PNG News Updates and SME Marketing

03/04/2023

To: Mr Tonny Maben & Others.

" Without prejudice"

To my esteem friend, your close proximity to James Marape will cloud any objective analysis on the fiscal interventions your PM is making. I dont blame you but respect your views and will take your comments with a grain of salt.

A lot more lives are being lost and truth telling has become a scarse commodity and here in the land of the unexpected, lies and more lies has become the o***m of the masses.

Just a few pointers.

Marape is a good man without the politics, just like O'Neill but the fiscal policy he is peddling is seriously flawed. It is sad, we find Marape deeply mirred in this very toxic stew served by PNC. There must be a better way, unfortunately the policy cabinet appears to be empty, so the begging bowl gets bigger and bigger every year.

Debt and Deficit as a fiscal tool was flawed since 2011 and has become a contagion. Marape has made it more nobler after 2019. If you a fed something you are familiar with, its possible that you will serve the same stew. A leopard does not change its spot, it may sound genuiene, or patriotic but all the same, is still a leopard.

What good is average GDP growth of 3 - 4% from 2019 when you have a systemic cash flow problems accentuated by a ballooning debt burden. The real question is who will pay for this debt and if so, for how long?

Balancing the budget in 2027 and paying off soverign debt in 2034 appears to be sketchy. Who makes such an outrageous claim when cost to public service is almost 10% of GDP or 3% of the entire 2023 budget and growing with more hiring in the public service.

A small proportion of wages tax as income has been removed as a consequence of the tax break climbing to a new threshold of K200,000 per annum. So where will the substitute income lost come from?

Debt and deficit is a stupid fiscal tool and only execebates the misallocation of capital. So how does Debt to GDP ratio below the bandwith of 60% under the adjusted FRA.

08/12/2022

11/09/2022

25/08/2022

Female MP Kessy Sawang On PNG Cabinet Ministerial Appointments

25/8/2022

​One of the two female Members of PNG Parliament has explained the appointments of the ministers. Ms Kessy, Member of Raikos says ''It is the prerogative of the Prime Minister, James Marape to appoint ministers based on merit.
This was the response from a female parliamentarian and member of Raicoast, Kessy Sawang on the question of the lack of gender equality in the distribution of Ministerial portfolio in the current Government.
PNG FACTS

Female MP Kessy Sawang On PNG Cabinet Ministerial Appointments

25/8/2022





​One of the two female Members of PNG Parliament has explained the appointments of the ministers. Ms Kessy, Member of Raikos says ''It is the prerogative of the Prime Minister, James Marape to appoint ministers based on merit.
This was the response from a female parliamentarian and member of Raicoast, Kessy Sawang on the question of the lack of gender equality in the distribution of Ministerial portfolio in the current Government.

Ms. Sawang also told NBC News, that her party, People's First Party has already given a Ministry based on the three is to one ratio agreement of the coalition Government.'

'The first and foremost thing that we must understand is that it is the prerogative of the prime minister to make ministerial appointments and with the size of the parliament with now 118 seats you can imagine, it must have been pretty tough for him (PM) to make those tough decision and as he had said people really get appointed based on merits and best fit for the respective jobs.
''I come from the People's First Party and we have 4 members of Parliament and our party has an agreement with the rest of the coalition partners and I think the ministries are given 3 is to one so on that ratio we have our party leader who has been given a ministry,'' said Sawang.

25/08/2022

PNGUT Welcomes Kramer As Labour Minister.

The recent appointment of PNG Labour and Immigration Minister Bryan Kramer, has been welcomed by the PNG Trade Union, and its affiliated unions, and their members throughout the country.
PNGTUC General Secretary Clemence Kanau, in a statement said that Mr. Kramer as a second term MP, and a learned person, has the experience and fair knowledge of labour related issues in the country.

Mr. Kanau said that the Unions, Industrial Organizations and associations representing their workers are looking forward to working with Mr Kramer, as the Minister responsible, in this PANGU Pati led government.
He said that there are many adverse issues affecting workers in the country, the most glaring one is the rising cost of inflation, which has resulted in price increases of goods and services.

Mr Kanau also said the PNGTUC is willing to propose to the Minister, to seek Cabinet approval of the institutional and conventions of the Minimum Wages Board, to review the Minimum Wages rates, Organisational Health and Safety Law, and Review Industrial Organization Act.

25/08/2022

BSP Financial Group has taken disciplinary actions against staff who have been asking customers for commissions for processing loan papers.

21/08/2022

PNG PM Welcomes Signing of Porgera Shareholding Agreement

byStaff-Thursday, August 18, 2022

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Papua New Guinea Prime Minister James Marape has welcomed the signing of the Porgera Gold Mine shareholder agreement by Enga Provincial Government-owned Mineral Resources Enga (MRE) and landowners in Port Moresby today (August 18 2022).

He said it was a “milestone achievement” towards reopening of the Porgera mine which has been closed since 2019.

“The long-overdue reopening of the Porgera Gold Mine is finally in sight following today’s milestone achievement,” PM Marape said.

“I thank Enga Provincial Government, particularly Governor Hon. Sir Peter Ipatas, and Porgera landowners, led by their leader Nixon Mangape, for making this possible, “Today’s agreement paves the way for the Development Forum and progression towards mine reopening at the earliest.”

17/08/2022

PNG Needs A Citizens Initiative As Our Constitution Harbours Corruption

16/3/2022



PNG’s copy-paste constitution adopted from the British and Australians is still in its colonial form, wielding more powers to the rulers. Whatsoever the incumbent individuals prefer becomes the final solution.

The PM’s post is typically occupied by a leading party in parliament, while the Ministry cabinets are shared among its affiliated party leaders under a common-understanding. So when the PM wants to ensure its demands are met, a direct call is made to the respective ministries to eventuate its missions.

The PM remains the chairman to NEC and so calls the shots in every circumstance despite hindrances. The PM, through procedural-protocols, reserves the right to hire and fire whoever that is beneath the atmosphere of the government. This system has proceeded and facilitates the PM to be a systematic dictator.
The elected ministers, commissioners, managing directors, CEOs, the Vice-Chancellors and the Ombudsman have all been entangled by a strain of string attached to the government of the day. The final recommendations made to anoint them is mandatorily done by the NEC.

How can PNG rely on the Ombudsman Commission when it is in fact selected and appointed by the NEC? People under the NEC’s reliance-sphere are frequently engaged to uphold the highly-sensitive office. And when functional, they honour and execute the NEC’s ambitions. Failure to follow orders would lead to removal of powers and a new official is substituted with an aim to empower the NEC after all.
This process is evident in every prestigious institution that usually provides the standardized operations for our nation.

Therefore, we need a direct voice in parliament to guide our welfare. PNG must establish a mechanism such as the Citizens Initiative, which will consist of legal-voters who will have direct influence in parliament.

Petrus GAND
Anti-Corruption-Activist

17/08/2022

PNG PRIME Minister James Marape has urged the people to give Pangu Pati another five years in Government and see what the party can do for the country.
Marape, who is also the party leader, said Pangu had given political independence to Papua New Guinea in 1975, and now wanted to give people economic independence.
We’ve had just three years as a government, give us another five years and see what we can do, if we fail to deliver then you can vote us out in 2027,” he said.

He made this statement while in Iokea, Gulf, to show support for Pangu’s Kerema open candidate Thomas Opa.
Marape reiterated that Pangu was standing for economic independence.
We don’t just want to talk about education, health, and infrastructure; we want to give our people the economic independence they deserve.
“When Pangu first became the government, we strived to take back PNG and we have strived to give our people economic independence.
“We have made agriculture a priority, coffee was around K3.50 per kilo, today coffee price has risen to K12.50 per kilo.
The National / PNG Economy Watch

17/08/2022

Posted By Staff Reporter

PNG On Economic Life-Support

20/6/2022



OPPOSITION Leader and Vanimo Green River MP Belden Namah (PNG Party) says Papua New Guinea (PNG)’s foreign exchange nose-dived significantly in 12 years under the governments of Peter O’Neill (People’s National Party) and James Marape (Pangu Pati).
“Our country’s debt-to-gross domestic product now stands at 52 per cent and our borrowing threshold has been raised to 65 per cent which means we will keep on borrowing,” he said.
“After 12 years in the Opposition, I promise Papua New Guineans a different kind of leadership as prime minister,” he added.
“I have been properly refined to lead PNG now.

“Under O’Neill, PNG amassed a debt of K26 billion which further increased to K53 billion under Marape.
“That means PNG borrowed a total of K27 billion in just the last three years.
“But the funds were not invested in export-driven infrastructure to see positive returns for the country.
“PNG is now on economic life-support.
“To the people of Morobe, I am here to collect numbers and form the next Government after General Election 2022 (GE22) to bring positive changes.”
Namah spoke at an election rally in Eriku Oval on Friday.
He announced the 11 PNG party candidates for all 10 districts of Morobe and the regional seat and highlighted his party’s agenda.
Namah stressed: “There is no other formula or magic to economic independence but through God which is the approach my leadership will take.
“We will amend the Constitution to have 10 per cent of the National Budgets going towards church-run institutions and services like schools and health centres, and we will work from the bottom-up, focusing on the development of rural sectors like agriculture.
“We will introduce a National Service concept to have every student out of Grade 12 to undergo military training, which should address the attitude problem in our youths and remove lawlessness that is rampant in the country.

17/08/2022

Perform Or You'll Be Kicked Out, Marape Tells Underperforming Departmental And Agency Heads
PNG Prime Minister James Marape

DEPARTMENT and agency heads who delay the implementation of economic recovery measures will be removed, says PNG Prime Minister James Marape.
Marape said the Government had addressed inflation during the last Parliament and had passed a K611 million budget to support the economy but a slow bureaucracy had meant recovery measures were not as effective.
He said some of the measures had included the fuel subsidy, the removal of goods and services tax on essential food items, the payment of school project fees and lowering of income tax .
“This was supposed to be implemented by the public service, but unfortunately when we went to election, they went on holidays or they probably thought Pangu Pati wasn’t coming back ,” he said.
Marape said department and agency heads who had dragged their feet would be kicked out.
Meanwhile, Marape also called on Mineral Resources Enga to sit with government agencies and sort out legacy issues and start talks so that the Porgera mine could be re-opened.
The longer you delay, the more it is eating up your 15 per cent.
“We have already approved a K7 million infrastructure grant that also includes resettlement for the people, let’s work together,” he said. Marape said that the Wafi-Golpu project was in its final stages of preparation and would start soon and the Papua LNG was set to start operating in 2024.

17/08/2022

Prices Of Goods And Services In PNG To Increase. Photo by pngfacts.com

​Papua New Guinea is expected to see the prices of consumer goods increase by 12 per cent and 20 per cent as businesses try to offset increasing costs, PNG Manufacturers Council told local newspaper, The National.
Council chief executive officer Chey Scovell says the increase in prices of goods was driven by the increased costs that businesses could no longer afford to absorb. He said fees for Government services such as licensing and permits had also increased “astronomically”.
“There has been no increase in service, no increase in productivity, no increase in enforcement, however costs are soaring and businesses have no option but to pay,” he said.

“Local manufacturers are doing their best to maintain their employees despite a flat market and increasing costs. Typically from Independence Day to Christmas, there is an upswing in consumer spending, acknowledging the market conditions many manufacturers had downgraded expectation leading into Independence Day.
“Of concern was that despite lowered expectations, actual sales were still less and there has been no increase as we go into year’s end.
“Weaker than expected sales and sharp increases in operational costs have put businesses under a lot of pressure.”
He said only electricity rates had not been increased for years.
“The increases in costs for clearing of cargo via ports has far outstripped inflation, in particular across the international terminals,” he added.
“The cost for stevedoring in our international ports has been head-spinning. Worsening law and order has also increased the costs of doing businesses.
“Our police force is under-resourced, the absence of employment opportunities for our youth, the absence of coordinated programmes to get them earning coupled with a severely under-resourced enforcement effort, it’s predictable that businesses and citizens will be subject to lawlessness.”

17/08/2022

Let’s build PNG together, says Marape

August 17, 2022The NationalNational

PRIME Minister James Marape has called on the citizens to work with the new government in building the nation.
Marape said that as the 2022 General Election (GE22) concluded, his Government would continue its work of developing and building the country and needed the support of the people.
“To the public servant, you must look beyond your fortnight and do what is within your sphere of responsibilities to do and strive to be significant and I quote, ‘Ask not what your country can do for you, but rather what you can do for your country’,” he said.
“To the ordinary citizen, what good is a road to your village if you prefer to sit on the road and watch cars go by without tilling the land?
“To the students, what good is a new classroom if you are not prepared to apply yourself to reach your fullest potential?”
Marape said that in the next three years before the country celebrated its 50 years of independence and nationhood, “we must set a path and define our future as a country.”
“Are we willing to do the hard yards and stand for real change, or are we content to just sit back and watch others do the hard yards while we complain about the misfortunes that come to us?” he said.
“The challenge is on this body of leaders is to commit and deliver for our people, and for our collective citizens to respond and help take this country forward.
“We all represent the vastness of this country, from the Highlands, to the islands, from Mamose to the Southern shores of this great land, one people, one nation and one country under God.
“It is our responsibility to deliver a better, safer, wealthier Papua New Guinea to our children and their children.”
Marape also called on both sides of the house to work with his government to deal with the important policy initiatives that they (government) had outlined.
“All of us have been mandated to deal with important challenges before us.

17/08/2022

17/08/2022

🙌🏻

17/08/2022

By STAFF REPORTERS
AN investigation will be conducted into the “main players” in the Union Bank of Switzerland (UBS) K3 billion loan deal, says Prime Minister James Marape.
He said the Government would set up a team of investigators to also look into the UBS and Oil Search Limited. The team will include Transparency International.
The investigation will focus on the K30 million-Commission of Inquiry into the UBS loan report which was tabled in and accepted by Parliament last week.
Marape said the K30mil spent on the commission to collect evidence was “big money”.
“I didn’t spend it for academic or a political exercise,” he said.
“I had a view that it was illegal and not done correctly.”
The team will study the commission’s findings and recommend “who to bring to court, police or leadership tribunal”.
Marape is also considering taking the UBS to court plus the “consultants involved” in the loan deal.
“We want to claim for damages,” he said.
“To take to court the players involved is one aspect, but the bigger (focus is) on reclaiming the money PNG lost.
“That’s why I used the word restitution.
“I have already written to Australia because the transaction happened through the (UBS) Australian branch.”
Marape said the commission of inquiry report accepted by parliament last week, had recommended that former prime minister Peter O’Neill be prosecuted for giving false information to a commission of inquiry, and be referred to the Independent Commission against Corruption.
O’Neill said last week: “I am here today and I will not be going into hiding or walk away.
“I will stand and face it (any action taken against him).”
The report also recommended that O’Neill, and then Treasury secretary Dairi Vele, be both referred to the Leadership Tribunal.
It stated that O’Neill was “centrally responsible” for the UBS loan, and that Vele was “indispensable in assisting him in that endeavour”.
The commission was chaired by former chief justice, Sir Salamo Injia.

17/08/2022

By REBECCA KUKU
PRIME Minister James Marape says those implicated in the controversial K3 billion Union Bank of Switzerland (UBS) loan will be criminally prosecuted.
“We will also be implementing the recommendations of the commission of inquiry into the UBS loan. This will set the precedent for the future,” Marape said.
“Any transaction done by a prime minister, ministers or state secretary is a public transaction because our country is a democracy.
“If people demand answers, we must give them answers and this applies to my government too. If in the future, people demand answers for our decisions or transactions, we must give them answers and allow them to scrutinise us,” he added.
Marape spoke at the presentation of the inquiry report yesterday by inquiry chairman and former chief justice, Sir Salamo Injia.
The inquiry, costing about K30 million, was established by Marape in 2019 shortly after he assumed office.
The probe into the UBS loan secured by the Peter O’Neill government in 2014 to buy shares in Oil Search Ltd lasted about two years.
The probe sought to establish facts surrounding the whole transaction, including all persons and entities involved in the deal, and whether or not the deal followed proper and legal process and procedures. The 15-volume report was completed on March 31 and was with inquiry commissioner Margaret White who was in Brisbane.
The report was brought in this week and presented in two suitcases.
Marape said the report would be made available to all MPs in the next and last sitting of Parliament and then to the public. Meanwhile, former prime minister Peter O’Neill said Marape should wait until the report was tabled in Parliament and only Parliament can act on its recommendations.
“It is not for Marape to act as he has been hell bent on politicking the inquiry from the beginning,” O’Neill said.
“He has consistently undermined the inquiry by making unfounded claims that the transaction was illegal.

17/08/2022

By BOURA GORUKILA
FORMER Prime Minister Peter O’Neill is questioning why key people who knew well the background to the K3 billion loan from the Union Bank of Switzerland (UBS) are now denying any knowledge of it.
He told the Commission of Inquiry into the K3 billion loan acquired in 2014 that cabinet ministers and senior executives were all aware of the transaction.
O’Neill was responding to counsel assisting the inquiry Dr James Renwick that the commission had received evidence from some ministers and former ministers that most of them were blindsided by the quantity and complexity of information about the UBS deal on March 6.
O’Neill said: “It surprises me to hear that some of them who gave evidence claimed to be unaware of the transaction. I cannot believe that they were been left in the dark.
“The same personality involved in the Ipic (International Petroleum Investment Company) transaction were involved in the UBS transaction.”
He said it was interesting to see that they “lose their memory very quickly”.
“Those who are in the Ipic committee to negotiate the loan and buy back shares which includes all senior executives, state solicitor, treasury (department) secretary, BPNG governor, IPBC managing director are all in the committee. So I cannot believe that they are not aware of the transactions.
“I think it’s just cowardly that they are able to walk from this thinking, that it’s politically convenient for them.”
He said people were aware of the magnitude of the transaction.
“The ministers who were tasked to supervise this transaction are aware of the details,” O Neill said.
“They had financial advisers and legal advisers who were attached to the departments and to the committee to guide them through. So to assume that they are not aware is not quite true.”
O’Neill said the Union Bank of Switzerland (UBS) transaction and the desire to refinance Ipic exchangeable bond was driven by the Government and reflected in the National Executive decisions from 2012 to 2014

17/08/2022

O’Neill questions inquirycommission’s credibility

FORMER prime minister Peter O’Neill has questioned the credibility of the commission of inquiry into the United Bank of Switzerland (UBS) K3 billion loan, saying it was also the most expensive ever in the country.
He called the three-year inquiry, costing K30 million, a political witch-hunt, with a lack of independence in appointing the commissioners from day one.
He also questioned the timing of the tabling in Parliament of the commission’s report “just 10 days from the writs being issued”.
He said: “The report says that I am responsible for the UBS loan.
“That is correct.
“I am responsible and have never shied away from my responsibility in this regard.
“I fulfilled my role as prime minister and head of Cabinet.
“But I am disappointed that the (commission of inquiry) has been highly politicised with regular public commentary made by Prime Minister James Marape encouraging some negative findings against me.”
O’Neill said the commission had been “influenced by gossip, and the investigations done were personalised with an unwarranted level of scrutiny of private individuals and private companies”.
“Nothing was found despite the intensive investigations.”
According to the report, O’Neill was “centrally responsible for the UBS loan and should be prosecuted for giving false evidence to the commission, and must be referred to the Independent Commission Against Corruption (ICAC)”.
But O’Neill said there could a “serious conflict of interest” as the chief commissioner and (commission) chairman had been replaced as chief justice by his government.
“He has now chosen to believe the word of unreliable witness, infamous Jimmy Maladina, against my testimony and has subsequently recommended that I be referred to ICAC,” O’Neill said.
“I intend to test this in court because there is no collaborating evidence to support the claim by Maladina that he was a witness to an alleged meeting of some sort.”

17/08/2022

By REBECCA KUKU, LULU MARK and LULU MAGINDE
THE Union Bank of Switzerland (UBS) Australia overcharged the PNG Government by AU$175 million (about K464 million) which must be reimbursed to the State, it has been revealed.
Prime Minister James Marape revealed this in Parliament yesterday when tabling the Commission of Inquiry report on the UBS K3 billion loan in 2014.
Marape said the inquiry found that the then government led by his predecessor Peter O’Neill had failed to follow proper processes, “coupled with the speed with which complex documentation was produced meant no one within the public service understood the overcharging of the State by UBS”.
“The UBS loan had no satisfactory justification or rationale,” he said.
“It declared that there was no strategic interest in obtaining new Oil Search shares in 2014.
“In addition to its sizable fee of AU$28.4 million (about K73 million), UBS also benefitted from the refinancing of the collar loan in December 2014 and February 2016, and from the ultimate sale of the shares in September 2017.
“Its total overcharging amounts to AU$175 million, and should be made to repay the amount.”
Marape said the lawyers retained by the State did not advise it properly of the potential conflict of interests and how to manage them.
He said the officer responsible for the NEC policy submission “failed to set out the downside to the proposal and the false statement that the then treasurer agreed to the submission contents”.
“The then prime minister knew the submission was complex and lengthy but did not provide the NEC advance notice or the real opportunity to debate the submission during the meeting,” he added.
“The meeting lasted less than an hour.

17/08/2022

DID THE MARAPE-ROSSO GOVERNMENT CAUSE THE INFLATION?

: The short answer is NO!

■BACKGROUND

Inflation is an economic term which refers to rise in prices of goods and services in an economy (a country). In PNG, there are current concerns raised on the increasing prices of goods and services. We note that the concerns are genuine. The concerns have been amplified on media platforms by a few with vested interests.

We have also noted that as soon as the Tari-Pori MP, James Marape was unanimously re-elected as the 8th Prime Minister on Tuesday 9th, August 2022, the debate on inflation in the country has been making its rounds on social media. One can tell that the political interest was pursued to throw mud at the new coalition government. It has been politically motivated.

■TYPES OF INFLATION:

There are four types of inflation. They are:

1. Cost-push inflation

High cost of raw materials used in the production of goods and services impacts their retail prices.

2. Demand-Push inflation

When the supply of goods and services does not meet the high customer demand.

3. Imported inflation

As an export-dependent country like PNG, inflation in the producer countries is passed onto the consumer country via the import (buying from other countries) of goods and services.

4. Built-in inflation

Increased wages demanded by workers to meet high cost of living are passed onto the customers in form of higher prices of goods and services.

With the types of inflation highlighted, the Bank of PNG attributed the current inflationary pressure to Covid-19 Pandemic and other impacts of the Russia-Ukrainian War induced economic sanctions and trade restrictions.

Thus, we are convinced that the inflation has not been caused by any doing of Marape-Rosso Government. It is imported from producer countries.

■IMPACTS OF INFLATION

Inflation inpacts our exports which become expensive at global markets.

It reduces purchasing power of citizens' disposable incomes.

It also harms imports and savings as well.

■SOLUTIONS TO MANAGE INFLATION

1. Fiscal Policy-Higher income tax is a relieving strategy to control inflation but the left and the right sides of the equation do not balance as it inpacts savings.

2. Monetary policy-The Central Bank (BPNG) has already intervened with high interest rate policy but will impact economic growth negatively.

3. Wage or price controls- in theory, it works but in reality, this strategy is not effective.

4. Money supply control-The general election expenses have also contributed to the inflationary pressure in a small way. Thus, controlling money supply helps to manage it.

5. Increased Supply policies-Competition must be encouraged amongst rival companies to the advantage of customers.

■WHAT DID THE GOVERNMENT DO TO CONTROL INFLATION:

The Marape-led Government intervened with price subsidy on specific goods like fuel and rice to name the two.

There has not been much capital expenditure when the government is in power because all its revenues were used to repay bad loan accumulated by the past regime.

■CONCLUSION

Whilst waiting for the new coalition government for more solutions, we-as citizens-can also provide short-term solutions to control inflation. Tough times call for tough measures. We cannot ask what PNG can do for us but ask what we can do for PNG to liberate ourselves from this economic problem.

Let us:

1. Cut down on lavish spending;

2. Live within our means;

3. Cut down on pokies and other gambling;

4. Cut down on bad habits like chewing betal nut, smoking, drinking alcohol etc...

5. Cut down on outdoor meals.

16/08/2022

1. "If the farmer is rich, then so is the nation.”

2. “To a farmer dirt is not a waste, it is wealth.”

3. “A farmer is a magician who produces money from the mud.”

4. “The ultimate goal of farming is not the growing of crops, but the cultivation and perfection of human beings.”

5. “The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.”

6. “When tillage begins, other arts follow. The farmers, therefore, are the founders of human civilization.”

7. “Farming looks mighty easy when your plow is a pencil and you’re a thousand miles from the corn field.