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.

PNG 2022 budget will not have much surprise: Prime Minister James Marape says

Prime Minister Hon. James Marape has assured the nation that Treasurer Hon. Ian Ling-Stuckey will deliver the nation’s 2022 Budget tomorrow amidst many political speculations.

“I want to assure Papua New Guinea that your Government is at work, despite many challenges and obstacles, and we will deliver our third Budget tomorrow,” he said.

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

“With hangovers and effects of 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 Treasurer Ling-Stuckey would tomorrow “point that our path to economic recovery is correct, and with critical analysis by all multilateral Budget partners like ADB, IMF and World Bank, our positive trajectories show an increase in Gross Domestic Product for next year and beyond as well as a declining budget deficit trend”.

“Over the last two-and-a-half years, we have invoked the use of our money plan to ensure schools, hospitals, COVID-19 programmes, road construction, SME funds, retiring old debts and contractual obligations, paying outstanding industrial awards, etc, were our deliberate interventions to keep our economy functioning despite tough times,” he said.

“Our 2022 money plan will not have much surprises, except some key Government policy-based interventions that will be evident in both revenue and expenditure allocations, as Treasurer hands down the Budget tomorrow.

“We are trying our best to ensure our Budget embraces our national outcomes including opening up all parts of our country, intervening in sustainable economy, starting up Porgera, Papua LNG, 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 without disturbance.

“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 is our reforms is to borrow low-cost US dollar denominated borrowings like the Australian $400-million dollar zero per cent interest lending, or 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 is continued.

“And tomorrow, for the first time also, our Treasurer will put out a plan to bring our nation to surplus Budget by 2027 and reduce our national debt completely by mid 2030s.

“I am very optimistic because these tough times have taught us to be prudent and economically strong as we work forward into 2022 and beyond.

“Don’t believe the naysayers, be optimistic where ever you all are, be like the 360 small SMEs who borrowed cheaply from Bank South Pacific that Government has partnered with for SME lending and help your country.”

Source: Press Release

Puma Energy modernises service stations and applying global service standards

Puma  Energy PNG Country General Manager Hulala Tokome says the company continues to invest and apply Puma's latest global standards when servicing customers among its network of service stations around the country.

This week the company re-opened a new-look Eriku Service Station in Lae after a major three-month facelift.

It is the second of three service stations planned for refurbishment this year as part of Puma’s ongoing program to modernise and expand its network of 100 service stations.

Eriku service station, is one of Puma’s key company owned retail sites in the country and offer customers, faster modern pumps that will be able fill up in half the time it took before the upgrade and a new look Super 7 convenience store.

"The Eriku service station upgrade is similar to Puma’s new flagship station at Gerehu and the recently refurbished Hohola Service Station. We want to give our customers the best possible experience,” Tokome said.

Gideon Karali, Puma Energy PNG Retail Manager says “Through our service station network, we are partnering with SMEs and helping to develop the country’s SME sector."

"All our retail sites are operated by SMEs, except for one and we have more than 400 working with us both in our retail and Pumas Gas businesses.”

NICTA launches corporate plan 2021 to 2025

 Minister for Information Communications Technology Timothy Masiu gives his speech
 
SALUTATION

Let me take this time to thank you, NICTA Chairman and your Board members, NICTA CEO and your good management and staff, for your support to the Government through my Ministry to date.     
The launching of NICTA’s Corporate Plan 2021 – 2025, is an important occasion because it ushers a renewed sense of direction for NICTA.     
The ICT sector has evolved since the last Corporate Plan. 

I am pleased that the new five-year Plan takes into account the changes over the years including implications for the government, industry and consumers.

The new Corporate Plan focuses on: 
1. Improving stakeholder collaboration across Government;
2. Enhancing communications among citizens;
3. Establishing regulations to oversee efficiency within the ICT sector;
4. Improving connectivity; and
5. Deploying technology to drive local innovation.
There is no doubt that ICT is a catalyst for economic growth and social development.
ICT also poses two development challenges. First, is the rapid technological development of ICT around the world which NICTA must embrace and tailor to suit local circumstances. Second, is the increase in demand for ICT Services due to the growth of an educated population and increase in use of digital technologies by SMEs and businesses in the country.
I want to urge NICTA to create an ICT regulatory environment that supports SMEs and businesses. This sector of our economy has the potential to accelerate economic growth, and digital technologies can enhance the growth in this sector and help PNG leapfrog towards digital economy.
Give equal attention to upskilling the NICTA management and staff to be on par with current trends and practices in the ICT sector so that you are able to effectively regulate the industry and to ensure ICT goods and services are affordable and available to our citizens.
I also want to stress the need for NICTA to have oversight on media and broadcasting. The National ICT Summit hosted by the Ministry earlier this month revealed regulatory gaps in this area of media and broadcasting. 
In fact, I direct the Department of ICT and NICTA to review the Summit recommendations so that we can work together to strengthen the regulatory regime for the betterment of the industry, our people, and the country as a whole.              



I acknowledge our stakeholders and thank each stakeholder for complying with regulations and for supporting NICTA in the delivery of its statutory responsibilities. 
I want to encourage NICTA to continue to be diligent in the administration of its statutory functions and powers. This is critical for a robust regulatory framework.
To conclude, this Corporate Plan sets a clear target for NICTA, consistent with PNG’s Medium-Term Development Plan 3. And so, I look forward to seeing NICTA carry out its mandate for the benefit of our citizens, industry and the country as a whole.
Ladies and Gentlemen,
It is my pleasure to now, officially launch the NICTA Corporate Plan 2021-2025! 

Why can't SABL be granted to incorporated land groups (ILG) in PNG?

By Isaac Suafia

Recently I was reading an article written by Collin Filer.

Filler was one of my lecturers for the course “Indigenous People and Mining Projects” through online out of Australia National University (ANU) in 2014.

He is well versed with the wealth of knowledge and experience in land and natural resources development in PNG.

I see him as one of my best lecturers and have been following his academic work.

In 2011, he wrote a paper to be presented at International Conference on Global Land Grabbing.

The paper is entitled as “The New Land Grab in Papua New Guinea”.

As I read through it I took particular interest in how SABL has been administered and whom did Minister grant the SABLs to.

I came across Section 11 and Section 102 of the Land Act 1996.

Section 102 of Land Act states that ‘a special agricultural and business lease shall be granted: (a) to a person or persons; or (b) to a land group, business group or other incorporated body, to whom the customary landowners have agreed that such a lease should be granted’.

I questioned myself: Why can’t the Minister grant the lease to the land group preferably the Incorperated Land Group (ILG) in PNG?

Three assumptions provide answer to this question.

If the lease is granted to the landowners

1) Landowners don’t have the capital and technology to develop agriculture business

2) The customary land tenure system will slow the progress for development

3) It will scare the investors from investing on our land.

Although these assumptions are true to some extent should we continue to allow these assumptions to influence our approach to doing business with foreign investors on our land?

Generally, our foreign policy encourages being good neighbours to our international friends in governance, politics, commerce and trade.

We want them to invest on our soil to stimulate economic growth.

Although it’s critical to embrace foreign investment for economic growth it’s also important to question the assumptions that we’ve trapped ourselves in.

Can we change it? Many commentators will argue that it’s difficult.

We’ve witnessed that in how different individuals, groups, organization, politicians have argued about the move by Prime Minister James Marape to close down Porgera Mine and review the agreement.

We’ve heard and read about how PNG Chamber of Mines and Petroleum had defended the international mining cooperation.

Similar sentiments can be raised in the grant of SABL to ILG.

However, limiting our thinking to these assumptions will hinder our progress.

It will keep us within the colonial cage in post colonial era.

We’ve seen most foreign companies and individuals growing roots in PNG through SABL schemes whilst landowners are eating from the scraps that fall from the table.

If we read the SABL report most of SABLs were granted to foreign companies and individual businesses men-NOT a landowner group under their ILG.

I strongly believe that if the SABL is granted to the land group ( ILG) it creates opportunity for ILG to own the lease and operate business in partnership with investors.

Under the ILG Act 1974, ILG was created not only for the state and developer to go to seek consent from landowners to operate business on customary land but also allows them to participate as a business entity to maximize ILG Members’ share.

Since the ILG own the lease, it can lease it to potential investors. This will potentially create wealth for landowners and enable them to move up the development ladder.

What state can do is to invest in capacity building program for ILG so that they are equipped to participate in the business development.

Thank you, over to you land professionals

National Housing Corporation investing millions of kina to renovate properties in Port Moresby

 BY CYRIL GARE

The National Housing Corporation (NHC) is investing millions of kina in a “major facelift and renovation” drive that will see all of its prime but dilapidated residential properties in Port Moresby fixed progressively - commencing this week.

This is in line with the Marape-Eoe Government’s and Ministry of Housing and Urbanization priorities in providing affordable and decent housing for public servants and PNG citizens nationwide.

Some of these properties located in NCD to undergo renovation include 3 mile Red Cross flats, 5 mile flats, Angau Drive flats, Korobosea flats, NBC flats East Boroko, 4 mile hostel adjacent to old PIH, Hohola new generation hostel, Dorido hostel at June Valley, Saraga flats, among others.

First up will be the four (4) allotments comprising 16 units at Manu Autoport. Work began today – Nov 22, 2021 at allotment 3 and its four units as workmen (contractors) took down badly rotten walls, louvers, fly wires, window frames and interior structures of the building which “haven’t had such a renovation for over 30 or 40 years”, said Mr. Martin Tau – NHC’s Executive Director - Corporate Service and Administration.

Tau was among a NHC’s witnessing team to the renovation site comprising Mr. Lucas Nilkare – Executive Office to the Office of NHC Managing Director Henry Mokono, Ms. Delly Raepom, General Manager - Technical Services, Mr. Bugave Gabina, General Manager - Properties, Mr. Bonny Bonsella, acting General Manager - Human Resources, senior NHC staffers, and NHC media.

For Mr. Gabina who clocked 32 years with the NHC: “I’ve never seen such a major renovation on our properties like this before. It’s a very good sign, a very positive approach by NHC under the new management of Henry Mokono” and the results-driven portfolio Minister, Justin Tkatchenko.

Ms. Raepom thanked the tenants for cooperating with the NHC officers by vacating the property to allow maintenance work to begin smoothly, adding “we’re looking forward to seeing the new flats in five months times…” a new environment that is befitting and conducive to human inhabitation.

On Nov 3, 2021, NHC managing director, Mr. Henry Mokono visited the Manu Autoports tenants and their families and announced the K4 million facelift plan and sought their cooperation to vacate the property and allow maintenance work to begin.

Tenants cooperated. One Mr. Leo Nitchim described Mokono as “a man with the heart for the people”.

“Over the years, it’s very hard to go to the managing director’s office. But now the managing director’s office is on the street here, he is here to see us. You have the people in your heart that’s why you are here to see us. These are kind of people we need in Government offices so that the people will receive justice.

“We are talking about justice, equality its embedded in the Constitution. They’re not delivering. We have governments after governments. We have statutory heads. Have they delivered? No. That’s why we are always branded as a corrupt country,” Nitchim said.

For the tenants, it was unbelievable for an organisation such as the NHC that is riddened with corruption, abuse and mismanagement to put down such an amount of money for renovation and refurbishment works – NHC hasn’t been able to do such in years.

Since his appointment by Cabinet in August and later official signing of his four-year term employment contract at the Government House on October 26, 2021, Mr. Mokono vows to clean up the NHC and instil a new corporate image to the organisation through accountability, transparency and good governance.

Mr. Mokono’s major tasks is to;

• Create a new staff structure to see down-sizing of NHC work force from 380 to 218 and saving government of K6 million in wages annually;

• Deliver the stalled Durand Farm Housing project;

• Renovation of the NHC Tokarara headquarters which government has already allocated K10 million for this purpose;

• Cleansing and prosecution of those engaged in corruption and the mess in the NHC; and

• restoring public confidence in the organisation.

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