Sunday Chronicle PNG Commentaries

PNG: A nation in need of reconstruction

2010-04-04T14:38:00.000+10:00

PUBLIC AFFAIRS

-SUSUVE LAUMAEA

THIRTY five years after its political independence, Papua New Guinea is a nation dithering on the brink of economic, social and political anarchy if not collapse.

The wake-up call for our leaders and public officials to correct the status quo is long overdue. They can not hide behind 40-year and 20-year national development plans to say that the destiny of this nation is all mapped out. Crap. This nation is crying out for national reconstruction. Not elaborate academic futuristic plans.

This country needs real hands on spade-work. Our highways have collapsed so has everything else that made this nation the proud one that it was in the first decade of national independence. The next two and half decades have been a period of leadership and management by crisis and trial and error.

This current five year tenure of Parliament will be seen as one that left a legacy of non-performance and an elective forum that became ungovernable, disorderly and without decorum as the paramount haus tambaran of the people of Papua New Guinea. Harsh words to say but that’s true.

We have huge problems. Our nation’s economic, political and social wellbeing is in big trouble because nobody in leadership and authority gives one hoot where we are heading. PNG as a nation is in shambles and is begging for decisive and assertive stewardship.

Political pundits will dismiss this view as a shot in the dark. Somebody has to say it and I have chosen to say it – knowing fully and consciously that I hold no one’s mandate except my citizen’s right and freedom to say and write what’s in this column. Lump it or leave it.

It is a bold statement and this columnist says it without fear or favour. This columnist joins eminent citizens like New Ireland Governor and former Prime Minister Sir Julius Chan, Opposition leaders Sir Mekere Morauta and Bart Philemon and Trade Union leader Michael Malabag in amplifying that the nation is not looking good and healthy on all fronts at present.

Look around you. What has happened to this nation of milk and honey? Why are Papua New Guinean unskilled workers in the agriculture sector or employed as attendants and security workers at city night clubs not recipients of the minimum wages which should have come into force on January 1 this year. They have been exploited for 16 years and now they have been given an award that must be paid to them.

Why are foreign-owned companies not paying PNG nationals in the unskilled category of workers their minimum wages as agreed by the Minimum Wages Board? Why are enforcement agencies like the Department of labour and Industrial Affairs in a state of comatose and cannot enforce this decision? Bugger. Why have our political leaders not stirred? Or why should 109 MPs be overly richer with all their perks and privileges including K10 million which each Open MP presides over than more than six million people of this country?

Papua New Guineans live a hand to a widespread mouth life-style. Many homes house several families. School children in crowded homes do not have space and time to do their home or to study at home. The entire economic and social fabric of this country is in dire straits.

Papua New Guinea

has become a nation of “survival of the fittest”. Nobody – leader or otherwise – will pause to hold the hand of the struggler and lift him to the next level of survival. The ordinary citizen of this country is left to fend for himself or for herself. School fees are hard to come by. Quality schools and quality health facilities are negligible.

Where did our leaders lose the plot to safe-guard and grow the national interest of a happy, healthy and wealthy nation? Why are our political leaders seeking to institutionalise their political parties in power? Is it for self-gain, for power or to feed their ego of being indispensable?

Hey wake up. This nation belongs to all of us. Make it work for all of us. Why is the public finance system tailored to meet the needs and demands of the MPs and cronies associated with them? Why is it preferrable political pursuit to chip away at the constitutional institutions of this country that have provided the balance, stability and credibility for this nation? Look at the pot-bellied politicians and ask why they are far wealthier than their voters. Look at the institutions of state in disrepair.

Ask why the police force is ineffective, why the Department of Finance and Treasury no longer can be trusted as the custodian of the public purse of this nation and why the Public Finance (Management) Act is inconsequential as a public finance management guide. Ask why the prison system in this country leaks like a sieve. Ask why the health and education system in this country is not user friendly. Ask why our social indicators are pitiful. Ask why the Parliament of this country makes laws to safe guide foreigners and their investment while citizens of this country are made to pick up crumbs or are deliberately impoverished. All the political hype about the billions of kina the two liquefied natural gas projects will deliver to the nation border on political propaganda. The praises being sung about the two LNG projects are merely facades.

One politician said not too long ago that the progress to be undertaken to fully realise the worth of the LNG projects is but a “Bridge over River Time”. Parabolic but the message is loud and clear. Do things properly and that means government and developers of the LNG projects have to understand that PNG is not a nation to be hoodwinked, pillaged and denied of what is rightfully this nation’s wealth. Our current political leaders, their political cronies and whoever else are out there carrying briefcases must think nationally and think prominently about the nation’s best interests.

Often times one wonders whether our ministers are really focused and whether or not they understand the reasons why they make decisions that end up largely impoverishing the citizens of this country. Our current crop of political leaders have not really sat down to do a cost benefit analysis nor have they conducted a strength, weakness, opportunity and threat analysis of these two mega projects so that they can tell the people of this country that the United States Dollar accounts will be kept offshore for the excuse of procuring materials and supplies not immediately available in PNG.

Why go weak at the knees with upon sighting the colour of money? PNG people have to be told that that because the required level of skills are not immediately available in this country so PNG people lucky enough to get a job at all with these projects will be categorised as skilled, semi-skilled and unskilled labour and their pay-packets will be determined that way.

This is our country, our nation state and we must be commanders of our national destiny. Multi-nationals must not dictate to us. No way. Their primary interest is to make money for themselves at higher than 22.5% in our nation’s budding oil and gas industry. These projects will bring in money to pay for locally procured goods and services and to pay local wages. Beyond that this nation will receive some dividends and royalties. Nothing else shall come by unless of course negotiated agreements compel the developers to build much need infrastructure and help to develop economic and social services. Mi les na mi tingim olsem planti

Papua New Guinea

manmeri tu iles pinis long olgeta longlong pasin ikamap insait long naispela kantri bilong yumi olgeta.

Susuve Laumaea is an award winning veteran PNG journalist and welcomes feedback from readers at : Mobile Phone: 72013870 or Email: slaumaea@digicelpacific.balckberry.com.

PNG Auditor General disclaiming public accounts

2010-04-04T14:23:00.003+10:00

BY ROBERT PALME

DISCLAIMING and refusing to certify the Public Accounts of the Government by the Auditor General is a serious national failure.

The Parliamentary Public Accounts Committee (PAC) said this in its report titled, "The Public Accounts Committee Report on the Inquiry into the keeping of the Government Trust Accounts for the Financial Years 2000-2008" in Parliament last Month.

The PAC attributed the disclaiming and refusing to certify the Public Accounts of the Government to gross mismanagement of the trust accounts by the trustees.

The PAC said it has found serious continuous breaches of the Public Finance (Management) Act 1995 by trustees and officers of relevant departments, provincial and local level governments and all agencies of government in trust account management and accounting.

The executive summary reads, "The Committee has found serious continuous breaches of the requirements of trust instruments by trustees at all levels of government;

"Monies in trust accounts may not have been spent appropriately and for purposes set out in the trust instrument."

The PAC also found that political interferences and intermeddling in trustees appointment and discretion has resulted in misuse and lack of accountability in every year since 2000.

It was also found that trustees have failed in their obligation to ensure that payments were made only for properly completed work and paper accounts and records have not been maintained and it has not been possible for the Committee to confirm the validity of payments from trust accounts.

"It is not possible to audit trust accounts properly or at all in any department or agency of Government because there are virtually no accounts or records.

"This failure of trust accountability and recording has resulted in the Auditor General disclaiming and refusing to certify the Public Accounts of the Government for the years 2004-2006," the PAC said.
The report says that failure to obey the law and a failure to account at all for public monies is evident at every level of administration that deals with or administers Trust accounts.

The PAC also said negligence and reckless disregard for the requirements of law and the duties of a trustee characterized many transactions into and out of trust accounts.

According to the PAC the Department of Finance and Treasury and the relevant Provincial Governments from which the committee or the Auditor General sought assistance, failed to provide any or any adequate documentation or information to the Committee or the Auditor General.

Some of the findings the PAC highlighted are:

The evidence clearly shows that the trustees of trust accounts and heads of department's or agencies whose duty it was to maintain accounts and records failed or refused to fulfill their roles to any acceptable standard-including and, in particular, within the Department of Finance.

These failures were blatant and clearly the individuals concerned act (or fail to act) with impunity and immunity-never expecting to be called to account for their behavior.

Trustees failed to act lawfully, acted unlawfully, failed to act independently and did not begin to meet their obligations and duties in the management of Trust Accounts and the receipt to or expenditure of money from Trust Accounts.

Trust Accounts and trust funds have fallen into the control of incompetent persons who do not have the necessary personal qualities to act properly and lawfully as a Trustees or signatories.

Power of a trustee or signatory has, in some cases, been handed to persons who could not, by law, act as Trustees or hold delegations as signatories-including private citizens.

Unqualified and junior and unaccountable officers access to trust monies and trust accounts.

Meanwhile, the Committee said that the trust accounts should no longer be managed by the public service or government agencies at any level.

For more information, go to the PAC website: www//.parltcmts.gov.pg/index.html

The 'Sepikulture:' A budget in review

2010-04-04T14:16:00.000+10:00

JUTS OUT
-CYRIL GARE

A MASSIVE money plan totalling K100,825,100 was proclaimed and adopted by the East Sepik Provincial Assembly on Tuesday, February 8, 2009. It was East Sepik's biggest provincial budget ever since 1978 when the province was first incepted.

In addition, contestable financial resources valued at K130,964,280 were also available outside of the 2009 East Sepik budget. It cannot be established whether East Sepik was able to access any of these funds to date.

Contained in the money plan but with separate funding were multi million kina Investment and development projects including: i) Investment projects: Sepik sago, Sepik river basin development, Cosmo biomass fuel, Frieda mine, Shrimp project, Basei oil palm, and Turubu oil palm (work started). ii) Development projects: Wewak airport upgrade, K120 million. Work completed and commissioned, K30 million Passam to Balbal (Angoram) road. Work started, K225 million Hawain to Salamin road. Worked started, K10 million Wewak town road upgrading. Work is underway, K31 million new Wewak market and Fish project. Work completed and ready for commissioning, K7.7 million Wewak sport stadium. Work completed and commissioned, K10 million Marienberg Community College. Worked started but slow. These are seven of the 21 budgeted development projects under the 2009 ESP provincial budget.

Ironically, more than a billion kina worth of new projects are currently under way in East Sepik.
It is 13 months since the 2009 budget and no words about a 2010 provincial budget as yet. It's now April. The wait sparks anxiety as well as perplexity - is the bureaucracy performing its task - budget formulation - and if so, why so late?

An explanation is unilateral and subject to the ultimate jurisdiction of our 'celestial light' and Provincial Administrator, Samson Torovi. He had until recently acquired permanency on his job since his acting appointment in April, 2007.

Governor and Provincial Finance and Planning Chairman, Peter Wararu Warinaka could not be reached for comments however, the instinctual guess is that any governor is annoyed when his provincial budget is not ready on time.

Nonetheless, on the grassroots level, there exist a common concern; both men are inaccessible at most times. If they are, only certain individuals or groups gain access. Whatever 'appointment' may derive its name from dictionaries, it certainly doesn't find a meaning in high offices here in Wewak. The ripple effect spills on.

Absenteeism at the lower strata is dominant to the extent that public servants are unavailable when needed. It is even annoying and frustrating for a villager who spent money and time travelling only public servants absent from offices. Ask any such citizen to grasp the level of discontentment or condemnation.

Last year's provincial budget gave the biggest slice to public servant's salaries which stands at K38,762,200 or 38 per cent of total provincial expenditure budget. The citizenry therefore, demand nothing less than high quality performance or simply 'be present' by public servants. On the national front, public service continue to burn over K2 billion on salary bills alone during the same period, making PNG public service a gigantic public coffer milker.

At one instance last year, Wararu went on the media urging Torovi and his two deputies to instil "control" over use of public funds.

This didn't go down well as it only sparked anger by those who authorise and execute payments under laws of public finance.

As a result, many claims by service providers have not been processed to date.
At least one of the senior public servants aired his view saying that the Governor must not blame them for executing payments as they were only acting from stiff pressure by politicians who wanted claims for their voters and cronies paid.

When payments made, someone "inside" would expect a percentage or commission and sadly, this has been the norm.

Governor Wararu described the 2009 appropriation bill as that of "sustenance and maintenance" basically aimed at the provincial headquarters whilst complimenting and supplementing the District Service Improvement Program (DSIP) which would see some K26 million directly flushing into the six districts and 26 local level governments under its "Development Grants" component.

The budget comprised 92 per cent (K92,851,700) from National Government grants while 8 per cent from internal revenue (K7,973,400).

Governor Wararu admitted that there was need to improve in the area of internal revenue and challenge all stakeholders to work together, be honest, transparent and accountable at all times to effect change.

Recurrent costs ate the biggest slice of 54 per cent (K54,401,700) while Development component receives 38 per cent (K38,450,000) leaving K7,973,400 or 8 per cent comes from a more realistic internal revenue forecast compare to previous years.

In his budget speech, Wararu said in part: "Honourable Members, these are the very thrust and focuses of the East Sepik Provincial Government where we have adopted the National Government's Medium Term Development Strategy or MTDS and the District Services Improvement Program or DSIP in our provincial budgets since 2007.

"Our 2009 East Sepik provincial budget is sustenance and maintenance budget basically aimed at improving capacities of deliveries at the provincial headquarters whilst complimenting and supplementing the District Services Improvement Program into our districts and local level governments.

"Furthermore our provincial budget is based on our eight main development goals targeting improvement in the quality of life for the individual East Sepik person, his or her family unit, the community he or her abides in and collectively contributing towards the development of our province and country as a whole".

These being the development goals:
1. PEOPLE EMPOWERMENT, WELL BEING AND PARTICIPATION; "Sepikulture" the Sepik way, improve economic and social well being, healthy population and work force, HIV/AIDS, Education, gender equality, rights education
2. COMMUNITY CENTERED DEVLOPMENT; Strengthening family units, strengthening of structured communities (village, wards, etc.), community based plans and programs, water, shelter, law & justice
3. SAFE, AFFORDABLE ACCESSIBILITY; Transport and markets, Communication and economic participation
4. SUSTAINABLE NATURAL RESOURCES AND ENVIRONMENTAL PRACTICES; Forestry, fisheries, mining, wildlife, ecotourism, farming, bio-fuel, mobilise land and labour.
5. SCIENCE AND TECHNOLOGY; Information accessibility, narrowing knowledge gap.
6. AFFORDABLE AND CONVENIENT ENERGY SUPPLY; Supply of electricity for all communities, Pursue and venture into renewable and alternate power sources, Bio fuel.
7. MOBILIZATION OF FACTORS OF PRODUCTION; Incorporated land groups, growers association, up skilling our workforce, appropriate technology training, collective capital and savings culture, micro credits and financing schemes, facilitate foreign capital investments.
8. GOVERNANCE AND ADMINISTRATION; Good governance, improved accountability, efficiency and transparency, administration work force, education, training, productivity and cost effectiveness.

These have been my observations against the activities of the 2009 budget aspirations over the past 12 months. For the purpose of this exercise, let's rank performance on a score between 1 and 5: 1 being 'very poor', 2 'poor', 3 'fair', 4 'satisfactory' and 5 'excellent'. These are the scores by East Sepik then: Goal 1: 2; Goal 2: 1; Goal 3: 3; Goal 4: 3; Goal 5: 1; Goal 6: 3; Goal 7: 4; and Goal 8: 1.

Average score stood at 2.25 or 12.5 per cent. Overall 2009 budgetary performance stands at 45 per cent meaning we achieved 45 per cent of our 2009 budgetary aspirations. Yes, there were a variety of reasons and premises that determined such an outcome and also notwithstanding the fact that my observation and methodology used remained unauthenticated.

Business enables you to gain many skills - Part 2

2010-04-04T14:06:00.000+10:00

BE YOUR OWN BOSS

-TIRI KUMBAKULA

In last week's article I stated that being in business will enable you to develop people and leadership skills. This article looks at several more skills you need to develop in order to succeed.

Financial skills
A business exists to make money. That is its essence. The more money the business generates, the stronger it is, and vice versa.

Many people think that making money is hard, but you will realise that managing money is harder than making it. Once your business is established and money starts flowing in, you will have to develop the necessary skills to apply that money aright. Many businesses fail not because of faulty products or an absence of paying clients. They fail because of financial mismanagement by the owners.

As the business deals with money, you will develop many financial skills. Some of the skills are as follows:

1. Budgeting;
2. Cash flow management;
3. Reading and understanding financial statements such as the income or profit and loss statement and the balance sheet; and
4. Presentation of business plans and financing proposals to banks.

Among the financial skills you will feel compelled to develop and utilize will be cash flow management. This is because cash flow is like the business's life blood. As blood is to the human body, cash flow is to the business. Your business will stand firm or waver depending on how well you are able to both generate and manage the cash it generates.

When you are an employee, you have the assurance of a fixed amount of money available to you every pay period. So you can make plans with a lot more certainty. Not when you are in business, unless you have a contract with a client under which your business earns a fixed amount of money. In business, you make a lot of money one day and the next you do not make any at all. So you have to spread what you make over the times you don't make any, so that your business continues to function.

Cash flow mismanagement is the single most important reason many strong businesses fall. Cash makes businesses stay alive. The more cash the better. And the faster it flows through the business, the more the growth.

When cash gets tied up, for instance in physical assets or creditors not paying on time, the business will crunch to a halt. Some business owners make the mistake of concentrating on investing in physical assets such as buildings and machinery that they don't have cash to work with. Then it becomes a case of being 'asset rich but cash poor'. This situation can force the business to go into unnecessary borrowing or even receivership if the debtors establish that they can get their money back by selling your assets than giving you time to pay your way out.

This is what happened to one of the companies I worked for in the early 1990s. The company owned many properties such as houses and flats, factories, office buildings throughout the country but it did not have the cash to fund its day to day expenses. When the bank saw that it could sell off the assets and recoup its money, it swooped in with receivers who shut the company down in a day and started selling everything. By doing this they freed up the cash that was tied up in the properties, plant and equipment to get their money back.

Negotiation skills
We all have negotiated with others at one stage or another. As children, we have made deals with other children either to our advantage or to cover up for our wrongs. As young people we have negotiated with people we are affectionate with. As employees we have negotiated contractual terms with prospective employers. So we have some negotiation skills with us. In fact we all have the skills discussed in this chapter to some extent. We were born with them. But when in business, you display these skills and develop them more because a lot is at stake.

If you are like most people, when you heard the word 'negotiate', you would have imagined fast-moving wheelers and dealers or hard-nosed penny pinchers that drive hard bargains. Yes, there are people like that who sit across negotiation tables. But you do not have to be such a person to have things flowing your way. There are times to be firm, and there are times to just let the other party seem to have their way.

You learn negotiation skills more in business than in government. In government, it is public interest at stake; in business, it is your own survival at stake. So you negotiate better.

If you were selling something to a client as somebody else's salesperson, you will find that you when the client makes a counter-offer, you have to defer to your boss. You can stall for time. But when you are the boss, you make decisions and cut deals on the spot. When the other parties talk with you, they approach you differently than if you sent them one of your employees.

One of the times you find negotiation necessary is when discussing prices. Some prices are fixed so there is little room for negotiation, but you may need to discuss discounts. The prices of other goods change at every transaction. This makes price negotiation necessary at every transaction.

For instance, my background is in international coffee marketing. I know that coffee exporters negotiate prices every day with overseas buyers. If you are in the coffee business and are not well informed of developments in the world coffee market, overseas buyers can cut good deals for themselves at your expense. It makes knowledge of the market essential. In fact, export managers sit up all night watching the New York and London coffee exchanges as well as negotiating trade, because of time differences between Papua New Guinea and the United States and England.

Marketing skills
One of the first things you will find as a business person is that in order for you to make money, you have to market yourself and your product or service. In other words, you have to get your target market know what you are offering.

This may involve writing introductory letters, knocking on the doors of potential clients and making cold calls, advertising in a newspaper or other media outlet, or sending an advisory note to people on your electronic mailing list.

You will soon realise that having a fine product is not really as important as getting people to know about it and buy it. Your product or service can be perfect for your target audience, but if it is not known, it will not sell. By the same token, you can have an inferior product but if you market it well, it can become a top seller.

Marketing is really about influencing people to believe that your product is the best there is on the market. It is about developing the market's perception about the unique qualities of your product, and how it can meet their needs or make their lives better. There are many relatively low quality products selling well due to the perception that they are good, because the sellers invest a lot of money into marketing the products. There are also very good products which do not sell well because of poor market perception.

This is one of the major problems with our coffee. Papua New Guinea produces some of the most aromatic and best-tasting coffees in the world but it is not known and appreciated by consumers, due to the fact that we have not promoted our coffee as much as other countries have done. We have concentrated too much on producing more but have not invested in marketing our coffee. The result is that the bulk of our coffee continues to be sold at significant discounts against the world price. Low prices then translate to low production, because producers are very price-responsive.

Marketing is also an area I am grappling with right now. Most people that have read my books have told me that they are inspiring, but getting the books before a large proportion of my audience is something I have yet to develop and establish as a system. I don't have a marketing system in place yet. All the books I have sold so far are through ad hoc marketing - book launchings, writing letters, half-hearted visits to schools, approaching a few bookshops, selling at seminars, setting up a personal blog on the Internet, etc. I have not promoted the books through media advertisements or established a website to sell my books to an international audience, for instance. The result is that I have not sold as many books as I could.
I know that people like the way I write and the subjects I write about. I am a best-writing author, but I know that when I develop marketing skills I will become a best-selling author.

Communication skills
Today's economic system operates on information. The more people know, the more competitive they are in the market place. That is why major TV channels like CNN have their motto as "Be the first to know".

If you know something ahead of your competition, you have an advantage over them. And this does not mean having access to privileged information for weeks or months. It can mean as short as a few minutes, because today's information technology has enabled everyone to have access to instant or 'real-time' information. The Internet provides information to people as events take place. So if you know something a few minutes ahead of your competition, you can profit from that information.

Communication means investing in an appropriate scale of information and communication technology for your business. For instance, you will definitely need to establish an email account. In today's world, letters and faxes are unfashionable. If you cannot provide an email address to clients, you are considered out of date. You might even find that you need a website to sell your products more cost-effectively.

Communication also means being in touch with your clients on a constant basis. It means finding out what their needs are and developing ways to meet them better. It means telling your clients what steps you are taking to improve your systems and procedures to be a better supplier or buyer as the case may be. It means providing back-up services after selling to them. It means establishing procedures for receiving comments and feedback from your clients.

Investment skills
Another major difference in the mindset of the business owner and the employees is that while employees busy themselves making sales and following up on payment from customers, the business owner is always looking for more profitable business and investment opportunities. In fact he goes out looking for ways to diversify his business activities. He is always weighing out opportunities and calculating in his mind the likely rates of return.

When you are the business owner, you will develop an eye for spotting investment opportunities. Your mind will be filled with visions of growth and expansion, while your employees concentrate on maintaining the status quo. As long as money is coming in and their benefits are catered for, the employees go home satisfied with the day's work. But you, as the owner, continue to think and look for ways to grow your business. It is a different mindset altogether from what you are used to when working for someone else.

Join me next week to look at another reason you need to be in business for yourself. Send your comments to secos@global.net.pg or text me on 7688 0033 or 7280 4588.

PNG Vision 2050

2010-04-04T13:54:00.002+10:00

PNG-V2050: Allegiance to PNG vs allegiance to tribal communities

By Dr. Musawe Sinebare

Introduction

THE PNG-V2050 is the vision of the people of Papua New Guinea. Papua New Guineans from different backgrounds who were tasked to formulate the PNG-V2050 have admirably done their very best to come up with such a plan which helps set the destiny of this nation to become smart, wise, fair, healthy and happy by the year 2050.

We as a nation must unite in our thinking and in our actions in order to align our subsidiary plans or short term plans and strategies to achieve the vision of the PNG-V2050.

The biggest challenge for the citizens of this well-endowed nation is to be united. In this article I will discuss what I consider to be a very critical ingredient for PNG; that is, to change peoples’ mindset of their allegiance to the nation state of PNG instead of their allegiance to their tribe or clan or even family groupings. Global trends are heading toward unifications and strategic alliances such as the fall of the Berlin Wall separating East and West Germany, and the European Union movement.

Challenges that threaten PNG

There are many challenges that threaten PNG. Some of these include: escalating law and order problems, HIV/AIDS, declining and deteriorating socio-economic indicators, organized crime, poverty, shifting the focus of able men from working in the agricultural sector to making false claims in order to defraud the state, rural-urban migration, and weaker governance at many of our institutions and organizations.

The one challenge that I have observed over many years is our tendency to align ourselves to the clan, tribe or our associates when the nation state of PNG does not even get factored into our equation. Our allegiance is with the clan, tribe or the associate while the state has no place in our hearts. Misappropriation and misuse of public funds almost always ends with the clansmen, tribesmen, relatives or associates of some nature where allegiance is well and truly cemented and exists to flourish in a mutually reciprocal manner where everyone gains something from someone. This revolves in a highly organized and closely guarded system of treachery, abuse, fraud, circumventing due processes and debauchery.

Let me qualify why I think we are aligned more towards the clan or the tribe (inclusive of other associations such as province, regional groupings, ethnic groupings or political affiliations. Some such cases include:

Nearly all appointments to the top bureaucratic posts are almost always based on political affiliations or who you know and not on what the individual is capable of performing as per the job or position description. That has been the trend since political independence. It is obvious from these appointment criteria that you must be from a particular region, province or must affiliate with a particular political organization in order to be considered for such high office. Those who are appointed through these criteria almost always serve the interest of the political master and do not necessarily serve the interest of the nation state of PNG. Such is the reason for the declining socio-economic indicators and weakening governance at our top bureaucratic positions. A handful of the appointees have kept their heads above the water in executing their duties and responsibilities but as we have seen to date, we have a daunting task to make amends and change the tide of hogwash in our systems.

We know that contracts at national, provincial and district levels are channeled to individuals or entities with questionable backgrounds. It’s a case of the right hand giving to the left hand and vice versa. Whether these contracts have the potential to have direct or indirect impact on improving our declining socio-economic indicators never raise a finger from anyone. We know what happens in the boardroom because at the end of the day genuine bidders miss out or even if they are considered they must first meet certain dubious criteria. These are matters of common knowledge and we have condoned this practice in the name of serving the interests of a particular interest group rather than the nation state of PNG.

Look at what is happening in the Lands Department, for example. Genuine developers with well-documented proposals are given the runaround while ‘proposals’ from questionable individuals or groups get entertained swiftly with the minimum of delay (see ‘PAC query state land allocations’ by H. Joku, Post-Courier, pp1-6, 29/12/09).

We are forever enslaved into the so-called wantok system that drives us to serve the interests of friends, relatives and clansmen or tribesmen more than PNG, as a whole. We have been working towards serving individuals and people of our own kind or those that we associate with rather than those of PNG, as a whole.

We have a tendency to attack or fight each other because our views and our expectations are considered to be superior to others. If we are attacking, robbing, raping, murdering ourselves or inflicting physical and psychological wounds against our own people in good times, how are we to stand up and fight as a nation when we are under external attack? Countries that have gone to war as a nation have a far better sense of allegiance, patriotism and nationalism to their nation than their individual interest groups. Do we need a war to teach us ‘allegiance’?

There are many cases that we could go on listing. However, the important point to heed is that in almost all of these we have not acted as a nation and have made decisions that are not likely to have greater national impact. If that is the trend of how we have been operating in the last three decades, how can we refocus and reorient our concerted efforts toward aligning ourselves and our allegiances towards the nation state of PNG?

The deteriorating socioeconomic indicators are direct outcomes of our misdirected efforts against national interests and national objectives. The abuse of governance processes in many work places contributes towards this sorry state that we are in. The new mindset being demanded by the PNG-V2050 is very important if we as a nation swear our allegiance to the nation state of Papua New Guinea and channel our energy, resources, focus, dedication and commitment towards the betterment of the nation instead of our individual interest groups.

Allegiance towards PNG

Many will agree that sport has a huge potential to break our inclinations and allegiance towards our individual interest groups. Papua New Guineans are very passionate and emotional about their country and when given the opportunity they will naturally support the PNG Kumuls when in their national color of red, black and gold.

The motivation and passion with which Papua New Guineans align themselves with the PNG Kumuls at the international level is the same level of allegiance we must inculcate and nurture in our young generation through sports or whatever means that is necessary to think and act for PNG and its sovereign interests.

There were times when only a few of the cream of the crop from PNG schools were selected to attend premier national high schools such as Sogeri, Kerevat, Passam and Aiyura and were groomed to be the best for the country’s demands. They were brought from many tribal communities and were groomed and prepared to take their rightful place in nation building at Independence and the years that followed. These people are now making significant contributions for and on behalf of the nation. We need more opportunities for our citizens to realign their allegiance towards PNG and its ideals. We have created systems that only promote and allow sectarian interests to flourish and not national interests.

PNG may need to revisit the idea of schools of excellence in strategic locations throughout the country where the best students are brought in to be synthesized and sensitized towards a sense of nationalism. The idea of cadets and national service is also critical if we are to change our mindset to think, act and behave with the ideals of PNG in mind. The PNG-V2050 and its vision and mission can be achieved if there is strong human capital with the right attitude to pursue the ideals espoused by the PNG-V2050.

When we do not have the critical population base with the right attitude and mindset, we are all likely to be heading in different directions and in the process miss the point of working towards achieving our common vision, the PNG-V2050. Some critics would argue that there is no problem with allegiance to PNG. I wish to differ as there is every indication that we have not been fully united in our thinking as a nation. Just look at the breakaway moves in the name of autonomy that provinces such as East New Britain and New Ireland are planning and preparing for. They are arguing that they can better manage their own affairs unlike their counterparts in the Highlands provinces. In a way they have demonstrated that they can make the limited amount of money spread well to deliver services to their people and they could do that even better if they had some degree of autonomy. However, PNG is so small we are better off remaining united for as long as it takes. Disintegrating through such glorified terminologies such as autonomy and decentralization will be more detrimental than beneficial.

In the midst of this potential disintegration, we must find a common subject that will unite PNG’s people from different provinces and regional communities into one formidable nation that we can all be proud of and work towards creating a smart, wise, fair, healthy and happy people who will live in their respective communities in unity by the year 2050.

The PNG-V2050 was proudly developed by Papua New Guineans and the world will be watching PNG closely if what we set out to achieve does materialize within the plan period. It is up to everyone starting from the political leaders, to the bureaucrats and the public servants, government departments and statutory bodies and civil society organizations to talk openly about the PNG-V2050 and strategize on how we can contribute towards achieving the vision.

Conclusion

Papua New Guinea

is still a very fragmented and disunited nation although we have been politically independent for the last 35 years. Our fragmentation and disunity is evident in how we have operated and managed our country since independence. We have systematically aligned ourselves with our own kind and have no inkling about our nation state to which we find easy targets to defraud, vandalize, pillage and steal, abuse and eventually strangle it with any means possible to maximize our personal interest because we have no allegiance to the nation state we created called Papua New Guinea.

If we fail to correct this situation by realigning our allegiance to the nation state, we are preparing for worsening socio-economic indicators in PNG and especially when the PNG-V2050 has set high targets or benchmarks to achieve in order to realize its vision of creating a smart, wise, fair, healthy and happy people who will live in their respective communities in unity by the year 2050.

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The views, opinions, suggestions and imputations made here are those of the author and do not necessarily reflect those of the National Research Institute and the Sunday Chronicle. Dr Sinebare is the Deputy Director at the National Research Institute. He was a Technical Advisor to the National Strategic Plan Task Force, for the Institutional Development and Service Delivery pillar.

Political autonomy vs financial autonomy

2010-04-04T13:48:00.000+10:00

By BENNY SANDEKA

WHEN the National Government granted autonomous powers to the Bougainville government in 2001, few other provinces have also put their hands up. Notable among them are East New Britain followed by New Ireland. Morobe has made an indication to be autonomous but there have not been any serious follow-ups.

When these old flames of self determination through autonomy were rekindled again in 2007, Prime Minister, Sir Michael Somare laid down the ground rules: Autonomy for Bougainville is a special case and the National Government will not entertain any more quest for autonomy brought to government by aspiring provinces.

At the time of the Prime Minister making the public statement, East New Britain was well ahead of its preparation towards the attainment of autonomy. In fact, its bid for autonomy received full backing from East New Britain leaders in Cabinet at that time. But the government's stance on the issue has put their quest for autonomy on hold.

Until this month, New Ireland Governor and former Prime Minister, Sir Julius Chan is back again with the issue. This newspaper reported in its last edition that New Ireland wants "the highest form of autonomy, no less than Bougainville."

So what's different between the autonomous arrangements granted to Bougainville and the autonomous arrangements East New Britain and New Ireland provinces are pursuing?
Bougainville (political) Autonomy

The Bougainville autonomy is part of a peace-package to quell a decade long secessionist conflict. At the height of that conflict, former PNGDF Commander, Brigadier General Jerry Singirok argued then that the Bougainville conflict is political issue and must be dealt with politically and not through the barrel of the gun. Bougainville autonomy is an answer to that argument when on the 26th of Jan 2001, the national government then, signed documents with Bougainville leaders paving way for autonomy with independence as an option after 10 to 15 years.

The immediate consideration for this political autonomy is the weapons disposal program. The National Government wants to see Bougainvillians dispose of all weapons prior to the referendum of self determination to ensure the masses are not threatened or intimidated to vote for independence. It has to be an act of free choice.

Under Bougainville's autonomous arrangements, political, judicial, police and other powers have been devolved. All other political and administrative powers are slowly being devolved to the autonomous Bougainville Government depending on its manpower and resource capacity to accommodate these functions at their level.

Bougainville leaders have openly admitted that they lack the resource and manpower capacity to implement autonomous functions being devolved. But more importantly, they lack financial capacity to fund these functions.

In a bid to fund its autonomous functions, the Autonomous Bougainville Government is considering to re-open the Panguna Copper Mine as its sole means of income generation to fund these functions. But to date, the talk of opening the Panguna Copper Mine are still left hanging while the Autonomous Bougainville Government scratches around Waigani to fund its functions. To date, most of the functions already devolved are funded by Waigani until such time Bougainville can be able to sustain its government. And from developments this far, that may not come immediately within the time frame given before the referendum for independence takes places - which is some five years time.

East New Britain and New Ireland's quest for (financial) autonomy

New Ireland Governor, Sir Julius Chan has publicly told his people that his province needs "the highest form of autonomy." Whatever that highest form of autonomy the former Prime Minister wants for his people entails is yet to be spelt out. But from his speech as reported in this paper, the Governor is not happy with the central government because revenues derived from the two mines operating in the provinces have not gone back to redevelop New Ireland.

These are same sentiments being expressed by East New Britain autonomy committee. East New Britain contends that it has the capacity to raise internal revenues and expand these revenues within the province to develop basic services. However, they cannot do so under current laws on the Provincial and Local Level Government.

According to the current arrangements, all revenues raised in the provinces are remitted to the national coffers. From there, the national government disburses these revenues back to the provinces under four main areas. They include (a) Development Grants, (b) Staffing Development Grants (c) Economic Grants (e) Economic Services Grants.

But East New Britain says, since the mid 1990s, the central government has miserably failed to remit to it its fair share of these grants. Most of the times, these constitutional grants do not come in full nor on time making it very difficult for East New Britain to fulfill its obligations. Even where there are financial powers devolved to provincial administrators to make financial decisions, approval has to be again sought from the central government and its agencies. This, East New Britain autonomy committee says, is very cumbersome and frustrating.

The objectives and principles of increased autonomy for East New Britain is to have the power, scope and resources to maneuver and innovate for positive economic development as well to improve our government system at the provincial and community level as we deem suitable. This objective will be achieve through a high degree of self reliance which is a directive principle of the National Constitution which in the long run will eliminate heavy dependency on the central government and other institutions.

Unlike Bougainville, the proposed East New Britain autonomy is sought within the framework of the national constitution. This means, while autonomously administering the affairs of their province, East New Britain will still remain an integral part of PNG but with its own constitution and regional parliament.

Development wise, they have the resources and capacity to administer an autonomous government. They have proven in the previous provincial government system and would like to return to that system in 2012 where they want a premier to rule them instead of governor.

This proposal now has been placed on hold with the Prime Minister's instructions that Bougainville autonomy is the only autonomy the national government has considered and will not entertain any others.
But East New Britain autonomy committee is begging the national government to treat their case as a one off case.

For interactions and discussions, email: nalatimes@daltron.com.pg

The incredibly resourceful: A tribute to Enaha Kwa

2010-04-04T13:40:00.000+10:00

-TIIKIIEMB SHIIEMB

THIS week a community of enlightened citizens and international colleagues bid farewell to the late Enaha Peri Koroi Kwa for eternity.

Enaha was the loving mother of Jolene, Grace, Dika, Rabam and Lekwa, and a beloved wife and soul mate of Associate Professor of Law, Eric Kwa. Enaha, a charming Motuan beauty from Barakau Village, was bestowed a chief by Eric's people from the Siassi Island of Morobe Province.

At the mere age of 37, Enaha was acknowledged to be the most promising champion among the few who stood for and advocated for the rightful place of all women in Papua New Guinea and indeed globally.

As stated in many of the well meaning eulogies, Enaha was loved, respected and accepted in the ever widening circle of gender equity advocators- here in her country as well in the region. Public pronouncements made at the crowded UPNG chapel mourners heard unanimously the ever present sense of the great passion with which the late Enaha has single handedly pursued and supported to the end almost religiously that national phenomenon of gender equality advocacy. To this Enaha has had the unequivocal backing of her equally ingenious husband, Dr. Eric Kwa

Enaha was on her way to becoming the popular discerning national voice of consciousness in connection with the issues that affected women in this country. Speeches read out to honour the late Enaha's varied contributions; many have expressed that electrifying force, the inner radiance of energy manifested in the instinctive qualities of sincerity, devotion and glamour to duty brought on to the discourses on women and development in PNG in recent times. This was the Enaha hallmark; which legacy must now be upheld, emulated and entrenched in the greater national movement.

Even in keeping her own family back yard in the gender equality movement's chain had to be cleverly woven. Enaha's reluctant brother Douveri was made to comply; compelling performance of kitchen bound household duties. Message? Men and boys must do the chores too! Even in her family circles, in private moments and in the company of fellow citizens and international colleagues, Enaha talked little else but equality for women of this country- sincere in thoughts and in actions.

Enaha truly was godsend. Her loss is painfully felt widely. Indeed, in her short professional career, Enaha created both the needful intellectual and social space for enhancement of quality debates and propagation of the national plan of action for equal and fair representation in decision making bodies and organizations.

There were other equally important issues like the family and sexual violence that were being addressed by the National Council of Women, the Papua Hahine or even the Lutheran Church congregations. The late Enaha was acknowledged the rising star and iconic goddess of the contemporary women's movement and accompanying issues in PNG.

She articulated and brought a huge sense of enlightened debates and actions onto the national scene. The late Enaha got on well with everyone she came to know, as she cherished and sought counsel, while providing the most needed in-depth intellectual nursery for discourse, through well thought out arguments, in the context of the multiplicity of our cultural backdrop. The late Enaha was able to stitch the many discourses from all angles, ensuring that the whole of gender approach was cleverly situated even among the most ardent gurus of gender equity programmers at all levels of the society.

Farewell and Bamahuta, for you were the beginning of the gentle national heroic voice for the oppressed!

NEWS ANALYSIS

2010-03-01T13:07:00.001+10:00

Basil takes a swipe at government

Compiled by TERENI KENS

'God save Papua New Guinea' is one phrase that any one person would want to say given the country's current situation where government services are non-existent in rural areas and more so when corruption seemed to take precedence.

When we talk about public service delivery, time and time again we refer to the very basic needs of health, education, roads and infrastructure, and law and order.

These are the basis of our very survival and existence as a nation, but when these services are not delivered the way it is, then we tend to question what has gone wrong. More often we have the tendency of blaming the political leaders and bureaucrats of the failure on their part for not delivering the much needed services that we lack.

But can we really blame them for all the failures or should we blame ourselves for doing nothing to get the leaders responsible for their actions. I believe we should blame ourselves, simply because we failed to exercise the "peoples' power" to say "enough is enough, we need service delivery." Could it be better if we as ordinary citizens collectively keep check of our national leaders and the government of the day to make them responsible for their own actions using the peoples' power unless and when they fail to bring services to a particular locality or nation as a whole? Just for a moment, think about it.

Having stated these, perhaps it is at this juncture we feature a young, vibrant and one of those hardworking first time politicians and Member for Bulolo Sam Basil, who has the country at heart and wants to see change where necessary. Last week Mr Basil in a press conference spoke strongly against the current government's non performance as portrayed by various key government agencies.

His down to earth criticisms began like this: "I do not speak for the opposition but would like to air some of my views here as a leader in Parliament regarding the government's performances to date as it has been two years in office now and I can really see the performances of the ministers and their key departmental heads which also reflects the type of government led by Grand Chief Sir Michael Somare and his deputy Sir Puka Temu. Services in the rural areas in Papua New Guinea are still declining or if not should I say non-existent."

Health

Firstly, the health sector. The health indicators have fallen ever since and drugs are not reaching the rural aid posts. There are no district doctors available even the main centres are struggling to provide health services. There are no health committees or district health boards being appointed or confirmed by the health department leaving the unqualified Health Extension Officers (HEOs) and nurses to run the administration of the health centres to the ground. Even worse, the health department has parked millions of kina waiting for Public Private Partnership (PPP) partners to deliver the hospital care and maintenance programs. The minister, Sasa Zibe since taking office hasn't come clear to all Papua New Guineans on how he and his government intends to resurrect the health sector in PNG, instead the minister continues to attend overseas meetings while forgetting his role as a minister to make sure the health department is providing the much needed services back home. Meanwhile, if a patient needs a heart by-pass, a kidney transplant or other complications he or she cannot afford to go overseas for treatment as there is none available in the country.

Education

Secondly, the education sector has also got its share of criticisms by the MP. The controversial RESI fund which MP Basil said is a joke. He said the education ministry has changed hands over time by several ministers with different priorities, the funds has been depleted ever since with no broader and transparent spending. "I call on the Public Accounts Committee from which I am the member of to investigate the use of RESI funds and also the Ombudsman to do the same. The school fee subsidy that has been released recently, I call on the Minister for Education, James Marape to publish on daily papers the names of schools and the amount destined for each schools."

Correctional Services

Thirdly, the Correctional Service (CS). "While I commend the Prime Minister to take action on the CS issues, I believe that sacking of the minister will not totally solve the problem of the CS. What magic will the new minister deliver to solve the CS issue? The Somare/Temu government must deliver their plan of action to the people of Papua New Guinea before the installation of the new minister, how much money are they willing to pump into the rehabilitation of CS and how are they going to address the issues of the service men/women who sacrifice their lives to protect the convicts in the run down institutions.

Police

Fourth is the police: "The main centres in PNG including Port Moresby and Lae are not safe anymore for the mothers and children to roam freely. Reports have shown that the police hierarchy is in shambles. There's politicking and not much work is done. The criminals' way of executing crimes has now become sophisticated, outclassing the police capabilities. The rural police have lost its extra man power with the slashing of the community and the reserve police programs. Police operational funding has been misspent and I can recall back asking the Prime Minister on several occasions which he promised to deliver answers to my questions, but never did to this day. It is good to hear from the police commissioner to disengage his department from hiring vehicles and plans to buy police vehicles using operational funding. A statement from the Prime Minister on how the law and order situation will be fixed is now due."

Works, Transport and Civil Aviation

"The transport minister recently announced that the government will upgrade the Jacksons International Airport to the tune of K500 million. While it is good news for the elite or rich Papua New Guineans and the international communities, I would like to remind the Somare/Temu government here that most of our rural airports are still closed and some are struggling to survive. Can the Somare/Temu government re-divert this K500 million to fix the rural airstrips by equipping them with manual grass cutters, cone markers, wind socks and possibly through the PPP program buy small one tonner planes for the air service operators and let them operate a subsidized airfares/freight services as repayment. By doing this the dead green revolution dream can be revived by the private sector. It was also good to see the honourable minister for transport who came strongly on the media saying that K30 million cannot fix the nations road, and again I call on the Somare/Temu government to explain to this nation as to why only K30m was allocated for the national highways? And why didn't the minister fight for more funding in his seven years as a cabinet minister? Is he telling the nation that the Somare/Temu's priority is not on the road system and can only respond after nasty accidents? While at this juncture, I would like to remind the Somare/Temu government that it is the national government's function to maintain existing national highways for its citizens and more importantly the investors who come into this country pouring millions of kina into big projects - this include the Pogera Gold Mine and the oil and gas fields in Southern Highlands including the Hidden Valley project in my electorate. These companies and other businesses deserve a better road network system to function effectively, the government revenues also depend heavily on taxes being generated by those companies."

Labour & Employment

"PNG will continue to see foreigners coming into this country and doing jobs that Papua New Guineans can do. I am confidently saying this here because I can recall back then, the Labour Minister's statements during a question time in Parliament that the excavators operated in the Ramu Nickel Mines in Madang province have its operational instructions written in Chinese language and therefore requires a Chinese speaking operator to operate. Till to this day the Somare/Temu government hasn't come up with plans on how to secure jobs for Papua New Guineans. The Labour Minister and the Education Minister have not coordinate themselves as yet to find ways to use our technical education system to bring the first batch welders, drivers, plumbers, operators and carpenters to take on the LNG project development, sadly Papua New Guineans will watch foreigners who will cash in on all these job opportunities. The work permit processing is still a nightmare with claims of corrupt practices involving the staffs which the Minister hasn't done anything to clean up.

Conclusion

"In conclusion, I can say that the Somare/Temu government has been in power for far too long, political stability has its limits we can say five years is juts enough to measure political stability in Papua New Guinea.

"The longer a regime stays in power the tired they become and often go to sleep and this is evident in the National Alliance led government.

"It is apparent now that the MPs of the ruling party and the coalition partners are lobbying for the ministries just to land themselves into a comfortable lifestyle with power and recognition.

"The ministers spend their precious time travelling overseas, buying houses overseas, seeking medical attention overseas and some go to the extent of sending their families to live overseas without realizing the hardships faced by the very people who mandated them to provide the much needed service . These practices create an insulation where the ministers do not feel and share the pains of the ordinary Papua New Guinean's anymore.

"They don't care if the Port Moresby general hospital, Angau or the rural aidposts have any medicine or procedures available anymore, streets not safe anymore, not enough jobs created by the government from big projects anymore.

"This is what I see in the Somare/Temu led government ministers are not been supervised and disciplined to drive the government's dream and vision.

"In the recent media releases we also see that criminals have named ministers who are involved in supporting criminal activities, I challenged the media to spell out the names so that the people of Papua New Guinea must know who the ministers are. I also challenge the Prime Minister to come clear on this issue as it is a very serious business to be a politician and at the same time promote criminal activities.

"I also call on the Minister for Justice Allan Marat to clarify the application of laws regarding the referral of members of parliament as there are some cases pending with successful orders while recent cases are denied orders to ombudsman and tribunals.

"Are we having three separate laws here? One for the ordinary people, one for the Members of Parliament and one for the very few and powerful members of parliament?

"The Somare/Temu government hasn't done much in the last two years in reducing corruption. We recently saw some more accusations against the planning minister; corruption continues at an alarming rate and involves the very people who are supposed to protect this nation's wealth.

"This year I believe that the placing of PNG on the corruption scale will further decline while MDG, MTDS and the vision 2050 cannot produce positive results as the minister himself who is supposed to make those goals and visions fruitful; is now being accused of corruption.

"The Somare/Temu government has been in power for far too long now there are no new incentives to deliver the much needed services down to the grassroots.

"The PNG LNG projects agenda dominates the government ministers' speeches but the very simple Papua New Guineans are still waiting for their services."

So, are we in a boat without a captain? Make your say and save the country from greed and corruption.

Action speaks louder than the words

2010-03-01T12:59:00.000+10:00

ASIA PACIFIC PERSPECTIVE: CHINA+

-MATHEW YAKAI

AT a restaurant we go to often, we tried to pay for a stranger's dinner. This is not acceptable in China. The Chinese people need to save face. They want to look perfect in front of every one.

That means they do not want others to think they need help. They think if some one tries to help them they are looking down at them because you think they are poor. The man refused our kindness.

Sometimes people accept and sometimes people do not. I think though it's best to try if the Spirit of God is leading us to do something. It is better to obey God and be rejected by man than to be rejected by God and accepted by man.

The staff we asked to pay his bill was very surprised and happy we would do such a thing. They commented that no one in China would ever do that. Our actions were very strange to the local people. Money is their god.

They believe that as much money should be taken from people especially foreigners. The owner of the restaurant said she thought we were special people with a good heart.

She asked us why we came to China and we replied that Jesus had told us to come to China. She explained about how she believed in Buddhism because the government told them too.

There are three types of ways to do Buddhism: the first where you say you believe but do not really in your heart, the second where you be kind to others and thirdly where you are concerned about your spirit.

When we told her how Jesus sent us to China she was not surprised and said you are concerned about your spirit. She later gave us a free drink and a very large discount off our bill which was very rare.

The lady we buy our vegetables from enjoys when we go to buy from her. Her very small shop is made from plastic sheets and bamboo and is very cold in minus 30 degrees Celsius.

She makes me sit down very close to her. We communicate the best we can, me without Chinese and her without English. She shows me the cross stitch she is making. She knows that I love and respect her.

I think that she over charges me for veggies but for the sake of the gospel this is the one and only time I do not say anything. We sit close together and we communicate with our actions.

She too knows that we believe in Jesus and was not surprised when we told her of our faith in Jesus. When I was teaching in Dalian my students often asked me 'Serena why are not you like a normal teacher'.

I would smile and say, 'normal is the failure of potential'. They would walk away confused and come back in a week and ask 'why are not you like a normal teacher' as they are standing on their table answering the question I have asked them.

One day when they asked me what I did on the weekend I said that I go to church. They said 'ohh that explains it'. They then understood why am not like other teachers.

In China, to be a Christian you can believe but not share your faith with non believers. I have to be very careful. I am monitored in every class at every school I teach at.

The Chinese government knows everything. Each province is different in their level of strictness. In Shenyang where we live is very strict.

Late last year the Shenyang government tightened the laws more. Thankfully with the Spirit of God in me is obvious. What I believe and my actions back up the living Spirit in me. I do not speak Chinese very well but when I walk down the road people wave hello. I say hello to children and occasionally give them lolly pops.
One young girl who does not speak English, I would stop by to say hello and in the end I would open my arms with a big smile. I would hug her all the while having a big smile on her face.

In the end she would do the same waiting for me to hug her. The people know I love them because my actions show them. A smile, saying hello, spending time with people, giving what you can is saying "I love you and you are valuable to me".

The owner of the restaurant said she knew we were spirit people. Spirit speaks to spirit. People know you by your actions.

Jeffers' (husband) mother knows I love her like my own mother because of how I treat her even though I do not speak Enga language (I will learn it much nicer than Chinese).

To be agents of change we must first pray. A praying country is a changing country. However our actions are the words of our heart. Jesus said you shall know my disciples by their fruit (John 15:8). I know a mango tree because it has mango's.

Born again Christians are of two worlds because we live in the physical world. However we are children of the highest King. We inherit the Kingdom if we produce fruit of the Spirit (Galatians 5:21).

Those who are born again believers are born of the Spirit. The fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness and self control (Galatians 5:23).

This is how we should be acting. We should act them out in our lives. These are the character traits of one who has committed themselves to Jesus. Are you kind? Are you patient? Do you have self control?

Just because you go to church and say you're a Christian does not mean you are doing these things. I can go to Big Rooster but it does not make me a chicken. People know you by your actions.

Do you act with fits of rage, jealously, selfish ambition, impurity in your thoughts, words or motives, drunkenness. Do you get drunk, dissension. Do you gossip?

Most Christians share other people's information under the false pretense to pray about it. You do not need to know the need of some one else, pray in tongues for them and let God be God.

Do you envy? Are you sexually immoral? (Galatians 5:19-21). These things are at the opposite end of where God lives. Those who live like this will not inherit the kingdom (Galatians 5:21).

God is a God of grace. We do not deserve to go to Heaven but Jesus dies for us while we were still sinners. Jesus came to earth to be the word in flesh (John 1:14).

He is the fruit of our salvation. A country that is different to what it is now can only be different if the actions of the people change. Actions make a country what it is. People who are corrupt make the country corrupt because of their corrupt actions. People who show the fruit of the Spirit will make the country that way.

To have a changing country, action must follow prayer. God will do His part but you must do yours. You are messengers of God. You have your instruction manual, the Bible and you must talk to the commander, God.
You must do your part. You are His hands and feet. Being a person of the Spirit is hard work if it goes against our sinful nature.

I am the most impatient person on the planet. I grew up with the idea that time is money. Waste time and you're wasting money. I have to control myself when I am waiting in line or walking behind someone who is slow.

I pray in the Spirit when I feel like I want to get angry or am being impatient. I remember the person in front of me is made in the image of God. Jesus died so that God could restore relationship between God and people and people with each other.

China is teaching me patience. There are people everywhere so I am always waiting. God does not just hand us the fruits of the Spirit into us. God gives us opportunities to grow the fruit so that we can be made into His image.

We will never be perfect at these things. It takes a life time to master. I am more patient than I was a year ago but each and every one of us needs improvement especially me.

Being people of the Spirit is a huge responsibility the effects will last for eternity. Your actions can lead a person into the Kingdom of God but your actions may also lead them out of the Kingdom of God.
"If you remain in me and my words remain in you ask what ever you wish and it will be given to you" (John 15:7).

If you produce good fruits and ask God to clean your country of corruption, so that PNG will be known as the country that glorifies God. GOD will give what you ask. Guaranteed!

Note. Serena Heptol Teargun contributed to this article. She lives in Shenyang with her PNG husband, Jeffers Heptol Teargun from Enga Province. For comments regarding the article or Chinese Gov. Scholarship, contact Mathew Yakai on: m_yakai@hotmail.com or SMS 71489901.

Enjoy tax advantages available to the informal sector

2010-03-01T12:50:00.000+10:00

BE YOUR OWN BOSS

-TIRI KUMBAKUL

THE INFORMAL sector in Papua New Guinea is so large and worth millions that the government passed the Informal Sector Development and Control Act 2004 which recognises the importance of the sector and provides guidelines and regulations within which it should operate.

What the law requires is that people in the informal sector can operate any informal business as long as they abide by sanitary and other regulations. Such people are not required to lodge returns to authorities, or to pay taxes on the income they earn. This is another important reason why people in our country need to seriously consider becoming self-employed.

In my view, the Act provides the best opportunity for the
thousands of unemployed people in the country to become
meaningfully engaged in economic activities. The informal
sector has the capacity to accommodate the thousands of
school leavers exiting the education system every year. It
provides the best option for those who out of frustration
and hopelessness have turned to crime and other anti-social
activities, to earn an honest living and contribute as
productive members of society.

The higher you rise up the ladder, the more tax you pay

What people who are looking for jobs do not realise is that
those who work for wages and salaries pay a lot of money in
income tax. The harder they work and the higher they rise up
the corporate ladder, the higher they rise up the tax
bracket, and therefore the more income tax they become
liable for. Every time they get a pay rise, the government
gets a raise. Every time there is an upward adjustment due
to the CPI, the government gets an upward adjustment.

Let us look at some actual figures. According to the 2008
Income Tax Schedule effective from 1st January 2008, the
following tax rates applied for people who had no dependents
and had lodged their tax declarations:

Where fortnightly income exceeds K800, tax is calculated as K123.08 plus 30 toea for every kina by which income exceeds K800. In other words, if you receive K900 per fortnight, your income tax will be K123.08 + (K900-K800) x 0.30 = K123.08 = K100 x 0.30 = K123.08 + K30 = K153.08.
Where fortnightly income exceeds K1,277, tax is calculated as K266.18 plus 35 toea for every kina by which income exceeds K1,277. You can calculate how much a person earning K1,500/fortnight would pay using the procedure given above.
Where fortnightly income exceeds K2,700, tax is calculated as K764.23 plus 40 toea by which income exceeds K2,700. Try calculating how much someone earning K3,000 would pay.
Where income exceeds K9,623, tax is K3,533.43 plus 42 toea for every kina by which income exceeds K9,623. If you are a "top shot" whose gross salary is K10,000 per fortnight, your income tax would be K3,533.43 + K377 x 0.42 = K3,355.43 + K158.34 = K3,691.77. So you would be paying that much out of the gross figure of K10,000, meaning that 37% of your income would be going out as income tax. Note that the Income Tax Act defines taxable income as "salaries, wages, commissions, bonuses, remuneration of any kind, whether at piece work rate or otherwise, in respect of or in relation to the employment of that person as an employee." It covers every conceivable income employees can earn. Benefits such as motor vehicles and housing are taken as part of the employee's remuneration and taxed in full. If allowances are paid in lieu of these benefits, the amounts are added to salaries for tax purposes.

Basically what this means is that people who work hard for their employers receive pay rises and improved benefits which places them at higher tax brackets, with the result that they pay more tax. The gross salaries and other benefits may look very enticing but what employees actually take home may not be that impressive when tax is factored in. All employees in fact work for the government without realising it.

Let me state at this juncture that paying taxes is not necessarily a bad thing. As responsible citizens, we all
need to contribute towards meeting the costs of developing our country. When we work, either for others or for ourselves, we contribute to nation-building. When we pay taxes, we empower the government to provide us services, build good roads, schools, hospitals, make laws etc.

But did you know that not everyone pays income tax? Did you know that the law allows some people to legally minimise their taxes or even avoid paying taxes at all even though they make a lot of money? Did you know that some people are given "tax holidays" by the government? Did you know that the already rich and well-to-do are given "tax concessions", "tax rebates" and "tax credits" which are not available to employees?

The personal income tax system is based on the PAYE principle, which means "pay as you earn". What this
effectively means is that you are taxed on your gross income before you make any deductions for the costs you have incurred in earning that income. Such costs might include rent for the house you are living in, or fuel and maintenance for your vehicle which you use to travel to work, the clothes you wear or the food you eat to keep yourself alive and working.

Under the PAYE system, you pay your income tax before you meet your living expenses. And to make it easy for you as well as to ensure that you do pay up, the government has directed your employer to deduct the tax the moment you get paid. So what happens is that the government gets its tax income from your salary before you see the pay you have sweated yourself for. The employer issues you a pay slip showing how much your gross income has been, and the deductions such as tax and superannuation.

If you take account of the 10% GST you pay every time you buy something from the shop or pay for a service such as electricity and telephone, and the 15% withholding tax you pay for interest you earn from your savings, the government probably ends up with close to half of the income you earn!

I have determined that most employees work between 3 and 5 months of the year just to pay their taxes without realising that this is happening.

The self-employed work 100% for themselves

When you become self-employed, you work 100% for yourself. If you are in a business considered as informal, you are not required to register yourself with the Investment Promotion Authority or the Internal Revenue Commission. You are not required to report ur earnings to anyone. This means that
your gross income becomes your net income. For example, if you are into farming, street sales, second hand clothes at the local market or even running a PMV or a taxi, the government does not require you to report your earnings. What you earn is all yours to keep and invest as you like. That is the beauty of being self-employed.

Have you noticed that small business people seem to have
more money in their pockets or bank accounts compared to
people who work for salaries and wages? Have you wondered
how uneducated self-employed people can buy land and build
their own houses whereas those working for the government or
private companies cannot afford to do so? How come
self-employed people who are relatively uneducated travel
around in good vehicles while well-educated employees own
rundown and unroadworthy vehicles or compete with the
grassroots for seats on public transport all their lives?
How come self-employed people travel overseas regularly while
people who have paid jobs cannot even pay for a holiday to
another part of the country? How come employed people borrow
money from street sellers?

I submit to you that income tax is one major reason. The
self-employed pay little or no income tax and get ahead
financially, while employees get hit with tax which can
amount to large sums. In fact, when you think about it,
income tax is probably the largest single expense paid by
those who work for others. It keeps them struggling all
their working lives.

Employed people work more for their employers, the
government, their debtors and suppliers of goods and
services, and less for themselves. They work for other
people so much that what they have left with them at the end
of a fortnight is very little. So they go back to work again
because for many of them, one missed fortnight means
disaster.

For the employed, pay Friday is payday; for the self-employed any day is payday

In PNG you can tell when it is government or company payday.
You see long queues at banks and shopping centres,
especially on pay Fridays. You can sense life and vitality
in people. You walk into a shop and you feel like you have
entered a bee hive. You also see many relatives in town, as
if they have been working too and have come to collect their
pay.

If you ask a self-employed person whether a certain Friday is
payday, he will scratch his head and tell you that he does
not know. He is telling the truth, because Friday as a
payday is not part of his mindset. For him, any day is
payday! His income is irregular. Sometimes he makes nothing
at all; other times he makes a lot for which he may not pay
any income tax. His lifestyle seems risky to people who are
used to living on regular fortnightly pay. But that is the
way the self-employed live.

I can tell you from experience that it is more exciting and
rewarding being self-employed than living the monotonous,
routine and boring kind of life which employed people live.

Next week's article will look at the tax advantages that are
available to people who have their own companies.

Your comments can be sent to secos@global.net.pg or text me on
76880033 or 72804588.

Traveling the journey of faith (Part IV)

2010-03-01T12:38:00.000+10:00

LIFE IN THE PHILIPPINES
-PETER BARNABAS PAMULA

TRAVELING the journey of faith simply means to take full responsibility of the risks and consequences of the decisions we make in life.

In fact, the only way to excel in our career or business or any endeavor is to take risks and seize the opportunities. Many successful people on earth would honestly relate very well with radical leadership. Radical leadership in any sphere brings reformation and transformation. In order for us to develop, a great deal of radical leadership is necessary. Unless, we are prepared to take the risk, we are not able to reform and transform for the good in the journey of faith.

Abraham was radical leader. He conceived in his mind a basic framework of the journey of faith and acted in faith to take risks based on the promises of God. He deeply understood that when God makes a promise, he would keep it even if the journey might seem impossible and unpredictable at first. Surely, He will make a way. So Abraham traveled the journey of faith and made a difference in the world with radical leadership!

The Hebrew word for Abraham means "father of a multitude". The name was conceived from God as a result of the covenant initiation. Initially, he was called Abram, the Hebrew for "exalted father". But, after the exodus from Egypt, he assumed a covenantal name, a name that would be used by three major world religions to trace their origin. (Genesis 17: 5) Obviously, Judaism, Christianity and Islam trace their roots to Abraham. While Christianity and Islam are off-shoots of Judaism, a great decree of injustice was done to Abraham in relation to the promise of God.

The change of name would necessarily mean change of status and role in the community. For example, when the Government recognizes our services to the community and country, we are given awards and recognition as a token of appreciation. The awards and recognition elevates our status and credibility in the eyes of the community and country. Likewise, Abraham's status was elevated after he left Egypt as a result of divine intervention.

In Genesis 12: 17, God plagued Pharaoh with strange plagues. The reason these plagues landed on the throne of Pharaoh was because, God wants to keep His promise to bless Abraham and make his name great in all the earth. The Pharaoh enquired Abraham whether Sarah was truly his sister. The King uncovered the truth! She was the wife of Abraham. The king realized that to have Sarah as his wife would create more problems for his leadership and immediately told his soldiers to escort Abraham's household out of Egypt.

Abraham went out of Egypt as a wealthy person (Genesis 13: 1). How could that be possible? Sometimes we underestimate God's ability to provide and care for us. We become skeptical of the unordinary and draw our own conclusions. But behind all the events, God is the one that orchestrates favor in our behalf.

Nothing would substitute such favor and mercy of God. How much should we compensate Him for all the daily provisions in our lives? Nothing! God is supreme and His promise to take us through in the journey of faith must not be taken for granted. Our faithfulness to the covenant is crucial for Him to fulfill His promise and purpose in our lives. So be a radical leader to make a difference in the world. (To be Cont'd)

The writer is a Papua New Guinean student studying Masters in Religion at the Adventist International Institute of Advanced Studies (AIIAS), Silang, Cavite, Philippines. For comments I can be contacted on email: pamulap@aiias.edu or cell phone +639391773655.

Lihir a takeover target?

2010-03-01T12:33:00.000+10:00

PNG RESOURCES WEEKLY
-YEHIURA HRIEHWAZI

SIR Julius Chan, the former Finance Minister who was once dubbed the finance whiz-kid of Waigani, seems to have a problem with two gold mines in his province. He wants junior gold miner Allied Gold out of Simberi and is bitter against Lihir Gold Ltd using revenue from his province to invest in failed ventures overseas, especially the Ballarat mine in Victoria.

Knowing the business acumen that characterizes his personality, he is obviously angered by the fact that his Namatanai township has fallen into disrepair and became dysfunctional despite the presence of the two gold mines in the Namatanai electorate.

When Lihir was preparing for construction, he wanted the Namatanai to become the supply base for the mine. Had that been done, many of his family businesses including a shipping company would have blossomed.

If Sir Julius Chan had the money, he'd be buying big into Lihir, at least to have some control over it and make it become a development tool for New Ireland, especially Namatanai, something he wanted happen for many years. He is threatening a revolt against the government for holding back K400 million from the mine that should rightfully be returned to his province.

Australian market analysts are now saying Lihir is a takeover target after the departure of its veteran CEO Arthur Wood.

It has not paid any dividends to investors in the last 6 years until last year. They tipping Lihir Gold as a worthwhile investment has made fools of stockbrokers - and journalists - for 15 years.

But this time should be different: Weak management, led by chairman of 13 years Ross Garnaut, and a poor use of shareholder's funds are the reasons why Lihir is effectively for sale, and there is little doubt that institutional investors would rush a bid priced at $3.50-4 a share, with the higher price being about 30% above Lihir's most recent sales, which have slipped beneath the $3 support level to around $2.94.

Tim Tredgold, an investment analyst says patience with Lihir, and its never-ending list of excuses for failing to perform as promised, means that it's time for wholesale change, with the first whiff of that coming on January 18 with Hood's abrupt departure. The move suggests further management ructions at the group with no obvious CEO replacement plan - former chief financial officer Phil Baker has been temporarily installed in the position.

Significantly, and somewhat embarrassingly, Lihir's share price rose slightly after Hood walked out. The immediate message from the market was that change - any change - has to be for the good.

As Hood headed for the door his boss, and Lihir's chairman since the company floated in October 1995, Ross Garnaut, provided a second clue into Lihir's fate as a business for sale.

Garnaut used two magic words in his widely reported briefing of selected commentators. The next chief executive, he said, would focus on "maximising value" from its assets rather than just running the operations.

There are two ways to maximise shareholder value in a company: run the business better, which is a bit hard to accept in Lihir's case after 15 years of false starts; or sell it and bring in an expert team from a bigger mining company.

Whether a bid comes from one of the gold majors, such as Canada's Barrick, South Africa's AngloGold, Newmont of the US, or local gold sector leader Newcrest is hardly relevant: The point is that Lihir's share register is loaded with investors who are willing sellers having watched their company lurch from crisis to crisis despite being the owner of one of the world's great gold deposits on Lihir Island.

Perhaps the greatest damage to Lihir's relationship with institutions can be traced back to a $US325 million fund raising in March last year, which saw new shares issued at $3 each.

Funds raised were earmarked for expanding operations on Lihir Island and in West Africa, where Lihir had expanded via the takeover of Equigold. Little mention was made at the time of the company's third business unit, Ballarat Goldfields.

However, a month after the capital raising, Lihir reported that the Ballarat mine was being "streamlined" after failing to perform as planned. By June, Lihir management announced plans to effectively write off the Ballarat investment for between $US250 million and $US350 million, roughly what was raised from shareholders three months earlier.

The 2007 Ballarat investment was an attempt by Lihir to invest in Australia, a move that would "derisk" the company with its heavy focus on PNG and Africa. It failed and the jury is out on whether the 2008 Equigold investment will be any better.

For investors, the question with Lihir is whether its current status as a business, which appears to looking for a new owner as well as a new chief executive, makes it - in terms of gold holdings - the best gold stock on the market.

Among Lihir's key rivals are:

Newcrest Mining, which also offers exposure to copper as well as gold, with the potential for tungsten production in the future. Like Lihir, Newcrest has had its management moments but is now settling into a highly profitable pattern, which should see earnings rise from $248 million last year to as much as $900 million in 2012. Over the past 12 months, Newcrest's share price has risen from a low of $27.64 to recent trades around $33.30.
Kingsgate Consolidated, a company dogged for more than a year by slow government approvals for a major mine expansion in Thailand, but now free to grow there and perhaps elsewhere as well. Production at its flagship mine will double over the next two years, and perhaps more thanks to ongoing exploration success. Management has also started talking about expansion outside Thailand, with Australia and South America the prime targets. Over the past 12 months, Kingsgate's share price has risen from a low of $3.42 to recent trades around $9.49.

Other gold stocks with solid production profiles and growth prospects included Avoca Resources, Dominion Mining and Silver Lake Resources. Each offers direct exposure to the gold price, strong management and the potential for exploration success.

Set against these rivals, Lihir is a company sitting on a staggeringly good gold deposit at Lihir Island with official reserves of 28 million ounces, enough for 28 years of production at the current target rate of one million ounces a year and total resources measured at 43 million ounces.

Production costs are running at $US454 an ounce, yielding a gross margin of more than $US500 an ounce, with profit in the current financial year tipped to come in at around $300 million.

The problem is that management has struggled from the day mining started to maximise value from its namesake mine, partly because of the difficulty working in the hot ground of an open pit mine in a dormant volcano and partly because the ore needed expensive processing.

As if difficulties in the pit, and in the processing plant, were not enough to keep management fully occupied, Lihir's board decided to expand via acquisition, including the loss-making takeover of Ballarat Goldfields and the far-from-convincing merger with West African specialist, Equigold.

The move on Ballarat was supposed to lower the risk profile of Lihir. The move on Equigold was supposed to diversify gold production. Neither initiative has yet succeeded although that is not to say any, or all, of these difficulties could not be overcome by a new owner.

Curiously, despite the layers of bad news currently washing over the stock, Lihir is persevering with its attempts to impress mining analysts by organising a tour of mining facilities in the coming days, a move certain to increase attention on the assets of the company.

A sum of the parts calculation, with the treasure trove on Lihir Island and the potential of Equigold's Bonikro mine and exploration tenements, could easily produce a valuation greater than Lihir's current market value of $7.2 billion, less than half the value of Newcrest's $16 billion.

If ever there was mining company looking for someone to show it how to perform as a business it is Lihir - which is perhaps why Garnaut said the future was all about "maximising value" for shareholders.

For comments, information and interaction email: yehiura@gmail.com

Drivers of the Papua New Guinea Vision 2050

2010-03-01T12:27:00.000+10:00

By DR MUSAWE SINEBARE

Introduction

DIFFERENT aspects of the Papua New Guinea Vision 2050 (PNG-V2050) are to be addressed in this series of commentaries.

Subsequent articles will focus on specific topics of interest and discuss along similar lines as this one. It is intended to educate the general public, stimulate national consciousness, encourage nationalism and patriotism, persuade decision-makers, raise issues for further debate and decision, create awareness, and convince heads of statutory and lead government agencies to proactively align their work and/or activity plans with the aspirations of the PNG-V2050.

Papua New Guinea, a land of thousand tribes and diverse cultures was united at Independence through the Constitution of the Independent State of PNG. Symbolisms that unite PNG as one independent nation include; the national anthem, the national flag, the national currency, the National Parliament and systems and processes of governing an independent sovereign state of Papua New Guinea. Now we have a National Vision for developing and shaping our country and how we want this country to be in 40 years time through PNG-V2050.

I have taken the liberty to provide commentaries on various aspects of the PNG-V2050 through this avenue. The commentaries are my personal interpretations and understanding of the greater vision encapsulated in the PNG-V2050 and what we as a nation and as individuals could do to contribute towards collective realization of the vision. Some of my comments may be controversial while others may auger well with those in power. The objective however, is to provide advice, suggestions, encouragement, instill confidence, promote avenue for further debate and refine or refocus our common goals in the light of changing environment, and discourage practices that impede realization of the spirit of the PNG-V2050.

The PNG-V2050 envisions that Papua New Guinea, its institutions, its people and the people's mindset and attitude will be transformed to make Papua New Guinea become a smart, wise, fair, healthy, and happy society by the year 2050.

Mobilization and Alignment by Government Departments and Statutory Bodies
The acting Chief Secretary to the Government, Mr. Manasupe Zurenuoc didn't mince his words when he summoned all the Heads of Government Departments, Statutory Organizations and Constitutional Office holders to a briefing session on 21st December 2009.

The acting Chief Secretary to the Government called on the heads of departments and statutory bodies and constitutional office holders in no uncertain terms that all government departments must revisit their Corporate Plans or Annual Work plans to align with the spirit of the PNG-V2050. He directed that it is now up to us to ensure that the PNG-V2050 is given an opportunity to influence the way we have planned our activities and channel our resources, direct our energies and most importantly focus our activities and actions that will facilitate realization of the PNG-V2050.

The PNG-V2050 focuses on seven strategic focal areas. The seven focal areas are:
a) Human Capital Development, Gender, Youth and People Empowerment;
b) Wealth Creation;
c) Institutional Development and Service Delivery;
d) Security and International Relations;
e) Environmental Sustainability and Climate Change;
f) Spiritual, Cultural, and Community Development; and
g) Strategic Planning, Integration and Control

These focal areas are the basis for all agencies of government to align their individual Corporate Plans to synchronize or harmonize with the ideals of the PNG-V2050. This must happen in 2010, the year in which PNG-V2050 is to be implemented.

In order for the PNG-V2050 to even get a foothold in the mainstream of government and guide the activities of the individual and collective systems of government in the right direction, it is critical to accommodate and adopt a new mindset that creates a stimulus for excellence over and beyond what has happened in the past 35 years.

The heads of government departments, statutory bodies and constitutional office holders are intelligent people in their own right to take heed of the Chief Secretary's desire to align their individual corporate and annual work plans. The government is desirous that PNG-V2050 is adopted by every state institution in its corporate plan.

I had the opportunity to attend two or three other meetings convened by the acting Chief Secretary. I however, noticed that there were several heads of government department who do not attend such meetings or deliberately avoid attending briefing meetings called by the acting Chief Secretary to the Government. Lack of commitment on the part of the heads of department and statutory organizations to attend such meeting demonstrates their lack of commitment to matters of national significance. If no formal apologies were sent to the acting Chief Secretary to the Government then their absence is a clear evidence of insubordination and it is incumbent upon the Chief Secretary to take them to task. If such a lax attitude is to be allowed and more importantly such attitude further translates into not aligning or misaligning the individual corporate plans to the PNG-V2050, we will have just created a major recipe for disaster of Herculean proportion in the year 2050 for PNG.

The first step is very important in any journey and the journey embarked by the Somare-Temu government to make Papua New Guinea become a smart, wise, fair, healthy, and happy society by the year 2050 will remain just that - vision as many a critics have already sounded (Dokup 2009 & Mam 2009). Some have even stated that the vision is unrealistic and difficult to quantify and measure (Public Servant 2010).

Political leadership has provided a road map and a broader vision for PNG through the PNG-V2050. The Prime Minister's dream of such a plan and vision has materialized and we now have PNG-V2050. It is absolutely critical that the members of the coalition partners in the government must also give undivided support to the PM and the PNG-V2050. That support should be demonstrated by their respective ministers and their bureaucratic leaders in the public service to operationalize the PNG-V2050.

This is the golden opportunity for political leaders and bureaucratic leaders to create a new and better PNG for our future generation. It is now the responsibility of the senior members of the public service starting from the heads of government department and statutory organizations to take their cue from the government of the day and proceed in earnest by aligning their organizational and sector plans with the PNG-V2050. We cannot wait any longer and give excuses. This nation has had enough excuses where politicians blame the public servants over lack of service delivery and the public servants blame the government for the poor working conditions over the last three decades.

The acting Chief Secretary was quoted as stating that only 10 per cent of the public servants are hardworking while the majority of them are useless (Philemon 2009). If that has any merit at all, then 10 per cent of the public servants have been slogging away unsuccessfully to deliver government services to the 6 million people while the 90 percent of us have been drawing salary without making any impact in PNG that directly or indirectly touches the people in a positive way. This implies that the majority of the public servants have been busy serving their individual interest, thus directly or indirectly contributing towards the many social problems in PNG.

On the other hand, the government of the day must also take the bull by the horns and make sure that any new appointments to the heads of government department and statutory organizations from 2010 onwards are made with the PNG-V2050 in mind. Whoever is appointed to head the different departments and statutory organizations and even the constitutional office must be conversant with the new language of long-term development captured in the PNG-V2050. Not only do they have to be conversant with the new vision and its terminology but also have the right attitude and mindset to passionately drive with the PNG-V2050 as the ultimate plan for development in PNG. In fact, it must be a requirement that the applicant/candidate must demonstrate knowledge of the PNG-V2050 and how they would personally ensure that their employment will facilitate the implementation of the PNG-V2050.

The acting Chief Secretary (with advice from the core group of few advisors tasked with coordinating and strategizing the implementation of the PNG-V2050) could have also set a deadline for Heads of Departments, Statutory Organizations and Constitutional Officers to provide his office evidence of their realignment exercise as further evidence of their commitment and concurrence with the government's PNG-V2050. Only then would we be sure that agencies of government are serious and genuine about implementing the PNG-V2050 in the different departments and agencies.

It is not good enough to appoint political cronies to positions of strategic importance in the light of the PNG-V2050. We have seen enough disasters in terms of worsening socio-economic indicators stacked up against PNG over the last three decades due to many bad decisions in misapplying resources under undue political pressures. If we were to be any 'smarter' then such lessons should be our guiding signpost to circumvent similar detrimental effects on this nation. If we as a nation fail to put up credible and intelligent individuals in senior management positions in the government and statutory organizations who can read and articulate the PNG-V2050 and translate positively into their organizational corporate and work plans then there is every chance that we are weakening the potential for this vision to meet its targeted outcome by the year 2050.

For example, Gazettal of any position vacant should require candidates to show evidence of their commitment to the PNG-V2050 and whether they have special expertise, knowledge, skills and values that will facilitate and promote the effective implementation of the sector's corporate plan to synchronize with the PNG-V2050. If a battle is to be won, the commanders of the different units must have practical knowledge about the war plan provided by the strategic unit of the war planners and each will strategize accordingly in order to achieve the common objective of the battle. It requires everybody to make their individual contributions towards achieving the PNG-V2050.

The Prime Minister has stated that: '...PNG-V2050 will not be up and running if we do not take full ownership of it at every level of our society (Business Times 2009). Sir Michael will not be around and so will many of us but are we committed to ensuring a better future for our children and their children? Do we want a better future for our children and their children? We must all be proactive and make our personal contribution in one way or the other to realize the PNG-V2050 dream.

An enabling statement from the PNG-V2050 on bureaucratic leadership states: "The effective and efficient implementation of Vision 2050 will demand honest, innovative, proactive and inspiring leadership from all heads of departments, middle-level managers and lower-level managers. Effective coordination with the political leadership is critical to ensure systemic change. A culture of excellence in the public sector, based on the core values of quality, productivity, discipline, accountability and professionalism will enable the implementation of Vision 2050". Hence, appointment of high caliber public servants is not only a must but very critical to successful implementation of the PNG-V2050.

I have been fortunate to attend Papa Sam's introductory seminar on Personal Viability Training as part of the National Strategic Plan Task Force sanctioned 'changing the mind-set' agenda. I realized how much I have yet to discover within me to be the person I could have been had I been encouraged to think and act differently from the way others have wanted me to be in life. Somebody asked me what I thought about the introductory seminar presented by Papa Sam and my response was; 'My personal bank balance would have looked more respectable and sufficient to earn the right to be called a millionaire if only I was taught differently towards rich thinking habits'. Are we working towards developing 'rich thinking habits' or 'poor thinking habits'? What should be the legacy your children should inherit from you?

Personal viability is the type of training that must be introduced into our school system in order to create a 'paradigm shift' in the way we behave and act towards each other and how we perform in our work places. The values espoused by the PNG-V2050 and the mind-sets required to achieve PNG-V2050 can be best achieved with the type of Personal Viability training conducted by Mr. Sam Tam. It has life changing benefit and PNG can change for the better with personal viability training by providing the most needed mind-set and attitude change so badly required in Papua New Guinea. The rich mind-set change that we require in PNG to change from 'poor thinking habits' to 'Rich thinking habits' is no doubt provided by Personal Viability training.

Conclusion
Papua New Guinea is awash with many different kinds of short to medium term plans and PNG-V2050 is the grandest of them all. This is the first of its kind to have such a long term plan spanning 40 years. It has set very high benchmarks for all agencies and sectors of government to align their individual corporate and work plans to make Papua New Guinea become a smart, wise, fair, healthy, and happy society by the year 2050.

To achieve this vision, we also need leaders at strategic departments and agencies who are also smart, wise, fair, healthy and happy so that with these characteristics they in turn will live out their characters in their decisions, actions, resource allocation, dealings with others and in particular implementing the PNG-V2050. The period 2010 to 2020 is very critical and will require highly motivated servants of the state with the right attitude, values, mind-set, and character. There is no shortage of people with these characteristics so the appointing authorities must always bear this in mind in the greater interest of the 'new' Papua New Guinea that PNG-V2050 envisages to create.

Political cronyism has no place in the first decade of the PNG-V2050 plan period. Appointing people based on grounds other than the spirit of PNG-V2050 are like condoning a major defect in a structure, (the analogous house structure on page (ii) of the Papua New Guinea Vision 2050). Any slightest deviation from this is like deliberately contributing towards weakening the physical structure with a potential for eventual collapse of the PNG-V2050. PNG must put its best people into strategic positions that will ensure that the spirit of the PNG-V2050 is given a fair opportunity to take a root in fertile soil where it will bear the fruit that we aspire as smart, wise, fair, healthy and happy Papua New Guinea by the year 2050.

The views, opinions, suggestions and imputations made here are those of the author and do not necessarily reflect those of the National Research Institute and the Sunday Chronicle. Dr Sinebare is the Deputy Director at the National Research Institute. He was a Technical Advisor to the National Strategic Plan Task Force, for Institutional Development and Service Delivery pillar.

All about internet scams

2010-03-01T12:23:00.000+10:00

IT HELP DESK
-PANU KASAR

SOME weeks ago my mum called me from home. She sounded shocked; I waited for her to gather her breath, and listened tirelessly as she explained that one of our relatives received a letter which claimed he won millions of pounds at a European lottery.

She gave me email addresses and phone numbers of the lottery firm and asked me to verify the prize online. I quickly stopped the excitement telling her that it was fake. What a short lived joy. I believe that many readers of this column have also become victims of these scams. These days with the increased use of communication many people with criminal intent are using technological advances to deceive the masses. I hope this article brings to light common characteristics of these modern day scams so that we are prepared to face the cyber world.

The internet has become widespread in its global reach. With just a single click thousands of emails can be sent across the world in just a few seconds. This innovation has given rise to scams that are contrastingly as good as the benefits of the technology that brings it. The law of averages takes its inevitable toll and at least out of the thousands a handful of recipients become victims where they lose their hard earned money.

These clever cunning people have been devising ways to defraud unsuspecting people who use the mailing system. The odd fact is that many people have fallen victims to these scams. Of my own observation I've seen three categories of scams.

First and most common communication means that scammers use is the email system. I also have received countless emails of people claiming that they have millions of dollars in inheritance and wanted my help in securing the money, they also asked me for my contact details and asked for some processing fees etc. I think some time ago Australia's Nine Network produced a documentary on its 60 Minutes show uncovering African email fraud organizations. These are real pros who are experts in electronic crime.

People like these all over the world write deceiving emails and flood the internet looking for vulnerable mail boxes. The emails are written in very convincing ways, some are written to entice men especially. The sender pretends to be a woman wanting to start a relationship. Mind you many do fall for it. Others are written promising millions of kina to the receiver but firstly a little assistance is needed. They would request a processing fee to sort out some paperwork or legal procedures before they can share their inheritance with you. I think these are the general formats where scams come in.

The concept is, with the overwhelming hacking information on the internet these people hack public email or social networking sites (eg: gmail, facebook) and get as many email addresses as possible. By the way this reminds you not to publicly display your email ad on weird hacker sites. These practices make you become a vulnerable target for spammers (FYI unwanted email is called spam and people who send them are spammers). Spammers collect millions of email addresses on the internet and then they send an initial email just to verify if your email ad is still active. The greatest mistake you will make is to respond to that first email. Once you respond, it tells them that your email is active, they then proceed to the next step. They tell you their plight and ask for your assistance in funds promising you millions. Some even ask you for your personal details and even ask for your credit card details. Crazy weird people. They'll ask for anything just to defraud you.

This happens bit by bit, it's a process they follow and in each response you become more vulnerable and the information you continuously give can lead to blackmail. It's a set up and I believe the initial emails are already set in the system and the computer they use automatically replies the fake messages until you become intimate with them that's where humans take over. Its similar to John Grisham's book "The Brethren", you should read that sometime.

Anyways, these are organized white collar crimes. They have secured private offshore bank accounts out of reach of investigators and any money lured from victims pile up while they live another day to deceive more people. The real danger is that the emails they send are regenerated in a sense that it lives forever. Let's say Interpol cracked down the largest fraud organization and sent all the ring leaders to jail. But since their account is protected by private banking laws, it still allows transactions and generates money. The triggers they set on the internet keep generating email scripts and floods the online world luring more people into the scam. What a way to make money. I wish I was one of them, nah just kidding.

The other fraud like the one my mum told me about is when spammer trick you that you won a lottery worth millions and you need to submit your details and pay a little processing fee before you can identify yourself and get the prize. The fact is that all they are interested in is the processing fee. Once you pay that fee, their goal is achieved. Imagine they send 500 000 fake letters and emails worldwide. Out of that many half respond and proceeded on to be convinced enough to pay 23 dollars of processing fees. Do the math yourself to work out how much they possibly can make in a day. The figures are mine and it's just my estimate. It could be more or could be less. You can't really verify statistics from criminal activity. But it sure does happen.

The other common one that I consider fraud is when you receive a text message on your cell phone stating that your phone number has been picked and have won thousands of pounds from a nokia promotion. The weird fact and common logic which you can tell it's a fake is that even people using motorola are winning this nokia promotion. You still win even if you are using other brands. Plain logic, indicating scam. These messages are generated by super computers who scan the airwaves and send out these SMS's. The other indicator of fraud is that they give you email ads such as joeblow@gmail.com .If it was real it would be joeblow@nokia.com. I bet many fell for that. Many came to me to help them. Many I told them it was fake but some of them I just let them...... It wasn't my fault; they were so excited I didn't want to spoil their excitement.

I think the point I really want to get across is that wealth does not come this easy; many of these scams are successful because it lures people proposing the access to free wealth. If your philosophy is wrong you will always be a victim. Success comes from work, the wealth that comes without hard work will be short lived and never be enjoyed. The entire earth is designed for seeds, cultivate the seeds God placed in you and you shall enjoy the wealth you are dreaming of. The good news is that nobody came to earth without a seed. That's why knowing you already have a seed, the Bible say's be fruitful. Meaning you have to find and develop your seed of greatness by working until it bears fruit.

Until then see you next week. pkasar@itelpng.com

The value of an urban PMV service

2010-03-01T12:16:00.000+10:00

TODAY would be exactly three weeks from the last small man issue and writing this one was a struggle. I was in a state of what they call 'writer's hibernation'.
Not that I ran out of words to write but I was struggling to find that place and time to write. Not in the literal sense but an environment of total serenity. There must be total peace of mind to allow the writer to go into a trance.

This is when the five senses are in direct intercourse with the sixth sense liberating you to go forward and backward in time. Different worlds are seen in oneness.

I am actually writing this on one of the empty sick-beds at Port Moresby General Hospital's Ward 4A at 1:30am. The sick are all around me and the quietness is so tranquil. Talk about the crying and wailings taking place right below where I sit, at Accident & Emergency and the layout is a stone's throw away, are now more like distant kundu drums beating.

The invisible buses that bulldoze around picking up the ghosts must be outside now.
My wife was diagnosed with severe malaria so we have to spend some nights at the Accident & Emergency Ward. While there, due to her condition, she asked me if we were on a bus; one of those buses Powes Parkop brought up form Queensland, Australia.

She was hallucinating. At that instant my memory went back to a film I saw about a ghost-bus that bulldozes around picking up the spirit of the dead. Or maybe what she saw was the perfect picture of urban public motor vehicle (PMV) transport.

Imaginations without being induced by drugs are perfect pictures of a game plan that is only fifty per cent achieved. The next fifty per cent is the actual implementation to materialise this plan, otherwise it is only a dream.

Talking about urban PMV bus services, those buses that run around towns and cities picking up and dropping off commuters may sound horrific given the many bad practices that associate with this system of transportation. Careless, reckless driving, filthy unkempt driver and the crew, modified unusable seats, route incompletion drivers, drivers that create their own bus stops, unlicensed drivers and crews, unregistered buses without road safety stickers, and the list goes on. It has kind of become a norm.

Public transport is a public utility or infrastructure for public consumption. Those who have been given this business opportunity to render this service should go by the books. Not use this opportunity to hold the public at ransom and feel big for nothing. Otherwise, it is easy as 1, 2, 3 for the town authority to put everyone out of business and run its own fleet of buses to service the immense need of the majority urban dwellers.

People who return from overseas trips reminisce the admiration they have of how near perfect the transportation system in that place they visited and wish ours was like that. Simple things like queuing up for first-come first-serve basis arrangement to get into the buses rather than rushing here and there like schools of fish. Ticketing is another option that can make things better.

The recent move by the NCD Governor, Powes Parkop in securing 10 40-seater buses from Queensland, Australia, is a very commendable move. The move revolutionises the current monopolistic bus service we have in the city. This is where a particular ethnic group of bus owners, with one-too-many from other ethnicities following suit, makes life totally miserable for commuters.

Again the Governor is not blind to instantly phase out the existing bus service but compliment what we already have with the 10-new buses for convenience in especially getting to work on time.

It does help in defeating our PNG-time syndrome. The existing bus service is now expected to tow the line in completing their routes and ensuring that their service is top rate or else it is only better we take our buses back to our hamlets. Thumbs up, Governor!

What I am writing is not a first of its kind of outcry by the public on how disgusting the current urban PMV bus service is. It is prevalent in Port Moresby and other centres who also have a similar service can share the grievances.

Many of us sigh away with our hearts heavy and curse the driver and his lieutenant of a time when their actions will haunt them. We can't wait any longer to see these bush-thinking drivers, who maybe acting on the owner's advice, being given a run for their money.

Urban PMV transportation system is a feature of urbanisation or industrialisation. Its effectiveness, conveniences, reliability, outlook and the one that meets customer demand portrays the state of urbanisation in that particular place. Without an urban PMV transportation system that meets the mentioned criterions it is only befitting to downgrade a place from being a city to a town. Let us not kid ourselves.

Talking about outlook, the reality could only be skin deep. Take a look inside the bus and you can wonder what the authorities like Motor Vehicle Insurance Limited (MVIL), Transport Department, town authorities and the like have been up to. My opinion is none of these authorities know who is responsible because there are just too many authorities with ambiguous role overlaps causing all these debacles.
Why can't we put these PMV owners on notice and tell them to perform or ship out. Seats being unfit for human use, exhaust pipes puffing out excessive smoke, unclean interior are defiance to standards in urban PMV transportation system.
We are no longer living in the plantation era of 'yes boss, yes master'. Our filthy habits from home should be kept where they belong. One or two people cannot hold our lives at ransom and determine how things should be done in this respect.

In emphasising urban PMV transportation system which services the bulk of the urban commuters, we are directly helping in minimising the number of vehicles on the road, hence reducing carbon monoxide emission into the ozone layer. Carbon monoxide is hazardous to the ozone layer that is having direct effect on our weather patterns, which is causing climate change. So it we can help in a little way to prolong life on earth then vehicle ownership or having lesser number of vehicles on the road at any one time is one way.

Fossil fuel is a non-renewable resource and reducing its consumption helps in slowing down the extraction rate. It is surely depleting faster than the thousands of years it took to fossilise. How soon the world commercialises the use of a substitute to power vehicles is a cause for concern. Reducing the number of vehicles on the road through emphasis of public transport does help in the cause.

I believe not many of us will want to own cars if there is a very reliable urban PMV transport system. One reason people are buying cars is because the need to go to work on time after school drop offs and such is not met by the public transport. So any modern day elite must be in the rat-race regardless of the hefty daily bills that one encounters, like fuel, spare parts. Give this understanding a crazy thought in imposing law in determining vehicle ownership will have to wait until our urban PMV transport system is appreciated by all.

For those in the nation's capital, visionary leaders like Powes Parkop are gifts from God. We all must appreciate and take ownership of the 10-new 40-seater buses and adhere to the regulations put in place to make life interesting for one another.

Comments to pohromo@hotmail.com. Keep reading your Chronicle for our next Small Man Issue "When sin is not sin."

Most vulnerable get recognised

2010-03-01T12:13:00.000+10:00

By OMAE KOAKE

AFTER 35 years of independence, Papua New Guinea has gone through many good and bad experiences as a developing nation but it is still very optimistic of becoming a bigger, stronger and a more self-reliant nation.

The country has faced numerous challenges like natural catastrophes, corruption, law and order problems, financial crisis, climate change, armed rebellion in Bougainville and many others.

These have tested the country's capabilities in maintaining its sovereignty while caring for the welfare of its people.

Papua New Guinea is a young developing country with a rural based economy where more than 80% of its population lives in the rural areas.

Since the dawn of the 1990s, the country has experienced high level of population growth. The growth has been subjected to a lot of risks related to individual lifestyles, economy, environment, social and the governance aspects of the people's survival. Among its entire population, there are those who live 'comfortable lives' and those who 'struggle' to sustain their livelihood. And it is the poor who are most at risk because they have fewer assets, savings or survival opportunities to fall back on to support their survival.

Among the country's 6 million people, there are citizens who are poor, homeless, widows, victims of natural disasters, HIV/AIDS victims, unemployed persons, disable, mentally affected, divorced persons and many others who struggle to live normal lives despite the many problems that challenge their survival.

Fundamentally, they are human and therefore have dreams, aspirations and rights like all humans. These groups of people are now classified as the 'most vulnerable'.

Several human rights laws stipulated under various United Nations Charters protect all humans including them but for far too long, their needs, wants and aspirations are either neglected or oppressed in many ways. Many of them are usually left in the cold because society sees them as 'misfits'.

In a recent move, the Asian Development Bank ( ADB ), under its Regional Strategy on Social Protection for the ' most vulnerable' people for the Asia and Pacific (SSPAP), highlighted the rationale for establishing social protection policy and strategy for Member Developing Countries ( MDC ) of which PNG is a member.

ADB defines social protection as a legal course of actions (policy) for reducing poverty aimed at making the poor less vulnerable to risks and be able to participate in equitable economic growth. The bank presents that economic growth has been the driving force in reducing poverty in the region.

The strategy has been to have more people becoming economically productive citizens and becoming partners and participants in the sharing of the society's growing wellbeing.

The bank also points out that while sustainable economic growth creates and expands economic opportunities, the benefits are not always shared evenly among citizens of a country, especially the most vulnerable have always been frequently neglected. It is therefore important to establish policies to promote wider access to these opportunities by members of the society to participate and benefit equally from the nation's economic growth.

For PNG, it can afford basic social protection systems like financing health care, financing basic education, conditional cash transfer to the poor, elderly and child protection. It already has a number of social protection polices and some form of institutionalised social protection system and also a formal social insurance system covering the welfare of the government and formal employment sectors.

Prior to independence, PNG had some traditional social welfare programs targeted at vulnerable groups such as disadvantage women, the elderly, disabled, single and abused women and displaced children. In the period after independence, PNG established targeted programmes to improve educational attendance and subsidised the health care services.

However, most of these systems have either collapsed or are less effective due to lack of funding and initiatives. It is therefore important to reform the existing social protection systems to extend protection to the majority of the citizens in the country.

The PNG government has now recognised the importance of protecting its most vulnerable citizens from danger, greed and oppression and it has taken moves to establish a social policy for them.
The type of social policy adopted by Papua New Guinea will depend on the needs of the country, availability of resources, feasible institutional arrangements and political reforms.

The focus of such policy should be on selected interventions like providing adequate coverage, targeting vulnerable groups, gender issues, ensuring sustainability and good governance and having an integrated approach.

This all began in Jan 2009 when Minister for Community Development and Minister for Treasury attended an Asia-Pacific Regional Forum in Singapore, organised by UNICEF to discuss the impact of the Global Economic Crisis on children where the Member Developing Countries (MDC) were encouraged to develop and establish social protection policies to protect their citizens from the shock and effects of man-made and natural disasters.

Then in July 2009, Minister for Community Development and the Secretary attended a high level consultation with ADB in Manila where the ADB pledged support to the PNG government to immediately formulate an appropriate social protection policy model for the country.

Following the regional forum, Minister for Community Development in collaboration with the Minister for Treasury made an NEC submission to establish a National Taskforce (NTF) to investigate and advise the government on the policy formulation. The National Executive Council in its Decision No. 97/2009 dated 26th June 2009 noted the content of that Policy Submission No. 69/2009 and approved the establishment of a National Taskforce for Social Protection Policy (NTSPP) comprising eight departments (Community Development, Education, Health, National Planning and Monitoring, Provincial Government & LLG Affairs, Treasury, Labour and Employment and the Agriculture & Livestock) as directed by the NEC. The taskforce will establish a Secretariat to provide technical support, conduct research and consultations as well as perform other administrative duties as required and directed by the National Task Force.

That decision has approved the Secretary of the Dept of Community Development to be the team leader of the NTSPP and the approval of a budget of K2 million for the taskforce to undertake the investigation and reporting.

The taskforce has started the provincial consultative programmes this month.

Mustering 'money creation' the Sepik way

2010-02-22T15:49:00.001+10:00

JUTS OUT
-CYRIL GARE

SOME time ago, The National quoted one Chris Warrilow of Port Moresby stating the "K-DAY" - the date believed to be the born day of our official currency, Kina and Toea was set on April 19, 1975.

However, the legislation for the new currency was passed in the House of Assembly as early as 1973 (assented to on October 22, 1973). Nearly five months later, Hansard records showed a presentation made to the House by then Minister for Finance, Mr. Julius Chan (now Sir Julius) on March 6, 1974 during a number of announcements were made including: "I therefore propose that the name of the dollar equivalent should be Kina...".

Mr. Warrilow also stated that Mr. Chan also announced that the Reserve Bank of Australia (RBA) had been given the contract to print a year supply of notes. The RBA's Note Issue department thus proceeded to prepare designs for the notes with the assistance of Mr. Willie Stevens of Lalaua, Milne Bay province, then a student at the Goroka Technical School. So according to Mr. Warrilow, perhaps, technically speaking, the Kina was therefore "introduced" on Wednesday, March 6, 1974

(ABOVE: Mr. Bill M Wangi, CEO of the Sepik Savings & Loan Society Ltd and staff busy at work at their new look Dagua market office in Wewak. Picture by Cyril Gare)

What is money?
Throughout history, many items, sometimes even bizarre ones, have served as money. The Tolais use "tabu", Sepiks use shell ring and pigs tusks while other parts of Papua New Guinea have their own traditional monies for buying and selling of goods and services in a subterranean economy.

Economists define money with four functionalities:

Medium of Exchange: It facilitates the exchange of goods by allowing people to exchange their services and then exchange money for goods and services;
Standard of Value: It provides a standard in item of which goods can be valued and thus readily compared with each other;
Standard of Debt: Its allows borrowers and the lenders to specify how a debt can be repaid in a generalized form of purchasing power rather than in specific goods;
Store of Generalized Purchasing Power: It provides purchasing power in a general form that can be used to purchase any particular good the holder then desires.

These functions of money provide some standard for an ideal money. While no money has ever been created that has performed ideally, there has been a movement in this direction - slowly, haltingly, and with many reserves - in human history.

Function of Money Creation
Banks are said to be creators of money in the art of taking deposits, lending, and managing loan repayment. This tradition can be backdated to 1600's during the time of goldsmiths who began to lend out funds of their depositors on a system of "100% reserve". Today it is different. Modern banking operates a "fractional reserve" system - reserves equal to only fraction of the total obligation outstanding. The aim is to maximize profit.

Most money in circulation is created by bank lending. Thus, benefits accrue to the bank plus interest. When the government creates and spends money, it stays in circulations. Under a debt based system, money is created when bank lends it. Money is destroyed as loans are repaid. New loans must constantly be issued not only to maintain money supply but to make it possible to repay loans, along with interest due. With time, the society becomes ever deeply indebted to its banks. If debts do not continue to expand, loan repayment becomes impossible and the economy is subject to crash.

Due to cultural as well as socio-economic factors, many commercial banks in Papua New Guinea have been very strict on their lending policies and the pinch of this is felt at the very heart of common and ordinary citizens. Because of stringent lending, loan repayment was stagnant, so money making functions come to a dead end cycle. This resulted in stagnancy of economy which required structural adjustments.

Financial Sector Reform
In 1995, the Mekere Government undertook major structural reforms, perhaps the first after Independence, a re-alignment of this magnitude, on the statecraft. Among others, his Government undertook the financial sector reform beginning with the "mama bank" (Bank of PNG) which saw the re-alignment of its roles and functions through legislative amendments, and down to mid-level non-banking financial intermediaries such as FinCorp, Kina Securities and others and finally to grassroots level with the creation of the Savings and Loan and Cooperative Societies.

But, according to Dr. David Kavanamur, "the provision of financial services for rural development or more specifically poverty alleviation has evolved under various banners from 'subsidized credit' in the 1970's, 'micro-credit' in the 1980's and micro-finance in the late 1990's. This evolution was reflective of the transition of world economies towards more market-based principles of economic management".

Nonetheless, all was good for the purpose of decentralization and shifting of money making function to non-banking sector. When this happens, more money is given out (lend) thus more loan repayment therefore resulting positively on the overall performance of the economy.

According to Kavanamur (2002), PNG has one development bank, 1,000 credit unions, 334 Grameen prototypes and 500 revolving funds serving an average rural population of three million people - most of which came about as a result of the re-positioning of the financial sector.

This may not be as many as Dr. Mark McGillivray, the Chief Economist of AusAid expected as noted from his Pacific Economic Survey 2009.

"Large segments of the population remain "unbanked" that is, they do not have any savings accounts or taken loan with commercial banks or microfinance institutions.

"Broadening the accessibility of financial services is a priority for many pacific island countries and Timor Leste," Dr. McGillivray stated in part in the report.

Nevertheless, in East Sepik, we currently enjoy the services of the Sepik Savings and Loan Society (SSLS), Teachers Savings and Loan Society, National Farmers Savings and Loan Society, the Nationwide Micro Bank and more than 400 affiliates of East Sepik Cooperative Societies Association Ltd - representing 50 per cent of all registered cooperatives in PNG -, all at which were proud off-springs of the 1995 financial sector reform.

From a humble beginning in 2000 - following the endorsement by East Sepik Provincial Government under the then Governorship of Angoram MP, Arthur Somare, the Sepik Savings & Loan Society has rapidly grown and as at December, 2009 has 20,000 plus members with seven branches including Wewak (9,056 members), Maprik (2,231), Angoram (75), Ambunti (658), Aitape (1,137), Madang (4,447) and Port Moresby (figure not available immediately at time of print) placing a total value of their deposits at K9,563,674.

In 2009 under the management of Mr. Bill M Wangi, Chief Executive Officer, Sepik Savings & Loan Society has introduced a new networking community representation concept called the "Community based Microfinance" which was established in Nuku in November, 2009 and will expand to Kubalia, Wosera, Kusambuk and Lumi this year.

"Membership increased by 33 per cent in 2009 while total deposits increased by 15 per cent during the same period," Mr. Wangi said.

He added that 3,537 loans were funded last year valued at K3,574,048 for purposes such as school fees, personal expenses, cocoa production, bride price/wedding, trade store, poultry projects, funeral expense, etc most of which items would not have been possibly funded through commercial banks. Loan repayments received were at K2,007,473.

The Society were able to fan well in 2009 due to its four attractive poverty-reduction products namely the Main Savings, Budget Savings, Xmas Savings and the Educational Plan Savings products.

"The demand for loans from local entrepreneurs, business and farmers is strong and growing...there is serious lack of debt capital which could help create new business or finance the expansion of existing ones," Mr. Wangi highlighted.

The Human Scale Enterprise
Savings and Loan Societies operate on a very patriotic operational principle that states that "members of this institution (society) shall be equal owners and share the mutual understanding and relationship of helping each other". They are people's institutions, created by them, for them, and always will be theirs and for generations to come.

Savings and Loans Societies therefore are small human scale enterprises as oppose to large capitalist genres. The theory of market economics is quite explicit in stating that the market effectively depends on large size of relatively small enterprises that have less power to externalize their cost onto the public.

The more concentrated the power becomes, the difficult it is to hold it accountable to the public. Smaller enterprises generally have lee power and therefore are less likely to abuse it. One of the defining differences between capitalism and market economy is size. Capitalism is about creating massive concentration of the monopoly power immune from market forces and public accountability. Thus, under capitalism the market is always and everywhere a myth. Ironically, only by dismantling capitalism can the market reign.

Maladministration of the earth's wealth provides the leeway for a build up of economic power which is increasingly concentrated not with governments but with global corporations. Corporate executives wield unprecedented power over societies. They form part of a newly-dominant and assertive global institutions, state bureaucracies, and inter government agencies. The multinational corporations (MNCs) are among the key agents in the process of globalization. They embody the emerging logic of global accumulation of wealth and power as they mark our new physical, cultural and economic order in the World as it is today.

Capitalism in the form of all transnational corporations has monopolized the production of manufactured goods, commerce and marketing, banking and information. It is maintained that they use not only their enormous economic power but also corruption, unfair and immoral practices to eliminate competition and preserve their dominance.
PNG like other third world countries are therefore forcefully made dependent on developed countries for
capital, technology and markets. The rich set interest rates, terms of trade, tariffs and import barriers. Under such arrangement, they are able to maintain economic dominance and drain off surpluses from the poor countries. In the making, the World is polarized into the rich and powerful "haves" and the poor and dependent "have nots."

Few economic activities actually require large enterprises. Most of the economic needs of Papua New Guinea can readily be met by smaller firms like Savings and Loans Societies that may join forces together in networking structures.

With nearly half a billion kina worth of both "investment" and "development" projects marked for East Sepik during this period, Mr. Wangi was optimistic that SSLS will be able to participate meaningfully in these ventures to maintain its reputation as the "true Sepik people's bank".

The emergence and evolution of financial services including cooperatives societies, savings and loans societies and micro finance schemes in Papua New Guinea captures the changing perception in that the poor are indeed bankable and not "unbanked" as may be the general view of many un-informed outsiders.

Our people can afford and are already paying market interest rates which at current level are around 11 per cent. This is encouraging and a positive conception accepted as a necessary tool in the fight against poverty.

The Sepik Savings and Loan Society therefore is charting on calm waters and 'Ahoy' land should near approach.

PM must lead fight against corruption

2010-02-22T15:31:00.000+10:00

Mr Basil demands that the Prime Minister take lead in the fight againt corruption

By SPECIAL CORRESPONDENT

CORRUPTION has been on the lips of many Papua New Guineans including ordinary grassroots citizens and foreigners living in this country.

This has been so because corruption affects everyone and it certainly has been the hottest topic in recent times.

PNG has been ranked among the worst performers on the global scale when it comes to country ratings on good governance, transparency and accountable leadership.

It is no wonder numerous calls have been made by individuals and groups including spiritual leaders from the church pulpits demanding swift and resolute response from the Executive Government, particularly Prime Minister Sir Michael Somare to lead with example in the fight against corruption.

Parties in the Opposition have been in the frontline waging a national campaign for the removal of Sir Michael, who apparently affirmed in Parliament in Nov 2009 when answering questions from the Leader of Opposition Sir Mekere Morauta that corruption was rampant, even in his (Somare) current Government.

Sir Mekere noted then that the Prime Minister had "finally come to his sense by admitting corruption was rampant in his own Government, but has failed to take most appropriate and immediate action to rid this cancerous evil".

"Everyone everywhere is fed up. The evil and destructive effect of corruption is fast destroying the very fabric of the system on which Papua New Guinean is built upon. The Prime Minister cannot blame the public servants. As the number one lawmaker, he must lead by example instead of buck passing and blaming civil servants. The people need him urgently to lead a nationwide fight against the real causes of corruption.

Fighting symptom will not stop corruption. Up to you Prime Minister. Show your leadership and save the country that you say, you've "fathered". It is a total waste of time, money and other resources fighting the system when the deep-rooted causes which allow this corruption to remain flourishing," the Opposition leader summed it all.

Since that statement of Nov 2009, nothing much, if anything has happened with the status quo remaining the same - corruption rampant and a thriving industry for perpetrators who benefit from it.

The sad fact is that there is now an increasing perception within PNG and among the international community that the current National Alliance-led Government of Sir Michael is not doing anything to start addressing the issue of corruption starting within the Cabinet to sideline or decommission ministers who have been seriously implicated of misconduct in one way or another, criminal or leadership referral.

Last Tuesday (Feb 16, 2010), outspoken Bulolo MP Sam Basil renewed the numerous calls by the Opposition, non-government organisations, professional bodies and the civil society for Sir Michael to start getting serious and lead by example to address the issue of corruption.

"The Somare Government is not doing anything to address corruption. Corruption is hindering development while vital education, health and other services throughout the nation is deteriorating to state of condemnation and disrepair," Mr Basil stressed in a Parliament House media conference.

He urged the Prime Minister to stop procrastinating over this issue and start cracking the whip, starting from within his Cabinet to decommission all ministers implicated of corruption, referred for trial by a leadership tribunal or facing criminal charges.

"We do not have three sets of laws, one for the senior members of parliament, one for junior MPs and one for the ordinary grassroots people. If a person breaks the law, then he or she must be made answerable to such action," the no-nonsense first term MP stressed.

Mr Basil also urged the Prime Minister to act on the recommendations of various commissions of inquiries, including probes into the former National Provident Fund (Nasfund), former PNG Investment Corporation (Pacific Equities Balance Fund) and the PNG Defence Force Commission of Inquiry.

The probes revealed instances of gross misuse of funds, blatant abuse of process and clear breach of the country's laws. Numerous concerns have been expressed over the Prime Minister's indecisiveness to acting on them resulting in the findings collecting dust, despite millions of taxpayer funds spent on the investigations.

Mr Basil also questioned the Prime Minister why he was not doing anything to deal with controversies and scandals linking members of his government including:

Julian Moti affair of Oct 10, 2006 in which an international fugitive was spirited out of Port Moresby to Solomon Islands in a clandestine operation on a PNG Defence Force aircraft ordered by the PM as revealed by the PNG Defence Commission of Inquiry.
Failed US29.8 million (K85 million) Taiwan diplomacy scandal in which PNG citizens are alleged to have received bribes.
$US40 million (K145 million) in Singapore accounts, money from log exports, sitting in a bank account of a PNG government minister looked after by a "consortium" in that country;
PM allegedly not declaring his shareholding in Pacific Registry of Ships Limited. Official registry showed that Sir Michael is a shareholder "in trust for the Independent State of Papua New Guinea".
PM's endless court actions to stop the Ombudsman Commission and the Public Prosecutor from performing their constitutionally mandated duties on allegations of the PM not completing or providing annual returns since 1992. Sir Michael is alleged to have failed to lodge annual returns for the periods 1994/95, 1995/96, and 1996/97, his late lodgment of returns for the periods 1998/99, 1999/2000, 2000/01, 2001/02, 2003/04, and incomplete statements for the periods 1992/93, 1993/94, 1997/98, 1998/99, 1999/2000, 2000/01, 2001/02, and 2002/03.
Hawking carbon credits to carbon cowboys
Purchase of K128 million Falcon jet for exclusive executive government use despite widespread opposition from the PNG general public; and
Alleged misuse of over K160 million from Memorandum of Agreement funds for resource owners in Southern Highland and Gulf provinces.

Highlighting these issues, Mr Basil also called for a concerted effort from the State law enforcement agencies including the Ombudsman Commission, Public Prosecutor, Police Force and the Judicial Services to be firm in the execution of their constitutionally mandated duties and responsibilities - to uphold the laws of the country.

"It is incumbent on all state institutions and agencies to ensure that the long-term security, well being and welfare of our over six million citizens are put ahead of any petty, personal and partisan interests," the Deputy Leader of People's Progress Party said.

While attributing the current escalating of crime PNG-wide to the general breakdown of law and order, he said the open defiance of laws by the ordinary people was a direct result of leaders breaking rules and laws.

Mr Basil said: "The recent trend of crime wave is an indicative of the fact that people are becoming increasingly frustrated because of the alleged involvement of leaders in high-level corruption. It is therefore imperative that all efforts to curb crime in the country must start from the top down. It must start with the leaders who are implicated in one way or another."

He said all implicated politicians and public officials must face the law and appropriate remedial actions taken by law enforcement agencies in the public interest.

"There is only one set of law for everyone. Not one for the leaders and another for the ordinary people. We must not send the wrong signal to the people by wrongly portraying that there are two sets of laws because where the head goes, the tail follows," Mr Basil concluded.

Warm reception for Jean, Parkop

2010-02-22T15:21:00.000+10:00

-TIIKIIEMB SHIIEMB

JEAN and Powes Parkop were at the home grounds of the Gordons 13s Rugby Touch on Sat, Feb 13, 2010. The city's first family arrived to a quiet but leisurely welcome at the Gordons Police Barracks.

The couple was met by young beauties including those from the Oro country living around the Gordons area. The entry to the barracks was rough as the Governor and his entourage passed through the crowded residential allotments where many families have moved into the dormitory type housing meant for single policemen. But that is another matter.

Governor Parkop and his wife turned up as promised while the clubs that make up the Gordons 13s Rugby Touch were at the games, large groups of supporters and teams administrators were at hand to receive the Governor's delegation at the Barracks; this is the only playground for the population of about 20,000 who live around the area known as Erima, Gordons Market, Gordon Five and of course the Police Barracks. As has become apparent, the Governor is by no means a real stranger in the area. Years ago our Governor was living at a flat at Lapwing Drive when he was working as a reporter for the Wantok Niuspepa.

Other than the young people who have been raised in the area, only a few older people could recall the days when the Governor was walking the streets, many of these streets being repaired under the current regime.

What the younger people are talking about is the proactive actions being taken by the Governor in transforming the city including providing employment for many mothers and young people in keeping the city clean. These young people also talked about different sports being promoted; these include building of children's playground and other recreational activities.

Apart from a small donation to the sporting teams in preparations for the finals that have brought them together under the Gordons 13s Rugby Touch, the Governor undertook to build a basketball and volleyball courts within the Barracks area for use by the residents of the area.

The NCD Governor has other ideas about the Police Barracks. He said that the Barracks should be demolished as the place has been condemned by health authorities as unfit for human habitation. He has asked the National Government to urgently plan for relocation to a suitable site, possibly to an area between Six Mile and Bautama along the Magi Highway.

At the Gordons Barracks meeting the Governor also let his people know about his intention to set up an umbrella organisation- the National Capital District Sports Authority. The function for such an authority would be, among others, to coordinate and promote grassroots sports for the people of the National Capital District.

The main aim of the NCDSA is to get as many people to be involved in as many sporting codes as possible.
Sports promote health and unite people from all parts of our diverse nation. Giving sports to young people means using up of some powerful energy that radiate among the youths of the city. Sports have an electrifying positive effect on people of all ages but more so, on the young population.

After all, the Governor is well placed to make the move to get his people both healthy and united, in the course producing sports ambassadors in many and varied sporting codes. Besides, Port Moresby is going to be hosting the next South Pacific Games. The city has to be gearing up for that eventuality! Well done, Governor, and thank you.

John Momis: A role model leader

2010-02-22T15:00:00.000+10:00

ASIA PACIFIC PERSPECTIVE: CHINA +
-MATHEW YAKAI

THIS article is the account of my personal experiences of knowing John Momis for the past two and half years in Beijing as a PNG student in China and as an intern at the Embassy of the Independent State of Papua New Guinea in Beijing.

I am aware that the timing of this publication may seem controversial given the looming election of the Autonomous Region of Bougainville. It may seem obvious for one to view this article as a political tool to advance John Momis' election campaign for the presidential election in Bougainville.

As such, many will be judgmental and skeptical about the sincerity and authenticity of this article. Therefore at the outset let me say that the views in this article are purely my own, about someone whom I felt strongly that many young Papua New Guineans should know and learn from.

I have learnt a lot by just observing and listening to him. I therefore wish to genuinely share my experience with the millions out there.

The contemporary PNG societies today are at the crossroad of leadership crisis, starting from the village meeting hall to the National Parliament in Waigani. This is evident in the recent lawlessness in both the rural villages and urban centers including the disgraceful selfish acts of individuals occupying some of the highest public offices in Waigani.

Many of these social-illnesses are due to absence of transparent and good leadership, which either directly or indirectly fueled insubordinations within and without an institution or community.

Village chiefs and elders whom few years ago normally enjoyed a commanding authority in fostering social peace and harmonies are no longer enjoying it. Members of Parliament are booed at and stoned or even sidelined by their electorate or provincial subordinates.

There is a growing "who cares" and "what's in it for me" culture. "If the big people up there are doing it, then who am I to abstain from it?" Such sentiments transpired from continuous bad leadership and systemic and systematic corruption in PNG.

Many independent observers and studies from Australia, US, EU, ADB and others have consistently trumpeted this problem in their publication; yet, Papua New Guineans seemed complacent of the status quo.

We are living in a period where role model leadership is fast disappearing, and the younger generations today are in desperation of role models to measure up to.

Without hesitation, I am humbled to mention here that H.E. Ambassador John Momis is someone, we the young people can lean upon and learn from.

Firstly allow me to clarify to the readers my relations with H.E. Ambassador Momis. I hail from Gunangi, one of the remote areas of Sinasina District in Simbu Province. Did my primary to secondary education in Simbu Province and completed a four year bachelor program in Divine Word University from 2002 - 2006.

Though I have seen pictures, heard and read a lot about John Momis, I have never met him in person until the evening of 16th September 2007 in Beijing. Even at that evening we never got acquainted to each other, because there were many Papua New Guineans and other nationalities, including members of the diplomatic community in Beijing.

We only had a brief handshake during which I introduced myself as a first year PNG students, at the Beijing Language and Culture University.

I have heard few respected people in PNG, calling John Momis as the Father of PNG Constitution and Father of Decentralization and Provincial Government System in PNG who is responsible for setting up the 19 provincial governments when he was the minister of Decentralization in 1977.
These views are also widely published by authoritative source on Bougainville and PNG such as Sean Dorney, Douglas Oliver and Edward Ted Wolfers. I also believe that these are undisputable facts held by many Papua New Guineans who have lived through and witnessed the short political history of PNG.
I am therefore very privileged to have met and known one of PNG's and the Pacific's renowned leader of his time and is still today, John Momis. His leadership legacy speaks for itself and those who have worked with him and have known him personally have fully grasped that.
I can only say that John Momis is a man of principle and a role model leader that the millions of young and aspiring leaders of PNG and the Pacific Island region need to learn from.
I am therefore humbled and at the same time honored to share my take on his leadership legacy for my generation and the generations to come.
I have known John Momis as a PNG student in China and as an intern at the PNG Embassy in Beijing and as a close friend over the past two and a half years. The rest of this article will explain some of the great leadership principle I have learnt from just observing and listening to him in various context over the past more than two years in China.
Despite of being well known and respected figure in national and regional politics, John Momis remains one of the most humble and very considerate people I've ever met. For example he would have time for any individual that comes to his attention despite of their race, gender, social status, religion, qualifications or age.
I have observed him listening attentively to simple young Papua New Guinean students who wanted to share their take on PNG's political or economical development. The way Momis responds to these students is encouraging in such a way that usually adds insights and value onto the students.

It makes us the simple young students feel important and assured that our views are equally significant to any policy makers or development practitioners in PNG.
From many Pacific Island students who have listened to John Momis and at least engage in dialogue with John Momis, all felt elevated and valuable in their own right and to their nation.
A Fijian civil engineer with whom we studied together here in Beijing was amazed that Ambassador Momis was able to remember his name and call him by name even though they've met briefly only once. He said that his country's own Ambassador in Beijing doesn't know his name even though he has been to their Embassy a hundred times and met him in several occasions.
Such is the value of a person who has the interest of the people at heart. Momis makes it his business to know his people and engage with them appropriately at their level, in order to add value to them and make them see themselves as equally important in the community. This is a great value that every young and aspiring Papua New Guinean leaders should learn from.
Momis is a very considerate person. He knows when to say "yes" and when to say "no" even to his very close friends. Despite of him being in the position of great authority and responsibility which demands high level of subordination, he would at most times consider his subordinates views on critical issues before reaching a consensus.
Even though he may already know the right thing or way regarding the issues at end, he never reached a decision alone. He is a great believer of concessional and consultative approach to decision making.
This is a value which I believe Momis has developed in the early days of his political career when he was the de-facto Chairman of the Constitutional Planning Committee (CPC) that is responsible in formulating PNG's Constitution.
Momis pushed for a participatory and concessional approach and during those early days, he led the CPC into almost all the different areas of PNG either by land, sea or air, to document PNG's Constitutions.
By doing so they are able to get collective views to come up with a Constitution that is vibrant and strong that defines PNG's identity as an independent and sovereign state that stood proudly among the global community.
Therefore despite of being geographically rugged and ethnically diverse and dispersed PNG still remained intact as one nation amidst the increasing challenges of globalization and other development challenges.
The principle of participatory and concessional decision making is a great value that many young and aspiring PNG leaders need to learn from John Momis. By being considerate and involving everyone in the decision making, we minimize the potential for any future disagreements at the outcome of the decision reached. It also makes everyone take ownership of the outcome of the decisions and deal with it appropriately.
I am also impressed and challenged by his firm believe in God. Being an ex-priest, John Momis faith in Jesus Christ as Savior of the world and believe in upholding Christian principles is outstanding.
That is depicted in almost all the social gatherings such as Christmas dinner or independence anniversary, he hosted as PNG Ambassador to China which we would open the gathering with a word of prayer usually lead by himself.
I strongly believe that it was his firm faith in Christ Jesus that has developed all these unique and valuable leadership qualities that any Papua New Guinean can learn and emulate from.

I am truly humbled to have met John Momis and to learn these leadership qualities from him. I wish I had more time with him; however his people in Bougainville realized his qualities in such a time of leadership crisis as an asset and have called him back to Bougainville to contest the coming ABG election.
I wish John Momis all the success in his presidential election and the people of Bougainville prosperity and success in this new decade.

Note: This article was contributed by Albert Kaupa Tobby in Beijing and Mathew Yakai in Madang. Contact Mathew for comments on email: m_yakai@hotmail.com or SMS 71489901.

InterOil's oil optimism 'hits dry bottom'

2010-02-22T14:52:00.000+10:00

PNG RESOURCES WEEKLY
-YEHIURA HRIEHWAZI

IT IS now apparent that InterOil's highly fancied Antelope2 well has hit a dry bottom apart from the gas and condensate columns at 637 meters of hydrocarbon column height.

After the drill encountered world-record cash flow rate and followed by condensate, announcements to the market raised expectations for a large oil field at the bottom, but that was never to be. High expectations were raised, so much so that Petromin's CEO Joshua Kalinoe proclaimed in a media statement that a confirmation of oil in the drilling program will totally change the economics of the project. Petromin is the junior partner in InterOil's proposed LNG project.

Despite the disappointing result, Phil Mulacek, the CEO of InterOil is still very pleased with the results "which will be the main inputs into updating their resource estimates and which we expect will help progress our negotiations with potential condensate stripping and LNG partners."

An independent evaluation team from New York , GLJ Petroleum Consultants, last Wednesday announced that InterOil could be sitting on more than 8 trillion cubic feet of contingent recoverable gas sources at its Elk/Antelope field in the Upper Purari area of the Gulf Province.

Recoverable condensate - a mixture of oil and gas - is estimated at 156.5 million barrels as at December 31, 2009. This represents a 141% increase from its 2008 reserves. And this is not the end of the story, as InterOil had just purchased one more exploration rig from Parker Drilling to drill about 20 other areas within its exploration licence, so we can expect more announcements in the months ahead.

While it assembles its new rig for more drilling, it is running further tests on commerciality of oil shows it encountered in Antelope2. With the new drilling technology at hand, it will conduct horizontal drilling at sections it encountered oil The horizontal drilling and evaluation is expected to be completed by mid-March.

The market is keeping a close watch on the horizontal drilling program. The company says it will provide a full technical update of all the well testing results and analysis at that time.

The volumes of natural gas and condensate estimated in the Elk/Antelope structure continue to form the basis of discussions with potential industry and investment partners, according to Mr Mulacek.

The Gulf Provincial Government and InterOil are surging ahead with plans to build a stripping plant in the province to process the condensate for petro-chemical products which Mitsui Petrochemical Corporation of Japan is interested in. The oil from the stripping plant will of-course be shipped to the company's Napanapa refinery for further stripping into diesel fuel, petrol, aviation gasoline and kerosene.

Contingent resources referred to above are those quantities of natural gas and condensate estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies.

The economic status of the resources is undetermined and there is no certainty that it will be commercially viable to produce any portion of the resources. The following contingencies must be met before the resources can be classified as reserves:

Sanctioning of the facilities required to process and transport marketable natural gas to market.
Confirmation of a market for the marketable natural gas and condensate.
Determination of economic viability.

Although a final project has not yet been sanctioned, pre - Front End Engineering and Design (FEED) studies are ongoing for liquid natural gas (LNG) and condensate stripping operations as options for monetization of the gas and condensate.

What the company and the Gulf provincial government are doing now are part of the process of meeting these conditions.

Internal Security
While InterOil, ExxonMobil and other players like Oil search Ltd and Talisman Energy and mean well in their investments, there are serious security concerns which the state must address ASAP.

With the shooting death of an Oil Search Ltd staff in the Hides Gas project, attacks on ExxonMobil's contract staff at project sites and suspension of all the ground works by ExxonMobil in Southern Highlands, industry leaders are calling for government's immediate intervention.

An American consultancy group last Wednesday ranked PNG as one of the worst places for investors.
One petroleum industry executive told me: "How long can investors put up with attacks on staff by locals ... can the government do something quickly."

An one from the sector said the mining companies attracted quite a bit of flak from locals and politicians and perhaps there needed to be some understanding reached between the investors and government departments who were monitoring and regulating their operations.

Governor of New Ireland Sir Julius Chan wants Allied Gold out of Simberi gold mine in his province. Last month he fired a broadside at the Department of Environment and Conservation and the Mineral Resources Authority for negligence by not being vigilant in their duties until the mines inspector discovered serious health and safety issues and ordered the mine shut until the problems were rectified.

In the US, PNG was ranked poorly as a place to invest in by mining and petroleum resource developers whereas Australia, just south of PNG was given the thumbs up. The ranking was made by New York-based mining consultancy firm, Beare Dolbear (BD), whose views are respected by investors and market analysts.

Beare Dolbear's "2010 Where NOT to Invest" report ranked PNG in 21st place out of 25 major mining countries.

A report by ABC's Pacific Beat program said BD ranked PNG in the bottom group of countries according to the way it handled social issues such as poverty, in the second bottom group on mine permitting delays, and near the bottom on corruption.

Beare Dolbear Chief Executive Officer Reinis Sipols said the insecurity of land tenure was also a problem. "If your tenure, or your licenses, or your land positions can't be secured and can't be defended in court, it puts in doubt the entire concept of why would you invest there, why would you go there."

Such perceptions drive a negative image on PNG as an investment destination. Among the first issues in a boardroom discussion is country risk and security before investors can put down their money. If the board members feel it's unsafe, they will take their money elsewhere regardless of the reality on the ground.

PNG cannot be complacent on the fact that we are strategically located to supply our high quality resources to the world's biggest markets in Asia. That can very quickly fade into insignificance if we do not arrest the security issues as a matter of priority.

The government has yet to announce any long-term policy initiatives regarding security of the multi-billion Kina projects in the Central, Gulf and Southern Highlands and Hela provinces.

Security needs to be beefed up. If it means mass recruitment of police personnel, so be it. The government needs throw in money and play its role in safeguarding the very projects that will pay billions of Kina in taxes and benefits to the government. The Internal Security Minister needs to live up to his title!

Computer virus queries answered

2010-02-22T14:44:00.000+10:00

IT HELP DESK
-PANU KASAR

DURING the week a good friend emailed me a few of his queries regarding computer viruses. Due to the limited space in the email text box I promised to write an article to answer all his questions.

I guess in this article many will also have a glimpse of these cyber pests and at least be prepared to protect their computers from treats. Technology always arrives with its share of problems, I think that's one of my common phrases. Computers came with viruses, like it or not. It's not something you'd want to eliminate but something you must learn to live with even if you become a victim. I believe this article will help us at least minimize the treats that computer viruses present.

First of all computer viruses are simply computer programs but I'd rather say destructive computer programs. They function like any other computer software on the windows platform but they execute destructive code according to how they were programmed. They fit exactly into the cracks in the windows operating system.

That brings us to another point. When Microsoft System Engineers develops the Windows platform (eg; XP) programmers sometimes create error in the layers of the software. These are called flaws or vulnerabilities.

Since I deal with viruses I call these flaws "cracks". This is to help us understand the concept of how computers viruses work. It is these cracks that the virus writers target when writing a virus code. Every virus ever created was designed for a specific crack. Therefore you have to download updates that Microsoft provides (check http:\\www.microsoft.com).

The bundles monthly updates are called Service Packs" (SP1, SP2 etc..). Windows XP has 3 service packs. You have to get them and install in your PC. These service packs provide patches for all cracks that were overlooked by software engineers in the design phase of the original Operating System. Some of the monthly updates that are released are in fact called "patches". Now you know.

Computers that are connected in a network are more vulnerable than stand alone computers. Networks are closed systems and any code that posses' computer virus characteristics can easily move between PC's and carry out their malicious operations. In fact networks were designed with the motive of central administration of resources which security is one of them. In the case of domain server networks , the server is responsible for all the client PC's. If a computer on the domain is infected and the server cannot solve the issue, then the network is not functioning the way it should be. The server is the master computer and it has to do daily scheduled scans on all PC's on the network to minimize threats. Otherwise there's something wrong with the server configuration or with the person in charge.

Talk to everyone who owns a computer and they'll tell you they had enough with computer viruses. These days with the increase use of removable storage devices, viruses spread like fire. A good tip will be to avoid public places where people do printing services. These places are the havens where computer viruses are bred locally. They are bred, donated and traded for free, go at your own risk. The best viruses are found there. Once your drive goes in there it comes out infected. Buy your own printer and print at home. Oops sorry I'm not putting these people out of business but just doing my job. Cyber pest control.

But really, you don't need to be afraid of computer viruses. Computers are designed with the best security features to protect itself. The good thing is that if you are up to date with your firewalls and patches you won't even need an anti virus. When all cracks are patched, viruses in the system will have no place to reside in the system and they simply become non effective outcasts in the windows environment. Patches in this context refers to both the OS and applications such as Ms Office. The simple trick is that you have to regularly update your system. If its updated then the issue of viruses will be history.

I always suggest that you get an antivirus where you can have easy access to getting updates. If you have a standalone PC at home without an internet connection then you have to install at least two anti viruses. At this moment I'd rather not recommend any anti virus, because the fact is that not one anti virus will solve all treats. They all solve some that other don't so it's best you install at least two. So if one miss some treats then it's likely that the other will fix. But if both miss some, then you're doomed, he he he.

To avoid being in the doomed state, at least get the windows patches, make it your duty to get internet access and download patches regularly. Otherwise we have "The PC Clinic" you can always contact us. If you are a technician working for an organization, then slipstream a Windows boot disk with the latest patches so that you keep your PC's free of vulnerability. Otherwise you'll have a whole network full of holes, and if there are holes viruses are bound to force themselves in. Your choice, become responsible or be a victim.

The really worse news is that some viruses cannot be removed by anti viruses; these are the latest and the best in the industry. It involves specialist service to really deal with them. It's good because they make us, security technicians, to become better in the process of solving them. A good tip, if you want to be the best in the business then study the windows registry. That's where all the answers are, if you want to solve the problem of computer viruses. Otherwise I'm here to help, email me.

Computer viruses were first recognized in Pakistan, it was said that the first virus was called "brain". Such a contrasting name for a pest . It then crossed the ocean to the states and flooded the world when the internet was introduced. Since then millions in income were lost due to its effects globally. In PNG we are moving into the digital age and these are the perils of the age that we live in. To ignore would be naïve but learn and protect yourself from its harm. At least apply basic protective measures to keep your system intact. "Otherwise somebody's gonna get a hurt real bad."

Have a week of safe computing. pkasar@itelpng.com

The crux of the Agriculture Problem is a case of failed leadership

2010-02-15T14:35:00.000+10:00

I WOULD like to comment on certain concerns raised by a certain Gigs whose article entitled "Minister (referring to Hon. Andrew Kumbakor, MP) did little for housing in PNG") that appeared in the Post Courier on 3rd February 2010.

There are no parallels between Housing and Agriculture for Gigs to say Minister Kumbakor who only recently was appointed to the Agriculture portfolio will not deliver in the agriculture sector.

It is my perceived view that the crux of the Agriculture problem is a case of failed leadership, and I perceive that farmers in PNG may have in Hon Kumbakor, hope, for what he is, and I will clarify this point at the end of my submission.

But first, the impact of the LNG project on the PNG economy demands determined leadership from the farming sector, led by a visionary and strong Minister to mobilize government support and funding for agriculture. Even though it has been estimated that by 2013 the LNG project would have invested up to US$14 billion and this would have effectively more than doubled the PNG gross domestic product, the down side is the reality that its development, like many other large mines and gas projects world wide, is unlikely will lead to poverty reduction and raised social and economic status of Papua New Guineans.

On the other hand, the reality in PNG is that agricultural development has led to significant improvements in the livelihoods of many thousands of indigenous people every where, where there has been a major agricultural project. This contrasts sharply with the mining sector - where these enclave industries have brought in significant revenue to the state but have seldom translated these benefits to directly impact on the livelihood of ordinary citizens.

The modern PNG economy grew on the back of plantation agriculture in the 1950's, 60s and 70's. Social indicators of people living within the vicinity of 100 -150 km radius from Kimbe and Hoskins (WNBP); Popondetta (Oro Province), Mt Hagen (WHP), Goroka (EHP); the Gazelle (ENBP), Lae and Madang, which hosted major agricultural projects are generally better of than provinces that hosted major mines.

During the last 20 years since the operation of Ok Tedi, Misima, Porgera and BCL mines, the GDP contributions from the agricultural sector has declined, even though the population that grew during that period was almost entirely absorbed by this sector. The average per capita output of citizens declined over this period.

A space of 20 years lapsed with no major investments in the agricultural sector. Against this sad reality, the greatest fear is that the Government is not likely to do any better with all the revenue received from the LNG project unless a corrective policy action is taken to mitigate against this trend. And this must start with appointing the right Minister for the Agriculture Ministry.

The Exxon Mobil exploitation of the natural gas resources in the SHP looks set to fundamentally change the outlook of the PNG economy and its people. Many commentators including IPA boss Ivan Pomaleu expressed fear of Dutch disease whilst Treasury Secretary Simon Tosali feared delivery constraints - inefficient and ineffective public service machinery and weak infrastructures and communications - hampering flow of benefits to rural masses.

The Government admits that the key challenge facing PNG is absorbing the growth in the economy brought about by the LNG project. I submit to you that there is no sector apart from agriculture and the agri-business sector that have the greatest potential to absorb this growth and simultaneously bring about massive improvements to the great majority of rural people.

Investments in the agriculture sector will bring to bear broad based and equitable national growth, involving and participated by a great majority of our people.

In order to bring about this growth led by the agriculture sector, three critical policy pillars must be put in place. First it is absolutely critical that we have a good Minister, who has the passion, the commitment and the ability to influence the whole of the Government system and the private sector - to win support for sectoral initiatives and secure development resources for the sector. Second, the State must identify, fund and develop at least two to three major agricultural development projects every year, scattered equally around the country over the tenure of the NADP (10 yrs). And thirdly, bearing in mid that the people own the basic production resources - land and labor; the greatest challenge remains in finding a way to involving a greater proportion of our people in productive economic activities.

This was planned to be achieved under the NADP. Sadly as we all know the NADP had failed leaving many thousands of farmers disillusioned and disappointed all over this country. We do not want the opportunities presented by the LNG project to by pass farmers and their sector again.

I conclude that ours is a leadership problem in the agriculture sector and it is my firm belief that Hon Kumbakor is the man for the sector. My faith in the man rests on the fact that Andrew and I graduated with bachelor of Agriculture degree in 1983. Whilst I pursed a career in the public service and after 20 years became Secretary for DAL, Andrew worked in the plantation sector and after many years in the oil palm and coffee industries he was promoted to manage one the biggest coffee plantations in WHP, prior to him becoming a MP. Hon Kumbakor is probably the only Minister in Sir Michael's cabinet today that has got any affinity with the agriculture sector and the plight of the farmer. Give him a chance.

Matthew Wela B. Kanua
Former Secretary for DAL (20002 - 2006)

Sino-Pacific relations: Levels of localization, aid and investments

2010-02-15T13:57:00.000+10:00

ASIA PACIFIC PERSPECTIVE: CHINA +
MATHEW YAKAI

THE HIGHLY publicized pre-eminence of China is captivating for analysts all around the globe who are watching with anticipation, criticizing and praising every move China makes daily in its path to become a developed nation.

The central idea behind this writing is to conceptualize what localization means. Furthermore, how the concept is promoting peace, stability and cooperation through aid and investments in adherence to China's foreign policy.

Localization in this context means the harmonious co-existence of China in a foreign setting, and is categorized into three separate categories to enable an accurate analysis.

Firstly, at the macro-level is an analysis of China's approach to the South Pacific region. Secondly, at the mezzo-level is an analysis of China's approach to Papua New Guinea (PNG). Finally, at the micro-level is an analysis of China's approach to local communities.

Macro-level: The Chinese government's ability to 'diplomatically romance' countries in the South Pacific with gifts of aid in the form of cash with no strings attached, along with strategic investments has definitely helped in trade relations, gaining recognition and creating markets.

Traditionally, the South Pacific region has been the back yard of the West, strictly controlled and monitored by claimed Middle Power and America's 'Deputy Sheriff' Australia. But China is knocking on the door challenging America and its regional allies Japan, Australia, New Zealand and France in matters of trade, investments and development cooperation.

Thus, is China using untied aid and investments as a tactic to localize? In the pacific the 'boomerang tied Australian aid' has been a highly debatable issue where intervention and influence have tempered with the sovereignty of the weak states.

The opposite approach of China in devotion to its foreign policy against intervention is changing the view of Pacific states. Although not publicized, they are now more inclined to the respect that China as a rising power has for their domestic affairs.

According to Jian Yang's (2009) article "It estimated annual aid to the region is somewhere between US 100 million and $150, which represents a rapid increase although it is much smaller than Australia's over $400 million".

Moreover, he notes that Chinese official statistics show that China's trade with the 14 island states that make up the Pacific Island Forum excluding Australia and New Zealand has increased from $121 million in 1995 to $1229 million in 2006.

Likewise, investments like the $625 million nickel and cobalt mine in PNG, and millions to reinvigorate a Cook Islands Fishing and procession plant epitomizes the type of investments in the Pacific.

China is "providing much needed investments for the aid-reliant South Pacific". Per se, the investments in the Pacific have a similar impact as aid and is playing a pivotal role in the localization process.

In consequence, evolution is working in favour of China with its ever increasing hunger for natural resources, bid for legitimate recognition regarding the 'One China' policy and need for markets, the 21st century is inevitably the Sino centric Century in the Pacific.

Mezzo-level: Today China is the second largest aid donor to PNG. China took over Japan and US who were the traditional aid donors. In 2008, China's Official Development Assistance to PNG was more than US$500 million.

While last year in early November during the official visit by Vice Premier Li Keqiang, PNG has signed two major pacts worth a total of CNY 830 million in a state grant and a China Exim Bank loan.

In addition to its already existing assistance, PNG will also receive extra financial support to build a state-of-the-art international convention centre in Port Moresby, and assistance to develop socio-economic projects in Madang Province.

Apart from other diplomatic reasons China is conscious of the growing anti-Chinese sentiments brought about by the influx of Mainland Chinese especially Southerners from Fuijian Province in a new wave of migration according to James Chin (2008), evident in the 'May Mayhem 09' where shops owned by Chinese entrepreneurs were ransacked and threatened in the major towns and cities across the country last year.

As such, this visit and the gifts given are a symbol of China's friendship and interest in developing the economy of PNG.

To China, localization is very vital in the protection of its national interest and Chinese citizens. For this reason, the visit was strategically planned and is a mind game aimed at assuring the PNG people that China is interested in PNG's economic development.

Psychologically, this will have implications in the way Papua New Guineans view Chinese entrepreneurs post 'May Mayhem 09' and will help soothe the tension. In this context localization means embracing China and the Chinese as friends to walk hand in hand in the path towards development, or to harmoniously co-exist.

Micro-level: At the micro-level, it is impossible to find a British, Japanese or an Australian successfully running a fast food or retail outlet in a small town in PNG. According to Chin (2008), in comparison to their predecessors the Old Chinese, the other new ethnic Chinese from Malaysia, Singapore and Indonesia, the new southern migrants from the Mainland are ruthless.

They know the art of localization, acclimatizing and surviving. They can eat anything, sleep anywhere and regardless of the language barrier excel in what they are doing. Simply, they are good at learning and adapting.

In my community when a person dies as a sign of respect we have what is called a 'haus krai', a house or place where people go to show their respect and sympathize with the relatives of the deceased.

In that event goods and food stuff are exchanged by the different groups of mourners to cater for other mourners who attend the 'haus krai'. There was a particular Chinese businessman who operated a retail outlet in town where he traded those typical Chinese made goods.

Upon the death notice of one of the province's prominent leaders he mobilized his national workers, bought a substantial amount of goods and proceeded to the'haus krai'. His unique approach demonstrates the ability of the Chinese in localizing.

In addition, Chinese state owned entity Metallurgical Group Corporation (MCC) has changed the formerly isolated lives of the Rai Coast villagers. Known as 'the largest non-ferrous resource project that China has taken on anywhere overseas', the company has linked Rai Coast with China by building a huge wharf to ship the nickel and new roads connecting it to the main highway.

The company has done what the PNG government has failed to do for the past four decades, that is bringing services to the people of Rai Coast.

This outlook was expressed when local leaders and Ramu NiCo Management met in May 2009 to negotiate peace after there was a deadly clash between PNG and Chinese workers that resulted in mass damages to properties and injuries to some workers.

Both parties expressed their sympathy and disapproval of what had happened, leading to a presentation by the local community of a pig to the management as a traditional sign of saying sorry and appeasing the tension.
The villagers realized the importance of the company and its investments, making them feel as part of the community was high on their agenda.

Conclusion: At the macro-level China's bid to localize in the South Pacific region is causing paranoia. Others are watching with eagle eyes the dragons thundering movements across the region.
At the mezzo-level China is like the concerned friend who is eager to assist wayward PNG with its economic development and change the mind set of suffering common citizens.

Whereas the micro-level China and the Chinese have already managed to localize and harmoniously co-exist with the locals but the 'May mayhem 09' has a residual potential threat effect. The nature of Chinese aid and investments regardless of the various reasons for giving has greatly helped in the localization process. The ability of China to respect the domestic affairs of Pacific states will have a long term effect in how localization takes place at the three different levels.

Chinese aid and investments is directly proportional to localization, the more China gives the more it will be accepted as a local and a friend.

Note: The article was also contributed to by Bernard Yegiora, a graduate student from PNG studying at Jilin University, China majoring International Relations. For comments, contact him on email: benardyegiora@yahoo.com. Queries on this column and Chinese government scholarship, contact Mathew Yakai on email: m_yakai@hotmail.com or SMS 71489901

Basic computer maintenance tips

2010-02-15T13:44:00.000+10:00

IT HELP DESK

PANU KASAR

I REMEMBER in my childhood days when I was at home my dad had a car and I had to wash the car every now and then when it was dirty after dad came back from long trips.

Washing the car included sweeping the insides and checking the oil, filling the radiator and checking the tyres. All these maintenance checks are part of good practices that a car owner must undergo to maintain good performance.

The same applies to computers; you will achieve maximum performance out of your computer if you apply maintenance checks on a regular basis. Want to know some tips? Let's get started.

Update your softwares regularly. If you are connected to the internet always run the Live Update feature of softwares you are using to connect to the manufacturers website to download updates. Anti Virus softwares have to be regularly updated to maintain a strong immune mechanism against computer viruses. Email me for the updates, its free. Only for Symantec, Norton and AVG. If you have other softwares apart from Anti

Viruses such as graphics or industrial software check the latest versions and buy them, obviously latest versions will have improved enhanced features.

A very important tip to save you from having an heart attack is to regularly do back up of your precious data. Always save the back up to the root drive of your PC or an external drive. If you have very important data that is incremental do a daily back up and save several copies in different locations.

That is exactly what banks do. They do daily back ups and save copies of the data in different locations not within the same building or even province. They do this because of the value of data. Find a good back up software to do automatic back ups everyday or simply use the windows back up utility to schedule back up. I know most users have data in their PC that they treasure. It could be certificates, contract documents, photos or even love letters. Please do a back up.

Install a registry fix software to clean up your computer registry every time you use the computer. Imagine your computer as a flower garden. As time goes by the flowers grow out of order and weeds grow within the flowers. To the gardener it is not healthy for the flowers and he has to trim the garden regularly.

The computer is just like that, as you use the computer temporary flies, cookies; invalid registry links as well as unnecessary files fill the hard disk. Registry and Tweak tune ups clean the system from these files. Empty the recycle bin regularly to free space. Start disk clean up every time (see last weeks article). Run your registry fix every time to keep the system stable. Update it and get newer versions every time. This tip will help create space. I would rather recommend Tune Up Utilities or RegCure for registry fix. Business as usual, email me if you want it.

Open your computer case and clean out the dust by gently blowing using a dust blower. This is very important because right now some of you are using your computers without knowing that there are cobwebs in your computer. Don't be scared there's nothing technical about it. Just get a screw driver open the casing and clean out the dust. But! Make sure the power is switched off. Because the computer is designed to be placed in a cool environment it is not good for dust to accumulate which may contribute to high temperatures in the casing. Dust may also contribute to rust. Check Screen Wipes from computer dealers and wipe clean your monitor to give it a shinning look.

As residents of urban Papua New Guinea, please always use a UPS. Due to frequent blackouts our files are vulnerable to be lost when ever a black out occurs. Black outs can also lead to hard disk boot failure. Buy a UPS it's worth the cost, nothings more important than your files if you are in an organization.

Buy a CD/DVD Rom head cleaner and clean your disk drive regularly. Sometimes laser lens get dirty over time therefore for correct read write functions please run a disk clean up. If you have a roller mouse, open and remove the ball to clean the inside. Dirty mouse will contribute to slower curser maneuvering making users frustrated.

When using a laptop, be easy on the keyboard. Laptop keyboards are sensitive and can detect even the slightest hit. Hard hitting may result in damaged keys which I believe many users have already experienced. Avoid playing games on the laptop, games use key functions and may require continuous quick actions on the keys. When playing games on the laptop use an external USB keyboard. Use a USB mouse also in this case.

Avoid eating while typing,this may lead to ants going into the keyboard because of food
crumbs. Mine was the case. I had ants all over the keyboard. If this happen remove the keyboard and shake the ants off.

Most people use their computers just for the sake of using without being conscious that computers need a lot of attention from the user as far as its maintenance is concerned. Be a responsible user, take time at least once a week to follow the tips given. Write up a schedule where you carry up the maintenance activities regularly.

Use this article as a manual where you go through it one by one. Last week's article was good use it also.
Trust me if you keep applying strict maintenance procedures you will fully utilize your computer. Your PC will be well cared for giving you maximum performance. Some users pay for services which they themselves can do at home. If you fully get these tips the IT firms are under treat. Anyway it's always like that, when society develops the people become self reliant. I believe these series of articles will help you all.

Until then, keep those emails coming. pkasar@itelpng.com

The live digest of knowledge in a people's history

2010-02-15T13:37:00.000+10:00

TIIKIIEMB SHIIEMB

MS ZAGORO is in her eighties. She was brought to Port Moresby and lived here for about six months visiting her children, grand children and great grand children.

She is returning home tomorrow to the beautiful cool surroundings of Goroka where she hails from. She remembers faintly the scant but frightening stories of the Second World War; she also remembers that she might have been about ten years old then. Ms Zagoro hails from the Yamakoto Village in the greater Okiufa area of the Gahuku speaking people of Eastern Highlands.

She is one of the many grand children of Namizataupa (Aize) the known patriarch of the Okuzuha clan of the Okiufa people. The legendary Namizataupa begot Liko, Gorame, Zagaro and Malizo whose children among them include Ms Gamake Zagaro and late the Aize.

Aize had a number of children included the late Hoffman Aize. As a prominent leader of his people Mr. Hoffman went on to become Minister for Forest in the Eastern Highlands Provincial Government in the 1990s.Great grandparents of the present generation of Papua New Guineans are sources of past and contemporary history. It is truism that that group of Papua New Guineans is fast becoming rare these days.

Thus, an opportunity like the visit by Ms Zagoro to be with the young people is immensely entertaining and educationally significant. She is a mobile encyclopedia of knowledge and wisdom.Ms Zagoro's generation admonish unacceptable behavours, at the same time they provide avenues for sitting them down and draw from them past records of human endevours relating to the history of a people and their migration or movements, the skills and knowledge about gardening, warfare, land ownership and land use among others.

They even repeatedly echo the need for modesty and to be at all times morally upright. There is so much to decipher and record for future reference. Time is not on anyone's side to wait for the next encounter.

Ms Zagoro has two sons and many grand children. She came to Port Moresby to visit her extended family members and their children. While in Goroka, and being alone she fell very sick. She was brought to Port Moresby by her nephew who would look after here, including hospitalization and after care. She has fully recovered and is preparing to go home.

What did she say about life in a city? "When I arrived in Port Moresby, I came to the city in the night from a late flight by Air Niugini. I could not tell much. However, when moving between the Port Moresby General Hospital and June Valley where I was residing, I was both fascinated and very frightened indeed. There are so many cars, and I could not help but hold back that real fear - cars crashing on each other, people dying on impact and so on and so forth" says Ms Zagoro.

She also said that, she did not like foreign foods, especially rice and other imported food stuff. These "foreign foods" she said had her feel hungry or uncomfortable. However, her nephew and other relatives made sure that there were bananas, pumpkins and other local supplies available in sufficient quantities to ensure that she was fed nutritiously during her stay in Port Moresby.

Port Moresby based family members will farewell their grandmother in a day's time. Ms Zagaro is already looking forward to meeting her people, especially her grand children. Once in Goroka, she will be getting back to her plot of family land and do what she has always done for decades to sustain life - gardening.

Travelling the journey of faith (Part II)

2010-02-15T13:26:00.000+10:00

LIFE IN THE PHILIPPINES

PETER BARNABAS PAMULA

LAST week, we saw that God promised Abraham four things.

First, God promised to make him a great nation. Second, God promised to bless him. Third, God promised that he would make his name great in all the earth. Finally, God promised through him all the families of the earth would be blessed. (Genesis 12: 1-3)

Besides, I have clearly discussed that when God promised Abraham to make him a great nation, it was God's choice for Abraham to become a visionary leader. Thus the conviction to follow God led him to make a radical decision. He made a decision to travel an uncharted path based on the will and plan of God not on natural human inclination or was compelled by friends. In fact, Abraham did not see the reality at present but he foresaw the future and stepped out of faith and followed the instructions carefully.

A visionary leader looks beyond the present and sees the future in spite of insurmountable difficulties or incredible success. A visionary leader not only knows how to communicate his vision but also knows how to act even in the face of adversity and opposition. Again, visionary leaders know their strength and weaknesses and seize the opportunity to grow and expand. Abraham took that opportunity! This was all done for the advantage of the future generations....generations that would be the custodian of the truths of God.

Radically, when he made that incredible decision; he was prepared to live with the consequences of his decisions. Surely, at the initial stages of the journey of faith, he was faced with a great challenge...a great famine in Canaan. (Genesis 12: 10) It was a great test for him. Apparently, his survival and future depended on his departure to Egypt. God was still with him even in the decision to leave for Egypt. In Egypt, he made a mockery out of himself! In fear of his life, he advised Sarah not to call him her husband but his sister. It is one of the blunders from the man of God... hard to reconcile and measure!

I still grapple with this decision he undertook. If God was leading him, why deny his right to call Sarah his wife? However, despite this irresponsible decision, God was working extreme good out of this situation. Sometimes, when our lives are in tatters or completely broken into pieces, God is still at work to put the broken pieces together. He works extremely hard to remake us and fulfill His plan in our lives...a deep theological concept I have never grasped before...even I am a pilgrim in the journey of faith.

Amazingly, in (Hebrews 11: 8, 9) Abraham is described by Paul as a hero of faith. "By faith when Abraham was called to go to a place he would later receive as his inheritance, obeyed and went, even though he did not know where he was going. By faith he made his home in the promised land like a stranger in a foreign country. He lived in tents as did Isaac and Jacob, who were heirs with him on the same promise. (To be cont'd)

The writer is a Papua New Guinean student studying Masters in Religion at the Adventist International Institute of Advanced Studies (AIIAS), Silang, Cavite, Philippines. For comments I can be contacted on email: pamulap@aiias.edu or cell phone +639391773655.

Too much of a good thing can create problems

2010-02-15T13:08:00.001+10:00

PNG RESOURCES WEEKLY
-

YEHIURA HRIEHWAZI Freelance Reporter

"HAVING too much of a good thing can create problems".

This is the case with LNG projects in Australia and Papua New Guinea, according to analysts last week.

The excitement created by LNG projects in PNG is overwhelming with all government focus and attention on the projects and the onus is on the contractors to search the world for skilled workers to build the extraction facilities, conditioning plant, pipelines and the processing and export ports.

Same is being done in Australia with Chevron's Gorgon LNG project in Western Australia which ExxonMobil has an interest. Woodside is also building its LNG plant. There are several others going into Front End Engineering and Design while others are at Final Investment Decision stage.

There is also the coal energy scheme spearheaded by Queensland's richest man, Clive Palmer who is spending some of his wealth on petroleum exploration licenses in the PNG's Papua basin. Late last year Palmer watched his top soccer team lose in Brisbane and was rushed to hospital for cardiovascular checks. He invests hundreds of millions (or billions) of dollars on mining and energy projects and is among the people who are driving up the demand for skilled workers. Wonder what might happen to him if there aren't enough skilled workers for his billion-dollar projects.

Skilled workers are in high demand for the 12-plus LNG projects in the Oceania region - two of them in PNG which are being driven almost simultaneously.

"With all the law and order problems in PNG getting wide media attention overseas and the associated problems causing disruption to early ground works on the PNG LNG project, the signals going overseas are very disturbing," according to an industry observer.

"With that kind of negative perception, skilled workers may not want to come here. They will most probably prefer to go and work in Australia," he said.

Just as an example, PNG LNG project wants 1,000 drivers, 400 welders, 300 crane operators and hundreds of engineers and thousands of other skilled men and women. The InterOil LNG project will also require similar number of workers. Our projects are small by comparison to the Gorgon and the Woodside projects and their requirement for skilled workers are mindboggling.

Bloomberg reported last week that skills shortage may increase costs and cause delays for companies developing the LNG in Australia.

Industry analyst, Fitch Ratings said ventures in Western Australia and PNG and Queensland's coal seams projects will need up to 60,000 workers at the peak of construction.

"First movers will have a distinct advantage," they said. This means PNG LNG is among them. However our project is attracting attention world-wide for all the wrong reasons with headlines like "Tribal war stops PNG LNG project."

And the most worrying is the "chilling effect" on one of the world's largest LNG plant construction and engineering groups, Chiyoda of Japan, which got an order from ExxonMobil for about $US5 billion to build the LNG plant outside Port Moresby. The Japanese are by nature very security conscious people and they are watching the law and order problems associated with our LNG projects very closely.

Our government's security agencies ought to wake up and do the necessary to re-assure the world that their safety is guaranteed at project sites. Failing that, the skilled workers will fly over PNG to work in Australia for Santos Ltd., BG Group Plc, Exxon Mobil Corp., ConocoPhillips and Origin Energy Ltd, Chevron, Resourceshouse and others.

Coupled with our law and order issues is the fact that skilled workers could be in short supply and this will increase cost and delay projects. That is why Flitch warns that while we are excited about the LNG projects and the rising Asian demand for cleaner-burning fuels, "having too much of a good thing can create problems."
Seven LNG projects aim to make final investment decisions this year, John Hirjee, an analyst at Deutsche Bank in Melbourne said recently. Australia may struggle to find skilled workers as increasing numbers of resources proposals are advanced, according to analysts including Hirjee.

And if Australia struggles to find skilled workers, what chance does PNG have given our law and order situation? While on our state of lawlessness, last week I spoke to a very humble and interesting person in Mr Andrew Makano - the chief of the Juha Pakaiyo tribe where the Juha gas field is located.

He represents about 25800 people of the upper and lower Strickland River basin who live in very isolated communities and hardly ever interact with the outside world due to inaccessibility.

Makano and his people are worried that they could become "non existent" by government failure to conduct social mapping and genealogical studies as required by the Oil and Gas Act and there could be tribal war against people rushing in to occupy their land in order to claim ownership and benefit from the gas project development.

Two weeks ago Makano and his group walked into Petroleum and Energy Minister Mr William Duma's office and presented him a petition calling on the state to recognize them is a group of people that are living and with genuine and legitimate rights over their land.

To get to Port Moresby, they had to trek for three days to the Frieda River area in Sandaun province to pan for alluvial gold nuggets which they sold to pay for their airfares to Ok Tedi's mining township of Tabubil and then to Port Moresby where they are housed by a relative at the Morata settlement.

Speaking in Tok Pisin Mr Makano expressed concern that if they did not make their presence felt, they would be forgotten and other communities like the vocal Huli people would represent their interest and take away benefits that should rightfully belong to them.

As an example, he said the Hides Gas Development Corporation owned by Hides gas landowners of the Huli people have registered a company called Juha Joint Venture Ltd as a subsidiary company which he said did not involve them.

"We are not educated, we are not able to read and write. We don't want the educated people to take over what is ours'. We are asking the government to respect us and help us by recognizing our existence as landowners of the Juha gas project and treat us as equals with the other project landowners," Mr Makano said.

Speaking softly but firmly, he said: "We are not dead, we are alive and we expect the other people to respect our existence and our rights."

They have a registered name with the Investment Promotion Authority - Kulini Strickland Resources Holders Association Inc; which has been fighting for compensation for environmental degradation of the Strickland River system from dumping of treated tailings by the Porgera gold mine.

He said a claim of K60m has been with the government for almost 20 years, but that he said, should now be increased to K500m.

In their petition to Mr Duma they humbly ask for recognition as a legitimate landowning group that is "in existence" and asked that any other groups should work in harmony with their group.

Meanwhile Solicitor-General Mr George Minjihau has written to the Department of Environment and Conservation advising it that the Strickland river communities were entitled to compensation if proven that their environment had been affected by the Porgera mine.

For comments, information and interaction: email - yehiura@gmail.com

Inflation vs socio-economic growth

2010-02-15T13:00:00.000+10:00

FROM THE POLOPA PRESS

AS THE country gears up for the LNG Project, so many critics are having their say about it. Whether one likes it or not, the project is here to stay and all we need to do is to try to have a slice of the cake whether it be directly or indirectly.

The LNG project has big potential to change the landscape of our economy but it can also bring in disguise, numerous problems that would have serious repercussions on the economy and the lives of the citizens. It is like the case of a two edged sword. One such problem is the inflation rate that is predicted to increase significantly as income and consumption in general start to rise.

You don't have to be an economist to know the impact of inflation. A simple stroll into one of the big shopping centres will make you come to realise that prices have risen dramatically over the last few months. As previously mentioned, inflation can also be a good thing as it is a key indicator that signify that the economy is booming. However, lapse in government policies to control/address this problem immediately can result in all sorts of problems.

The recent increase in the number of breakouts from various jails may allude to the fact that everyone is feeling the pinch of the adverse effect that comes with a booming economy. Maybe the warders/prison guards became too complacent because of consistent setbacks in addressing their housing or pay conditions to keep up with the pace of the inflation. As a result, they may have had a hand in planning the breakouts. Or maybe the prisoners driven by that motive to seek new beginnings from the many candies expected to be generated by the LNG project and other major developments may have eventually forced them to break out of the prison camps.

Whatever the reasons, it is clear that inflation is a problem that needs serious attention. The problem of inflation is acute for a country like PNG given that only the minority of 15-20% who are engaged in the formal sector and to some extent the informal sector in most of the urban centers are the driving force behind any movements in the rate of inflation. Whether it be headline or underlying inflation that is having a an impact on Consumer Price Index (CPI), the scenarios look this way. While the 15-20% enjoy all the benefits that can be derived from the growth, their very conspicuous demand out of pride or luxury may widen the gap between the rich and the poor in terms of income disparity, the level of living standard, literacy rate and poverty.

The pace of Rural-Urban drift will accelerate as rural dwellers enticed by the prospect of employment opportunities and better lifestyle migrate to big cities leaving the rural areas with a problem of limited supply of labour to support the subsistence sector while the major urban centers become susceptive to increases in social disorder and symptoms of urban slums.

Look at the great cities of the world like Johanesburg, New York , Beijing , New Delhi , Rio De Jeneiro and the list goes on. The imbalance in the policy approach by their governments which resulted in a shift of available resources away from the lagging sector (e.g agriculture/tourism for PNG's case) to the booming sector (e.g Mining and Energy for PNG's case) forced people to migrate.

We are heading that way and if we are not careful, our problem could turn us into the next Baghdad or Pyong Yang. Our challenge as a nation has and will always be to do with our ability to empower and encourage our people to become active partners in the nation-building process. We can't do that under the guise of corruption or regionalism (wantokism), it needs collaborate effort from every citizens to ensure this country progresses for the good of all today and in the future. I agree we need 100 Powes Parkop and even better 1000 John F Kennedys who famously said "ask not what your country can do for you but what you can do for your country".

The social disadvantage of having a major project like the LNG in a country like PNG has been demonstrated in the recent battle for land rights between the Porebada and the Boera villagers. The only conclusion we can draw from this is that bulldosing any project of this magnitude without proper consultation or social mapping can deliberately jeopardise the wellbeing of the project, the people and the economy.

The outstanding MOA funds that were promised to the various landowners could become a stumbling block if the government does not address it. Any economic growth that has little impact on improving the social wellbeing of the people (as reflected by various social indicators such as health, education and improvement in standard of living) needs no applause or commendation.

You can't preach about the increase in GDP when you have a serious problem in dealing with poor road networks, declining health status (low life expectancy, high HIV/AIDS infected cases, poor health facilities) and rundown education facilities (high level of drop-outs, inadequate or zero incentives to the teachers to allow them to perform to the best of their abilities).

The key point is that we want socio-economic growth not just economic growth. That means that economic growth must become the driver for social reforms through increasing the level of employment, income, reducing inflation, leading to a reduction in the level of income disparity between the rich and the poor, poverty and increase in standard of living.

Social decadence in light of economic growth is like having to decorate an office that is sick inside with poor ventilation system and lighting problem with flower boutiques. The government must focus its attention on both the agriculture and the tourism industry as a means to spread out the effects of inflation and achieve socio-economic growth.

The primary objective must be to eradicate this bottleneck that is allowing only few privilege individuals to play the role of lions while the rest of us like ants that gather the remaining scraps and burrow our way into our own little holes hoping that the rain will stop and the sun would shine again.

Anyone can see that commercialising the agriculture and giving the tourism industry an added touch of beauty is playing to the strength of PNG. If the government can support the agriculture and the tourism sector, the employment figures would rise by threefold or even more. An important outcome of this situation would be twofold:

The spread in the level of income as tourists spend their money on attraction services like hotels, lodges and traditional crafts and ware like bilums, carvings, necklaces and so on. The government must ensure key infrastructure like airports, airstrips and roads are upgraded and maintained at all times.
By commercialising the agriculture sector with initiative like making funds available and removing impediments like poor infrastructure in terms of roads, bridges, wharfs and airports to allow better market access for farmers would increase the supply of fresh produce into towns and cities like Port Moresby which is constantly seeing ridiculous price markups for agricultural produce like veggies and other fresh produce.

With the LNG Project, urban centres and cities like Port Moresby and Lae are going to become lucrative markets for fresh produce. Nevertheless, the government must be mindful that if current scenario is not looked into, we could see a decline in nutrition intake in the diets of most Papua New Guineans in the cities.

This would come about given that the supply chain of fresh produce is going to be monopolised by the major shops who would put up hefty markups for their veggies and fruits. At the end of the day when you do your math, you may find that the fresh producers earn only about one-fifth of the profit generated by shops. If you want to take a guess, answer this question, what type of people in what category of the income level do you see in most of the big major shopping centres compared to those that go to markets like Grodons or Manu Auto Port? I think you already know the answer and that means you have a fair idea of what I am talking about.

The above two scenarios state what is happening. That is the high increase in income levels would put an upward pressure on the inflation rate. This has been in a way controlled and eased given that the inflationary pressures that would have been generated are spread across the board. At the same time the trickle-down effect resulting from the transfer of monetary values (money) to those at the very bottom of the income level, creates a situation where apart from easing the inflationary pressure, it allows everyone to become active participants in the market. Subsequently that means that to some degree any future movements in economic indicators like inflation and employment is driven by the majority of 70-80% and not the minority 15-20% as is the case currently. This has the possible effect of increasing employment, reducing income disparity between the rich and the poor, increasing the standard of living and reversing the Rural-Urban Drift to one of

Urban-Rural Drift as unemployed city dwellers migrate back to their villages to earn income by either engaging in the agriculture or the tourism industry.

Also if the tourism industry and the agriculture sector are vibrant, there is a great possibility that we could see an increase in spending in general from both locals and expats who are engaged in the LNG Project or any other major projects within the country. Apart from attempting to attain socio-economic growth, the key recipe lies very much in the policy approach of the government of the day. The policy of the government must be a balanced by giving equal or at least some recognition (given scarcity in the availability of resources such as funds availability against so many priorities) to each essential sector within the economy.

Inflation is a big problem and if you have never given any serious thoughts about its likely adverse effects, well this is the time to start doing so. Be mindful of our spending because like Climate Change, your decision to blow your budget although can make up only a tenth of the overall rise in inflation, given the possibility that about 1-2 million of Papua New Guineans are doing the same thing makes you realise how vital it is when it comes to your spending decisions and plans. We must also be aware of important issues that surround us and be able to identify through critical thinking how everything is going to pen out at the end.

"Let us all become conscious and wise consumers and next time you strike gold just remember not to let the pot get too hot"..

Chief Secretary welcomes new Chief Magistrate

2010-02-07T19:41:00.000+10:00

COMMENTARY
- TIIKIIEMB SHIIEMB

JACK August, the new Chief Magistrate took Office Friday 29, January 2010. The following day he paid a courtesy call on the Acting Chief Secretary to Government, Mr. Manasupe Zuernouc at the latter's Morauta House, Waigani.

The occasion of this first time meeting between the two chiefs was quiet interesting and fruitful. Both the acting Chief Secretary and the Chief Magistrate are senior officers of government who worked so hard, sometimes in trying times, who eventually won positions based in Port Moresby, simply and purely on merits. These two appointments, though separate and a long while in between, they are worthy considerations for the government to ponder. There is an option to consider when recruitments are conducted for higher level public servants.

The mutual testimonies and acknowledgement of their roots that trace back in time to their humble beginnings in the provinces is important in the current thinking about men and women of provincial and district based experience to take some leadership responsibilities in the corridors of power. Current Government focus is service delivery via Distinct Services Improvement Programme (DSIP).

Mr. Zuernouc is the substantive head and Secretary of the Department of Provincial and Local Government Affairs. This is the one government agency that has the constitutional mandate and responsibility to defend and advocate for vital rural development agenda, via the provincial and district based administrative entities. The Secretary has passion for rural and district developments. Mr. Zuernouc impressed upon the new Chief Magistrate the importance of embracing service delivery via the Papua New Guinea Magisterial Services.

Both chiefs spent time exploring options and opportunities presented by the government's long term vision, the Papua New Guinea Vision 2050. Many of the issues relating to the work of the PNG Magisterial Services are closely linked to the vision document. The Chief Magistrate said he will endeavour to work closely with the Office of the Chief Secretary to align his organization with the requirements of the PNGV2050.

One of the issues discussed by the Chief Magistrate and the Acting Chief Secretary is placement of magistrates in the districts. Pre-service and in-service training with the view to upgrading of skills and knowledge set for magistrates is a priority. A suggestion was made with regard to graduate magistrate training being run in some of the most remote parts of districts in PNG. This reform initiative would kick start and put in practice the need for recruiting and culturing young men and women to help authorities to securing the rural PNG. The proposal was that the Chief Magistrate will explore possibilities of training and recruiting new and younger cohorts and offering special duties allowances by the state through the magisterial services.

Mr Zurenuoc impressed upon the Chief Magistrate to look after serving magistrates, including retirement benefits to be supervised by authorities such as the Salaries Remunerations Commission. Magistrates should consider and included in the category of constitutional office holders. He was also presented with a proposal to grow the organisation by instituting systems and process that are open and accountable.

Finally, a suggestion was put to the Chief Magistrate to begin thinking about, and planning for a properly designated headquarters within the precinct of the Supreme and National Courts at Waigani. This proposal is a good one; as this is an ideal time to have the third arm of government located prominently and conclusively within range of the headquarters of the Executive Government (Morauta House) and the Legislature within the National Parliament Building.

Measuring Poverty in Papua New Guinea

2010-02-07T19:31:00.000+10:00

POVERTY COMMENTARY
By BENNY SANDEKA

PRIME Minister Sir Michael Somare stunned the Australian audience recently when he told journalists that there is no poverty in PNG because nobody is starving.

As a true nationalist, born and bred in his own country and now at its helm, the Prime Minister is definitely not wrong. In Papua New Guinea, poverty is measured by the surplus of food or lack of it. People whose subsistence food production is low are considered in PNG societies as poor whilst those who have higher food production are better off.

So in PNG, where land still supports majority of people for their daily subsistence, there is no poverty in this country from our perspective.

But why are the Australians stunned? Well, its mere clash of culture and definition of what constitutes poverty. In the western societies, poverty is measured by several things. They include per capita incomes, life-expectancy, child and maternal mortality rates, literacy rates amongst a few others.

According to western societies, poor countries are characterized by low life expectancies (how long people live from birth to death), high rates of death of children before reaching the age of three or five years (child mortality), mothers die whilst giving birth (infant and maternal mortality) low literacy rates (many people cannot read and write) and low incomes per capita (people who survive on US$2.00 per day).

It is considered that, when people can read and write, they will have the capacity to take advantage of opportunities presented. By doing so, they can earn an income and thus afford to make different choices. A low literacy rate indicates many things. They include but are not limited to, lack of classrooms, lack of teachers, lack of teaching materials, low retention rates of school age children and no money to afford school fees.

On the same token, life expectancies and infant/maternal mortality gives an indication of many other things. They include but are not limited to: no access to health services, poor health services, no health infrastructures, no medical workers present or simply, nogat marasin.

Despite being an island of gold floating on a sea of oil, Papua New Guinea is still considered a poor country because of its low social indicators. Take for instance in 1997: PNG's life expectancy at birth is 57 - much lower than Solomon Islands (63) Fiji (72) and Vanuatu (64). This indicates that Papua New Guineans die at an early age due to factors mentioned above. Infant mortality rate stands at 64 per 100 live births - the worst in the Pacific region behind Solomon Islands and Vanuatu at 41 per 100 live births recorded with Fiji having the best record at 21 children dying per 100 live births.

So whilst the Prime Minister may be right in as far as measuring poverty in his country by food, what good does food do to anyone if one does not live long or have many choices? Papua New Guinea is part of the global community. And so, to integrate into this community of nations worldwide, we have to measure ourselves with the same standards. If they are measuring poverty by Life Expectancies, Mortality Rates and Literacy Rates, we must forgo our one measurement of poverty and measure poverty on the same standards. At least, just for the time being, forgo our PNG ways for a little while.

Further education of business?

2010-02-07T19:28:00.000+10:00

BE YOUR OWN BOSS

-TIRI KUMBAKUL

WE HAVE come to a part of the year when parents and students throughout the country are queuing up at banks to settle school fees, or at educational institutions to get students enrolled or registered for another academic year.

I do not know about other centres but in Goroka where I live, there have been very long snaking lines outside banks this week, such that even those who wanted to do regular banking have simply given up. I am sure that similar crowds have been flooding schools and colleges this week. I am sure that stationary suppliers have also been very busy serving their customers.

As I have been standing in such queues, my mind has gone out to those who have been not been fortunate to continue their education this year, particularly those who have been left behind by the system at grade 8, 10 and 12. I do not know how many students are in that category, but my gut feeling is that it comprises the majority of students who were in the above grades in 2009.

For the 13, 000 or so who did their grade 12 last year, I am aware that only around 3, 000 will be making into the country's public tertiary institutions this year. My guess is also that another 3,000 might be able to continue their education at various private institutions offering tertiary level education. So, maybe 50% of last year's grade 12 students will be in some institution this year. The other 50% face the prospect of returning to their homes, wherever those homes may be.

As regular readers of this column will no doubt know by now, I am a proponent of self-employment, that is to say, business. I promote the idea of becoming your own boss through starting your own business, rather than minding somebody else's business. I am glad to report that I have been inundated with text messages, telephone calls, emails and letters from readers who have provided me with positive feedback. The message I have been getting is that the articles have scratched where Papua New Guineans have been itching. The articles have raised the motivation level of many people who have entrepreneurial mindsets, with many reporting from different parts of the country that they have started taking positive steps towards becoming their own bosses. I am very encouraged by that.

In today's article, I would like to digress a bit from my usual way of writing and address the question, "Further Education or Business?" This is a message specifically aimed at the 6, 000 grade 12 drop -outs of last year, but it may be of interest to many others who have been contemplating doing further studies because they feel they need a qualification to get a job. The alternative I would like to offer is for such young people to seriously consider going into business instead of thinking about gaining more knowledge in school and looking for jobs after that.

If you have not realized by now, let me start by showing you this: Traditional school teaches people to expect paid jobs after graduating with a certificate, diploma or degree. It is a system designed to produce workers or employees whose vocation is to mind other people's businesses. It is a system that educates people who go out to make other people (their employers) rich with their knowledge, skills and strength.

I am not against education. I believe the country needs highly educated people. I am a product of the system. So I appreciate it, and in fact promote academic excellence in my books and seminars. But what the majority of the young people who are left behind the system do with their lives is of concern to me. I feel that the system raises too many expectations which cannot be met. For instance, all students expect to get jobs, whereas as only a few jobs exist in reality. The system does not adequately prepare people to live productive lives. The result is a very large army of educated but unemployed people who are disappointed and very angry with the rest of society.

Given this situation, my message special to young people who have been unemployed, and those who will be joining the ranks this year, is that they need to stop being disappointed that they have been left behind, and start seeing life more positively. School as you have known it up to now may stop, but life goes on. You not being able to continue is not the end of life. In fact, see it as life giving you a more challenging opportunity. I know that the question that is burning in your heart is, "What do I do, now that I am out?"

My answer is that you can still make a comfortable living with what you have gotten out of the system so far. You can succeed in life with the knowledge you already possess. You don't need a college diploma or university decree to succeed in life. In fact, as far as classroom knowledge goes, what you need to succeed is 1,2,3 and A,B,C. In other words, if you can communicate in English and can count, that is all matters. Possessing a grade 10 or 12 education is more than enough.

I would like to point out to you that you have what it takes to succeed in life. Most people think that they cannot amount to anything in life because they don't have money. But if you really think about it, you already possess the basic ingredients for success. "What are these ingredients?" you might ask. Let me show you what you have.

Firstly, you have time, one of the most precious but underutilized and misused assets which everyone in the world possessed in equal measure. People in Daru have 24 hours in a day, like everybody in Manus, Vanimo and Samarai. Not being able to make it into a school year and spending the cream of your time in a classroom means that you now all the time for yourself. Being young means that time is on your side. Just imagine the kind of life you can live in the next 20 years if you start using your time wisely starting this year.

Secondly, you have a young and healthy body with untapped physical strength. You can misuse it by throwing your weight around, filling it with drugs and alcohol in disillusionment or you can apply it productively and make a living with it.

Thirdly, you have a sound mind - another important but underutilized and misused asset. Scientists say that the average person uses up to 10% of their brain capacity between the cradle and the grave. Ninety percent goes to the grave unused, and becomes food for maggots. That is a complete waste of potential and power. If you can use it by thinking hard, deep and wide, you can come up with ideas that can transform both your life and that of the society.

You now have a mind which has become the repository of a lot of knowledge you did not have before - probably more than your parents and all your relatives who have not had the privilege of getting an education. Albert Einstein, who was considered a 'slow learner ' by his teachers but ended up becoming one of the most brilliant scientists, made this statement: " The mind that opens up to receive new ideas never return to its original size." Your mind has been opened, stretched and enlarged by the information and ideas you have gained from school. Such a mind is more powerful than the most advanced computer.

Finally, if you have a piece of land somewhere, that is another important asset. In fact, seeing that land is the basis of wealth, you are already wealthy if you have some. Size doesn't matter; productive use does. The challenge is how to convert that piece of dirt into cash.

So, you have time, health and strength, a sound and informed mind, and land (if you have some). Not being in a classroom means that you have the chance to combine these resources and carve out for yourself a sustainable and even lavish livelihood by starting a small business. Don't worry about money; it will come. If you just use your time and mind to come with imaginative solutions to problems or needs that are around you, you should attract lot of money, because today's economy runs on ideas.

Look around you. People who have the most money today are those who run their own businesses. If you care to dig deeper into their lives, you will realize that most of them dropped out and do not have university decrees, while many are illiterate! Most started with little if any money or land. They simply use their time, minds and strength. Money simply became the end product of them combining these invisible assets. When they had money, they converted it into visible things like properties, houses, cars, etc.

My encouragement to young people left behind the education system is that you need to seriously starting a business instead of going back to school. If you have some money to pay your fees, just take a long pause before joining those who are paying their way back into the classroom and tying their time down for another year.

Think a few years ahead of you. You pay to get into school with the aim of getting a diploma or decree. After getting that paper into your hands, you will have to look for a job. If you are lucky, you might succeed in getting one (and a high-paying one if you are very, very lucky!); if not, you end up with a paper but literally be on the streets with no job. That is one option.

The other option is for you to start a business this year with your school fee money. If you lose it in a failed venture, it would be the same as you continuing with school and not getting a job. It would make much difference. If you don't get a job, you lose all the money you have paid in fees over the years.

However, if you succeed, you will be a few years ahead of your cohort financially, probably by thousands or even hundreds of thousands of kina! Which is more exciting and promising: further education or business? I will let you decide.

Text me your comments on 76880033 or 72804588, or by email. secos@global.net.pg

Trouble brewing in project sites

2010-02-07T19:17:00.000+10:00

... Elk/Antelope and Juha need urgent attention

By YEHIURA HRIEHWAZI - Freelance Reporter

THE writing is on the wall in big bold letters. It's been there for some time.

The Porebada versus Boera clash was imminent but nobody appeared to take any serious note of the highly contentious issues that blew up in the face of security personnel and government agencies. Disruption of work on the world-class PNG LNG project site and associated killings has received coverage world-wide on almost all internet websites like Bloomberg and the Wall Street Journal and major Australian newspapers.

This followed right on the heels of tribal wars in the Southern Highlands Province; one sparked by an exposure of a Digicel mobile phone porn to a young girl and another was a reported slaying of 11 people by gunmen.

ExxonMobil, the developer of the PNG LNG, has explained that the Highlands tribal wars were not related to its project while it stopped work at the Port Moresby end in respect of those killed.
Perhaps the government instrumentalities were playing on time and the normally passive and peaceful character of the two neighbouring coastal villagers west of Port Moresby and hoping the problems would go away.

There are two groups claiming legitimate landowning rights; Laba Holdings which was initiated with the help of former Petroleum and Energy Minister and deputy Prime Minister Sir Moi Avei of Boera village. It claims to have representation from four companies from Boera, Lealea, Papa and Porebada. The other is BRPP, a representative umbrella group covering all the Boera, Rearea (Lealea) Papa and Porebada villagers . The two groups have been making claims and counter-claims as legitimate landholders over a long and protracted period. They had been on radio and newspapers, confronted ExxonMobil representatives and staked their claims with the Department of Petroleum and Energy.

Their unresolved ownership issues were simmering until it boiled over last Sunday. Five young Porebada men were gunned down, their families are devastated and of course revenge is an option on the minds of the hurt and aggrieved relatives while Sir Moi's sister's house in Boera has been torched with two others and his entire village has been deserted as people fled for their lives fearing reprisals and payback killings.

With the high level of government focus given to the LNG projects in PNG, the Porebada-Boera battle is inexcusable. Government security and monitoring agents were caught pants down.

There are rumblings coming from Elk/Antelope and Juha/Pokaiya/Strickland communities as well.
Those entrusted with project monitoring, security co-ordination, land mediation and demarcation, social mapping and genealogy studies appear to be dragging their feet. All government agencies and instrumentalities cannot sit idly by and hope that problems associated with landownership issues in resource project areas will somehow resolve themselves. They won't. Pre-emptive actions are what's required. Not reactive.

Elk/Antelope gas project
In the case of Elk/Antelope, the developer InterOil has embraced all the local level governments in the upper Purari and Wabo areas. That's a big step forward, but the Government needs to get its act together regarding social mapping and genealogy studies to define and register Integrated Landowner Groups (ILGs) as soon as possible, if it hasn't done that yet.

Signals reaching Port Moresby from Elk/Antelope are quite worrying. People from the Highlands provinces are moving into the area and erecting tents and tarpaulin camps. They are clearing bush and making food gardens. Some bring in their young women to lure male landowners into marriage relationships in order to access land occupation - a disruptive act of disrespect and harm to the local family units.

The locals feel threatened that their territorial boundaries are being invaded by foreigners. They are angry that in a reverse situation, the Wabo people would not even be allowed to go anywhere near a project camp site in the Highlands as they would meet with the inevitable - death.

Has the government devised a policy to deal with such situations where people from afar flock to resource project areas, illegally occupy customary land and ply their illegal trade and untoward activities? This a major security issue and needs to be addressed at the highest levels of government ie; the National Security Advisory Council because any dispute between locals and encroaching foreigners will put the multi-billion investments at risk and send negative signals abroad on PNG as an investment destination.
Juha Gas project

Further to the north-west of Elk/Antelope is the Juha gas field and landowners there are becoming unsettled and increasingly concerned that people from other regions are claiming landownership rights and are setting up various associations in Port Moresby and claiming to be rightful landholders.

Just before the 2010 New Year, a man from one of the major clans in the area called Pokaiya was killed and his body chopped up like an animal. The victim's tribesmen are currently preparing for war in revenge.
The law enforcement agencies have yet to go into this remote location because it is not easily accessible. To get there, villagers pay K500 for a seat in a small aircraft for a 45-minute flight from Tari in Southern Highlands Province into Nomad or further up the Strickland River in the Western Province and walk to their villages in the Pokaiya Hewa tribal land where the Juha gas field is based. This is on the border of Southern Highlands, Sandaun, East Sepik, Enga and Western Provinces. The flight time between Tari and the Juha gas project region is same as between Lae and Port Moresby in a fast aircraft but how the Tari's could claim ownership of Juha gas project site is beyond comprehension.

This poses yet another serious security threat for the project and another case for the National Security Advisory Council. In the absence of government authority, law enforcement and registered ILGs, every man and his dog is claiming landholder rights even people from faraway tribes and traditional land boundaries.
There is already in existence an incorporated group called; Kulini Strickland Resources Holders Association Inc; (KSRHA) which represents over 25,800 people of the Pokaiya, Hewa, Sinali and Duna tribes. Their boundaries include parts of the Southern Highlands, Western and Sandaun provinces.

The KSRHA has been in existence for the past 20 years, fighting against government for compensation over environmental degradation of the Strickland River system. It has lodged a claim for K60 million and to date there hasn't been any effort from the State to make an independent assessment of the damages, if any. These are quiet, soft-spoken and humble people but if pushed to the corner, the inner beast can respond with such fierce force and brutality uncharacteristic of the outer man. See what happened at Boera!

The KSRHA has been an advocate for services into the upper and lower Strickland areas to which the Porgera Joint Venture has thankfully responded with schools, health services, airstrips and water-use fees to the people.

With that experience in coordinating and leading his group for the last 20 years, the chief chairman of KSRHA Mr Andrew Makano is calling on the Department of Petroleum and Energy and various other government agencies to get their act together and move in quickly to the Juha Gas project area for social mapping and genealogy studies to help with formation of ILG groups. If this is delayed, trouble is inevitable.

He is extremely concerned over the likelihood of tribal wars if the government does not play its part by attending to law and order issues that have already flared up as evidenced by the killing of his tribesman. He is a strong advocate for peace who is steadfast on his Seventh Day Adventist principles and wishes to see his people reap maximum benefits from the gas project in a friendly and unselfish environment.

This is the man that punched an expatriate PJV community relations staff in Porgera in the mid-nineties giving the Australian a bleeding nose when arguing the case for his Strickland people. Mr Makano is now more mature in his approach toward developers and Government and wishes to see a trouble-free Juha gas project come on stream with the help of DPE, Lands Department, law enforcement agencies and developers.

For comments, information and inter-action email: yehiura@gmail.com

Build your own computer

2010-02-07T19:12:00.000+10:00

IT HELP DESK
-PANU KASAR

WITH THE need to use computers everywhere, users are starting to have the idea of having custom built computers to suit their needs. From the offices to the homes, people nowadays want fast computers.

This means a fast proccessor or memory. This new generation of users want everything fast, fast internet, fast computers, fast cars, fast food. OMG! the fast generation, no wonder they die young.

Anyway it's just what they want so the retailers as well as the service providers must live up to fulfill that specific need.

Of course even you the reader want a fast computer; I remember some time ago I had a very slow computer. It took ages for it to load before it is fully stable to do any processing. If I was to use it at 8am then I must switch it on at 7:30 giving it full 30 minutes to load. Fast computers are measured by how fast they load applications as well as responding to a user initiated task. That includes the logging on of the operating system.

Wouldn't it be great if you built your own PC? In fact it's not as hard as you think; you can build your own computer at home. In this article I will try my best to give you some brief tips on doing that. The disclaimer would be not to fully use this article as a manual without consulting other sources.

The first step in building your own computer would be to look for a casing. I suggest you get a tower casing not a flat based casing. This is because most tower casings have an expandable architecture which makes it upgradable in the future. Mind you the flat based casing is those that lie flat where you can place your monitor on top. After getting a casing then look for a power supply. There are two types of power supplies. The AT and the ATX . You should go for the ATX, it's the latest make compared to AT which is now obselete. A good power supply unit will cost you around 90 bucks. Check Able Computing or Comserv they should have varieties of ATX. Find a good ATX power supply that has multiple connectors, this would make your computer expandable.

A good computer design is always expandable, meaning that its design can cater for upgrades. This would make it last longer rather than become outdated very soon after it is released. Therefore when designing your system take this into consideration. At least it will be economical in the long run.

Then the most foundation component of all, the motherboard. For those who are still not sure, the motherboard is the main board that all components are connected to. It is where all cards and modules are inserted. There are basically three characteristics that distinguises a motherboard; the form factor, chipset and components. The form factor of the motherboard determines the physical size of the motherboard and how components are placed on the board, that includes the location of the port such as USB and parallel, serial ports.

I think the form factor will also decide which case you are to have. For example if your motherboard has front panel USB and multimedia connectors then you have to get a case which caters for these. It depends on which one you get first, if you have a motherboard then find a suitable case for it, but if you have a case then find a suitable motherboard, whichever. The chipset which is the main chip on the motherboard decides which processor and memory you are to use for the system. It also defines the expansion slots and finally the components determine the core functionality of the system. A good tech would give you the best recommendation for a good system because motherboards determine function, expansion and stabality of the whole system. A good tip would be to choose motherboards which have most components intergrated onboard, that includes ports and drivers such as audio or VGA.

The next thing that you should add on to the system is a processor to drive the motherboard. The processor will be determined by which type of motherboard you have. Good motherboard manufacturers will recommend which processor you should place on the motherboard. If you have a manual for the motherboard check the specifications of the recommended processors so that you know what to purchase. Since processor contribute to the speed of the PC you should go for the fastest if you have financial power. I know you have, ha ha ha. Just FYI processor speed is measuresd in hertz. So go for the ones that come in the gigahertz.

Once you get the processor on board then get a RAM (Random Access Memory). Again depending on the motherboard you will decide which type of RAM you will buy for your system. Examine your motherboard to see which type of RAM you suppose to purchase. Memory is classified into various categories depending on the number of pins or the frequency speed rate, again like the processor you should consult you motherboard manual to see recommended specifications. Since this component too is responsible for speed, you should get the best your money can buy. Measured in megabytes you should at least have 512 MB of RAM or better a gig to satisfy your processing needs.

Now your system is about to be completed, screw in the motherboard and the power supply (check manuals for instructions on assemlying the motherboard). Attach powersupply cables on to the motherboard. Also following manual mount the proccessor and the RAM , get a tech to do it for you if you are not confident.
Once the necessary cables are linked together, get a hard disk drive (HDD), also depending on your motherboard form factor, you will decide whether to get an IDE drive of a SATA drive, newer form factors will cater for both. If that is the case then the choice is yours depending on your preference of speed and size.

Get the drive and connect it onto the casing.
Also buy a CD-RW of DVD-RW for the system and slot it above the HDD following the same connecting principles used for the HDD. Once it's done then you have a complete system. If it's your first time assembling a PC then its best you get a qualified tech to do an inspection of your system before you power it up. This minimises the risk of blowing up parts.

That is the hardware side of the system, once it's inspected, start it up, insert a Windows XP Installation disk and install the OS. You have build you own PC. Due to the brief run through of the entire assembly process in this article I would suggest you read more books on system specs, compatibility and safety from shocks before you start to build your system. Check www.build-your-own-computers.com.Until then, happy computing.

pkasar@itelpng.com

Traveling the journey of faith (Part 1)

2010-02-07T19:06:00.000+10:00

LIFE IN THE PHILIPPINES

- PETER BARNABAS PAMULA

THE BIBLE mentions the call of Abraham by God to travel the journey of faith. The Bible records in Genesis 12: 1-5 that Abraham left Haran with his herds, servants and family for Canaan without giving second thought. How dare a successful businessman of integrity leave altogether for an unknown destination? Is Canaan really a land flowing with milk and honey and a conducive environment where there is no law and order problem? In fact, to contemplate on such an instruction would be unfair and disastrous.

By way of comparison, Haran was virtually a fertile land where his wealth increased and he was a prosperous and successful businessman. However, when the call of God came to him, he had to leave his comfort zone, leave his business friends and community connections to a land where God promised to give him and make him great amongst all the people of the earth. It is unimaginable for an established wealthy person to travel an uncharted path...a path deeply saturated with uncertainty and failure. In fact, his departure disturbed the economic, social, political and religious spheres of the community because he had great wealth and influence.

Just imagine if someone wealthy and influential in your community leaves the place of residence and completely migrates to another place. How would that affect you and your community? In my view, this would be an unwise decision to consider. However, traveling the journey of faith is simply an act of faith based on the promises of God. So Abraham followed the will of God not his natural inclinations or compelled by the pressure of his friends or wantoks; for he knew God's way is always the best way.

I have found four reasons for Abraham to leave Haran for Canaan despite his prosperity, influence and wealth. First, according to Genesis 12: 3, God promised Abraham that He would make him a great nation. Second, God promised to bless him. Third, God promised that he would make his name great in all the earth. Finally, God promised through him all the families of the earth would be blessed.

For now let's consider the first reason. The other three reasons would be discussed later. When God promised Abraham to make him a great nation....it was God's choice for Abraham to become a visionary leader. Thus, he made a radical decision to follow God's direction... come what may. He had no space for doubt and disbelief. Visionary leaders look beyond the present and see the future in spite of their success and fame. Visionary leaders know when to stop talking and when to listen. Visionary leaders know their strength and weaknesses and seize the opportunity to grow and expand. Con't next week!

The writer is a Papua New Guinean student studying Masters in Religion at the Adventist International Institute of Advanced Studies (AIIAS), Silang, Cavite, Philippines. For comments I can be contacted on email: pamulap@aiias.edu or cell phone (05) (63) 09391773655.

Universal education in first 20 years of Vision 2050

2010-01-30T12:20:00.000+10:00

By TIIKIIEMB SHIIEMB

Fully paid up costs of education for all by Government in the first 20 years of PNGV2050 as a prerequisite for pillar number one

GOVERNMENT and people of this country ought to rethink in the way we have been used to doing business to develop and advance in this century. From the seven pillars of the Papua New Guinea Vision 2050, the number one priority is acceleration and sustaining of human capital over the planned period.

To help all citizens to realize their full potentials, revolutionary, innovative and creative ways must be instituted to help everyone who needs education in all faculties. This will mean opening up opportunities and offering incentives. The practice of paying school fees must be reviewed with the view to abolishing all fees. National high schools must be fixed from their run down conditions, boarding schools built for remote communities, with preferences given to the girl child to attend. Faith based organisations, especially the mainline churches be encouraged and supported financially to run educational institutions. Tertiary and institutions of higher learning should be the first to be reviewed in 2010.

State owned universities in this country have been allowed to run wild without proper control by authorities regarding various charges being levied to students undergoing studies. High fees prohibit bright students from poor families from entering universities and colleges. This one single act alone help sort out people as to their station in life - poor remain poorer, while those with money get better, thereby they end up climbing higher in the socio economic strata in society.

This year, it was reported that an increase of ten per cent has been imposed right across the board. There seems to be no authority on the land, not even any educational authorities including the Commission for Higher Education have ingenuity or the powers to screen or vet proposals for increases, leave alone providing an oversight into the hefty fess arrangements and the break up. University Councils which approve fess have no way of verifying reasons why or how university administrations, indeed general educational administrators come up with certain percentage of increases in a particular year.

Already many parents are complaining about school and university based fees increases, especially when these increases are announced in the beginning of the academic year. There are parents from uneconomical back waters of Papua New Guinea who cannot afford these fees, leave alone town dwellers. Parents who can afford are able to pay their children's fees, while many academically good students will miss out again this year. A girl child is certainly going to be the biggest victim of institutionalized discrimination and class perpetuation.

What are the parents paying for when increases are announced? Presumably to subsidize administration costs for overheads. Items for purchase might include top of the range vehicles for vice chancellors, registrars and bursars. These monies however do not go towards funding of field trips or experimental fluids in some science classrooms.

University Councils and their respective vice chancellors have little or no control over the activities of their academic and research staff. There are far too many of these needed staff who are busy trying to make ends meet, some will end up taking consultancies and such like engagements to make ends meet, or simply they are engaged so as to supplement their meager salaries. These academics do not find time to devote to the work relating to serious research, and teaching.

BE YOUR OWN BOSS

2010-01-30T12:04:00.000+10:00

Protect your assets

By TIRI KUIMBAKUL

WHEN you work for a fortnightly salary, you hold all your possessions in your name. If you own a house or a car, it is your personal asset.

If anything happens to you, it affects what you own, and if anything happens to your possessions, you feel the pinch personally. You and what you own are one. If you owe debts which you cannot pay, the debtors can lay hold of what you own. Or if your vehicle runs over someone, you will pay compensation out of your own pocket.

A business is a corporate person
If you are self-employed and operate under a corporate entity such as a company, you can protect your money and other assets by keeping them under the company's name instead of your own.

This is because under company law, a company becomes a separate legal entity. You create a 'corporate person' when you register a company. This corporate person has certain legal rights enjoyed by a human person. For instance, a company can sue people or other companies, and be sued itself. So if you operate under a company and shelter your assets under it, people who sue you personally cannot easily touch your company's assets. That is how rich people protect their assets.

This is a very important reason to be in business, because today's world is very litigious. That is to say, nowadays people have become more willing to sue others and claim large amounts for small misdemeanors. In the United States, for instance, it is said that lawsuits are being filed at a rate of one hundred million a year. These cases have nothing to do with right and wrong. They are basically predicated on the desire of some parties to extract wealth from others.

'Compensation' has become a very commonly-used word in Papua New Guinea, to the extent that it has developed a culture of its own. People demand compensation for all kinds of reasons and alleged offences. In such a setting, it is vital that you shelter or protect your personal assets rather than leave them vulnerable to other people making a claim on them for whatever reason.

For example, if you invest in real estate or buy shares through a company, not many people will know what you do or own. When they find that you do not own much personally, their motivation to sue or claim compensation is likely to subside. But if they see that you have a lot of money or own many assets, they will be highly motivated to pursue court cases or even issue threats against you hoping to exact something from you. They will usually demand very large amounts, knowing that you will negotiate downwards.

The liability of company owners is limited
Another point is the concept of "limited liability" which certain companies enjoy. If you see the words "limited" or "Ltd" after an organisation's name, it is a limited liability company.

What this means is that the liabilities or obligations of the business owners is limited to the investment they have made in establishing the company. In the event that the company cannot meet its commitments to the bank or other creditors, or the company is wound up, creditors cannot touch the business owners. They can only get paid from what the company has in its name.

If the company does not have anything or much of value which the creditors can sell and recoup their money, they have to treat what is owed as bad debts in their books. They can force the company to bankruptcy but cannot touch the owners. The owners can always start another company after the first one has gone into bankruptcy.

This fact has become clear in a long-standing legal battle between two companies. One company had advanced another company a significant amount of money which the borrower refused to repay, saying that the lender had prevented it from carrying on business, as the lender was the regulator of the industry the borrower operated in. The case was protracted and expensive, taking over ten years to bring to conclusion.
When it finally came to an end, the courts decided that the borrower indeed owed the lender the money, which was computed to be principal plus interest over ten years. The amount turned out to be over K100 million. However, when the lender tried to effect the court's decision, it was shocked to find that the borrower was operating under a different company from the one which had borrowed the money in the first place. The debtor asked the court to make the company principal personally liable for his company's debts, but this was not possible. He had cleverly entered into an agreement and borrowed the money using one company, then changed the company name and transferred all his assets to the new company while the court case was in progress.

The old company did not have any assets which the creditor company could take possession of, even after the court decided in its favour. The principal himself could not be held responsible either. Even if the court decided that he should pay up, he would be declared bankrupt, because he does not own anything in his own name.

The case continues. What the lender may do is to place the borrower under receivership, which will involve someone being charged with the responsibility of seizing the borrower's assets and selling them to recoup the debt. But because the borrower had shifted assets from the old company to a new one, it is very doubtful that there will be much which the old company owns that the receiver can sell.

The important point to note in this case is that the principal of the company who borrowed the money cannot be personally held responsible for what his company owes. This is because the law gives recognition to his company as being completely separate and different from him as a person.

This is what I mean when I say that you can protect your assets when you work for yourself under a corporate entity. There is no such protection for those who work for others and own assets in their own names.

Little assets protection for sole traders and partnerships
What has been discussed above only applies to those who operate under companies. If you work for yourself as a sole trader, or in partnership with someone else, you cannot protect your assets as you can do under a company.

A sole trader operates in his own name. His assets are in his name. His liability is unlimited. If his business folds, he will be personally liable for the debts owed by the business.

A partnership is a group of two or more people who have come together to carry out business. They may operate under a business name but they are individually responsible for the business's liabilities.

Both sole traders and partnerships do not enjoy the tax advantages discussed in Chapter 18. They are charged tax at the personal income rate, which is higher than the rate applied to companies.
No assets protection for employees

I have discussed the ability of companies, partnerships and sole traders to protect their assets, to make this point: Employees cannot protect their assets. What they own is vulnerable to litigation and extortion, because they own everything in their own name.

If you work for yourself, my encouragement is for you to operate under a company so that you can be able to keep your assets under the company's name instead of your own.

Next week's article will be on tax advantages available to self-employed people in the informal sector. Email comments to secos@global.net.pg or text me on 7688 0033 or 7280 4588.

Small Man Issues

2010-01-30T11:58:00.000+10:00

Settlements - not as bad as we think

IN EITHER the Longman or Oxford dictionaries, you find various definitions but none leads you to what we understand 'settlement' to be in the PNG context.

Even the encyclopedias I looked up do not seem to lead me anywhere closer. Instead they highlight the historical developments of settlements as institutions with some extends of charity or such. Text books alike talk about the struggles and the issues surrounding the day-to-day existence of a settlement, especially in the developing world. The mass media creates exaggerated levels of fear thus drawing a settlement as a side-effect of urbanisation that is a hindrance to development.

I never had the chance to look up 'settlement' in the PNG dictionary but I am convinced, if there is this word 'settlement', one of its definitions will surely be: dwellings springing up around the fringes of towns or cities, whether legally or illegally. In other parts of the world, especially economically troubled nations, settlements as in PNG are referred to as slums, ghettos, or shantytowns. In developed nations it is referred to as 'community' referring to a particular ethnic group that decides to surround itself into one section of a suburb or town, like the Chinese community in say Sydney's Eastern Suburb. They speak about the same thing but the name changes because of the characteristics of the dwellings the inhabitants who call it home, and the legality surrounding its existence.

It is true, many of us upon hearing the name, 'settlement', will not want to have anything to do with it. Because of our pre-conceived knowledge that settlements are infested with rascals and anti-social behaviour rules 24/7 without any chance for peace of mind we see it on a one sided view that settlements are bad. Other common dilemmas that go with it like no water, no electricity, and disease prone unhygienic practices completely shut it off as a no-go-zone for any person who is used to the comforts and confines of a corrugated iron fence.

But, do not say 'no' yet because there are always two sides to a coin. These so-called settlements are changing rapidly within PNG. Here, let us for now forget settlement as place of illiterates, village-based life-styles, lunatics, rascals, and the unfortunates and take a look at the positive developments and the immense contributions that are not indispensable. To draw generalised and exaggerated statements that settlements are hindrances to development is only committing the fallacy of petitio principii, Latin for begging the question. This is where you implicitly use your conclusion as a premise where still more information is required to prove your argument.

This story about China always gives me a good backing to what the formalised systems see as hindrances to development are actually blessings in disguise. China has the highest population in the world with a good percentage of it being peasants, illiterates and lives below the poverty line or just being poor according to economic standards. Their government in trying to see what they can do with this population explosion came to the fore that these was human resources the greatest resource of all resources that should be harnessed in the best possible way to convert it from being a liability to an asset for nation building. Look at China today.

Urbanisation and people movement is all about rural-urban drift. The industrial society is an urban society. In general view Karl Marx (Capitalist) saw the direction of the future as away from the country and towards the towns, away from the 'idiocy' of rural life to the creativity and heterogeneity of urban living. But this theoretical emphasis was on the productive life of man, the social and political form this took and Marx was largely unconcerned with the spatial and ecological features of the environment with which this productive life was played out.

Take stock of the organisation's workforce today and you'll find that a good number of the unskilled, semi-skilled handyman workforce reside in the settlements. Jobs like cleaners, gardeners, tea boy, courier man, wasman, and the likes are carried out with due diligence by this group of people. To me the most important job in an organisation is the toilet cleaner. Not the Chief Executive Officer for a simple fact that no job is completed until the paper work is done. These unskilled/semi-skilled settlement dweller handymen occupy the bottom of our organisational structures to complement the whole picture.

How many organisations can build homes for these unskilled/semi- skilled handyman? They are always given the last look or nil consideration due to their low income which handicaps them in home ownership participation, yet they put the hard yards in having the office toilets shinning and freshened, the flowers to dress up the office premises, and the hot coffee for the many that skip breakfast at home. Imagine if there aren't any settlements around the fringes, would those who live inside corrugated iron fences patch the missing link?

The many good hearted people who live within the settlements put the hard yards to earn a honest, decent living. In a place like Port Moresby they plough the land in the name of survival but in doing so supply the city folks with fresh vegetables around the city markets. Not forgetting our friends who flock into town with bags of vegetables from the highways. Talking about highways many are also settlers who've found their way around there and are now seeing good returns in supplying vegetables to meet the urban resident's needs.
These, if I may call 'little people with big hearts' are always available with big cash to meet the financial worries of the big shots and the trim and groom with street loans. I was totally upset when I learnt that one of my friends living in a settlement had to give away some grands to a so-called LNG landowner who has by now fled the scene. I wish the devil does a good job on him.

There are millions of kina in cash and assets floating around in settlements today. Many high people and elites are living and going to work from settlements. Those shantytown looking sheds are phasing out fast with high post high covenant houses with the underneath being converted to meet accommodation demands. Whether these real estate enthusiasts are escaping the hefty land bills, water bills, electricity bills, and other associated bills is another matter. Otherwise, the settlements are playing a big part in meeting many of our every day needs.

Some times I deliberately release rubbish from my hands onto pavements or roadsides with the intention to create jobs. If there aren't any rubbish then our town commission cleaners will be without jobs. Forgive me, I don't do it often and it does not mean that you do it, too. The picture I am trying to convey here is if there aren't any dwellings like our settlements the policemen and women will not be active in their roles, the social workers will be short on work, the NGOs will be scaled down with less aid donations, and organisations will be short on handyman manpower and life will not be interesting. Things happen for a reason, so that others can benefit from it. After all, the settlements are an economic hive in many ways to nation building.

When National Election Day comes the intending candidates flock into settlements to win votes. Because they know here their tribesmen and women are. At the same time the settlement is where a good number of eligible voters are. The politicisation that goes on gives support and pressure groups help in the formation of a government. A member put into power is truly a backing from the settlement dwellers that hold onto politics as a lifeline to their survival. They pool resources, mobilise support in the true spirit of national election, the PNG way, and are prepared to die with their candidate. Win or lose it's a game that is played to the final siren. Even court battles of election petitions is a testament to never say die attitude. Our settlement dwellers contribute in a big way to the politics of the day both formally and informally.

The different ethnic groups that live within the settlements may be the reason for many ethnic clashes but it also provides that environment to learn new things from each other. Like knowing a bit about the other's local dialect, the customs and traditions, and general way of life gives one the satisfaction of being a Papua New Guinean. Even intermarriages take place and that is what makes us unique. It gives us the sense of belonging to PNG and that is what keeps us intact as a diverse nation in unity. The next generation of off springs may say where they come from but the place of birth is where their heart is. So a new breed of Papua New Guinea thinking population is on the rise. It is healthy for development as conundrums like nepotism, wantokism, regionalism are minimised in some ways.

Going back to our story on China's ability to turn its population liability into an asset, we can do likewise by taking our settlements to the next level. That is by properly identifying land, we have plenty of it, portioning it and relocating the current settlements there. Illegal settlers can be identified and sound actions taken to free up land for metropolitan developments.

True, we have failed to curb new blocks from springing up but there are ways around it like I have just mentioned. Let us not turn a blind eye on it but take it head on and reap the positives of it. If we can't remove it or control its expansion let us work with it for our benefit. They aren't bad as we think.

Email me on pohromo@hotmail.com for comments. Keep reading your Chronicle for our next 'Small Man Issue' on "Emphasise Public Transport".

PNG Resources Weekly

2010-01-30T11:54:00.000+10:00

As Ok Tedi plans closure a big one comes along

BY YEHIURA HRIEHWAZI

WITH all the government and public attention on the proposed LNG projects in Gulf, Western and Southern Highlands provinces, the mining sector seems to have paled into an insignificant thing of the past. But that is certainly not so. It remains very vibrant and progressive in the shadows of the LNG hype.

The mining industry continues to be a very important part of the PNG economy contributing directly to infrastructure development, employment, health and education facilities, big-spin-off businesses and billions of kina paid directly into national and provincial governments through indirect and direct taxes and royalties.

Much of the funds used to fly the LNG landowners around the country and paid to the crowds waiting outside the Vulupindi House comes from the mining sector. Our Huli tribesmen have virtually taken over the Finance Department's front yard awaiting payments. If Governor Anderson Agiru doesn't encourage his people to return to their Hela Province, we will have Vulupindi House besieged by people demanding payments, it's happening even before gas production stage.

While we are excited about the gas projects and its benefits, lets also give the same scrutiny to the mineral sector and learn some lessons on benefits distribution and ensure that mining needs are also attended to with equal stamina and attention. On that note, there is an urgent situation that requires immediate and appropriate response to the giant Ok Tedi mine in Western Province.

Ok Tedi Mining Ltd is nearing the end of mining production. It plans to cease operations by the end of 2013 and shutdown and pull out by 2014. Unless the government gives approval to extend its mine life to 2020, the remaining ore body will be lost forever because it won't be economical for another company to move in after demolition and removal of OTML's plant and equipment.

Ok Tedi is among one of the largest open-cut copper mines in the world which has contributed immensely to the growth of PNG since it commenced mining its gold cap on Mount Fubilan in 1984.

It digs up around 23 million tonnes of ore and 30 million tonnes of waste each year to produce 600,000 tonnes of copper concentrate which contains 160,000 tonnes of copper metal and 600,000 ounces of gold. The concentrate also contains a significant quantity of silver.

In huge mining operations like Ok Tedi, environmental concerns are major issues being managed by the company's environmental scientists and the government's Department of Environment. The benefits to the state, provincial government and local communities are quite significant and unlike any other mining and oil company in PNG.

The state's 30 percent equity combined with PNG Sustainable Development Program's 52 percent gives 82 percent of direct cash flow into PNG for nation building, according to OTML Managing director Mr Alan Breen. The financial rewards are expected to climb to 100 percent as OTML assumes Inmet Mining Corporation's 18 percent equity as it opts out of its shareholding in return for 5 percent of Net Smelter Returns.

Since the first gold pour in 1984, the company delivered K13 billion in benefits through taxes, royalties, dividends and infrastructure projects, community projects and compensation payments. A break-down of benefits to date are as follows:
Mine area village royalties          K214 million
Fly River Prov. Govt royalties    K301 million
PNG Govt. taxes           K5.165 billion
Tax on salaries and wages          K580 million
Dividends to state                       K2 billion
PNG Sustainable Dev. Prog.       K3.388 billion
In-country purchasing                  K3 billion
Health services                            K160 million

If the government and the local communities get their acts together and extend the mine for another 20 years from 2014, there is a further K3 billion to government and K2 billion to PNG Sustainable Development Program.

Other than the government, OTML is the single largest employer with over 3500 people in its operation as well as 1000 people by contractors and spin-off businesses. Over 95 percent of the staff are PNG nationals.
OTML also has a proud history of training technicians and professionals. It has trained over 1000 trade apprentices and over 300 university graduates in its skilling and graduate programs.

The Ok Tedi mining township has seen a large population growth to about 30,000 people who rely on the mine's continued existence for their livelihood.

Mr Breen says the extension of mine life at Ok Tedi presents a genuine opportunity for the state and for the country "but the window for an extension is fast closing."

He says that in order for new ore to be available for processing in 2014, stripping of the west wall must be commence this year (2010). That requires completion of a feasibility study along with informed community consent and government approvals by no later than October this year together with an environmental impact study, says Breen.

The project can only proceed if the environmental impact study proves that there won't be any "material changes" to what is already being caused.

He says any delay in the project by up to 18 months will result in a production gap that will "significantly devalue the project in terms of economics and efficiencies"

While he may sound ambitious, he admits it's easier said than done and the mine life extension is at "considerable risk."

He concedes that while the national government's primary focus is on LNG, the extension of Ok Tedi's mine life extension is not quite in the same league as LNG, the decision on Ok Tedi "is as important for the country as LNG and requires the same level of scrutiny."

In comparison with the proposed PNG LNG employment figures, he says from his data, OTML mine life extension will employ more than double the PNG nationals than will the PNG LNG project and because of OTML's unique shareholder structure, the combined additional benefits to the state and PNGSDP dividends is more than half that derived from LNG.

Whether or not the mine closes at the end of 2013 or is extended until 2020, it is something that will ultimately be determined by mine impact communities and the state.

If it closes, the impact will be adverse. Tabubil will turn into a ghost town. Under the project agreement, PNG Power will take ownership of the hydro-power station that powers the mine but it will eventually grind to a halt. Schools and the medical services will shut down, the road to Kiunga and the Tabubil and Kiunga airports will fall into disrepair and eventually be abandoned. The village communities will return to their dark ages.
In anticipation of mine closure, the PNGSDP last week advertised for a mine closure community relations manager and a community relations officer to start the process of educating and creating awareness among the impact communities on the inevitable.

There is also an opportunity for some of the 3500 OTML staff to be absorbed into the Frieda Copper and gold mine which is located almost like over the next valley. If understanding could be reached between relevant government authorities and Xstrata, the developer of Frieda, some facilities at Tabubil could be leased by Frieda, eg; housing for Frieda workers who could commute between Tabubil/Kiunga and Frieda. PNG Power could also sell electricity to Frieda by running pylons across from Tabubil. OTML's trades training centre could be maintained to supply skilled manpower to Frieda. A pipeline could be build to pump slurry from Frieda to Mt Fubilan and on-connect to Kiunga for processing and export.

There are a lot of opportunities which the relevant parties should quickly consider if it chooses to shutdown Ok Tedi come 31st Dec. 2013.

Frieda is expected to commence production in 2017 with prefeasibility study expected to be completed in the third quarter of this year and construction to commence in 2012.

Xstrata is a Swiss mining giant which took over Frieda River project in 2007 and since then has been fast-tracking assessment of its large gold and copper deposit and increased the size of its orebody by 26 percent last week which vastly improved the economics of the project.

Dugie Wilson, Xstrata's general manager in PNG told ABC radio that the mine has an expected life-span of 20 years and this would rank as one of the top ten Greenfield projects in the world.

In comparison with Ok Tedi which processes 23 million tonnes of ore a year, Frieda proposes to dig up 40 million tonnes a year which makes the Frieda project mindboggling.

Waste management at Frieda will be an important issue and Mr Wilson assured ABC radio it will not dump tailings into the Sepik River system. He says Xstrata places a high priority on environmental sustainability.

"We would not build a project which resulted in tailings being dumped in the river. Xstrata just would not be there," said Mr Wilson.

Asked if that meant Xstrata devising a new means of waste management aside from riverine disposal, he said: "Well certainly, as I said, Xstrata will not build a project which dumps tailings into the river. We have a design which is being developed of how we will actually store the waste rock and also the tailings. I mean both of them are significant challenges, but we think that we have some answers there as a risk mitigation that we are through the studies carrying more than one option, so that then if we start finding that we are entering a blind alley and that we see some technical difficulties with a particular option, that we have still got others. So we don't get forced into a place we don't want to be"

For comments and information email: yehiura@gmail.com

Provincial Governments must shape up and deliver or ship out

2010-01-30T11:41:00.000+10:00

News Analysis by BENNY SANDEKA

REVELATIONS by the National Economic and Fiscal Commission this week of provincial government's failure to deliver basic services to the rural masses only gives more reason to the national government to abolish the second tier of government in this country and deal directly with the local level governments.

The provincial government system was introduced in PNG to become the vehicle by which basic services in the rural areas can be effectively delivered to the rural masses and also give greater political participation to the people in lower levels of governments.

But to date, the service delivery aspect of the provincial government system is almost non-existent. The main reason employed by provincial governments over the years is that the national government is not funding the provincial governments properly.

Over the last four years, the National Economic and Fiscal Commission have gone out of its way to verify if funding is really the problem of provincial governments in delivering the basic services. And the results of their findings are disheartening.

Provincial governments have once again failed the national government and the people of Papua New Guinea in the delivery of basic goods and services. The national government has been increasing its annual allocation to the provinces since 2007. But the productivity of provincial governments is still the same as it was since the inception of the system in 1977.

This begs the question whether provincial governments should be retained in whatever form to allow for greater political participation at the lower levels of government at the expense of service delivery. We will look at both arguments and justify them.

Seen from the view point of service delivery, provincial governments are a white elephant. They are supposed to be the most effective mechanism facilitating service delivery to the people of Papua New Guinea. But they have miserably failed.

The latest findings of the National Economic and Fiscal Commission indicate that provincial government's recurrent expenditure on health and infrastructure has stagnated and in some cases, is on a worrying downward trend. Expenditure on education has made slight progress over the last four years while expenditure on agriculture and agricultural developments is "peanuts" according to Dr. Nao Badu. These are key investment areas of the national government's Medium Term Development Strategy 2005 - 2010 and the latest vision 2050.

Now let us turn to the aspect of increasing political participation of the masses at the lower levels of government. The provisions of the provincial government system were made as the First Amendment to the country's constitution in March 1977.

In a country where there are a thousand tribes, languages and ethnic groupings, working with hundreds of local level government throughout the country is a recipe for disaster. The country will disintegrate into little groupings making it difficult for national unity. Provincial government is a management tool of the national government whereby all hundreds of different groupings can collectively express themselves by participating in political activities in their respective areas. More so, it is better off managing the country through the twenty provinces rather and through hundreds of local level governments.

However, political participation at this level has been curtailed by recent changes to the Organic Law on Provincial and Local Level Governments where elected representatives were removed from the provincial legislature and replaced with appointed ones. This totally defeats the original purpose of the provincial government system whereby elected representatives are supposed to serve.

The way forward for the Provincial Government system in as far as the findings of the National Economic and Fiscal are concerned is to retain the provincial government system, involve elected representatives of the local level government system in the decision making process at that level and above all, improve the capacity of provinces by advertising all positions and recruiting university graduates who can do the job well.

The National Governments Medium Term Development Strategy 2005 - 2010 indicated that many government policies are not implemented because the implementers do not know what they are doing or can do to implement important government decisions at their levels.

Currently, old timers are clogging the government systems hence denying the effective implementation of government policies and delivery of basic goods and services. The 2005 -2010 MTDS calls for cadet public servants but that has never been implemented.

Commentary - Transport

2010-01-30T11:38:00.000+10:00

By THE POLOPA PRESS

IT IS a delight and a breather of fresh air to read that the good Governor for NCD has once again gone out of his way to deliver another very important service to the city residents. The import and the introduction of the 10 buses to ease the problem of ineffective delivery of public transport service to the public is in itself a great achievement.

As rightly pointed out by him Port Moresby is rapidly changing in all facets of life, particularly with a growing population that is hampering service delivery in the public transport sector of the economy.

Commuters would by now be imagining themselves at the unusual driver's seat by deciding what kind of buses to get on at the expense of the private bus owners and their off sides. At least for now the driver and the offside are going to be at the back seat and hoping that the ride is not going to be a bumpy one.

For so long I guess a cartel of some sort was emerging and that this provided the bus owners the outright advantage to manipulate the system resulting in incompletion of routes, lack of concern to maintain the safety of the passengers and the roadworthiness of the bus which has resulted in a lot of traffic rules infringement and bus related accidents/incidents.

The introduction of the 10 new buses will have a very important effect on the public transportation sector and may well signal the start of a major revamp/overhaul exercise of the entire transportation system in the city. The only major concern will be that the introduction of the new buses does not provide competition in a bad way (shifting too much demand away from the private operators to the new buses) to those operated by the private operators.

It is the prerogative of any government of the day to decide what it considers to be in the best interest of the public when it comes to modifying, refining, re-introducing or simply creating a new policy or system from the old ones when dealing with any issue.

In this case the NCD Governor has decided to more or less refine the current transportation system by opting to provide a much larger and spacious form of public transport to the existing ones. Nevertheless, this approach has the possibility of transforming the entire public transportation system and in the process create some problems (most of which could be anti-competitive in nature) if the private operators are being pushed out of the market (crowding out effect).

First in my opinion an approach of this nature would only be successful in the long run if there exists a Public-Private Partnership (PPP) agreement between NCDC and the private operators. This is so given the unique set up of the transportation system where virtually all the public buses are owned and run by private operators. Many of them depend heavily on income generated from this service to sustain their day to day needs.

A PPP would go a long way in encapsulating the government's desire to stimulate the economy through private sector investment. Evidence from countries around the world has shown that economies that place more emphasis on private sector investment growth grow at a rapid pace. A classic example involves the so called Seven Tigers of Asia, which include countries such as Hong Kong , Malaysia , Taiwan , Korea and Singapore. Their ability to transform their economy by undertaking deregulation in many key industries and freeing up the economy from too much Government influence has allowed the economy to grow rapidly under the miracles of private sector expansion.

The trick is to introduce competition and regulatory measures to ensure that anti-competitive effects are greatly minimized and controlled. In other words, keeping the competitors on the market honest by adopting industry's best practice because competition without control is like letting the lions in the cage on the loose. Through the PPP bus operators will be asked to bid for routes that will be on tender and what this does is that it basically provides the authority with a microscopic view when choosing the bus operator (company) that will eventually be given the contract to operate the routes under tender.

Also through PPP the government and the private operators can share the cost of running the bus services within the city while simultaneously going about with their normal services. Of course for the PPP to have any success a key recipe would be to encourage or even introduce a policy whereby private operators will be required to form bus service companies. In this way it is transparent and also it makes it easier for the city authority and the Transport Department to monitor the performance of each of the bus companies.

This can be done say on an annual basis where a review will be conducted jointly by the Department of Transport and NCDC based on certain key performance indicators (KPI). Based on the KPI Assessment appropriate actions will then be taken such as whether to extend or terminate the contract. All this provides a conducive environment for the ticketing system to be introduced and implemented effectively plus the public transport will become a source of revenue making for the government (NCDC) as public operators through their companies will be required to pay tax.

It must be noted that when the ticketing system is introduced it must be solely to control fare related problems. The zoning of routes should help in coming up with various fare structures but for a start a blanket fare policy can be imposed to trial the system. However, in the long run to make the system fair it should be based on distance within designated zones.

In this discussion a very important lesson to be learnt is that, in economics monopoly or too much government intervention has the effect of giving out false signals to the market, for instance, the market values could be considered to be overvalued or undervalued when doing a comparison against a simulated market set-up that would have eventuated in a perfect market where the dynamics of supply and demand are the sole determinants of the market outcome.

A classic example is the housing market where the ICCC in their determination of the housing review raised concerns that one of the reasons why the housing market is now overvalued was because of the lack of competition and unscrupulous dealings apart from the inadequate availability of land for commercial use. This has led to increase in rental rates and housing price. The key outcomes that any person or groups whether it be the government or an individual want out of competition is efficiency, improvements in productivity and of course getting the best service on offer at competitive rates.

Coming back to our public transport system, the current fare of K1.00 approved by the ICCC maybe too much but may closely reflect the real values of fares in a competitive market environment, given that the current market set-up has resulted in on average a commuter paying about 30t (say from 5 Mile to 4Mile) for shorter bus ride and 50t for longer bus ride (say from 4 Mile to Town). The entire set-up of the transportations system needs to be looked into from all angles.

Such include improving bus service (complete all routes) and cutting down on traffic infringement to upgrading bus terminals around the city.
It is good to walk on two legs rather than one so this approach definitely needs to be an holistic one but in any case at least it is start

Safe travel everyone and always observe traffic rules.

Climate Talk

2010-01-30T11:35:00.000+10:00

China 'hijacked\' climate summit as island nations sink

LET me first welcome you all into the near year, 2010. My sincere apologies to all the faithful readers who have missed this column during the Christmas break leading up to the New Year period.

In this first edition of 'Climate Talk' for the year, I wish you all happy reading and urge you to fully inform yourself of the earth's climate change.

I am sure like me some of you have gone to your home provinces or traveled elsewhere for a well deserved Christmas vacation from all the bright city lights, disturbing noises and pollutions for the city folks, work pressure, shopping, flown out of the country as tourist or on business trips away from usual work places - whatever the reason is, when you return I guess you will be physically and mentally prepared to do better and venture into new and greater things in life in the new year.

My journey took me deep into the Amazon Bay. Definitely not in Brazil where you'll find the world's largest untouched rainforest with very rare animal and plant species. I am referring to little known costal villages and island atolls in the Abau District of Central Province going past Domara Coast and reaching the borders of Milne Bay Province.

Here you will see marine life at its best display, untouched rainforest and fresh garden foods are in abundance with cool breeze making your stay so much pleasant.

I enjoyed all that the nature had to offer but still at the back of my mind one thing that kept bothering me was the question; will the environment still be conducive within the next decade for all that the nature had to offer including great life in the beautiful villages and Island atolls along the coast?
The answer is simply a big 'NO'.

As expected, I also noticed with amazement the great physical change in the landscape. Within a time frame of about three years I was away, the reefs just few meters down the shore were no longer any closer and completely out of sight. They were few more meters much below sea level and the marine life that was there was no longer there.

The great white sandy beaches that we used to enjoy were also no longer there and were all covered by sea.
The ocean had moved itself to where the houses were and leveled with some of the food gardens.

For a while I was stunned by the way the landscape had changed in a much amazing way over a shorter period of time. And remember this is just what happened in villages and atolls at the far end of the Abau District and it is the same all around the costal and low laying areas throughout PNG. In some places such as Mortlock Island, Tasman, Nuguria and Carterets the magnitude in which the sea has swallowed these islands at a faster rate is frightening.

Worst of all, world leaders' first attempts to come up with a climate deal in Copenhagen failed.
This clearly indicates the super powers are not putting their priorities on the world's irregular weather pattern and climate changes and the effects are already on the most vulnerable low lying Island nations and livelihoods of the people who live there.

All the hard work by 192 countries to reach some sort of agreement in Denmark came to nothing. It's back to the drawing board.

This is a sad scenario the world had had to face in the most important and first major climate talks that took place from the 7th to 18th   December, 2009 in Copenhagen.

China has to be blamed for hijacking the Copenhagen summit by blocking a legally-binding treaty. It also blocked an agreement on reduction in global emission. Yet these were bullying and no care attitude portrayed by one of the world's super economies and biggest carbon polluter.

There was a chaotic process dogged by procedural games instead of coming to a meaningful compromise. Preparations by more than 190 countries around the world including Papua New Guinea came to nothing. And China obviously had to tell the rest of the world, especially the smaller island states her actions for not supporting a legally- binding climate deal.

The reason is simply, China doesn't want to be at the forefront carrying the burdens of world's cry for reduced carbon emission.

However, Asian nations including China on the 19th December, 2009 welcomed the provisional climate change deal struck by the major powers at the Copenhagen submit, saying it paved the way for consensus over carbon emission cuts.

The Copenhagen Accord, passed on a Saturday after two weeks of frantic negotiations, was condemned elsewhere as a backdoor deal that violated UN democracy, excluded the poor and doomed the world to disastrous climate change.

Without the feedback from smaller island nations, China was first to welcome the outcome of the talks, despite leaders at the summit failing to set targets to the carbon emissions blamed for global warming.
This accord set a goal of jointly mobilizing US$100 billion for developing nations by 2020.

Meanwhile the UN Secretary-General Ban Ki-Moon appeared for world powers to make a new effort to secure a legally binding climate deal next year amid new diplomatic wrangling over the failure of the Copengahen summit.

China however hit back at Britain together with other developing nations over claims that Beijing had 'hijacked' the negotiations while Brazil's president blamed Barack Obama for the accord.

The accord was a mere last minute attempt to signal to the world saying Copengahen talk was important yet the 192-nation summit came to nothing.

With scientists warning of the growing threat of droughts, floods, storms and rising sea levels, coastal low lying areas and island atolls of PNG will continue to sink until next the round of talks by world leaders to limit global warming.

For an Environmentally friendly chat, Derrick ban be contacted on the following Email: rderrickkii@yahoo.com.au

"Life in the Philippines"

2010-01-30T11:31:00.000+10:00

Home away from home: Culture Shock!

AS I write this article, I am thinking of my country, the land of the unexpected where unexpected things happen and the country of thousand tribes with a composition of variety of cultures and ethic groups. By comparison, I can honestly describe our country as "unique" and a real "paradise" in the Pacific. I mean, you don't see its significance and its uniqueness until you are out of the country.

Quite a number of years ago in the seminary in Rabaul, East New Britain province, my theology professor introduced a missiological term in the Cross Cultural Ministry class that struck home. The term is "Culture Shock." For seminary students undertaking world missions and cross cultural ministry, culture shock is a missional term that describes the reaction of an individual from one different culture or worldview when introduced into a new culture and worldview. A disturbance of mental picture of life!

When I first arrived in the Philippines, I felt culture shock and eventually homesick and hardly coped with the climate and the environment. I had flu and headache as my body could not withstand the transition of the environment. By comparison, the weather in Papua New Guinea is cool and fine. Even as I write this article, the weather outside my apartment is really chilly and irritating. Anyway, I could not manage to sit back and let the opportunity pass as my friends invited me to go to the nearest town.

My first day out in the city was a real culture shock. I could not believe my eyes the traffic congestion coupled with air pollution. Even in the busy streets, people could cross the road and stop fast moving vehicles with a gesture sign of stop... and the vehicles responded! I wondered probably this is the only country on earth where there is no traffic rule. I mean the machines were really careless on the crossing path as though there were no traffic rules! The tri-cycles, the jeepnies, the buses, the motorbikes, the vans and trucks were intimidating and impolite! However, I managed to maneuver through the busy traffic and got hold of the boys.

We traveled into the busy supermarket and I collected few items necessary for the weekend and returned back to the campus on a tri-cycle. The tri-cycle was traveling at a neck-breaking speed. I could not believe its convenience until I rode on it. It was an awesome experience. While we were riding on the way, I asked how much should I pay for a kilometer? He replied that I would pay 45 peso that is approximately K3. It's expensive for a short distance. So next time you travel from Gerehu to Boroko on a bus, pay 80 toea and enjoy the convenience. In fact, every experience seems to be a shock to me, a culture shock. I guess after some time, I would adapt very well and relate very well.

The writer is a Papua New Guinean student studying Masters in Religion at the Adventist International Institute of Advanced Studies (AIIAS), Silang, Cavite, Philippines. For comments I can be contacted on email: pamulap@aiias.edu or cell phone (05) (63) 09391773655.

ASIA PACIFIC PERSPECTIVE: CHINA +

2010-01-23T11:14:00.000+10:00

Ambassador John Momis talks about China - Part One

Introduction

TALK about "China's rise" has dominated discussions among academics, politicians, businessmen and individuals. On December 9, 2009 US media tracker, "the Global Language Monitor List" listed "the rise of China" as the most read news story of the decade.

The rise of China as an economic superpower has attracted the widest coverage since 2000, surpassing the Iraq war and 9/11 terrorist attack on US. The ranking was based upon the number of citations based upon the Internet and blogspots, including social media, as well as the top 50 000 print and electronic media sites.

While some Chinese experts say it is an attempt by the western media to tout China for their own good and trumpeting the so-called "China threat", for Papua New Guineans, it is equally important to know and understand the Chinese discourse so that we can engage with them appropriately and constructively.

Therefore, the then PNG Ambassador to China, H.E. Ambassador John L. Momis GCL, highlighted some very significant facts about China and how PNG can learn and benefit from having a good relation with China.
This commentary will discuss our Ambassador's thoughts on this much talked topic of the decade (2000 - 2009). Ambassador Momis discusses four important issues regarding the rise of China which include: (i) China's past and present; (ii) China's development miracle; (iii) peaceful rise of China; and (iv) counter-arguments on common anti-Chinese sentiments.

Ambassador Momis finally concluded by sharing his views on the anti-Asians sentiments that has spread out throughout Papua New Guinea in May 2009.

Ambassador Momis' views on China is drawn from his vast experience as a politician for more than 33 years and as a diplomat for the past three years representing the Government of Papua New Guinea to the People's Republic of China (PRC) in Beijing.

H.E. John Momis' insights about China developed long before his appointment to represent the Government of PNG as Ambassador to the PRC. In 1985 when he was the Deputy Prime Minister he hosted the then visiting President of the People's Republic of China Mr Hu Yaobang.

This special commentary is divided into two parts. The first part discusses a brief background on the bilateral relationship between China and Papua New Guinea and Ambassador Momis's views on China's past struggles and their leadership determination to transform their society into the third largest economy in the World.

The second part which will be published next week will continue on Ambassador's views on China regarding China's development miracle, peaceful rise of China and counter-arguments on popular anti-Chinese sentiments.

Before discussing Ambassador Momis' views on China, it is imperative that we get a brief background on the Sino-PNG relations.

Background on Sino-PNG Relations
China and Papua New Guinea established diplomatic relations on October 12th 1976 right after PNG got its independence from Australia in 1975, and since then the relations has been growing stronger and deeper each year.

Papua New Guinea set up its Embassy in Beijing in April 1988 and accredited a resident ambassador. His Excellency Noel Levi was the first PNG Ambassador to China (1988 - 1990), however prior to that, His Excellency the late Sir Joseph Nombri Ambassador to Tokyo, Japan was accredited to both China and South Korea.

Trade relations between China and PNG started in the 1960s, and have developed smoothly since the establishment of diplomatic relations between the two countries. China and PNG have enjoyed closer and stronger relations, and the economic and commercial cooperation between the two countries has gained momentum over the past ten years.

Today PNG is the biggest and the most important trading partner of China among the South Pacific island nations. During his visit to PNG in July 1996, Qian Jichen, then Chinese Vice Primer who is currently the Foreign Affairs Minister signed a trade agreement between the two Governments with his PNG counterpart, thus paving the way for further development of economic and trade cooperation between the two countries.
Other agreements signed between the two countries included Memorandum of Understanding on Promotion for Economic and Trade Cooperation, Agreement for the Promotion and Protection of Investment, Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, and Agreement on Fisheries Cooperation.

In recent years, trade between China and PNG has grown rapidly. It constitutes two-thirds of China's trade with the South Pacific island nations.

PNG's commodities exported to China mainly comprise timber and crude oil, while its main imports from China ranges from textiles, garments, light industrial products (such as footwear, suitcases, bags and toys), to machinery and electronic products. China has a big trade deficit with PNG for many years, and PNG is the only country in the South Pacific with a big trade surplus with China.

Since 1976, China has provided economic and technical assistance to PNG, through a number of projects including four complete projects, namely Sir John Guise Sports Stadium, Henganofi Rural Housing Project, Kandep Agricultural Research Center Project, Markham National High School Project, and four technical cooperation projects such as rattan weaving. So far, PNG has received 11 batches of goods and materials donated by the Chinese side.

The number of PNG students studying in China on Chinese Government Scholarship has increased over the past ten years. Today there are about 60 Papua New Guinean students studying in various universities throughout China.

As part of the Chinese Government continuous commitment towards developing human resources and enhancing international cooperation on development, China has offered many short term courses to the Public Servants in PNG over the past decades. These training vary from Military training, to Forestry and Fisheries Management, etc. PNG is the largest recipient country of Chinese aid among the South Pacific island nations.

Ambassador Momis talks about China

French leader Napoleon Bonaparte (1769-1821) had an aphorism: "Let China sleep; when she wakes she will shake the world,". Nearly 180 years after his death, this famous aphorism (or cliché, for Sinologists/China experts) by the French military genius has fulfilled. Today we hear and see people talking about the rise of China in almost all aspect of our society.

Despite having one of the oldest civilizations in the world, China has in the past been through many dynasties (e.g. Song, Qing, Ming dynasties including Mao and the CPC) that consistently encountered internal civil wars, warlordisms, barbarisms and terrorisms from the northern plains and even suffered constant humiliation and domination by foreign invaders.

At one point in history, not so long ago, China was regarded as one of the poorest countries in the world. However Chinese leaders never yielded to all these struggles. Instead they persevered with determination to change and improve the lifestyle of their people. After the fall of the Nationalist Kuomingtan (KMT) Government and the establishment of the People's Republic of China (PRC) in 1949, under the leadership of Comrade Mao Zedong, industrialization was the key to economic growth in China, thus vast resources was thrown at heavy industry (e.g. steel production), agriculture was exploited and the service sector remained suppressed and centrally controlled. However these strategies proved futile and brought China's economy to halt.

Then in 1978 the Communist party initiated very strategic reforms under the leadership of its new leader, Deng Xiaoping. Deng Xiaoping initiated market reform to state ownership and open up the Chinese economy to international trade and investment.

The outcome of the "reform and opening up" policy under Deng Xiaoping was remarkably successful, as China rose from being economically impoverished and backward to being the third largest economy in the world and as scholars' predicted will soon overtake Japan to become the second largest economy in the world to the United States.

Today China is regarded as the manufacturing hub of the world. With enormous trade surplus and inflows of foreign investment, China's foreign exchange reserves have surged to almost two trillion US dollars which made China the largest owners of US Treasury bills which effectively helped US financed its current account deficit.

Last year Beijing spent US$50 billion on what will soon become the world's biggest high-speed train system. The railroad is expected to finish in 2020 with 16, 000 miles of track whose main routes include Beijing to Shanghai and to Guangzhou.

The US$50 billion high-speed train system when completed will become the largest, fastest and most technologically sophisticated railway system in the world.

With the fallout of the global economic recession in late 2008, China is one of the very few major economies that kept growing, prompting the West to urge it to pull the world out of the worst economic crisis in seven decades.

Viewed as an important player in global politics, Beijing has committed itself to address major global issues such as the financial crisis, global warming, combating terrorism, stopping nuclear proliferation, and eradicating extreme poverty.

Note: The article was contributed by Albert Kaupa Tobby and edited by Mathew Yakai. Albert is a student at Tsinghua University in Beijing. For comments, email Mathew: m_yakai@hotmail.com or SMS 71489901. You can also contact Mathew for information on Chinese Government Scholarships

Parkop Cup games transforming youths at Jabiru Drive

2010-01-23T11:07:00.000+10:00

Bodaline Storms Team from Jabiru- Hinchcliffe Streets

COMMENTARY - TIIKIIEMB SHIIEMB

THE AUSTRALIAN Broadcasting Corporation (ABC) news item aired on Thursday night was considered a fairs assessment for PNG. The news items was in regard to law and order situation in the country, and whether the wanted robber-William Kapis Nanua was a high risk to majority of the people in this country.

The resident commentator from the Australian Broadcasting Corporation summed up the mood of the country, saying that majority of the population are not at risk and are not afraid of the escapee. He said the fact of the matter is that the population on the whole are not risk, except the business community in general. The latter's reaction is expected any way!

Earlier in the week, the mood of high alert among the security community was one of frenzy. The panic among the business community was such, that heard whispering to another, in low voices that, "we better plan to head north to where we both originated from" or another retorted "is this the beginning of the Asian riot thing?'
On the whole the citizens in the nation's capital, and other main commercial centers went about their usual daily lives, while the police went about searching for the escapees. Also one morning several of these men were seen mingling with workers heading to various destinations in Port Moresby.

Quiet and active on the other side of town at border zone between Gordon and Erima teams were busy doing warming up exercise for the grassroots city zone completion of rugby touch for the Governor Parkop Cup.

Jabiru Drive and Hinchcliffe area is compact community zone that has majority of young people without any form of employment, there are quite a few who are self employed, selling store goods on the street. Once in a while they would offer their services doing odd jobs for some parents within the community. Crime related activities are rarely heard of, except once in blue moon someone from the other side of the hill, that is the Erima Settlement would creep into the community and snatch a bag or two from unsuspecting women rushing to Gordon Market for daily sales.

The Jabiru- Hinshclife connection to the rest of Port Moresby is through the game of rugby touch. These two city streets form the home of the Bodaline Storms, the team has the potential to become quite formable with the current strength of three grades- A, B and C. Already the completion is into the five weeks of intense training and actual games being played at the playing field at Gordon's Police Barracks. Within the area around Gordons Market, Gordon Five, Lapwing and Jabiru- Hinchcliffe Streets, teams of young men and women have sprung up in recent week.

These teams, quite interesting and innovative are fixing roads and trimming grass on the side walk to raise funds for the various teams by players and supporters. Parents who have seen an attitude change, resulting in creative energies in their son and daughters are assisting in various fund raising activities for the scores of teams that have sprung up in recent weeks just for the Governors Cup in the off session period.

Develop your "survivor instinct"

2010-01-23T10:47:00.000+10:00

BE YOUR OWN BOSS - TIRI KUMBAKUL

There is a fighting spirit in all of us

WHAT we need to realize is that there is a fighting spirit in all of us. That spirit lays dormant most of our lives, and awakens only to challenges and threats. The need for survival brings that spirit to the fore.

In my book Success After Graduation I tell the story of the man who scaled a high wall when chased by a huge dog. The fear of being torn into pieces by the dog awakened the "survivor's instinct" in him that he was able to scale the wall. When he tried to do the same under normal circumstances, he found that he could not.

It is said that during the 1906 earthquake and fire in San Francisco, United States of America, invalids actually got up and fled for their lives. These people had lain helpless in bed for many years but the fear of getting burned plus the desire to live caused their limbs to straighten and strengthen such that they could get out of bed and run away from the blazing fires.

I recall an incident where we chased a wild cow. It had been pursued by a neighboring clan and we had taken on the chase when it entered our territory. The animal must have run a long distance, and we could see its legs becoming wobbly as it ran through our village. Some of us thought we were very close to catching it when it seemingly ran out of breath and strength. Suddenly it stopped running, turned around and began stomping towards us with fury in its eyes. All of us expected the animal to continue running, and none of us expected it to start chasing us! The moment we saw anger in its eyes and its nose puffing spit and turning red, we knew we were in danger. All of us fled for our lives, and the cow just strode back with ease.

I learnt a valuable lesson that day. It is that when you are pursued, turn around and fight back instead of taking on your heels and running. Your enemies, who may take all kinds of forms, could be pursuing you because you are running. They like looking at the back of your head and heels when you take flight. The moment you stop and stare at them in the face, they will melt, because they can sense the fighting spirit rising in you. You will be fighting for survival, whereas they have been pursuing you because that was easy for them to do with you running from them.

The survivor's instinct in man is multi-faceted
If you chase a pig or a dog into a corner, the survivor's instinct in it will awaken, and it will strike back. The same survivor's instinct resides in human beings. But unlike animals, whose instinct is either to fight or flee, the survivor's instinct in man is multifaceted, creative and innovative. Sometimes it attacks, which is a manifestation of the crude part of that instinct. At other times it finds more creative ways of dealing with threats and challenges.

The human mind has the ability to develop new ways of handling threats and needs within a very short time - in fact on the spur of the moment or in an instant if need necessitates it.

Paid jobs make people mentally lazy
Entrepreneurs and those who venture out and take risks see this potential come to the fore more often than those who wallow around the comforts of a paid job. In fact, a job makes people comfortable and complacent, and to a great extent lazy, when it comes to using their minds.

Creative thinking is the hardest of jobs
Scientists say that the average human being uses up only 10% of their brain capacity all of their lives. The remaining 90% remains unused until the person dies and goes into the grave. It becomes food for maggots. We do not use our mind to its full potential.

Henry Ford, founder of Ford Motor Corporation, is said to have stated: "Thinking is the hardest work there is, that is why not many people engage in it." One of my sayings is this: "We think we think, but we don't think." Our thinking is very shallow and superficial. It lacks depth and width.

If you think about all the inventions of man since the dawn of creation, it has all been the product of the mind. What was invented actually existed in the inventors' minds before the items became tangible. God did not create the aeroplane, for instance. When He breathed into the nostrils of Adam, He imparted something of His creative ability into man. He provided man the ability to invent the principles of flight and perfect it over time until he was able to fly as the birds of the air.

The mind of man has much greater potential than man has been able to utilize in his lifetime. It has the potential to think up solutions to the most pressing problems facing mankind. Its ability to accommodate, assimilate and process information inputted into it by the five senses has yet to be matched by the most advanced computers in the world.

A thinker, an asset
I once read an interesting story. It was about this expert who was engaged by a company that was facing problems - one of those so-called "corporate doctors". He was asked to review the entire organisation and recommend measures which in his expert opinion would, if applied, see the company experience a turn around in sales and profitability. So the expert went to work. He spent several weeks in the office going through all the systems, positions and people that made up the organisation.

The story goes that every time he went up to the top floor where the owners usually had their offices, he would notice this fellow lying back in his chair with his feet up on the table top. Sometimes he was absent for days. The expert wondered who this person could be. When he checked the payroll files, he was very surprised to learn that this person was the highest paid in the organisation. The expert noticed that this fellow earned even more than the owners.

When the expert finally presented his report to the directors, he recommended that the company should be downsized, a good number of positions and their functions should be merged or chopped, and the people who occupied those positions should be laid off.

At the top of the list of people recommended for dismissal was this fellow in the top floor office. The expert's reasoning was that he had seen this gentleman napping at work all the time he had been reviewing the company's systems and procedures. He was really a liability to the company, seeing he was the highest paid.

It was when he was presenting his report that he truly learnt about this seemingly unproductive gentleman's work. The owners told the expert that his recommendation for the gentleman to be relieved of his services would take the company down rather than help it to rise, because the guy he had seen "napping" was actually the person who had developed the ideas for the products the company had come to be known for. One of the directors told the expert, "He is the brains behind the company. We pay him to think!"

Imagine the shock the expert received! He had made the biggest blunder of his professional life when he recommended the sacking of the person whom the company owners considered their biggest asset, because he was a thinker. He went to the office and sat in his chair, or went to some quiet place, and used his imagination to think up products the company could design and sell to the consuming public. The fact that the company paid him highly is an indication of the success they experienced when they took his advice.

Many organisations now have "think tanks" or "master mind" groups. These are groups of people who meet to talk about solutions to problems. They are a group of people who are considered to be thinkers. They are highly paid, and their advice is highly sought out. Some "think tanks" are private organisations which are established to conduct research into problems and develop solutions, which they sell to governments and companies for large amounts.

Everyone can think but only a few think creatively
Everyone can think, but not many engage in active and creative thinking. That is why "consulting" is one of the fastest-growing industries worldwide. Most people, especially politicians and bureaucrats, are too busy with life's issues that they leave research, analysis and serious thinking to consultants, who charge hefty prices for their advice, which are the product of their minds.

In fact it has been said that the hottest products on the market today are "info-products" or information products. In the Information Age, there is an unquenchable thirst for new knowledge and information. Everything happens so fast that those with the latest information are able to outdo the competition. That is why CNN's motto is "Be the first to know." Researchers, analysts and thinkers are tapping into this info-products market and are becoming very rich without too much sweat.

I believe that most people who work for a regular salary do not really think. They do think, but what I mean is, they do not engage in the kind of thinking that is creative, lateral, outside-the-box. The regularity in the salary provided by the employer is a major factor that induces this mental laziness and complacency. They are not pressed to think, because, once again, whether they think hard or not, they still get paid.

In comparison, entrepreneurs and self-employed people tend to think more actively as well as deeply. Their thinking has width and depth. They allow their imaginations to devise ways out of their situations. They do not have money coming in regularly, so they are forced to think hard. And they do come up with creative solutions which serve a lot of people, thereby making themselves richer but also taking the rest of society forward.

Self-employment brings out the hidden potential in a person. It engenders creativity. It creates an environment that is conducive for the imaginative and creative ability of man to come alive. It helps people to think hard and deep. It awakens and develops their "survivor' instinct".

If you want to know what you are really made of, consider becoming self-employed. You will become aware of strengths and abilities you did not know you possessed until you do so. Your "survivor's instinct" will emerge more often and readily than when you work for others.

Our next article is titled 'Protect your assets'. If you have any comments on this week's article, email them to me at secos@global.net.pg or text me on 7688 0033 or 7280 4588.

So rich yet so dependent

2010-01-23T10:37:00.000+10:00

SMALL MAN ISSUES - TIMOTHY PIRINDUO

I WOULDN'T be writing this if it is not for many of us running around looking for 'street lenders' or what I call 'local ATMs' to borrow money.

Don't blame yourself for doing this. There are a lot of reasons for doing so. One justification is a flow-on-effect. We are simply being forced to because our government is living on borrowed money as well. What is happening up there is trickling down to the little people. Because our pay packet cannot sustain us for two weeks we opt for options like the so much professed 10% consultancy arrangements. Corruption creeps and it is pretty tricky to say 'no' for the simple fact that we are so poor to say no to some quick cash to feel big for nothing and to settle some overdue unnecessary bills. Blame the system!

So naturally rich in resources and yet being economically poor is an allegation we've heard and read time and again. Promising politicians speak of those dreams come Election Day to turn the tide around however, the tide keeps on turning them as we become spectators in a nation that stands to lose if nothing radical is done today.

Our little Europe became politically independent in 1975 but to date we are still economically dependent on aid from other countries, especially Australia. Maybe independence is only for political intentions, not economic reality. Regardless, we can't blame Somare for our political independence as premature. He was guided by the wisdom of the day to do so. Anywhay, if our national budget is largely being funded by foreign aid then our nation is being owned by someone else, don't you think so? It is the highest stakeholder that takes control of the business affairs of any business venture.

Aid is a two way thing and, yes we must admit that we have failed to manage it against the intended purposes. Because we failed at the first place to prudently manage it we become entangled by the strings tied to it. The donor nations can now capitalise on our failures and influence or even dictate a lot of decisions that are made by our politicians and bureaucrats. This is why we are very silent in aggressively taking our economic status into the secondary level as we continue to be a major supplier of raw materials that come back to our shore in cans, packets and manipulated forms.

When dependency falls in beggars can't be choosers. We can't choose our destiny to decide for ourselves. The donors, the developers, the sponsors alike decide how the game is played. By day's end we become foreigners in our own land. We can cut ribbons and hold feasts to celebrate the commissioning or opening of infrastructures but someone else will have the last laugh because they have other things in mind - what lies beneath your land. Maybe third world nations were made to be like that so that there shall continue to be levels of worlds.

The current Somare-Temu government's stand in reducing foreign aid and increasing foreign reserves is the way forward to reduce dependency. The funny thing is the more you try to do it the heavier they bombard you. They can't afford to lose the warehouse supply of raw materials. It is the source of their existence. Some evil, clandestine manoeuvring is involved in this thing about aid. They are thinking in the fourth dimension while we see it with our five senses as normal. Do we have a government think-tank?

Aid is not something you cling on to until end of time. Somewhere down the line it must be phased out. The World Bank was established by a number of now the G8 nations who pooled their resources together to help rebuild those nations that were destroyed in the war. China suffered in its war with Japan and loaned so much millions to rebuild itself. Within 10 years it paid off its loan and now, look at it. After serving its purpose the World Bank diverted its course to nations with decaying economies and that is where it found you and me. You can have your own thoughts about the boomerang aid from next door. As I have said, aid is a two-way thing where you give and take not as your literally understand it to be some kind of charity help. This is a loan under the pretext of aid. It is the power of reciprocity at its best. For the one who gives is given twice.
Never like before, all over PNG now someone is gasping for air with a gold or oil find at their backyard. It is like an ants' enclosure has been disturbed sending all armies running riot in all directions. Christianity has it that the custodian of this wealth is running out of time to win more souls. This is what we must pay ultimate attention to. But one must not put normal human living in discomfort. The scary thing is quick heavy cash in connection to these natural non-renewable resources seem to cloud the possessors from functioning normally. The cash goes out faster than it comes in. Be on guard!

Successful outcomes or productivity of other resources depends heavily on the resource that drives it - human resource. If the human resource, better still, the human being, is incompetent, ignorant, or demoralized, other resources will be heavily impacted. For instance, an innovative idea by a countryman is downplayed by the option to engage consultants offshore. Consultants are mere con sultans. They have their own agendas and just be mindful of which organisations they are engaged with. This is morale killing when we cannot trust our own countryman who has the country in his heart. Another attitude problem. Such oversights lead to a lot of our brains leaving for much better paid off-shore jobs. It is long overdue that we must put a total stop to this brain-drain and look after our human resources. Papua New Guinea has enough brains to run its own affairs now.

This leads us to the current boom in the mineral resources industry. It is not a bad practice to open up many projects simultaneously only if you have the competent human resource to operate it and the money, too. By that I mean seeing it to the end product of it. Another concern is the managerial and supervisory roles are taken up by expatriates. Only a few are Papua New Guineans mostly in the liberal fields like human resource management and administration in the core functional areas like operations and development. Most of our PNG managers are 'yes boss' type of managers who cannot stand up to see Papua New Guineans getting the most out from a project.

So our little competent human resource is stretched to the limit allowing semi-baked personnel to be taken on board who spend hours-to-end trying to picture the whole operation. You still struggle to get nowhere because of the mushroom-effect created in the management circle. Management problem should also cop the blame for our dilemma here.

On the other hand, having said all the above, we have to blame ourselves, too. Our attitude problem. We don't even believe in ourselves nor our countrymen and women alike. For instance, a white-man walking into the shop with his handbag, the securities are scared to the bone to tell this white-man to put away his bag at the bag shelf. If it was a countryman or woman these securities go berserk as something terrible is about to happen. The recruitment of 'save pes' who are incompetent adds salt to the wound where it contributes heavily to productivity level. Morale drops as one regional faction takes control of the entity and start serving their own interests. To be considered you have to bribe your way in.

PNG time phenomenon is one total setback that defeats our chances of getting ahead and be counted. We can't be masters of our destiny if we simply cannot tell what is right from wrong - conscience. Many of us need to go back to Sunday school.

It will really take a long time before we will come to know what it means to develop our resources to fullness and come closer to industrialisation take-off. Maybe when our race is full of quarter-casts who will now claim themselves as complete Papua New Guineans who have a lost identity and no birthright then we can see less wantokism. Vision 2050 is the roadmap to seeing a drastic change in our way of thinking and behaving accordingly for what we can hold and say is ours, otherwise we will be foreigners in our own land.

Email me on pohromo@hotmail.com for comments. Keep reading your Chronicle for our next 'Small Man Issue' on "Settlements - not bad as we think".