eastern parts of New Ireland Province were recently hit hard by high surges of King tides around mid January this year and has caused massive destructions to villages along the coastline. New Ireland Provincial Disaster Manager Mr Terence Taisa confirmed this, stating that this is the 3rd biggest disaster to hit New Ireland Province in recent years. Mr Taisa said due to Climate change effects, Island provinces have been the most affected and New Ireland province was hit with drought, typhoon and now king tides and it is very sad because there is basically no disaster plan in place for New Ireland to deal with such natural disasters. Locals have lost their homes, gardens, classrooms, roads and almost everything is under water, and this is a very difficult time for the people of East Coast, especially Namatanai and Kavieng Districts because everyone was not prepared for this disaster. Mr Taisa told PNG HAUSBUNG that a Disaster Committee was appointed to carry out assessment on the destruction and to provide report to the Provincial Administrator (PA) this week, however a meeting with the PA this week did not eventuate because the PA was caught up in other business and did not sit down with the Disaster Committee. “Based on the summary of the reports the members got on ground we can assess and deliberate on what actions to take however this could not take place because our PA was busy with other provincial affairs.” “If the meeting with the PA eventuated, I was looking at bringing up Development budget for disaster including the structure and disaster plan but sadly it turned out to be otherwise.” Taisa added that since independence New Ireland Provincial Disaster Office has never had a Disaster emergency plan in place that works online with the National Disaster Risk Framework so basically there is no direction when disaster strikes. He further stated that the Provincial Government has not step in to help with the cover for relief supplies and disaster assessment work and as left all the work to the District Level to help in this matter. As per the media report from the New Ireland Government News, New Ireland Governor Julius Chan stated that the Provincial Government is not in a financially capable position after it’s Provincial Budget was cut by the former treasurer by K40 million. Governor Chan added that with New Ireland having two senior Ministers they should be the first point of call when these types of disasters strike, because They know very well his government has been stripped off of K40 Million that would have helped to assist in times like this. Since 2021 a total of K124 million in royalties has been paid directly to the District Development Authorities of the two Districts and that is K49 million each and with no major impact projects on the ground including no financial reports sent to the Provincial Executive Council from the DDA’s two districts. With the royalties the two MP’s have access to, they need to have proper development policies in place to contribute meaningfully to the wellbeing of all New Irelanders. Right now, the Kavieng Redcross Branch Volunteers including other local volunteers are donating relief items to people affected by the king tides, like canvases, cooking and eating utensils, water containers, towels, blankets, ropes and spades and other basic necessities to help them get back on their feet.

Prime Minister and Treasurer James Marape had revealed that the National Treasury has approved K519.8 million budgets for East New Britain Province this week. Governor Marum and his administrators submitted the budget last Friday, 02nd February 2024 and the budget was approved on Monday 05 February 2024, by Prime Minister Marape as Minister for Treasury, pursuant to Section 141 of the Organic Law on Provincial and Local Level Government. The budget totals K519, 816,185 with the highest allocation to Infrastructure development at nearly 38 percent of the budget. The general break-up into areas is as follows: Infrastructure – K196.8 million (37.8%), Education – K152.9 million (29.4%), Economic – K52.7 million (10.1%), Administration – K51.9 million (9.9%), Health – K33.5 million (K6.4%), and Social and Law & Order – K33.8 million (6.1%). Out of these, the provincial government will work with K274 million, District Development Authority will handle K206.8 million, and Local Level Governments, K38.8 million. National Government grants total K196,832,600 broken into Operational – K146.8 million and the Capital –of K50 million with the rolled over from the previous years is K12.3 million. Internal Revenue stands at K65 million. Prime Minister Marape commended the provincial government for raising its internal revenue and for maintaining its standard in service delivery. “I commend Governor Michael Marum and his provincial administration for submitting their budget, for working hard to raise their internal revenue and for maintaining East New Britain’s standard in service delivery.” “The National Government looks forward to working with them to expand more development throughout the province.” Marape also highlighted that the government will develop Tokua airport precinct and include a four-lane road to Kokopo, upgrade Kokopo-Rabaul highway and rename it Namaliu Highway in honor of late former prime minister. “We will also upgrade Pomio road, complete the east-west New Britain highway, upgrade the provincial hospital, and develop the East New Britain Special Economic Zone,” said PM Marape.

The Kokopo Omorong Fisheries Project in East New Britain has successfully progressed into the next phase of development, focusing on the detailed design of onshore facilities and infrastructures. With the successful progress, the National Fisheries Authority (NFA) signed a Project Consultancy Agreement with Amidal Management Limited on Monday this week (Jan 29). This agreement marks a crucial step forward in the implementation of the Kokopo Omorong Fisheries. The signing ceremony was witnessed by Deputy Provincial Administrator for Districts and LLGs, Mr Nicholas Larme, Chairman of the NFA Board, Mr Laurie William, other board members and senior officers from both NFA and East New Britain Provincial Administration. Mr David Amos, Managing Director and Consultant of Amidal Management Limited, presented a comprehensive work plan. During the event the NFA Managing Director Mr Justin Ilakani in his remarks emphasized the importance of the province taking ownership of the project and providing counter-funding support. He highlighted the need for collaboration between the NFA and ENBPA to ensure the successful implementation of projects outlined in the ENBPG/NFA Memorandum of Agreement (MOA). Deputy PA Mr Larme responded by affirming the commitment of the ENB Provincial Government to support the fisheries impact projects under the MOA. “This milestone signifies a significant step towards the realization of ENB’s vision for sustainable fisheries development.” Mr Larme also stated these projects are integral to the province’s long term development plan, as outlined in the ENB Sustainable Development Plan 2023 – 20233. “To demonstrate this commitment, the ENBPG through ENBPA will allocate funds as counter-funding support under the Development Grant.” Mr Larme further expressed his enthusiasm for the progress made in the project, stating it is a crucial initiative for ENB as it is not only promoting sustainable fisheries development but also provides opportunities for economic growth and job creation for the people. “The development of onshore facilities and infrastructure will enhance the province’s ability to process and market fisheries products, opening up new opportunities for local businesses and contributing to the economic growth of East New Britain.”

The students and teachers of Holy Rosary Primary School, at 6 Mile, NCD kicked off their 2024 academic year on a very high note on Monday 29th January, which saw the students commencing their classes with access to a refurbished ablution block, thanks to BSP Life PNG Limited. Through BSP’s Community Project, BSP Life PNG – the life insurance arm of the business, refurbished the school’s ablution block while the students were away on 2023 end of year break. Prior to this, all students were accessing the girls’ ablution block which highlights the urgent need for improvement. BSP Life PNG Country Manager, Nilson Singh and his BSP Life PNG team handed back the completed project to the school as they commence their 2024 classes. “It is with immense gratitude and pride that I stand before you today because at BSP Life, we recognize the transformative power of education, we believe that every child deserves access to a safe learning environment, and it is our responsibility as corporate citizens to support initiatives that promote this cause,” Mr Singh said. “This (BSP 2023 Community) project is not only about meeting a critical need but also reflects BSP’s core values.” “Through our partnership with Holy Rosary Primary School, we demonstrate our unwavering commitment to making a positive difference in the lives of those we serve,” he added. BSP Community Projects is undertaken annually nationwide by our Branches, Strategic Business Units (SBUs), and Subsidiary Branches, and are a testament to BSP’ commitment to giving back to the community. “Focused on Education, Health, Sports, Environment, and other community initiatives, these projects embody our values of compassion, integrity, and community engagement.” The teachers and students at Holy Rosary Primary School were thankful to BSP Life for the assistance. Headmistress Ms Gethrude Bade in her appreciation speech to BSP stated that the ablution block was one of their critical needs. Ms Bade highlighted that the school was about to bring to the attention of the NCD Education board, the state of their facility but BSP came at a proper time to their assistance. “It’s a huge relief for the school because male students can now have access to their own toilets instead of using the girl’s toilets and Teachers will also have access to their own toilets.” “This facility will go a long way for our 1,700 plus students,” said Ms Bade.

Prime Minister and Treasurer Hon. James Marape on Monday welcomed the positive update from New Porgera Ltd (NPL) regarding the Porgera mine's reopening. He conveyed his satisfaction with the announcement that the restart of Porgera is well underway and on schedule, with the first gold production expected in the first quarter of 2024. Expressing his appreciation for the concerted efforts of all parties involved, Prime Minister Marape stated that he wants to assure Papua New Guinea that Porgera mine is fully operational now, with first gold production underway. “This announcement by NPL not only signifies a pivotal phase in the Porgera mine's reopening but also underscores the government's resolve to ensure fair and substantial returns from natural resources for all stakeholders involved.” He also commended Barrick Niugini Ltd for its exemplary leadership in reinstating the operational status of the mine. “The mine being operational once more is testament to the negotiations between a world super major, Barrick Gold Corporation, and the National Government under the theme of ‘Taking Back More from Our Natural Resources’.” Marape reflected on the past arrangement of the Special Mining Lease (SML) 1, retired in 2020, where Papua New Guinea held a minimal stake and detailed the enhanced terms of the new agreement, stating that under the new arrangement, landowners and the Enga Provincial Government will have 15 per cent equity, 3 per cent royalties, and there will be no tax holidays by the mine. He emphasised the improved distribution of the project's benefits, with Papua New Guinea receiving 53 per cent and investor partners 47 per cent. Highlighting the financial implications of the project, Marape further noted the valuation of NPL and the potential for the State's share to be repaid within a promising timeframe, due to favourable market conditions. He gave emphasis to the strategy for financial contribution and recovery, explaining that the State, through Kumul Minerals Holdings Ltd, contributed no cash for equity and will repay through earnings from its share. He reassured landowners of the government's dedication to inclusive and constructive dialogue, as demonstrated by the planned Landowners Consultative Forum in Wabag. Furthermore, Marape emphasised the commitment to addressing stakeholder concerns and equitable benefit distribution. “All position papers that have been received will be packaged and we will come and meet the landowners – either in late February or early March – and we will start negotiations on the split in total benefits for all stakeholders.”

New Porgera Limited (NPL) is pleased to announce that the restart of Porgera Mine is progressing well and is on track. First gold production is expected to be achieved in Q1 2024, as planned, and it is also subject to the Highlands Highway continuing to remain open with no further vandalism of project infrastructure. NPL General Manager, Chad Coulin, acknowledged the tremendous effort made by the NPL workforce and the support of the regulator and the Mineral Resources Authority to restart Porgera mine in compliance with the laws of Papua New Guinea (PNG). Following completion under the Porgera Project Commencement Agreement (PPCA) on 22 December 2023, the NPL team has stepped up and delivered outstandingly towards getting back into full production in Q3 as required by the PPCA. The critical path to full production is re-standing or replacing relevant towers along the Hides Transmission Line. In 2024 for the Porgera mine operations, there will be a spend of K2.7B (US$749m) (est.), which is divided between K1.6B (US$442m) of direct operating costs (including K613m (US$174m) that will be capitalized prior to restart) and K1.1B (US$308m) of capital. The expected export revenue from Porgera gold sales in 2024 is K1.8B (US$504m) which will assist in boosting PNG’s foreign exchange reserves and expenditure on PNG sourced goods and services are estimated to be over K600m during 2024. Over 3,000 Papua New Guineans will be employed by NPL by the end of 2024 with a payroll for the year of K150m (US$42.6m). Royalties which will be paid to landowners and the Enga Provincial Government, with the 0.5% production levy to Mineral Resources Authority will amount to K63.4m (US$18m). Withholding taxes and custom duties payable to the National Government are estimated to be K28.2m (US$8m) for 2024. NPL has already commenced payment of K4.6m in outstanding compensation fees for the period that Porgera was in Care & Maintenance and will shortly commence negotiation of the long-term compensation agreements with landholder agents. The sharing and division of project benefits such as equity and royalties among stakeholders, will be agreed at the Government managed Development Forum process and be recorded in a Porgera Project Community Development Agreement that NPL will be a party to. Under the Community Development Agreement, NPL will contribute through the Tax Credit Scheme to relevant infrastructure projects in the areas of health, education, roads and law and order. Law and order continue to be a challenge and NPL calls for all stakeholders to support restart operations by contributing to peace in the valley with no further vandalism of critical infrastructure.

A young private entrepreneur and community leader in Port Moresby, Mr Ben Dangima has called on the National Government to dig deeper into the current socio-economic facing the nation and urge them to solve it through appropriate policies and legislation amendment in Parliament. A concerned Ben Dangima stated that he was frantically sad to witness the unfolding of protest by disciplinary forces, unprecedented looting, riot in the nation’s capital that resulted in civilian deaths and loss of business the runs into billions of Kina, last week. He added that the Public Servants play an important role in implementing the National Government policies in serving the state and its citizens. Their needs in salaries and remunerations must be properly taken care of through the appropriate administrative procedures to ensure future incident of such magnitude does not happen again. “Our disciplinary forces, teachers, doctors, nurses, engineers, accountants and other professionals serving in the public service by virtue of law are entitle to appropriate salaries that must not be tempered while current inflation and rising cost of living are putting extra pressure on them." “We have economic challenges that are the root cause of the outburst of the many upraising of social misbehaviours in our societies." “Port Moresby city population has grown to over one million since 1975, and the continuous migration of urban drift is because people are looking for a better life in the city thus this has also put government under stress to provide better public utilities, job creations and revenue making." Dangima further stated that it is a time bomb we are facing now, with mass youths remaining idle without opportunities and not engaging in commerce and business activities. Mr Dangima said that as responsible constitutional office holders, particularly the city hall that is responsible for taking care of its city residents, they have not done enough to address the socio- economic problems that have been building up and have now spilled out over time. He is now urging the city planners to seriously do an analysis assessment on the recent confusion and incorporate better plan to assist our struggling populace and the business communities in the private sectors and the public service. Dangima further explained that the National Capital District usually get a highest GST share annually and its revenues are about 9 times the average of all the Provincial government despite having a very narrow range of expenditure responsibilities. “NCD’s revenue is also very high compared to other large towns in PNG, therefore its important they are accountable to the use of all public funding; thus, it must be equitably distributed for the residents’ benefits." “While it is their regulatory responsibilities to provide municipal services and manage the city affairs, the needs of our simple people who are providing mass labour, doing small entrepreneurs, living in the settlements and in Motu Koitabuan villages must be met, everyone in the Nations Capital needs a fair share of benefits." When people are hungry and do not have enough money to buy food and survive, they sort to illegal activities and its time we must embrace respect, bring back safety and confidence to our city. "We are a nation of thousand tribes, we have survived as a sovereign nation in the last 48 years, this is our country, and we must continue to build our development aspiration with positive attributes, better policies and legislations." “It’s time now that the National Government need to put the interest of our people first and get the economic policies advisors heads and agencies rolling to create more revenue, address unemployment, address inflation, address foreign exchange issues and the devaluation of Kina that has contributed to the high cost of living in Papua New Guinea.”

The Bank South Pacific wishes to clarify key facts regarding media reports about Puma Energy’s decision to lo close its account with BSP, dated Monday 22nd January 2024. Bank South Pacific (BSP) in a statement today said that they had given Puma a 90 days’ notice to close its company account on 9th June 2023 BSP states that the reasons for BSP’s decision are known to the Bank of Papua New Guinea and the Financial Analysis and Supervision Unit and have been communicated to the Government. At the request of the Government, BSP extended the deadline to 8 March 2024 therefore Puma’s account with BSP is currently operational. However, by 8 March 2024, Puma will have had nine months to act responsibly, and make alternate banking arrangements. BSP Group CEO Mark Robinson highlighted that BSP has complied with all State of Emergency Orders and has given Puma over seven months to secure alternate banking arrangements. “This is more than ample time, and currently the customer has the capacity to operate their company accounts with BSP, but this will end in March.” “We will work with Puma, like any customer, to facilitate a smooth transition to alternate banking facilities."