Corruption in Tari Pori District & Hela Transitional Authority

Original Source: http://www.pngblogs.com/2011/04/massive-corruption-in-tari-pori.html

This Letter was addressed to the Prime Minister, DPM, Finance Minister and other relevant authorities for intervention in the newly created Hela Province.

MASSIVE CORRUPTION IN TARI PORI DISTRICT & HELA TRANSITIONAL AUTHORITY

This open letter is produced on behalf of all the peace loving women, children and youth of Tari Pori District. Enough is enough, we are fed up of our MP for not bringing any development to our areas. We are not his fools telling us to form youth groups and think and behave like youths (liklik pikininis). We are adults and as responsible adults, we are standing up to fight corruption in our land.

Please help us if you believe in helping children, women and youth. Please help us if your position exists to help the poor and suffering. Just visit our electorate, talk the district officials, physically inspect any projects being done, and go through their books. You will discover that Tari/Pori is rotten and stinks with corruption. Please get the message out there and expose corruption for what it is.

1.       Lack of Services in Tari Pori District

In the Hela Province to be, there are many positive changes taking place in Koroba/Kopiago and Komo/Magarima districts. However this is not the case in Tari Pori district. It is stagnant and the K17 million DSIP already handed down by Waigani has nothing to show for on the ground. We call on immediate and urgent investigation into the books of Tari Pori district by the authorities.

Many changes happening Tari Pori are initiated by the Governor Agiru and the Southern Highlands Provincial Government, but absolutely nothing by the Tari Pori MP and his district administration.

The district administrator David Takirako and District Treasurer Marago Dagoba must be questioned and fully investigated.

2.       Tari Pori District Treasurer, Mr. Marago Dagoba

2.1   The people in Tari Pori district knows that Mr. David Takirako is a passive player in the developments of the district. The MP only uses him to sign the district’s cheques.

2.2   The key player in facilitating corruption in the district is the district treasurer, Mr. Marago Dagoba. He served the former MP Tom Tomiabe as well.

2.3   We are attaching his bank statements (period 2005 to 2010) to demonstrate the level of corruption and his style of operation in both Tom Tomiabe and James Marabe’s reign. His BSP account # is 1000905367.

2.4   His bank statements show that he withdrew his monies on a daily basis from Mt Hagen, mainly in Juma and Goldline Lodges for accommodation, alcohol and pokies. He has been operating out of Hagen while the MPs operate out of Port Moresby. They only come to the district to withdraw money.

2.5   It interesting to note that between 2005 and mid 2007 (during Tomiabe’s reign) his cash withdrawal and cash deposits were minimal. But cash withdrawal and deposit figures started increasing exponentially when he was serving MP Marabe. This is because of increased funding into the districts in this term of Parliament.

2.6   Here are some examples:-

(i)                  21/12/07 – Cash deposit -  K11,800

(ii)                24/12/07 – Cash withdrawal - K10,700

(iii)               04/01/08 – Cash withdrawal - K5,200

(iv)              29/01/08 – Cheque deposit K17,300    Cheque from BSP acct # 1001317228, this account for Pai Mara Holdings, a company owned by John Tipa. Mr. Tipa is stunt supporter of James Marabe & Tari town manager). In here John is paying Marago his commission for awarding a contract to Pai Mara Holdings.

(v)                27/03/08 – Cash deposit K7,500

(vi)              17/05/08 – cheque deposit K7,000  (cheque from Tari Pori ope acc)

(vii)             24/07/08 – cash deposit K6,000

(viii)           08/08/08 – cash deposit K25,000    (from BSP acc# 1000905367, this is Marago’ another account)

(ix)              08/08/08 – cash deposit K5,000

(x)                11/09/08 – cheque deposit & cash withdrawal K80,000 (from acc# 1000931776, same day clearance. This BSP account is for Tari Pori district treasury)

(xi)              13/10/08 – cash deposit K6,100

(xii)             20/11/08 – cheque deposit  K51,000

(xiii)           11/12/08 – cheque K6,200 (Tari Pori DSIP)

(xiv)           05/01/09 – cheque deposit & cash withdrawal K30,000 (cheque from 1000931776)

(xv)            16/01/09 – cheque deposit & cash withdrawal K40,000 (cheque from 1000931776)

(xvi)           18/02/09 – cheque deposit K10,000, cash withdrawal K9,500) cheque from acc # 1000931776)

(xvii)         16/04/09 - cheque deposit & cash withdrawal K16,000 (cheque from 1000931776)

(xviii)        5/05/09 – cheque deposit K10,000, cash withdrawal K6,000) cheque from acc # 1000931776)

(xix)           1/06/09 - cheque deposit & cash withdrawal K30,000 (cheque from 1000931776)

(xx)            3/06/09 – cheque deposit K11,000, cash withdrawal K1,000 and K4,000) cheque from acc # 1000585280)

(xxi)           20/07/09 - cheque deposit K8,000 & cash withdrawal K3,000 (cheque from 1000931776)

(xxii)         30/07/09 - cheque deposit & cash withdrawal K33,500 (cheque from DSIP)

(xxiii)        12/08/09 - cash deposit K5,900

(xxiv)       14/08/09 – cheque deposit K3,000 (from DSIP)

(xxv)         01/09/09 – deposit K20,000 (transferred from BSP Acc # 1001475728. This account for Ipwenz Construction Ltd, a company owned by Moses Palibe. Here, Moses is paying Marago his commission for whatever contract was awarded to his company.

(xxvi)       01/09/09 – cash withdraw K15,000 and K5,000

(xxvii)      08/09/09 - cheque deposit & cash withdrawal K20,000 (cheque from 1000931776)

(xxviii)    08/09/09 – cash withdraw K10,000

(xxix)       28/09/09 – cash deposit K9,300

(xxx)         29/09/09 - cheque deposit & cash withdrawal K10,000 (cheque from 1000931776)

(xxxi)       6/10/09 – cash deposit K23,760

(xxxii)      7/10/09 – cheque deposit K16,000, cash withdraw K14,000

(xxxiii)    7/10/09 – cheque deposit K7,500

(xxxiv)    8/10/09 – cash deposit K4,850

(xxxv)     12/10/09 – cash withdraw K15,000 and also K24,175

(xxxvi)    21/10/09 - cheque deposit & cash withdrawal K50,000 (cheque from 1000931776)

(xxxvii)  21/10/09 – cash deposit K1,000

(xxxviii) 27/10/09 – cash deposit K6,500 and also K1,200

(xxxix)    9/11/09 - cheque deposit K25,000 & cash withdrawal K15,000 (cheque from 1000931776)

(xl)              9/11/09 – cash withdraw K24,125

(xli)             12/11/09 – cash deposit K10,500

(xlii)           17/11/09 - cheque deposit K500,000 & cash withdrawal K500,000 (cheque from 1000931776)  - same day clearance

(xliii)          14/12/09 - cheque deposit K37,500 & cash withdrawal K15,000 (cheque from 1000931776)

(xliv)         16/12/09 – cheque deposit K19,000 (DSIP) and cash withdrw K7,000

(xlv)           21/12/09 – cash withdrw K15,000

(xlvi)         22/12/09 – cash withdrw K4,000

(xlvii)        4/01/10 – deposit K50,000

(xlviii)      4/01/10 – cheque deposit K260,000 (from 1000931776)

(xlix)         4/01/10 – cash withdraw K310,000

(l)                  3/02/10 – cheque deposit and cash withdrw K10,000 (from 1000931776)

(li)                24/02/10 – deposit K17,305

(lii)               18/03/10 – cheque deposit K38,000 (from 1000931776)

(liii)             18/03/10 – cash withdrw K15,000 and K19,000

(liv)             25/03/10 – cheque deposit K40,000 and cash withdraw K15,000

(lv)              25/03/10 – cash withdrawal K19,000

(lvi)             1/04/10 – cheque deposit and cash withdraw K90,000 (from 1000931776)

(lvii)           16/04/10 – Cheque deposit K25,000 and cash withdrw K15,000

(lviii)        23/04/10 – cheque deposit and cash withdraw K500,000 (cheq from 1000931776)     - what a massive cash? For who and what for?

(lix)             28/05/10 - cheque deposit and cash withdraw K300,000 (cheq from 1000931776)

(lx)              28/05/10 – cash deposit K12,000

(lxi)             7/07/10 – cheque deposit and cash withdraw K42,000

(lxii)           13/07/10 - cheque deposit and cash withdraw K62,000

(lxiii)          8/10/10 – cheque deposit and cash withdrw K150,000

(Copies of actual transactions held for security reasons)

3.       Tari Pori Development Corporation Ltd

3.1   In mid 2008 the Tari Pori MP and Education Minister announced and launched in Tari the Tari Pori Development Corporation Ltd as the business arm of Tari Pori District.

3.2   This company was established without a JDPBPC resolution. If there exists one now then it was concocted for cover up purposes. The MP and the Presidents know the truth.

3.3   The Shareholders of the Company are Timon Awari and Tayago Hamano. The shareholders of this public company should be the President (LLG Head) of each of the Local Level Governments (LLGs) in the Tari Pori District. So the people of Tari Pori were being fooled big time.

3.4   Both Timon and Tayago are key supporters of the current MP. Timon is still one of the ministerial staff of Minister Marabe. If he is not now then he must have been removed to cover up but the records at PM’s Ministerial Services will show it.

3.5   This company owns machines such as excavators, dozers, graders, and trucks. The company’s yard at the MP’s village in Paipele. The yard also houses a service station, also owned by the company.

3.6   The banking transactions are attached. The BSP account # 1001416049. Funds totaling to millions of kina were being transferred from the district account, still without any JDPBPC resolutions, to this company privately owned by Timon and Tayago. This is a classic corruption under false pretence.

3.7   It is the clear that the company is owned and controlled by the MP himself using Timon and Tayago.

3.8   The proceeds from the company are never declared to the presidents in any JDPBPC meeting. Things were kept secret and private.

(Appendix and copies of these information held back for security reasons)

4.       Paipeli Technical High School

The land for this school was bought by the Southern highlands provincial government (SHPG). Also, SHPG built the 2 storey double classroom there. Minister Marabe, being the education minister got the highest RESI funds totaling K13.5 million. Who got the contracts and where are the school infrastructure built with this money? The district administrator and treasurer must be questioned.

Minister Marabe also allocated K700,000 of the Hela Transitional Authority for this school. Why is that after it received abundant funds from national government? What happened to that K700,000?

5.       Tari Pori Market

Under the national governments district market program, Tari Pori district got K2.5 million to build its market on 30 July 2008. To date there is no market project done with this money? It is rumoured that the contractor and the Minister colluded and misused the money. An investigation in this matter is still pending.

The contractor is Selpriz (PNG) Ltd. The copy of the cheque is attached.

(Copy of cheque held back for security reasons)

6.       National Agriculture Development Program (NADP)

Under this program Tari Pori got some cows but we heard that the cows are all in Mendi under the care and ownership of his cousin brother Moses Palipe. Why in Mendi? Minister Marabe is partly related to Subiri people in Mendi and that where he is hiding the cows. What a shame and misapplication of projects?

7.       Moses Palipe – what is his position within Tari Pori District?

7.1   Moses Palipe is the cousin brother of MP Marabe and he is his key cohort. Prior to mid 2007 he was only an employee with oil search ltd. After Marabe’s victory, just look at how his cashflow has increased and improved dramatically.

(i)                  29/05/08 – cheque deposit K36,000

(ii)                30/05/08 – cash withdrw K16,000

(iii)               3/06/08 – cash withdrw K15,000

(iv)              7/10/08 – cheque deposit and cash withdrw K26,178.76

(v)                13/11/08 – cheque deposit K5,000 (from Ipwenz constructions Ltd)

(vi)              26/11/08 - cheque deposit K10,000 (from Ipwenz constructions Ltd)

(vii)             31/12/08 – cheque deposit K300,000 (from 1000585280)

(viii)           7/01/09 – cash withdrw K285,000

(ix)              9/01/09 – cash withdrw K5,000

(x)                9/01/09 – cash deposit K9,000

(xi)              16/02/09 – cheque deposit K21,000 and cash withdrw K10,000

(xii)             20/08/09 – cheque deposit & cash withdrw K15,000  (from BSP Acc # 10001475728, Ipwenz Construction Ltd)

(xiii)           1/09/09 – cheque deposit K15,000

(xiv)           7/10/09 – cheque deposit K15,000

(xv)            11/12/09 – cheque deposit K19,000

(xvi)           4/01/10 – cheque deposit K20,000 (from Ipwenz construction)

(xvii)         8/02/10 – cheque deposit K31,000 (from acc# 1001475728)

(xviii)        17/03/10 – cheque deposit K20,000 (from Ipwenz construction)

(xix)           7/06 /10 – cheque deposit K25,000

(xx)            15/06/10 – cheque deposit K50,000

(xxi)           10/08/10 – cheque deposit K100,000 (from Tari Pori District acc)

(xxii)         10/08/10 – cash withdraw K40,000

(xxiii)        12/08/10 – deposited K60,000 into acc # 1000448594. This account is for Timon Awari.

(xxiv)       1/09/10 – cheque deposit K15,000 (from Ipwenz)

7.2   Mr Palipe must be on the SHPG Payroll as the district affairs officer for Tari Pori.

7.3   He is also the sole owner of Ipwenz Construction Ltd. He is running his company whilst at the same time collecting his salary from SHPG. This is corruption.

(Actual Copies of these information held back for security reasons)

8.       Ipwenz Construction Ltd

8.1   IPA records show that Moses Palipe is the shareholder of this company. The BSP bank statements attached also confirms that. He is the sole signatory to the account numbered 1001475728.

8.2   This company was established only in 2009. Some of the classic transactions are:-

(i)                  4/11/08 – cheque deposit K295,000 (from Tari Pori district account)

(ii)                7/11/08 – wrote cheque for K50,000

(iii)               18/11/08 – cashed K170,000 by moses palipe

(iv)              26/11/08 – transferred K10,000 to Moses palipe’s acc # 1000441493

(v)                27/11/08 – cash K50,000

(vi)              19/01/09 – cheque deposit K200,000 (cheque from Tari pori district acc)

(vii)             29/01/09 – cashed K120,000 by Moses Palipe

(viii)           24/02/09 – cashed K10,000 by Steven Temo

(ix)              5/03/09 – cashed K20,000 by Moses Palipe

(x)                12/03/09 – cashed K18,000

(xi)              18/03/09 – cheque deposit K150,000 (from Tari Pori acc)

(xii)             30/03/09 – cashed K3,000

(xiii)           3/04/09 – cashed K20,000

(xiv)           6/04/09 – cashed K20,000

(xv)            15/04/09 – cashed K16,000

(xvi)           1/05/09 – cashed K5,000

(xvii)         11/05/09 – cashed K15,000

(xviii)        9/06/09 – cashed K10,000

(xix)           17/06/09 – cashed K19,000

(xx)            21/07/09 - Cheque deposit K110,000

(xxi)           21/07/09 – cashed K105,000

(xxii)         30/07/09 – cheque deposit K550,000 (Tari Pori DSIP cheq#46)

(xxiii)        30/07/09 – K33,500 transferred from 1000905367

(xxiv)       20/08/09 – cashed K34,000

(xxv)         1/09/09 – cashed K50,000

(xxvi)       8/09/09 – Cheque deposit K150,000

(xxvii)      10/09/09 – cheque payment K100,000

(xxviii)    11/09/09 – cashed K19,500

(xxix)       21/09/09 – cashed K30,000

(xxx)         24/09/09 – cheque payment K230,000

(xxxi)       29/09/09 – cashed K20,000

(xxxii)      7/10/09 – cashed K154,000

(xxxiii)    27/10/09 – Cheque deposit K2,600,000 (from BSP acc# 1000931776)

(xxxiv)    27/10/09 – cashed K55,000

(xxxv)     2/11/09 – cashed K200,000

(xxxvi)    24/11/09 – cashed K223,000

(xxxvii)  24/02/10 – cheque deposit K300,000 (from Tari Pori acc)

(xxxviii) 8/04/10 – cheque deposit K30,000  (from Tari Pori Development Corporation Ltd)

(xxxix)    28/05/10 – cheque deposit K1,200,000 (from Tari Pori acc#)

(xl)              15/06/10 – cheque deposit K300,000 (Dept of Works)

(xli)             12/08/10 – cheque deposit K200,000 (from Tari Pori DSIP)

(xlii)           15/09/10 – cheque deposit K290,000 (from Tari Pori DSIP)

9.       Gun Accumulation

In the 2002 failed elections in Hela, Marabe and Tomiabe’s supporters fought and some people died. Now Marabe is mobilizing guns through Moses Palipe and a senior police officer in Mobile Squad 09. People on the ground in Tari, especially in Piripu Paipela areas are aware of this. Why is a government Minister and SDA church goer doing this?

Answer is simple, he has not delivered any projects from any of the funds, especially DSIP so he wants to retain his seat by the means of exerting fear amongst voters. We urge your office to intervene.

10.   CORRUPTION IN HELA TRANSITIONAL AUTHORITY (HTA)

James Marabe is the Chairman of Hela Transitional Authority. He was politically selected for National Alliance Party’s convenience. He is not the preferred person because of his corrupt style of leadership. He goes to SDA church to paint an image that he is a good man but that in itself is highly deceiving.

The national government has allocated initially K2.5 million and K33 million later for HTA. Where are all these money? There is nothing happening on the ground. To cover all these mess, he pushed for his cousin William Bando to be the CEO for HTA and he has won through NA party. Most MPs are corrupt and James Marabe is one of them.

Out of the K33 million, K10 million was given for rural electricity and K23 million for the construction of a Hela Provincial Government Building. The funds were totally misappropriated by the Chairman of HTA. The Dept of National Planning should release clarity on this matter.

Conclusion

The books of Tari Pori district and HTA must be audited and investigated immediately.  

The contractors who got the money from Tari Pori DSG, DSIP, RESI, Market, Rural Roads programs must show their projects to the investigators. We won’t be surprised if many of them end in jails.

Why are companies that receive monies from Tari Pori District administration get some monies back to the District Treasurer? They must be doing the same to the District Administrator and the MP as well. This is daylight robbery and corruption. They must be charged and appropriate disciplinary actions must be taken.

Tari Pori Development Corporation Ltd must be investigated. This is a private company, yet the MP deceived the people. This is a big time corruption by the MP & Minister for Education.

How can a State Minister who is in charge of the country’s little kids education allows corruption to flower brightly in his yard. Common on, this is not fair.

                

Where did the MP Marabe get the money to own number of houses worth millions of kina in Korobosea, Waigani, and Boroko areas?

For and on behalf of the people of Tari/Pori, Inaga Uru O,

Henry Taralu                                                                                    Max Matane

Youth Leader – Hayapuga LLG                                                  Tari Urban Youth Leader

Haroli Tawanda                                                                               Malingi Tataipuya

Tagali LLG Youth Leader                                                              Tebi LLG Youth Leader

Janita Marabe                                                                                 Hongoli Honowane

Women & Children Foundation Inc, Hela                             Disable Association, Hela

NOTE:

Copies of actual transactions, Cheques, meeting minutes etc have been withheld by the source.

The Imperial Carve Up of Papua New Guinea - Take 2

(Reuters) - China wants to elbow oil giant Exxon Mobil out of a $15 billion liquefied natural gas (LNG) project in Papua New Guinea, Secretary of State Hillary Clinton said on Wednesday in an example of the new competition Beijing presents to U.S. interests.

Clinton told the Senate Foreign Relations Committee that Republican proposals to cut the U.S. foreign affairs budget would hit U.S. efforts to compete with China's rising power on the global stage.

"We are in a competition with China," Clinton said, citing the Papua New Guinea energy find as an example.

"Exxon Mobil is producing it. China is in there every day, in every way, trying to figure out how its going to come in behind us, come in under us," she said.

Exxon Mobil is the majority stakeholder in the Papua New Guinea project, which is due to come on stream in 2014 and is expected to produce 6.6 million tonnes of LNG per year -- a potential windfall for the poor island nation.

Clinton said China was also boosting ties with other states across the Asia-Pacific, including what she called the "dictatorial regime" in Fiji and other island nations that have long been reliable if little noticed U.S. allies.

Clinton said funding cuts that would require a U.S. pullback on everything from support for global health programs to protection of women's rights could have a serious long-term impact on U.S. influence around the world.

"If anybody thinks that our retreating on these issues is somehow going to be irrelevant to the maintenance of our leadership in a world where we are competing with China, where we are competing with Iran, that is a mistaken notion," she said.

Republicans have proposed a 16 percent cut to U.S. spending on diplomacy and foreign assistance, among other things, saying it is imperative to fight the ballooning federal deficit.

Clinton said the U.S. retreat was opening new doors to competitors, noting new media challengers such as Al Jazeera and Russian and Chinese English-language broadcasters were winning "the information war".

"Let's put aside the moral, humanitarian do-good side of what we believe in and let's just talk straight realpolitik," Clinton said of the various U.S. programs that could be hit by the budget cuts.

"I also look at this from a strategic perspective, and it is essential."

Post Courier Reports (3/2/11) Second LNG PNG Gets Thumbs Up

By Mohammad Bashir

Papua New Guinea's second LNG project which is expected to bigger and expected to produce 11 to 15 million tones got a step closer yesterday witnessed by Prime Minister sir Michael Somare, Treaurer and Finance Minister Peter O'Neill, Petroleum and Energy Minister William Duma, Gulf Governor Havilla Kavo and Police Minister Mark Maipaka and industry executives.

Pacific LNG Operations Ltd witnessed Liquid Niugini Gas Ltd, its Joint-Venture liquefied natural gas project company with InterOil sign a Project Funding and Construction Agreement (PFCA) and a Shareholders Agreement with Energy World Corporation Ltd. (AX: EWC) to construct a three million tonne per annum (mtpa) land-based LNG plant in the Gulf Province of Papua New Guinea (PNG), which is developed in two places, 2mtpa and 1mtpa expansion following immediately thereafter.

The agreement follow Pacific LNG Operations Ltd, September 2010 announcement of the formation of the partnership with EWC.

The Train 1 LNG plant would process an estimated 2.25 trillion cubic feet (Tcf) of natural gas over 15 years. In return for its commitment to fully fund the plant, the agreements provide that EWC is entitled to a fee of 14.5% of the proceeds from the sale of LNG from the plant, less agreed deductions, and subject to adjustments based on timing and execution. The Train 1 LNG project with EWC for the development of a modular LNG plant is designed to take gas from the proposed condensate stripping plant (CSP) being pursued in joint venture with Mitsui and accelerate the intended monetization of the Elk and Antelope resource, while eliminating the need for gas re-injecction into reservoir. The agreements provide a framework for the possible expansion of the plant's capacity to 8 mtpa of LNG. Henry Aldorf, President of Pacific LNG Operations Ltd, said

"These agreements signed today with EWC will enable Liquid Niugini Gas to have their LNG plants to be built economically compared with other new LNG Projects and provide LNG to the Asian market in a record time. As a result, I expect that the classical LNG project development approach will be changed by this modular LNG plant model as it will allow the economic development of LNG and provide reliable, clean and green energy to Asia."

The PFCA and Shareholder Agreements with EWC are conditional reaching FID no later than 31 December 2011. However, as previously disclosed the current joint venture project schedule is for FID to occur simultaneously for the LNG plant and CSP by June 30, 2011 and combined plant start up approximately 30 months after FID. This now adds blessing to the already arranged agreement between Gulf Provincial Government and Energy International to have a Petroleum Park established at Orokolo bay in Ihu District Gulf Province. InterOil's Senior Public Relations Manager Susuve Laumaea said they hope to get their Petroleum Development licence in March or before next year.

He confirmed that InterOil would be processing and stripping all LNG products in Gulf Province and would not need to pipe it to its Napa Napa Refinery.

Exxon Made Us Do It: Sam Passes the Buck

LNGWATCH PNG: They say that patriotism is the scoundrel’s last refuge, perhaps in this case it is foreign companies. Stop passing the buck DPM Abal, Exxon can only do to PNG what your government allows them to do.

Source: 

The National - Monday, January 31, 2011

By PATRICK TALU

THE government has admitted to resource owners and the people of Papua New Guinea that the PNG liquefied natural gas project agreement signing was rushed.

Newly appointed minister responsible for all LNG matters relating to outstanding memorandum of agreements (MoA), ministerial commitments, seed capital finds, infrastructure development grants and other outstanding issues, Deputy Prime Minister Sam Abal, made the admittance last Friday to landowners at the Unagi oval in Port Moresby.

“Mipela government i tok sori long rasim PNG LNG agreement mipela i sainim (we, in government, are sorry for the rushed PNG LNG agreement that was signed),” Abal said.

He said there was immense pressure to get the project to first gas within limited time to secure markets against competing LNG projects in the region.

The window of opportunity for PNG’s gas to secure lucrative markets would have closed had PNG taken longer to bring the project on stream.

Abal said due to these pressures, the government had no choice but to conform to the will of the developer and entered into the PNG LNG agreement.

He admitted that the current LNG-related issue between the government, ExxonMobil and the landowners was the direct outcome of that rushed agreement.

The deputy prime minister, who is also minister for works and MP for Wabag, stressed that since the mistake was already made, there was no option but to address the consequences.

Thomas Gamu, the man who had been mobilising LNG project landowners to fight for their rights and benefits, asked Abal how they would be compensated.

“Now that the LNG agreement has been rushed and cheaply sold away, the government must tell us as resource owners, Hela, and the people of PNG how we will be compensated for selling our gas cheaply.

“Our resource has been cheaply and hastily sold off by our government.

“It is a great failure on the part of the government to protect its interest and its sovereignty than serving the interest of foreign-owned 

Public reactions to recent troubles at LNG PNG

Police involved in confrontation

Source: 

The National- Friday, January 28, 2011

 I REFER to your article, “LNG plant will stay shut” (The National, Jan 25).
It clearly pointed out that police were involved in confrontations, and perhaps, brutality of a civilian which could have resulted in death.

The government had  ordered more police to the area to maintain peace and stability among frustrated relatives of the deceased of a previous incident over possible chemical poisoning.

It looks like the situation would get out of hand if a compromise is not reached among all respective parties.

One major threat of a possible civil war that the government of the day should take into consideration is the fact that what has transpired in Bougainville years ago can erupt again up in the Southern Highlands.

It’s like a time bomb ready to go off.
Facts to enlighten us are: 

(1) It was the mobile unit that initially started the war in Bougainville which resulted in a very dark historical page for PNG; and
(2) It always resulted in the government committing itself to the developer ahead of sorting out outstanding landing owner issues, hence a war on Panguna.
The potential for an even bigger war than Bougainville is here.

To date, the government has not completely addressed the firearm issues in the Highlands region.

What guarantee does it have to offer the people that it can forcefully bring in peace and stability through the use of its law enforcing agency?
It’s your call PM.


Gideon Maim
Via email
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Court must serve best interest of landowners

Source: 

The National- Friday, January 28, 2011

THE court will need to exercise sensitivity to find a way forward for all so-called landowner disputes over the PNG LNG project development and benefits sharing promised by the government under the UBSA/LBBSA. 

The PNG LNG project, driven by Esso Highlands and PNG government, will likely to be jeopardised because of the insensitivity of the judicial system in entertaining so-called landowners’ disputes over range of landownership, legitimacy, rights, benefits in the light of the umbrella benefit sharing agreements (UBSA) and landowner-based benefits sharing agreements (LBBSA), among others, to cloud the outstanding issues under the oil regime. 

The importance of the project and the potential benefits it will deliver will not be realised if the court system is insensitive to unwinding specific issues.
The issues under the oil regime should not be mixed with the gas regime in terms of outstanding MOAs, IBD grants and government/ministerial commitments. 

Some landowners are still disputing the UBSAs/LBBSAs/ where the notion of majority rules in a decision to an agreement. Some are disputing the ministerial determination.

In some cases, some elite proxy landowners have immensely siphoned off benefits in the oil regime and therefore the illiterate owners are making their way to Port Moresby to stop the same abuse on the gas resource benefits and so on.
Others who have missed out are disputing that payments were made to the wrong company within the licensed area or project foot print as per the provision of UBSA.  

Landowner representatives have been given some sort of power of attorney by their people to negotiate the UBSAs/LBBSAs and secure benefits for them in their respective project licensed areas.

The business development grant was one of the benefits to be made available for the landowners in the project foot print to be given in a form of seed capital to participate in the spin-off activities during the early works phase which started last year.

Some who had been given these responsibilities have abused by not keeping their own people informed of the grants paid to them. 

Hence, they have been labelled “paper landowners” in Port Moresby while others have been taken to the courts to prevent them accessing the grants.
If they wait for the social mapping which will start next month, they would miss 30 % of the opportunity remaining in the early works spin off minor contracts.


Plant site landowner 
Via email

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Security concerns not given priority

Source: 

The National- Friday, January 28, 2011

 WHEN the PNG LNG deal was first signed between the government, landowners, financiers and the developers, the government gave security concerns top priority, or was it just interested in the billion bucks that was to be earned from the deal.

The security aspects involving such a multi-billion-dollar project is of a paramount importance, especially when the projects areas are located in more volatile area, it must be a top agenda by any government of the day when negotiating with stakeholders concerned.

Does the government employ security consultants or advisors and if it so, did they give the right advice to the government about sensitive landowner issues within the mine and projects sites located all over PNG?

It seems like we have not learnt yet from the Bougainville crisis and the government must envisage the future and be guided by the Bougainville scenario prior to arising to any project agreement.

We must always bear in mind that different ethnic groups have their own languages, cultures and behaviour therefore behave in their own different ways. 

The government must ensure that every one’s interests within the project areas are considered prior to kick start any projects.


Steven Supi Palisa
Boroko

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Riotous mood at Hides plant site

Source: 

The National- Friday, January 28, 2011

THE uncalled attack on the employees of the Clough Curtain Joint Venture at the LNG plant site recently must be condemned with the harshest terms there is.
There are avenues available to address such issues. 

The blame should have gone to the parents and guardians of the deceased for negligence than to anyone else.

It is bewildering to read of 700 hundred moaning relatives attacking the LNG plant site, when not one of those concerned 700-plus bothered to spare sometime to watch the boy as he roamed unattended into a billion dollar chemical plant construction site that fateful day.

I have read of such hideous episodes in many of PNG’s history and I am ashamed deeply to see it conjure up again in the21st century.

I wonder if any of those 700 relatives have hear of the word “autopsy” to determine cause of death


Fumbruk Erike
Via email

Don't Bank the Billions Just Yet

Sadly, the game begins! Last October LNGWATCH wrote: "Given that Exxon Mobil will be operating in a highly contested region, where their operations will come under threat from landowner protests, will they be able to responsibly control the security agencies protecting their operations ... Will Exxon Mobil [Esso Highlands parent] accept assistance from a paramilitary force (i.e. the Mobile Squads) with a sustained history of human rights abuses?". Of course, no response was ever given to these questions.

Now that villagers living near the LNG project  have staged direction action protests, that have left Esso Highlands employees with minor injuries (of course, it is in the interests of Esso to play down the event, danger = higher labour costs), these issues are back on the cards in a very big way.

It appears that staff in the affected areas have been withdrawn. Esso Highlands' public relations manager has told the Post Courier: “The shutdown will continue until the safety and security of project personnel can be assured”.

This is what we might call a corporate euphemism. What Esso Highlands are asking for is more support from the mobile squads, or some national force that can protect their operation, supplemented by increased ministerial attention to landowner grievances. 

Thus, over the coming weeks more mobile squad officers will no doubt be dispatched to affected regions to protect Esso Highlands' operations. The Somare government will also most likely announce a new initiative of some variety to resolve existing tensions. 

Though in real terms, Esso Highland's request for assurances is unrealistic. For some in the Southern Highlands they are an unwanted exploiter, for others they are a welcomed but distrusted guest, who must offer serious benefits. With executives and government officials clearly overwhelmed by the complexity of the social systems they are dealing with, tensions will explode again, that is a certainty. In such an environment safety cannot be assured, especially if we take into account virulent arms circulation and the rugged terrain which punctuates the operation.

Consequently, over the coming months Esso Highlands and their parent company Exxon Mobil will need to innovate. There is no Indonesian style military in Papua New Guinea to force consent, despite the well documented authoritarian aspirations of Somare and co. Perhaps attention is being turned to a Sandline International, who can send in ex-special force troops from the US, Britain, Australia and elsewhere to install 'a bit of order' in the local communites. However, a more offensive use of private security forces would seem unlikely under present conditions.

Most likely enhanced strategies to win the peoples’ hearts and minds will be employed. However, when your objective is to make billions of dollars in profit in a context where local villagers live several days walk from basic medical attention, disparities in wealth and dislocation of culture, may be too palpable for any innovation to withstand.

Of course, those in the oil, gas and minerals industry will cry, “what’s the alternative”. For them profit, plunder, and growth fuelled by big capital, are sacred and unquestionable truths. In their eyes, there is no ‘realistic’ alternative to it. This is the mantra of modern day missionaries come to spread the word of neoliberalism, they are zealots for a social system that has undermined communities around Papua New Guinea for decades, while fuelling a state system beleaguered by corruption and cronyism.

Alternatives, of course, exist but it is often difficult for community leaders and activists promoting them to have their voices heard when the majestic prophecies of wealth and economic growth  elicited by the elite and their intellectual cadre is so loudly trumpeted in the press and parliament. There are also very real risks associated with dissent at present in Papua New Guinea, especially when money is to be made, as the recent litigation over Ramu Nickel illustrates. Indeed the risk of beatings or worse now seems part of the course for those offering alternative solutions to the elite.  

Meanwhile villagers in the Southern Highlands will do their best under extreme conditions to observe an oft forgotten constitutional duty: "We declare our first goal to be for every person to be dynamically involved in the process of freeing himself or herself from every form of domination or oppression so that each man or woman will have the opportunity to develop as a whole person in relationship with others".

Government "willing to take harsh measures" to ensure LNG's security?

LNGWATCH PNG: Global Insights (25/01/2011) predict in the following report that the PNG government are willing to take harsh measures to put down local protests against the LNG.

PNG Government Launches Investigation Into LNG Attack

By Neil Ashdown

The government of Papua New Guinea (PNG) has launched a high-level investigation into an attack that led to the closure of a key site in the ExxonMobil LNG project. On 21 January there was an attack on the Hides 4 LNG conditioning plant site in Southern Highlands province. Estimates of the number of people involved vary, but the police said the number was around 200. The attack led to the evacuation of workers from the site. While order has now been restored at the site and the police presence has been reinforced, ExxonMobil today announced that the site will remain closed until the security of its personnel can be assured. The government and ExxonMobil have denied the attack caused serious injuries, with the latter claiming that four workers were treated for minor injuries at the site. The 21 January attack affected the same project that last week was the target of peaceful protests by landowners. It has been reported that the violence was sparked by the death of a four-year-old child, with locals believing that his death was related to the LNG project. 

The team conducting the investigation is being led by Don Polye, a former deputy prime minister who is now foreign minister. It also includes the treasury and energy ministers, William Duma and Peter O'Neill, and Tony Wagambie, the acting police commissioner. Indicating the government's priorities, Polye has stated that the team's objective is for the immediate resumption of work at the site while negotiations take place to find a remedy for the landowners' grievances.

Significance:The seniority of the team conducting the investigation is evidence of how seriously the government takes this attack. The LNG project is at the centre of its economic policy and the government would be willing to take harsh measures to ensure its security. However, in doing so it risks alienating the local population and increasing the chance of further incidents.