Security planning conference for 2022 National General Elections underway

Police Minister William Onglo on Monday officially launched the 2022 National General Election security planning conference at the Gateway Hotel in Port Moresby on Monday November 29.

The five-day conference is being attended by Royal Papua New Guinea Constabulary’s senior management, and representatives from the PNG Electoral Commission, the PNG Defence Force and the Correctional Services.

The opening was also witnessed by the acting Electoral Commissioner Mr Simon Sinai and his team.

The five-day conference ends on Friday December 3, 2021.

Internal Revenue Commission staff fined for producing fraudulent document in exchange for money

Two individuals had been fined by the Waigani District Court last Thursday (25 November 2021) for producing, issuing, and possessing a fraudulent Certificate of Compliance (COC).

The fake COC was produced by an employee of the Internal Revenue Commission (IRC), Anthony Mayoli, in exchange for a K3,000 bribe he received from a taxpayer, one Evaristo Masiu, in January 2021.

Mr. Mayoli was terminated, followed by the commencement of the prosecution proceedings at the District Court. The proceedings were instituted under section 354 (T) (a) (b) of the Income Tax Act 1959.

In a precedent-setting decision, the District Court fined Mr. Mayoli and Mr. Masiu, K15,000 and K7,500, respectively. Failure to pay these amounts within two months will result in six months imprisonment.

The Court’s decision does not preclude the Commissioner-General from pursuing this matter criminally under section 462 and 463 of the Criminal Code Act 1974 for forgery and uttering.

This decision is now the precedent and will be the starting point in the sentencing guidelines for future COC fraud and TIN Certificate-related offences. At the same time, lengthy incarceration terms and hefty fines will be considered as deterrence for this ongoing issue in the IRC.

The Commissioner-General, Mr. Sam Koim, whilst acknowledging the Court's decision, warned officers of the IRC and Taxpayers not to ignore the tax laws but to comply with the processes already in place.

“These services are free, and taxpayers should not be paying any fees to IRC Officers to bypass the processes. Any IRC officer or taxpayer caught will be jailed, and appropriate penalties will be imposed”, Mr. Koim said.

Narrowing the revenue leakages has been at the forefront of CG Koim’s agendas when taking office in 2019. Mr. Koim assured the public that prosecution of individuals and entities involved in the tax-related offences would speed up in 2022.

“We have been doing internal clean-up work at IRC, although some of these efforts had been constrained by the Coronavirus pandemic. Within the minimal space given by the Government, we have improved some of the staff terms and conditions on the one hand, and on the other, established robust internal integrity and control systems to detect corruption. We encourage taxpayers and the public to continue to report corruption.

Source: Press Release

Tari to Port Moresby marijuana identified by police dog

Port Moresby police say five packages of compressed marijuana were recovered at the Jacksons Airport terminal by police and security personnel yesterday.

The drugs were contained in a bag transported by plane from Tari to Port Moresby but left unclaimed on the cargo conveyor belt inside the terminal.

The Constabulary's highly adored furred member Astro, starred again in this special operation by sniffing out the drugs.

The Dog's Handler and colleague Constable Edward Baimba said, Astro sniffed at the bag and sat next to it.

"And then, we cut it open and recovered the cannabis." Constable Baimba said.

Astro and his team are involved in a special festive season operations aimed at detecting criminal activities around the Jacksons Airport.

Central Province launches new provincial hospital for its people

 November 29, 2021 should be a date registered in the development history books for the Central Province as it launched a 300 bed hospital to be built at Bautama-along the Magi Highway.

Prime Minister James Marape, Central Governor Robert Agarobe, Health Minister Jelta Wong, National Planning Minister Rainbo Paita and NCD Governor Powes Parkop were all among dignitaries and invitees at the grand launch.

It would cost K500 million to build the health facility and costs would inflate when other related infrastructure works are done.

Prime Minister James  said costs of roads, houses, electricity and other infrastructure in the new Central City at Bautama – adjoining the hospital - would take costs up to K700 million.

Central Health Authority Chairman Isikeli Taureka says the province has poor health performance compared to other provinces.

The National reports Taureka said building of the provincial hospital will allow them through the health authority to better manage and operate services for their people.

The people of Central have been using the Port Moresby General Hospital and the Gerehu Hospital as their referral hospitals for emergencies and cases needing specialist care.

" When you drive past Port Moresby General Hospital, one sees tent shelters at nearby roadside," Taureka said.

"This is a sign that families are temporarily residing there are from outside of Port Moresby and a relatives of people who have been admitted to the hospital."

This should now be eased with the construction of the new provincial hospital.

Central has a workforce of only 138 that serves 360,000 people.

There are three doctors, 20 health extension officers, 30 nurses and 80 community health workers.

The establishment of the provincial hospital will require more manpower as the facility will require more doctors and other health workers.

Marape said: “Health is receiving over K2.6 billion of the K22 billion Budget, in fact, 11.2 per cent total allocation.

“This is possibly the first time in the last 46 years we’ve been a nation, for Health Sector to receive the biggest allocation - ahead of Education and many other sectors in our country.

“This is a case in point that we are serious about our people’s health issues.

“Health comes first, we cannot compromise lives and livelihood of our people.”

He said Central featured prominently in the 2022 Budget allocation to the Health Sector and this would continue next year onwards.

“The story will continue, the journey will continue, until, hopefully in 2025, we will be able to come here again on this ground when a brand-new 300-bed hospital is delivered not just for Central Province but for the country.”

Prime Minister James Marape welcomes tabling of deficit budget (K 5.895 billion)

Prime Minister Hon. James Marape has welcome the tabling of the K22.175 billion 2022 Budget by Treasurer Ian Ling-Stuckey in Parliament on Thursday.

He said it would help Papua New Guinea on the path to economic recovery as well as support successful delivery of the 2022 National General Election.

“The total Budget of K22.175 billion is 9.3 per cent higher than the 2021 Supplementary Budget, with a revenue envelope of K16.190 billion which is 18.4 per cent higher than the 2021 Supplementary Budget,” Marape said.

“The fiscal deficit for 2022 is K5.895 billion, which is 5.9 per cent of the 2022 Gross Domestic Product (GDP). Compare this deficit to K6. 6 billion or 7 per cent of GDP in 2021.

“In 2022, the PNG economy is projected to grow strongly by 5.4 per cent, from K93 billion in 2021` to K102 billion.

“The 2022 Budget will continue the budget repair and economic recovery path, with strong focus on non-resource sector growth, and at the same time support families and businesses.

“There will be increased development and capital funding to high priority programmes and sufficient funding for key social sectors to stimulate economic growth.

“The delivery of my Government’s third Budget today, despite the many challenges and obstacles, shows clearly the work that we have been doing.

“It points to the fact that our path to economic recovery is correct, and with critical analysis by all multilateral Budget partners like Asian Development Bank, International Monetary Fund and World Bank, our positive trajectories show an increase in GDP for next year and beyond as well as a declining budget deficit trend.

“The handing down of the Budget is the single most-important parliamentary occasion of any government.

“With hangovers and effects of a slowed economy due to COVID-19, your Government has used the last three years of National Budget to ensure our domestic economy was functional and alive, and our crucial services were maintained.

“I want to assure our people and all stakeholders in our economy that we are responsible and prudent to ensure expected outcomes of our Budget are achieved.”

PM Marape said since his Government took office in May 2019, it had used the Budget to support schools, hospitals, COVID-19 programmes, road construction, SME funds, retiring old debts and contractual obligations, paying outstanding industrial awards, and many others.

“Our 2022 Budget embraces our national outcomes including opening up all parts of our country; intervening in sustainable economy; starting up Porgera, Papua LNG and Wafi-Golpu for our economy; paying for our children’s education in 2022 and beyond; building new hospitals; ramping up support to Bougainville; clearing up projects like new Supreme Court Building and ensuring the 2022 General Election is fully funded,” he said.

“All the above we are doing whilst maintaining strict discipline in sticking to our money plan, with our development partners observing our discipline to reforms.

“Key in our reforms is to borrow low-cost US dollar denominated borrowings like the Australian $400-million dollar and the Japanese Government US$280million 0.01 per cent five-year grace period lending, which all came directly into our economy by way of Budget support.

“I just want to assure our people and our economic stake holders that we are going through tough times, but we will use the Budget policies wisely to share the load of burden and also ensure key infrastructure like the 1900 kilometres of road we built the last two years all over rural PNG through our flagship ‘Connect PNG’ programme are continued.”

Source: Press Release

Dissent over controversial banking and telecommunications tax levy fees

By Shirley Mauludu

The National Newspaper

Millions of users of banking and telecommunication services in the country should expect to pay more for the services after a new government levy is announced in the 2022 national budget.

According to a leaked document, the source of which the Treasury Department is investigating, the Government is expected to announce in the 2022 National Budget:

• A BANKING levy as part of the Income Tax Act to collect K190 millon per annum; and,
• A TELECOMMUNICATION tax as part of the Income Tax Act to collect K95 million per annum.

Called the dominant industry levy, it yesterday drew the anger of the dominant players in the two sectors – the Bank South Pacific Financial Group Ltd (BSP) and the Digicel (PNG) Ltd. A business community source yesterday said government revenue from the proposed levy would most probably be used for election-related purposes.
“The fact is this – the Government does not have the money to do the things that it needs to do for next year, which is principally the election-related campaigns and politically-related expenditure,” the source said.
“The complexity we face right now is that a lot of that nation building development-related medium-term development plan three and all those policy-related projects, are going to be compromised because of the way the budget is designed for campaign and election-related priorities.
“They (Government) have to raise money in different ways, (such as) via these levies. They cannot find these money via development partners because the partners have a very targeted and stringent direction on financing.
“There is a strong likelihood that around 300 (Digicel) towers operated in the market, that are not simply generating any money whatsoever, but primarily for community service functions, will have to be shut down.
“This is because the money will be diverted to paying this tax. You are looking at mostly remote, rural towers that will not operate because of this cost. Some costs will be passed onto the consumers too.
“On the banking aspect, with BSP having more than 60 per cent of the market share, the bank will be affected too.
“Similar to the situation with Digicel, BSP has non-profit-making branches across the country.
“BSP will have to go through similar exercise as Digicel and determine whether they should shut these branches down.”

PNG Prime Minister James Marape urges 'wantoks' in Solomon Islands to respect democratic institutions

Solomon Islands Prime Minister Manasseh Sogovare today called PNG Prime Minister James Marape and reported there were protests and vandalism in the capital Honiara.

Solomon Islands Herald reported today that protesters wanted Sogovare to step down and amidst the protest turning nasty, a leaf hut near Solomon Island's Parliament was set alight.

Prime Minister Hon. James Marape has appealed to the people of its eastern Melanesian neighbour Solomon Islands to “respect the rule of law and democratic institutions and not to take the law into their own hands”.

Marape said: “The Solomon Islands has helped PNG during the Bougainville Crisis, something for which we are grateful to this day."

“I want to encourage our wantoks in Honiara to respect the rule of law and democratic institutions and not to take the law into their own hands.

“Solomon Islands has always been a beacon of hope for us in Melanesia, and a middle ground for many of our Pacific and Melanesian issues, so I ask for peaceful democratic dialogue to any issues of discontent.”

Prime Minister Marape in February 2020 signed bilateral agreements with Solomon Islands Prime Minister Sogavare to strengthen relations between the two countries during an official visit to Honiara.

In 2003 Solomon Islands descended into civil unrest and lawlessness, there was economic decline, corruption and a dramatic drop in service delivery. 

Prime Minister then Sir Allan Kemakeza requested assistance from the Pacific Region to restore normalcy in Solomon Islands.