Sir Mekere Morauta calls for ‘genuine government effort’ to resolve K2 billion dispute, IFC approves credit facility and Manus business leaders want to be treated as a ‘special case’, if detention camps close. Your weekly digest of the latest business news.
Former Prime Minister and Chairman of PNG Sustainable Development Program Ltd, Sir Mekere Morauta, says there is a three-step solution to the dispute over the company’s K2 billion held in trust in Singapore. He says the requirements are that Prime Minister Peter O’Neill ‘withdraws from the Singapore litigation; the Prime Minister and BHP Billiton Ltd jointly agree to change the definition of Mine Closure in PNGSDP’s Program Rules to trigger the flow and expenditure of the Long Term Fund by PNGSDP; and the Prime Minister ceases his attacks on, and interference in, PNGSDP—with the State signing a legal agreement to that effect’.
***
Business leaders on Manus Island have called on the PNG government and Australia to treat Manus as a special case, after it emerged that the Spanish company Ferrovial poised to take a 59 per cent shareholding in the business operating Australia’s offshore asylum seeker detention centres said it plans to step away from the facilities on PNG and Nauru. The board of Broadspectrum, formerly Transfield Services, has agreed to a buy-out. Australian taxpayers paid more than A$1 billion (K2.38 billion) in the 2014-15 financial year to run both centres.
***
The Bank of PNG’s Loi M Bakani
The Post-Courier is reporting that International Finance Corporation has approved a line of credit for US$300 million (K967.7 million) to alleviate PNG’s foreign exchange shortfalls. Bank of Papua New Guinea Governor, Loi M Bakani, says the credit facility will be used by commercial banks and will run for three years.
***
The PNG Government has secured $US$100 million (K314 million) in funding for infrastructure projects from India, following last week’s visit to PNG by India’s President Pranab Mukherjee.
***
Air Niugini has received approval from Independent Consumer and Competition Commission to continue partnering with Qantas for another three years. The Commissioner and Chief Executive of the ICCC, Paulus Ain, says there are ‘some benefits to the community likely to result, especially to those who depend on air services.’
***
The ANZ Bank has announced a 24 per cent slump in its first half cash earnings to A$2.8 billion (K6.8 billion), well below the consensus forecast of $3.6 billion (K8.79 billion).
***
Ramu NiCo management is reviewing staffing levels at its two sites, Kurumbukari Mine and Basamuk Refinery in Madang Province, following orders from the Mineral Resources Authority to to cease operation at the High Pressure Acid Leach (HPAL) area at Basamuk.
***
Crater Gold Mining has commissioned a new processing plant at its High Grade Zone gold mine in the Eastern Highlands Province, according to Managing Director, Russ Parker.
***
The Department of Petroleum and Energy, PNG Power and the Asian Development Bank (ADB) have released the National Distribution Grid Expansion Plan, which outlines a plan to expand the grid to rural communities around PNG Power’s 34 provincial grids.
***
And finally, researchers say they have located the wreck of the Endeavour, which Captain James Cook commanded on his first ‘voyage of discovery’ around the Pacific.
USD 0.2672
AUD 0.4040
GBP 0.2104
EUR 0.2469
NZD 0.4353
JPY 39.39
SGD 0.3578
Sir Mekere, The Ok Tedi Copper Mine has carried Papua New Guinea on its back ever since the closure of the Bougainville Copper Mine. If successive Governments, both Somare’s and O’Neil’s, had given timely proper and diligent care to their regulatory responsibilities the Ok Tedi Copper Mine would still being bearing the greater part of the load of providing both PNG’s foreign exchange requirements, and a large part of its revenue requirements, while we wait for the net revenue from the PNG LNG Project to grow to an appropriate size. During all this time all National and W.P. Provincial Governments have colluded to use and misuse the royalties, the dividends and the compensation payments of the Western Province PEOPLE on projects that have done, and will do nothing, to give real benefits to any of our villagers. How can anybody think that a resort in Fiji or a “Plaza” in Port Moresby can save the life of one hungry and sick child in Weam, Fuma or Selbang?
Sir Mekere the three requirements you list are essential, but not sufficient!
Only when the State of PNG agrees with you, in the Supreme Court, that the legislation expropriating the 63.4% of the shares in Ok Tedi Mining Limited, which the PNGSDPL was HOLDING TRUST for the PEOPLE of our Province, was ab initio UNCONSTITUTIONAL, should the people of the Western Province even consider lending any of their funds to any Government, National or Provincial, in PNG! A mere repeal of the legislation is not enough! The four currently elected W.P. Members cast the crucial votes that allowed their PEOPLE’s shares to be expropriated. They or their successors could possibly be prevailed upon in the future to pass legislation to expropriate their funds once they are resident in PNG. The Constitutional Principle must be “enshrined “by the Supreme Court!