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Prime Minister's speech on the ICAC Bill

November 26, 2013, 2:59 am
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Hi all, after the passage of the 2014 Budget this evening the Prime Minister introduced the Bill to set up Independent Commission Against Corruption (ICAC). The first vote passed 92 - 0. It is now adjourned for two months as required by law, before the second vote is taken.

 

Mr Speaker,

Today I present a very important Bill to amend the Constitution to establish the Independent Commission Against Corruption (or ICAC).

Mr. Speaker, when we took office in August 2011, one of the first NEC decisions was to adopt the Anti-Corruption Strategy 2010-2030. This strategy is the first of its kind and sets a clear path way to address corruption and improve good governance.

Mr. Speaker, in November of 2011 NEC approved 11 key actions to be undertaken between 2012 and 2015 to give effect to this Strategy. One of the key actions is the establishment of the Independent Commission Against Corruption.

Mr Speaker, we knew that establishing the ICAC would take time. So the Government moved quickly to establish Taskforce Sweep to deal with immediate instances of corruption.

Mr Speaker, I am pleased to say that significant progress has been made by the Sweep Team. We are on course to seriously improve the integrity of our Country.  

Mr Speaker, today marks the first step in the legislative process to establish the ICAC. The first step is to amend the Constitution to establish the Commission. The full details of the Commission will be included in a new Organic Law.

Mr Speaker, I am planning to bring the Organic Law to Parliament early next year. However, the first thing to do is pass this Constitutional Amendment.   

Mr Speaker, the support of every Member of Parliament in voting for this Bill is a fulfilment of our promise to our people. It is a defining moment; a moment of truth; a moment each and every one of us in this House stand at the mercy of our people to judge us.

Corruption is an insidious crime against our people, Mr. Speaker. If we, as leaders, don't stand up and say no to corruption, who will? This is a noble challenge for us.

But today is an opportunity for every Member of Parliament to take this moral position and say no to corruption by voting for this Bill.

The Bill, Mr. Speaker, has been developed through an extensive public consultative process covering the four regions of the Country. Public servants have had public meetings, been on radio and received numerous written submissions.

From the consultation it was clear that people at all levels in the community overwhelmingly support the establishment of the ICAC as an independent constitutional office. People want ICAC to be free of undue political influence and to undertake its work without fear or favour. They want ICAC to be different from existing anti-corruption institutions. ICAC should be able to receive and initiate investigations on its own accord and prosecute the perpetrators.

Mr. Speaker, this Bill establishes the ICAC and sets out clearly its purpose, functions, powers and accountability.

The purpose of the ICAC is to contribute, in co-operation with other agencies, to preventing, reducing and combating corrupt conduct.

The ICAC will be headed by a Commissioner and two Deputy Commissioners who shall be appointed through an Appointments Committee.

The composition of the Appointments Committee will be provided for in the new Organic Law.

Most importantly, Mr Speaker, the proposed Bill provides that the ICAC is not subject to the direction and control of any person or authority. 

Mr Speaker, once the ICAC becomes operational it will naturally take over the good work that the Sweep Team has been doing.

Mr. Speaker, the ICAC will complement the work of the Ombudsman Commission and the Police. It will not subsume their functions. The Ombudsman Commission will continue to administer the Leadership Code and ensure leaders remain accountable. The Police will continue to carry out their fraud and anti-corruption work supporting the ICAC in the public and private sectors.

Mr Speaker, putting a stop to corruption is everyone's business. Work is currently being done by the Department of Prime Minster & NEC and Justice & Attorney General to embed the message of anti-corruption and good governance in our schools and tertiary institutions. We must educate our youth so they can become better citizens tomorrow.

Mr Speaker, this is not the only anti-corruption initiative of this Government. This Government is also preparing Whistle-blower and Freedom of Information legislation. This will enable people to get access to information and if they make a complaint - they can expect a certain level of protection.

Mr Speaker, I want to encourage every Member of this House not to fear the ICAC but to embrace it as a step in the right direction to reducing the tide of corruption in our Country.

I commend the Bill to the House.

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District authorities to be established

November 26, 2013, 3:06 am
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Parliament this evening voted 92 - 0 to pass a law setting up the District Authority in each districts, replacing the Joint District Budget Planning and Prioritees Committees (JDBPPCs). The Bill was introduced by the Prime Minister. It is in line with his vision to strengthen government at district level, with more funds and resources now allocated to that level, where the bulk of our people live.
 

Second Reading Speech Organic Law on Provincial Governments and Local level Governments(District Development Authority) Law 2013

 

Mr Speaker, I am very pleased to present this amendment Bill. This Bill will amend the Organic Law on Provincial Governments and Local level Governments to create District Development Authorities. This is a significant change to our decentralised system.

Mr Speaker, there have been a number of reforms made to the system of government over the last 40 years. Provincial Government wasintended to serve three important purposes:

-          greater decentralization;

-          locate more decision making with local people; and

-          provide greater co-ordination of development activities at the local level.

The Final Report of the Constitutional Planning Committee considered that the system of Provincial Government would open up new opportunities for our people and enable them to become involvedin determining how their affairs should be conducted.The Provincial Government system would preserve the large and diverse groups within the country. In 1976 an amendment was made to the Constitution to include Provincial Government.

Mr Speaker, in 1976 Papua New Guinea was very different to today. PNG was a brand new independent country struggling to make its mark. Some parts of the country had very little contact with the modern world, life expectancy was low and there was limited education. PNG was a new country embarking on a massive challenge. However, since 1976 there have been a lot of changes.

Mr Speaker, thanks to the policies put in place by this government children now receive fee free education providing them with opportunities that many people in my own generation missed out on. We also have subsidised health care, this Government has made significant commitments to rehabilitating the Port Moresby General Hospital and Angua Hospital.

As times have changed so too has our system of government. The first significant change occurred in 1995 when the Organic Law on Provincial Government and Local level Government was passed.  It gave far greater prominence to Local-level Government and Local-level Government become a responsibility of the National Government. Provincial Constitutions were removed and Provincial Governments effectively became an extension of the National Government.

Mr. Speaker, a system of Provincial and District Treasuries was established which shifted greater financial accountability to provinces and districts where spending decisions were being made.

Provincial, District and Local-level Government development plans were made mandatory and have now become the backbone of provincial development.

Another significant change has been the unprecedented levels of funding now flowing directly to Provincial and Local Level Governments. In 2009, there was significant reform to the Organic Law when a new funding system was introduced. Grants are no longer based on a kina per head formula they are now based on need. Provincial Governments receive grants based on the cost of delivering services in each district and also taking into account the revenues they already have. Those Provinces that need more funding get more and those that need less get less.

Mr. Speaker, grants are now made for specific service delivery activities and must be spent on the minimum priority activities or MPAs. All indications are that Provincial Governments are re prioritizing their spending. We are seeing significant increases in expenditure in health and education.

Mr. Speaker, as a direct response to the cries ofour people in rural areas in the 2013 Budget Provincial Governments and Local Level Governments received significant amounts of development funding for the districts. Each district received K 5 million and each Local level Government received K500 000. Finally money was being paid directly to where it matters the most – districts and Local Level Governments.

Mr. Speaker, we are seeing real development occurring. JDPBC around the country are rehabilitating roads, building foot bridges and purchasing much needed vehicles and equipment for police and other public servants. Just last week I was in Finschaffen for the opening of a multi-purpose office building to house the local bank, post office and district headquarters. The people of Finschaffen have access to essential services. This was built with the support of the local JDBPC using district development funds.

Mr. Speaker, the JDPBC has been so successful that it has outgrown its original design. According to the Organic Law the JDPBC has a largely administrative role, it approves the Local level Government budget and makes recommendations to the Provincial Government on budget allocations and draws up the five year district development plan.

Mr. Speaker, we all know that in reality the JDPBC is doing far more. It is now involved in the implementation of plans and programs at the district level. We need a proper legal framework for it to operate in.

Mr. Speaker, this amendment Bill marks the next step forward. This Bill will replace the JDPBC with a statutory authority, a District Development Authority. The District Development Authority will be chaired by the open member and will have the same membership as the current JDPBC.

Mr. Speaker I will be bringing an ordinary Act of Parliament next year which will provide all the details of the District Development Authority. This means there will be a chance to get the input of all members on how the District Development Authority will operate. At this stage, it is planned that the District Administrator will be the Chief Executive Officer of the Authority and all public servants including police and teachers in the district will come under the control of the Chief Executive Officer.

Mr. Speaker, District Development Authorities will be able to enter contracts and sue and be sued. They will be the legal owners of all equipment purchased. There will be no more confusion about who owns equipment purchased with the DSIP.

Mr. Speaker, this amendment will significantly strengthen districts. The majority of our people live in small villages serviced by the district headquarters. Services are delivered in their location not here in Port Moresby, Lae or Mount Hagen.

Mr. Speaker in order for the country to continue to grow we must take action to strengthen districts. We must return to the original intention as expressed in the CPC – we need to bring government to the people and empower people to make decisions for their own future.

Mr. Speaker,this is a very simple amendment Bill, it will replace the JDPCB with a District Development Authority. The details of the District Development Authority will be provided in an ordinary Act which I will be brining next year. However, the benefits this Bill will bring are enormous and I look forward to having further discussions with members as we finalize the details for this significant initiative.

Mr. Speaker, I commend the Bill to the house.

 
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Mother loses second son in a year after after PNG plane crash

November 27, 2013, 3:58 am
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Radio Australia

The mother of an Australian man killed in a plane crash in Papua New Guinea lost another child earlier this year.
Adam Reid dreamt of becoming a pilot for the Royal Flying Doctor service. (Credit: ABC)

Melbourne man Adam Reid, 38, died when the Cessna Grand Caravan operated by his employer Tropicair crashed in PNG's Gulf province on Monday.
PNG nationals Stanley Kovi and Joyce Kori were also killed in the crash. Six other passengers and the pilot survived.
Mr Reid's older brother Matthew was killed in a head-on collision with a semi-trailer in New South Wales earlier this year.
Their cousin Noel Nealon says the family is devastated, especially their mother Cheryl.
"What do you say to a mother who lost two of her three children that she cherished?" Mr Nealon said.
"All she wanted to be was a mother and to lose them is such a tragedy."
Mr Reid was an observer on the flight and had recently relocated from Melbourne to PNG to get more pilot hours.
Mr Nealon says his cousin dreamt of becoming a pilot for the Royal Flying Doctor Service.
"He wasn't even flying. He was just an air observer in the plane so whether he needed to be there or not, but unfortunately it happened," Mr Nealon said.

Pilot issued mayday call

The CEO of PNG's Accident Investigation Commission, David Inau, says the pilot made a forced landing after experiencing engine trouble.
"The pilot did put out a mayday call and did state that he was having engine problems," he said.
Investigators are today trying to move the submerged wreckage of the plane onto a barge to retrieve the bodies of those killed in the crash.
Tropicair has suspended its operations while an investigation is carried out.
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Peanut boys of Markham a big hit

November 27, 2013, 4:36 am
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Commuters along the Leron Bridge stretch in the Markham Valley will not fail to notice the iconic ‘Peanut Boys of Leron’.
The young men, who come from the nearby villages, sell big bunches of peanuts ranging from K1 to K5 to passers-by on vehicles.

Given that hundreds of people travel along the Highlands Highway every day, between the Highlands and Lae, the peanut boys make a fortune.
“We make a lot of money,” one said.
The ‘Peanut Boys of Leron’ are pictured here on Friday, Nov 15 plying their trade and have become icons, just like the Markham Valley and the nearby Leron River. Words and picture by MALUM NALU
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Once a farmer, always a farmer

November 27, 2013, 4:50 am
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Former Lae MP and well-known banana farmer Bart Philemon was pleasantly surprised when he attended a family gathering between Yanga and Wagang villages on Saturday, Nov 16.
 
His nephew, Ahi Nako (left), showed him a big bunch of bananas, offspring from Philemon’s farm at Malahang outside Lae.
Philemon supplied bananas to supermarkets, resource projects and institutions around the country, and even exported to Australia and New Zealand, before entering politics in 1992 and was a four-time Lae MP until 2012.
Philemon is now on the board of several major companies in life after politics.-Words and picture by MALUM NALU
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Markham Valley lives up to name

November 27, 2013, 5:01 am
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The Markham Valley of Morobe is known as the ‘Food Bowl of PNG’ and Binimamp village, in Kaiapit, is no exception.
The people are prolific gardeners and grow everything they need to eat including bananas (marafri) and taro, as well as fruit such as pineapples and water melons.


They also raise their own pigs and chickens.
Pictured are youngsters from Binimamp loading a vehicle with fresh garden produce on Friday, Nov 15 for a gathering in Lae.-Words and pictures by MALUM NALU
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Lae Roads Watch

November 27, 2013, 6:39 am
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 A picture tells a thousand words...this is the excellent Busu Road between Ampo and Balob Teachers College together with perfect sidewalks which were built by AusAid in 1998-2002 but have stood the test of time. 

Compare that to the recent multi-million kina roadworks which have already started to fall apart.
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Lae Roads Watch

November 27, 2013, 2:21 pm
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 Not only did the Lae roads CONtractors f..k up our roads and steal our money, they even had the audacity and cheek, no bloody sense of respect or history whatsoever, to chop down many of the iconic rain trees of the 'Garden City'. 
Many of the silent sentinels of Lae are now gone forever because of some stupid, money-hungry con artists. 

This is what remains at Markham Road with the golf course on the right,
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Massive fraud in Lae roads

November 30, 2013, 5:18 am
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Source: The National, Friday November 29th, 2013

By MALUM NALU

A DAMNING report on the rehabilitation and upgrading of Lae city roads reveals there was foul play in the awarding of contracts amounting to almost K200 million.
The report by the Works Department, obtained by The National yesterday, reveals that:
  • Four contracts were procured for Stage I amounting to K24.4m; 
  • 12 contracts were procured for Stage II amounting to K104.3m plus variations;
  • An additional K28m was appropriated in 2012 to settle outstanding claims, and,
  • Additional funding of K27.39m is required to complete the remaining balance of work.
The report said the Government only transferred the administration and management of Lae roads rehabilitation and upgrading to the Works Department in August 2012 to ensure the successful completion of ongoing work.
Stage I began in 2009 with contracts given to three construction companies.
“In line with the national government’s aspiration to upgrade the Lae city roads to a standard urban city road status, K50 million was allocated in the 2010 supplementary budget,” the report says.
“By the virtue of the appropriation bill, the funding was allocated to DoW, however, the projects were hijacked at the central agencies and Central Supply and Tenders Board.
A company was engaged as the State’s representative to manage all aspects – design, procurement, project management – of these projects.
“A detailed audit has been undertaken to establish the project financial and physical status,” the report said.
“The audit reveals that 12 contracts were procured, which equates to K104.3 million, including variations.
“The state erred from the beginning by awarding contracts above the K50 million funding appropriation.
An additional K28 million was appropriate in 2012 to settle outstanding claims certified by the company as well as completing the outstanding works under Stage 2.
“Additional funding of K27.39 million is required to complete the remaining balance of work,” it said.
“Most of this outstanding is paid from the K100 million appropriated for 2013.”
The report highlighted that most of these projects were procured under a certificate of inexpediency.
“There was no justification for the expedited procurement for such important projects,” the report said.
“Ample time should be given for proper planning and technical design necessary to make informed investment decisions.
“Consequently, a lot of ambiguities and variations have surfaced. Thus DoW is doing its best to address and conclude these projects."
The company scoped for concrete pavement works, a highly technical task. There was no proper design to guide contractors.
“Most contractors lacked experience in such projects and were not familiar in executing it.
“Inefficiency of unskilled contractors in concrete pavement and buildable design resulted in poor performance and slow progress.
“Engineers’ estimates were unavailable to compare and review the contractor’s prices.
“All contracts were awarded as per contractor’s pricing.
“These prices were further inflated by variations due to poor scoping and design.
“Department of Finance paid over K30million in advance to contractors to commence work.
“Some commenced as expected, however other did not commence until October 2012,” the report said.
“Due to misprocurement, some contracts have been suspended awaiting further instruction from CSTB."
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Implementation a key challenge for 2014 PNG budget - ADB

December 1, 2013, 8:07 pm
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PORT MORESBY, PAPUA NEW GUINEA (2 December, 2013)–Improving the implementation capacity of public agencies to deliver the government's investment plans will be a core challenge for improving service delivery in 2014,according to anew issue of the Asian Development Bank's (ADB) Pacific Economic Monitor (PEM), released today.

 

Thereport, a tri-annual economic review of ADB's Pacific developing member countries, says government funding for health, education, law and order, and infrastructure in Papua New Guinea (PNG) is expected to continue its rapid growth in 2014, increasing by almost 30% over 2013 levels.

 

Underpinning this expenditure growth is an expected 21% increase in domestic revenue collection,stemming partly from planned improvements in tax compliance and enforcement which are expected to bring in an additional K750 million in 2014.

 

The reportsays the 2014 budget projects a fiscal deficit equivalent to 5.9% of GDP in line with the government's Medium Term Fiscal Strategy 2012–2017 and keeping public debt at broadly sustainable levels.

 

"Infrastructure is the biggest winner in the 2014 Budget, with its K2.7billion in funding constituting a 46% increase from 2013. While the government's increasing prioritization of expenditure towards key development enablers of infrastructure, education, health, and law and order is welcome news, the real challenge for 2014 will be one of implementation," said Aaron Batten, ADB's Country Economist in PNG. 

 

For example, although the Department of Works and Implementationreceived a 60% funding increase in 2014,  more than 97% of the increase in funding is for additional capital works, meaning there is limited new funding for the maintenance and operational activities related to these new projects.

 

To maximize the development impact of its budget allocations, a larger focus will need to be placed onrecruiting and training a much larger pool of skilled Papua New Guineans to be able prepare, deliver, and ultimately maintain these new assets.

 

Papua New Guinea joined ADB in 1971. It is ADB's largest partner in the Pacific in terms of loans for public and private sector development.

 

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled $21.6 billion, including cofinancing of $8.3 billion.

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Comedy of errors in Lae roads

December 2, 2013, 4:08 am
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By MALUM NALU
 
There has been a comedy of errors in Lae road designs including concrete pavements, a report released  by Department of Works (DoW) reveals.
The rehabilitation and upgrading of Lae City roads is an on-going project consisting of various stages, with Stage 1 completed and Stage 2 still in progress, and two projects under Stage 3 have commenced.
Dekenai Construction, East West 1, FTM Construction and Lae Engineering procured four contracts for Stage 1 amounting to K24.4 million.
Shorncliffe, Dekenai Construction, Cameron Construction, FTM Construction, East West 1 and R & Sons procured 12 contracts procured for Stage 2 amounting to K104.3 million plus variations.
“There was no proper design and engineer’s estimates initially for all the contracts in Stage 1 and 2,” the report said.
“Also, the rates for existing contracts are quite high.
“The initial scope of works is very poor.
 “In some contracts, bill of quantities (BOQs) is excessive while in others, total opposite.
“Proper procurement process was bypassed to procure these projects.
“The National Executive Council (NEC) condition of contract is new. 
“Most contractors are not familiar with this condition of contract.
“The NEC conformed contract documents have major irregularities and contradictions.
“Examples of such are the appointment and responsibilities of the employer’s representative, the engineer/project manager and the engineer’s representative/supervisor.
“This was not clearly spelt out in the agreement, contract data and in the condition of contract.
“The option of concrete pavement is new in Papua New Guinea.
“Very little or no detailed scope of works, technical drawings, standard works, quality control management plan, environmental management plan and traffic management plan were provided to the contractors in Stages 1 and 2.
“This has delayed the completion of all the projects and seriously impacted the quality of the finished concrete roads.
“Cost blow out is also evident due lack of technical information.”
In stages 1 and 2, projects were managed by NME, Lae City Authority and DOW at various stages and the employers’ representative was Department of Finance (DoF)).
“DOW’s involvement was minimal or nil until August 2012,” the report said.
“These contracts were executed under certificates of inexpediency (COI).
“Mismanagement of the projects under Stage 1 and 2 in design/construction and financial is evident.
“The government directed projects funds to the DOW to manage and execute the remaining works under Stage 2.
“Stage 3 projects were awarded in August 2013.
“Contractors have mobilised on site and commenced works.
“The cost of these two projects is K42million.
“Both projects are programmed to be completed in June 2014.
“Works has commenced and in progress.”
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Port Moresby embarks on K800 million road projects

December 2, 2013, 1:41 pm
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By MALUM NALU
 
Port Moresby has embarked on a massive roads development which will cost up to K800 million, according to city manager Leslie Alu.
He said these projects included the K318 million four-lane arterial road from Poreporena Freeway to 9-Mile by China Harbour Engineering (CHE), K160 million Kookaburra Street to Erima Flyover by Hawkins, K84 million Gordon Industrial Area by Global, K77 million four-lane road from Erima to 9-Mile by Dekenai, K62 million 6-Mile to Jackson Airport road by Hebou, and K52 million Paga ring road by Curtain Bros.
The Kookaburra St – Erima Flyover in 3D from Hawkins. There will be a roundabout underneath at Erima Junction, which is in contractor Dekenai’s scope.
Construction is set to commence in mid January  2014 and ground breaking planned in mid December 2013.-Pictures courtesy of NCDC

Work is already progressing at Gordon Industrial Centre, Erima to 9-Mile, 6-Mile to Jackson Airport, and Paga Ring Road.
Alu said the receipt of the environmental permit from the Department of Environment and Conservation last  Friday would fast track loan approval from the Exim Bank of China for the four-lane arterial road from Poreporena Freeway to 9-Mile.
Construction of the Kookaburra Street – Erima Flyover is set to commence in January 2014 with groundbreaking planned for later this month.
“We haven’t found out whether the Exim Bank has approved the loan or not,” Alu said.
“As soon as they receive the environmental permit, the process will continue.
“It’s one of the conditions of approving the loan.
“As soon as this permit is received by the bank, they’ll approve it.
“Construction should start pending approval by the Exim Bank.
“We anticipate that we should start by February.”
Alu said contractor Hawkins already had the plan for the Kookaburra Street to Erima Flyover in place.
“Hawkins has already started on Kookaburra Street,” he said.
“They’ve just completed geo-technical studies.
“They’ve already got preliminary drawings of what it should look like.”
Alu is keeping his fingers crossed that these two projects will be ready in time for the 2015 Pacific Games.
“They will be completed before the Games start,” he said.
“When the (Exim) bank doesn’t approve the loan, there will be further delays, but we feel that the timing of construction in March 1 next year will be ample time to finish the job.
“We’ve got a time frame and we’re keeping within the time frame.
“The only concern us the Kookaburra road, but I think it will be done on time before the games.”
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Company singled out in Lae roads report

December 2, 2013, 4:48 pm
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By MALUM NALU
A private company NME International (PNG) Ltd has been singled out in a damning Department of Works (DoW) report into rehabilitation and upgrading of Lae city roads, which shows that  there was massive foul play in awarding of contracts amounting to almost K200 million.
The report has been given to Task Force Sweep by DoW to investigate.
The report reveals that four contracts were procured for Stage 1 amounting to K24.4 million,  12 contracts were procured for Stage 2 amounting to K104.3 million plus variations, an additional K28 million was appropriated in 2012 to settle outstanding claims, and additional funding of K27.39 million is require to complete the remaining balance of works.
The government only transferred the administration and management of Lae roads rehabilitation and upgrading to DoW in August 2012 to ensure successful completion of ongoing works.
Stage 1 works commenced in 2009 with contracts given to Dekenai Construction, East-West 1 Ltd, FTM Construction and Lae Engineering Ltd.
“In line with the National Government’s aspiration to upgrade the Lae City Roads to a Standard Urban City Road status, K50 million was allocated in 2010 supplementary budget,” the report says.
“By the virtue of the appropriation bill, the funding was allocated to DoW,  however, the projects were hijacked at the central agencies and Central Supply and Tenders Board (CSTB).
“NME International (PNG) Ltd (NME) was engaged as State’s representative to manage all aspects (design, procurement, project management) of these projects.
“A detailed audit has been undertaken to establish the project financial and physical status.
“The audit reveals that 12 contracts were procured which equates to K104.3 million, including variations.
“The State erred from the beginning by awarding contracts above the K50 million funding appropriation.
“Additional K28 million was appropriate in 2012 to settle outstanding claims certified by NME as well as completing the outstanding works under Stage 2.
“Most of these projects were procured under certificate of inexpediency (COI).
“There was no justification for the expedited procurement for such important projects.
“Ample time should be given for proper planning and technical design necessary to make informed investment decisions.
“Consequently, lot of ambiguities and variations has surfaced, thus DOW is doing its best to address and conclude these projects.
“NME scoped for concrete pavement works, a highly technical task.
“There was no proper design to guide contractors.
“Most contractors lacked experience in such projects and were not familiar in executing it.
“Inefficiency of unskilled contractors in concrete pavement and buildable design resulted in poor performance and slow progress.
“Engineers’ estimates were unavailable to compare and review the contractor’s prices.
“All contracts were awarded as per contractor’s pricing.
“These prices were further inflated by variations due to poor scoping and design.
“Department of Finance (DOF) paid over K30million in advance to contractors to commence work.
“Some commenced as expected, however other did not commence until October 2012.
“Due to misprocurement, some contracts have been suspended awaiting further instruction from CSTB.”
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Lae roads cost K200 million for just 20km

December 2, 2013, 5:04 pm
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By MALUM NALU

A Department of Works (DoW) report into rehabilitation and upgrading of Lae city roads shows almost K200 million has been spent on just 20km of roads, some of which are incomplete and have already started falling apart, from 2009-2012.
In Stage 1 alone, more than K24 million was spent on a little over 4km of roads, while in Stage 2 more than K104 million was spent on a little over 15km of roads.
The rehabilitation and upgrading of Lae City Roads - Stage 1 commenced around 2009.
The DoW was involved in the supervision of the following projects through their provincial establishment in Morobe province:
·         A 1.496km section of Huon Road junction between Milford Haven /Huon Road junction to Huon Road/7th Street junction for K9, 118, 558.87.This project was undertaken by Dekenai Constructions Ltd. This project was physically and financially completed. This project involved reconstructing the road from the sub-base layer to surfacing with double seal coat with asphalt surface finish;
·         A 1.466km section of Huon Road between 7th Street/Huon Road to Huon Road/Markham Road junction for K10, 279, 659.16.This project was undertaken by East – West 1 Ltd and completed both physically and financially although there were some delays and got completed in early 2011.
·         A 1km section of Boundary Road between Highlands Highway/Boundary Road junction to Boundary/Huon Road Junction for K3 million.This project was undertaken by Lae Engineering Contractor Ltd. Although the payments were made in full, physical work was not completed. The work under this project is still outstanding; and
·         A 0.7km section of Huon Road from Boundary Road to Bumbu Road Junction for 2.1km.This portion of works was carried out by FTM Constructions Ltd under the close supervision of Lae City Authority and Gure Kule Konsultants. The supervision was changed to NME Internationals and then to DoW at its final stages.

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Anti-corruption public lecture today

December 4, 2013, 12:12 pm
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The U.S. Embassy will be hosting a visiting speaker from December 2-6, 2013.  
 His name is Robert Cerasoli and he is an expert in anti-corruption, rule of law, ethics, and has experience serving as inspector general in the U.S. government. 
Robert Cerasoli

He will be presenting a public lecture today on the topic: "What does it mean to be an Ethical Public Servant? 

Thursday, December 5, 2013

What does it mean to be an Ethical Public Servant? (1 hour 30 minutes)

Location:   PNG Institute of Public Administration

Time:         2.30PM to 3.30PM

Entry:         Free of Charge

Objective: To discuss the importance of ethics and professionalism in public service and highlight the role civil servants play in advancing democracy at a crucial time for PNG.
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JICA to start repairing rural roads

December 4, 2013, 12:43 pm
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Japan International Cooperation Agency (JICA) will start a K40 million four-year project with the Papua New Guinea government to start repairing selected rural gravel roads in 2014.
JICA chief representative Shigeru Sugiyama on Monday announced the start of the project in Morobe, East Sepik, West New Britain and Western Highlands at a meeting with Department of Works (DoW) secretary, David Wereh, and representatives of Japanese consultants Ingerosec Corporation and Oriental Consultants Co. 
Sugiyama and Wereh at the announcement of the four-year JICA rural roads project yesterday.-Picture by MALUM NALU

The project seeks to assistant PNG, which is facing problems in road maintenance, by carrying out capacity improvement on its implementing agencies.
Through this, it hopes to strengthen to project implementation capacity of the DoW in-house staff in areas where private involvement is not involved.
According to a project overview, of the 8, 738km of roads under the jurisdiction of the DoW, 64%, equivalent to 5, 590km are national gravel roads which are the target of this project.
JICA will provide K32 million which provides for heavy equipment to revive the once-thriving plant and transport branch (PTB) and road building, while PNG will provide counterpart funding of K10 million.
Road sections of 10-20km will be built in the four provinces, meaning up to 80km will be built over the four years.
Sugiyama said research had shown that because of the limited number and excessive costs of domestic private contractors, 90% of the national gravel roads had been left in disrepair in PNG.
“This project seeks to assist PNG in tackling such road maintenance issues by carrying out capacity improvement on its implementing agencies,” he said.
“With the rural communities at the highest disadvantage to date, this project aims to break the hindrances caused by missing links in the main highway networks, and upgrade and maintain deteriorated and impassable national roads.
“With four implementing agencies, four target provinces, this four-year mission intends to strengthen the project implementation capacity of the Dow in-house staff through several crucial activities.”
Wereh gave a vote-of-thanks for the JICA support.
“We appreciate and acknowledge the support that JICA is giving,” he said.
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Maintaining rural roads a massive problem for government

December 4, 2013, 12:54 pm
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Department of Works (DoW) secretary David Wereh on Monday admitted that maintaining rural roads throughout the country is a massive problem for the government.
He made the admission when Japan International Cooperation Agency (JICA) announced it would start a K40 million four-year project with the Papua New Guinea government to start repairing selected rural gravel roads in four provinces in 2014.
“Roads are very important to this country,” Wereh said at a meeting to kick start the project.
“We have about 8,700km of national roads and about 21,000km of provincial roads.
“Trying to manage these roads and keeping them in passable condition is a huge challenge and task for the department that is mandated to upkeep these roads.
“Every year we talk about money.
“It just requires enough resources to ensure that these roads are kept in a passable condition.
“On the back of the roads, we can talk about service delivery, growing the economy and others.
“We at the department were exploring options that can help us to overcome the backlog of issues we have, both on the provincial roads and national roads.”
Wereh said the start of the project marked a milestone as JICA partnered with DoW to refleet the once-thriving plant and transport branch (PTB) that was revived in 2008.
“We’re looking at sustainable maintenance operations, how we can continue to upkeep our roads in both provincial and some sections of the national highways.
“Initially, it will be piloted in the four regional (DoW) offices, and then it will expand out to other provinces and districts throughout the country.
“Roads should always be kept in a passable condition.
“What is happening at the moment is that we are attending to maintenance needs as and when we have funding.
“That’s why we see that sometimes roads are in good condition, sometimes roads are in bad condition.
“Trying to keep roads in better condition is always an issue and a major challenge.
“We believe that the partnership that JICA and we (DoW) are going into should provide some sustainable maintenance programmes on some of the key roads throughout the country.”
The project in Morobe, East Sepik, West New Britain and Western Highlands seeks to assist PNG, which is facing problems in road maintenance, by carrying out capacity improvement on its implementing agencies.
JICA will provide K32 million which provides for heavy equipment to revive the once-thriving plant and transport branch (PTB) and road building, while PNG will provide counterpart funding of K10 million.
Road sections of 10-20km will be built in the four provinces, meaning up to 80km will be built over the four years.
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Task Force Swep signs agreement with Australian Federal Police

December 4, 2013, 1:45 pm
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Task Force Sweep on Tuesday evening signed a historic agreement with Australian Federal Police to share information, resources and conduct investigations on cross-border corruption issues of matters of mutual interest between the two countries.
Chairman of Task Force Sweep Sam Koim signed the memorandum of understanding with AFP Assistant Commissioner Ramsey Jabbour at the residence of Australian High Commissioner to PNG Deborah Stokes.
Koim and Jabbour sign the agreement on Tuesday evening.-Picture by MALUM NALU

“I understand that there are a lot of MOUs and agreements like this that are signed with customs, immigration, police,” Koim said.
“They are involved in an issue that is affecting this country very much – and that is corruption.
“There’s still a lot of work, but finally we’ve signed it, and it sets the precedent for something big to come.
“I believe that this agreement will help us to combat corruption and a number of cross-border issues that we face.”
Jabbour said he was looking forward to working closely with Task Force Sweep and other law-enforcement agencies in PNG to combat all forms of transnational crime.
“I think it makes good sense that we work closely on matters of mutual interest and we help to protect each other’s nations and secure them for our families, our children and for future generations,” he said.
“It’s actually my pleasure to have been able to sign the MOU because I’m actually looking forward to the AFP having a close working relationship with Task Force Sweep.”
Stokes said it was a milestone agreement between Australia and PNG.
“This will take cooperation with Task Force Sweep to a new level and it’s something that we’ve been talking about for a while,” he said.
“It’s good to see it come to pass this evening.
“I’d like to congratulate Task Force Sweep and the prosecution office for this achievement – a very heartening development in PNG and your good friends in Australia.”
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Prime Minister satisfied with progress in fight against corruption

December 5, 2013, 1:38 pm
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This is the Prime Minister's statement in full so you are entitled to bellieve it or not:

Prime Minister Peter O’Neill said yesterday he was satisfied that Papua New Guinea has made significant progress in the fight against corruption.
“I’m pleased with what we have achieved, in the fight to stem corruption, since 2011. Much of the stride we have made may not be noticeable, and may not please everyone, but that will not deter us from our commitment,” Mr O’Neill said.
He said high investor confidence, sound management of the economy, building infrastructure for better service delivery, and improving business environment were the hallmarks of a country that is dealing decisively with its development issues, including fighting corruption.
“Against this backdrop, I must say that I am disappointed with PNG’s rating on the Corruption Perceptions Index 2013. Obviously those who influence this perception rating may have a certain bias in the way our government has addressed some issues in the last 12 months.
“But let me assure the people of Papua New Guinea that the government will take this rating as an encouragement to do more to fight this evil of corruption.”
Since being elected Prime Minister, the government under O’Neill’s leadership has:

·      Approved the National Anti-Corruption Strategy which has won the approval of the United Nations;

·     Set up a National Anti-Corruption Task Force which is now implementing the Strategy;

·     Set up Task Force SWEEP headed by Sam Koim which is investigating and prosecuting corrupt practices in the public sector;
·     ordered a high level investigation into massive fraud and corruption in the Finance Department, which has resulted in a clean out of the department, and prosecution of certain individuals involved;

·     Introduced the ICAC Bill in Parliament which passed the first vote with an overwhelming majority; supporting legislations to protect whistle blowers and ensure freedom of information will be introduced when the ICAC Bill faces the second vote next year; 

·     Ordered a review of certain contracts with prices which were deemed as excessive;

·     Frozen all illegally/improperly acquired land leases (SABLs) following a commission of inquiry, and appointing a task force to review the process; and


·     Reviewed the entire public procurement process with the inclusion of independent assessors, for the first time, to allow more transparency and accountability in the process, and speed up delivery time.


The Prime Minister said: “These are some of the measures we have taken as a government to improve governance, and enhance transparency and accountability in our systems and processes. No-one can accuse us of doing nothing.”

He said there was a lot of debate and discussions in the mainstream and social media about corruption.

“The use of these forums for discussions and debates is healthy. Most of these discussions are sensible and useful in the cause, while some are baseless innuendos which we all can do without.

“It is important to remember that fighting corruption is not just the government’s business; it’s everyone’s business. We all have a role to play to rid our country of corruption,” the Prime Minister said.
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Top Australian radio jock visits PNG

December 5, 2013, 1:47 pm
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By MALUM NALU

A top Australian radio presenter who has close links with Papua New Guinea is impressed at relations between the two countries.
Radio Australia breakfast show presenter Phillip Kafcaloudes, who is here for the 40th anniversary of National Broadcasting Commission (NBC), said he was surprised at the amount of goodwill Papua New Guineans showed towards Australia.
Kafcaloudes interviewing PNG’s oldest surviving journalist Biga Lebasi outside The National office on Wednesday.-Picture by MALUM NALU

“I would have thought that there wasn’t good will towards Australia,” he said.
“Look at sports here - rugby league, rugby union, cricket, netball, even AFL and soccer - all the sports that Australia loves, PNG loves.
“What I hear also is that if Australia is playing some other country, people go for Australia.
“I’m really surprised by that.
“I thought they’d say ‘we were a colony of yours, get out and leave us alone.”
“But everywhere, there seems to be goodwill towards Australia.”
Kafcaloudes said despite all the negativity about PNG, the people were completely different.
 “On the surface you see people who are remarkably happy, given all these other issues,” he said.
“I find that very surprising, but that’s probably the perception we get overseas that PNG is dangerous, or that PNG in general has a real corruption issue.
“The fact that people are as happy as they seem to be and are welcoming says a lot about PNG people, despite all the problems they’ve got.”
This is Kafcaloloudes' second time in PNG, having first been here 11 years ago as a journalism trainer at Divine Word University in Madang.
He has joined in celebrations this week at NBC including being a guest presenter and interviewing some of the famous voices like current managing director Memafu Kapera and Justin Kili.
 “It’s fascinating to go into the same studios that they had 40 years ago,” Kafcaloudes said,
“Equipment is much newer but the place is the same building: the ABC.
“I was talking to the managing director of the NBC, losing money
“From what I saw, the presenters were very lively, were very interested, I was very impressed.
“And I was very impressed with the entire media organisations.
“I know there are issues with training of journalists, it’s hard, especially when there was so much training 30 years ago or so.
“I’ve been reading the papers and the quality and the freedom of the media is there.
“It’s good, very good.”
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