Papua New Guineas Prime Minister James Marape says the Defense Cooperation Agreement signed between Papua New Guinea and the United States of America was not forced by the United States rather it was Papua New Guinea who invited the United States.
Prime Minister Marape says the agreement is not a move by the United States to counter China’s geopolitics in the region, rather an agreement to improve PNGs military capabilites, these sentiments were shared by US Secretary of State Antony J Blinken, who despite popular theory didn’t mention any involvement of US military in PNG as a counter to Chinas growing military presence in the South China sea.
Prime Minister Marape says the Agreement will be made public to debunk claims of the agreement being undermining of PNGs sovereignty.
Papua New Guinea police have launched an international bribery probe after OCCRP and partners revealed questionable offshore dealings by Australian businessman Don Matheson. The country’s prime minister has sought to distance himself from Matheson. But reporters found evidence that both the PM and a key minister had closer ties to the Australian than previously disclosed.
In public, Papua New Guinean Prime Minister James Marape has taken a hard line on Don Matheson, an Australian consultant at the center of a multi-million-dollar offshore payments scandal that caused an uproar in the Pacific country.
A joint investigation by OCCRP and the Australian Broadcasting Corporation (ABC) in March revealed that Matheson played a central role in suspicious offshore payments to senior officials at the time they awarded major international contracts to operate the country’s biggest ports.
The report made headlines in Papua New Guinea (PNG), and prompted Marape to order official probes of the state-owned PNG Ports. Under pressure, the prime minister also denied claims made by Matheson that he enjoyed close ties to Marape and his family.
Asked by the country’s opposition leader in March about his links to Matheson, Marape told parliament that he had merely played “one or two rounds” with the Australian businessman at a golf course in the capital, Port Moresby.
“[I] play anyone who walks into that club, who’s a visitor or new person, I invite them. ‘You wanna have a golf with me?’ I invite everyone [to] come for a walk at the golf course. Part of my health regimes anyway. So Mr. Matheson plays one or two rounds of golf with me,” Marape said.
But new evidence shows the relationship was closer than the prime minister has claimed. Marape and Matheson appear to have made high-level introductions for each other in both PNG and Australia, according to interviews and official documents obtained by OCCRP, the ABC, and Inside PNG.
One newly obtained series of letters appears to show that in early 2021, Marape personally introduced Matheson to PNG’s powerful State Enterprises Minister William Duma — the same man the prime minister has now tasked with looking into the current scandal.
Duma then sent a letter of recommendation to help Matheson pitch for lucrative contracts to develop state-owned land in Port Moresby. It is unclear if Matheson was successful in obtaining the business.
Duma told an ABC journalist that he would not answer any media inquiry from the Australian public broadcaster unless it was accompanied by written permission from Australia’s communications minister “to inquire into domestic issues of another country.”
“The alleged notion of conflict of interest which you have assumed does not arise here,” Duma wrote in an email.
Reporters also found that, the following year, Matheson attempted to arrange a meeting between Prime Minister Marape and a senior Australian politician, Queensland state opposition leader David Crisafulli, during a 2022 visit to Australia.
Neither Marape nor Matheson responded to questions sent by reporters.
The head of the PNG chapter of Transparency International, Peter Aitsi, said evidence of previously undisclosed ties between Matheson, Marape, and his senior minister Duma, could undermine public confidence in the government’s review into the offshore scandal.
“If there is proof that there is a relationship between [Matheson and Duma], then, rightfully so, Mr Duma should be removed” from overseeing any government review, he said.
“Investigating Other Engagements”
The new evidence that Marape and his key minister had undisclosed contact with Matheson comes as PNG police have launched an international investigation into the Australian businessman and dealings at PNG Ports, OCCRP and partners have learned.
Joel Simatab, the criminal investigations chief of the PNG police, told OCCRP and partners that national authorities have launched a wide-ranging criminal probe with the assistance of Australian law enforcement and Interpol.
“As part of the investigation, PNG Police will be investigating other engagements involving Don Matheson in PNG, apparently due to him allegedly paying bribes to PNG Ports Corporation officials,” Simatab said.
Australian Federal Police declined to comment. Interpol did not respond to questions.
OCCRP and ABC’s previous investigation revealed that a Singapore company owned by Matheson had received roughly US$4.35 million in unexplained payments from a Manila-based global ports operator, International Container Terminal Services (ICTSI), around the time it secured a lucrative contract to run PNG’s two busiest freight terminals. The company’s account was then used to pay for apparent benefits for two senior officials at the state-owned ports operator, PNG Ports, including a racehorse and medical equipment.
One of those officials, PNG Ports CEO, Fego Kiniafa, was murdered last September. Police are treating the killing as unrelated to the corruption investigation. The revelations about Kiniafa have prompted questions for Australia, which had negotiated a $434 million ports funding deal with the late CEO as part of its efforts to counter China’s growing assertiveness in the region.
The Pandora Papers files also contain information on nine other contracts that Matheson said he had secured in Papua New Guinea. OCCRP and partners found signs that one of those contracts, a master plan for a new provincial capital, was won via a bidding process that may have been tilted in Matheson’s favor.
“The Best Piece of Real Estate in the South Pacific”
Official letters obtained by OCCRP and partners show that Prime Minister Marape apparently boosted Matheson’s business prospects in PNG by introducing him to State Enterprises Minister Duma.
Matheson wrote to Duma on May 3, 2021, to express interest in his company, CSG International, playing a role in the commercial redevelopment of an old wharf site in Port Moresby belonging to PNG’s state holding company, Kumul Consolidated Holdings.
“I would like to take this opportunity to formally acknowledge and thank you for making time available to meet me on Tuesday April 29, 2021 following my introduction to you by the Prime Minister, Hon. James Marape, MP about my role in town planning and design,” Matheson wrote to Duma.
Duma forwarded the letter on to Kumul Consolidated Holdings’ managing director at the time, Isikeli Taureka, in early June. In a cover note, Duma described the contents of the letter as “self-explanatory.”
“I suggest that Kumul Consolidated Holdings enter into discussions with CSG in relation to the proposal,” he wrote in the note.
Taureka wrote back to Matheson shortly afterwards. He did not commit to working with CSG, but said he was open to further discussions with Matheson.
Records obtained by OCCRP do not show whether Matheson obtained the contract, and Kumul Consolidated Holdings did not respond to reporters’ questions about the project. Taureka was dismissed as head of the holding company in October 2021 for what the prime minister said was poor performance.
Taureka confirmed to OCCRP that he had received the letter from Duma suggesting a discussion with Matheson, but believed he needed to first find out more about the Australian businessman.
“I asked Don to present himself to receive his credentials but he didn’t show up,” he said, adding that he did not know if Matheson was ultimately given the contract.
However, in two separate interviews with the ABC last year, Matheson implied that he had indeed won the contract. He called the old wharf site “probably the best piece of real estate in the South Pacific at the moment.”
“We’ve got a lot of Australian government departments that if we could get them as tenants in some of the buildings we can have created here, that would underpin the development.”
Matheson said he had met with the managing director of Kumul Consolidated Holdings, David Kavanamur, to discuss “our planning report and… we’ve nailed it.”
“He’s thrilled, the PM’s thrilled, our challenges will be to get it through density planning,” he said.
He said he had “nearly completed” his work on the old wharf site and “after I complete my contract there, I’m entitled to talk” about it.
Matheson also attempted to carry out at least one high-level introduction for Marape in Australia. He told the ABC last year that he attempted to set up a meeting for Marape with Queensland Opposition Leader Crisafulli during a visit to Brisbane in October.
A spokesman for Crisafulli, Rob Morrison, confirmed that Matheson did contact his office seeking a meeting for Marape. But he said that the meeting did not take place because of a clash in their schedules.
Matheson “sent [Crisafulli] a text saying the PNG PM is in town and is keen to meet,” Morrison said, but “their diaries never lined up.”
‘We Didn’t Tender for It’
Police did not specify which of Matheson’s other PNG projects they were examining in their probe, and the country’s government agencies typically do not publish details of public contracts.
However, OCCRP and partners found records in the Pandora Papers of at least nine other contracts the businessman said he had won from PNG state companies and government agencies between 2013 and 2019. The details of the deals were contained in documents Matheson filed when becoming a client of Asiaciti Trust, one of 14 offshore service providers whose internal data was leaked as part of the Pandora Papers.
The contracts included plans for a new hospital outside of Port Moresby, the redevelopment of an old military barracks, a housing estate and industrial area for PNG Ports, and master plans for two towns. OCCRP is not alleging any wrongdoing in those projects.
However, reporters did find evidence that a third town master planning contract — a 4.9-million-kina (roughly US$1.4 million) deal to design a new provincial capital city in PNG’s remote highlands — was won via a tender process in which his competitors say they didn’t even know they were taking part.
Signed bid documents filed by Matheson with Asiaciti show that the tender board of Hela, then a newly created province, awarded a contract in September 2016 to CSG International to produce a master plan for the town of Tari. The town sits in a national electoral district held by Prime Minister Marape since 2007, but there is no evidence he played a role in the deal.
On paper, CSG won the bid by offering a cheaper price than two other Australian bidders. EJE Architecture, a firm based in the Australian city of Newcastle, is listed as having bid 5.4 million kina (around $1.5 million). MG Group, a property consultancy on Australia’s Gold Coast, was put down for 6.1 million kina (around $1.7 million).
Both companies had worked as subcontractors for CSG on other projects in PNG. But they denied to reporters that they were involved in the Tari bid.
“We didn’t tender for it,” said Matthew Grbcic, the principal of MG Group. “I don’t even think… I did any work on that particular job.”
Michael Rogers, a director of EJE who worked on the company’s PNG projects with Matheson, said that he doesn’t recall bidding, although he said there was a small chance that any records of a bid may have been thrown out as part of a regular purge of office files.
“I’m 95% certain that [the bid] won’t be ours and it sounds like it’s dodgy,” Rogers said.
“So everything points to being that it wasn’t ours and it was falsified.”
William Bando, the former provincial administrator who signed off on the contract with CSG, said he did so “based on advice from my technical staff.”
Bando, who now serves as the MP for a nearby electorate, said that it was Matheson who had “provided the bids from overseas bidders.”
He said he was later “instructed to terminate Matheson’s contract” when there was a “change of political leadership” in the province. He did not elaborate.
Hela province paid CSG International for at least some of the project, Pandora Papers files show. In November 2016, CSG invoiced Hela Province for 330,000 kina (around $94,000) for an initial “desktop report” for the city plan. The invoice appears to have been paid by the following February: a copy of CSG’s bank statement for that month shows the provincial administration made a payment of 330,000 kina on February 6, 2017.
The inaugural Special Economic Zone Summit or SEZ Summit hosted in Papua New Guinea ended successfully last Tuesday.
The three day event was led by the Ministry for Trade and International Trade and was opened by Prime Minister James Marape on Sunday (May 7, 2023).
Over 400 participants from government and private sectors, including international speakers and investors gathered to discuss the establishment of Special Economic Zones in the country.
Global experts shared their experiences with Special Economic Zones for local experts to learned from them.
Prime Minister James Marape in his key note address, welcomed all participants to the forum.
Furthermore, he said his government is committed to supporting Special Economic Zones, as a key driver of the Economy.
International Trade and Investment minister, Richard Maru in his opening remarks said the world has known the Special Economic Zone Concept for over 50 years.
For PNG, the SEZ concept started over 30 years ago, however some have failed.
The Minister further explained that the objective of the summit was to understand the definition of Special Economic Zones, and the types of Special Economic Zones.
“The second objective is to work towards understanding why we fail over the last 30 years by listening to the success of other countries,” Maru said.
Stalls and information booths of government agencies and stakeholders were set up during the summit.
The second day of the summit saw China and Philippines sharing their experiences of Special Economic Zones, including PNG SEZ experience and an update on Paga Hill Special Economic Zone.
Discussions on SEZ policy framework and masterplan were held on the final day of the summit.
Some enablers of SEZs discussed during the summit are: Policing for SEZ, Road Connectivity, Ports Solutions, Energy Solutions for SEZs and Application for SEZ Licenses.
International Trade and Investment minister Richard Maru expressed satisfaction saying the summit was successfully delivered.
“I want to close by thanking all of you again for coming, this is a start of a long journey,” The Minister said.
The Minister for Environment, Conservation and Climate Change and Member for Lufa Simo Kilepa says as long as he remains in office, education will be one of his priorities.
He said this during the week when presenting K188, 000 to the University of Papua New Guinea as part of the school fee assistance package.
“This funding is from the District and Provincial government to support the National Government’s support to our students studying in the institutions,” he said.
About 47 students from the University of PNG benefited from the assistance, part of a K2m package for school fee assistance.
“K1m is from our Lufa District Development Authority funding and K1m is from Governor’s assistance”.
Students from the Pacific Adventist University outside Port Moresby also were recipients of the school fee assistance.
Many who gave their testaments at the presentation of the funding support said it was the first of its kind to see support coming to them from a political representative.
“This funding is to help your parents and off-set some of the burdens they have, I understand many of them are subsistence farmers and many sell store goods in the informal space,” Minister Kilepa said.
All Lufa students throughout the country will benefit from this funding according to the DDA.
Papua New Guinea’s Minister for Foreign Affairs and Trade, Justin Tkatchenko, this afternoon announced stepping aside as Foreign Affairs Minister following protests over statements he made in the media.
Both Tkatchenko and his daughter were the subjects of wide public debate on social media after his daughter posted a TikTok.
The video showed his daughter, Savannah Tkatchenko, parading extravagant meals and a shopping spree during the public funded trip for the Coronation of King Charles.
Papua New Guineans criticized Tkatchenko’s daughter for what they perceived as a waste and inappropriate use of the taxpayer monies.
Tkatchenko responded to critics in a radio interview with ABC calling the social media commentors “primitive animals”
Tkatchenko says his comments were directed at internet trolls and cyber bullies who hailed hateful comments toward his daughter adding that his daughter is now traumatized by the comments on social media.
However, his response only seemed to fan the controversy, with many Papua New Guineans taking to social media and the streets to express their anger and frustration with the Foreign Minister’s apparent lack of respect.
Many have called for Tkatchenko to apologize, while some have suggested that he resign from his position as Foreign Minister.
In light of this, Prime Minister James Marape has issued a public statement asking the people of Papua New Guinea to forgive the Foreign Minister for his recent comments.
Marape says Minister Tkatchenko has apologised to the people of Papua New Guinea for the remarks he made on the Australian Broadcasting Corporation radio interview.
He further added that he too was offended by Tkatchenko’s remarks, labelling social media critics of his daughter as “primitive animals”, but had accepted the minister’s apology and asked all Papua New Guineans to do the same.
Marape’s statement has been met with mixed reactions from the public, with some praising his call for forgiveness and reconciliation, while others argue that Tkatchenko should still be held accountable for his actions.
The PNG Trade Union Congress has condemned Tkatchenko’s labelling of Papua New Guineans and demanded that he resign.
President of the Police Association, Lowa Tambua said the Prime Minister should not make an individual decision to forgive Tkatchenko on behalf of the people of Papua New Guinea but let the people decide.
The TUC also demanded that Tkatchenko be deported from the country, arguing that his actions have brought disrepute to Papua New Guinea on the international stage.
The Union leaders concerns were centered around Tkatchenko’s lack of representation and poor choice of words as a leader of this country and leader of the people.
Tkatchenko conveyed a second public apology in a press conference this afternoon with an official announcement that he will step down.
Meanwhile, Prime Minister James Marape in a statement has made known that he will take charge of the Foreign Affairs Ministry.
The momentum to host the first ever historical Special Economic Zone (SEZ) Summit has picked up as the country plays host to this very important international summit, which will be opened by Prime Minister James Marape on Sunday.
The summit is hosted by the Marape Government through the Department of International Trade and Investment.
In a media conference on Thursday, International Trade and Investment minister, Richard Maru gave an update of the summit.
“On the first day of the summit on Monday 08 May 2023, we will define and learn about countries who have gone into SEZ and the key factors that have made them to be successful and why many others have not succeeded, so PNG can learn from the experience of the countries who have succeeded,” Minister Maru said.
Maru said, SEZs have been here in PNG for over 30 years.
“Despite the legislation and the establishment of the Special Economic Zone Authority (SEZA), we still don’t have a Policy, we don’t have a Master plan and Development plans for SEZA, and this summit now, will help us learn from other countries on how they have made theirs work,” the Minister said.
Maru said the Government has given one SEZ license to Paga Hill SEZ, and they are hoping that more SEZs will be identified and developed after the summit.
“We don’t want this summit to be another talk feast, we want to learn and start working on more and more SEZs as the key driver for economic growth,” the Minister added.
He said PNG has vast potential, and more SEZs are expected to be announced on Tuesday next week, when the summit ends.
“I would like to thank all the sponsors; Platinum sponsors Special Economic Zone Authority (SEZA) and the Ministry of International Trade and Investment, Gold sponsors; Department of National Planning, IHU SEZ, Kumul Consolidate Holdings, Kumul Petroleum Holdings Limited and National Fisheries Authority, Silver sponsors; PNG Ports, MRDC and Bronze Sponsor, Telikom PNG and Securities Commission,” Minister Maru said.
Over 400 delegates all over the country including international speakers have paid their registration to attend.
Provincial governments and districts have shown immense support to participate and have also paid the registration for their representatives to participate in the summit.
“We are pleased to inform you that we have confirmed 7 international speakers from India, China, Indonesia, Japan, Philippines, Bangladesh and International Finance Corporation (IFC) who will be arriving on Saturday 06 May 2023.”
“Local participating delegates from provinces and districts throughout Papua New Guinea will start arriving today (Friday),” Minister Maru said.
The delegates will have a unique opportunity to contribute to the SEZ Policy, the Master Plan, the Legal Framework and also listen to speeches not only from international speakers but also on potential SEZs in Papua New Guinea and important local SEZ development partners.
The Minister said booths for the summit sponsors will be setup inside the Stanley Hotel on the second floor, on Saturday for the sponsors to showcase their brands and merchandises and it will also serve as information booths for participating delegates during the course of the summit.
The Government has made a decision to establish for the first time, The National Trade Commission Service in eight countries this year.
International Trade and Investment minister Richard Maru, made this announcement recently.
Minister Maru said PNG’s Trade Missions will be equivalent to Austrade of Australia, New Zealand Trade Enterprise or Canadian Trade Commission Service, where trade representatives will have their own establishments either in foreign Missions or stand alone offices, or through the appointment of Trade commissioners throughout the world starting with eight countries.
Maru said the primary responsibility of Trade commissioners, is to look for Markets for PNG goods, and to promote Trade investment opportunities in PNG.
“We are grateful for the support we have received from the Prime Minister and Cabinet, and is very timely as we prepare for the historic SEZ summit, which will be opened by the Prime Minister this Sunday,” Minister Maru said.
The first 8 Trade Commissions to be established are: Shanghai – China, Brisbane – Australia, Bangkok – Thailand, Jakarta – Indonesia, Brussels – European Union, Dubai – United Arab Emirates, Manila – Philippines and Singapore.
“The Ministry is extremely grateful that a number of SOEs have expressed interest to fund a number of Trade Commissions,” Maru added.
Maru said, in terms of priority, the first Trade Commission will be established in Shanghai, China, as China is offering to buy PNG’s LNG gas and other mining and petroleum products, including fish, logs and other goods.
“I finally want to commend the Prime Minister for his bold decision as a government to introduce for the first time the Trade Commission Service, as a key strategy to find new Markets for PNG and bring in more foreign direct investment, which is critical to build a more robust inclusive and sustainable economy,” Minister Maru said.
The Department of International Trade and Investment will be advertising for applicants to fill the positions of Trade Commissioners in the first 8 Trade Missions.
Fire Fighters responding to a fire that destroyed Tumini Guest House in Port Moresby’s Gerehu Suburb say that is a wake up call to property owners to install a fire hydrant in their premises.
Superintendent Cedrick Luwai from the Waigani Fire station said they were not able to contain the fire because there was no fire hydrate in that area.
“We cannot contain the fire because there was no fire hydrant in this area. While looking for a fire hydrant the fire became bigger, there was fencing on the side and the building doesn’t have a firebreak so the fire spread within the building quickly. We cannot do much,” said Superintendent Luwai.
Superintendent Luwai added that the cause of the fire will be subjected to an investigation.
Eye witnesses at the scene said the fire started at 4pm yesterday and continued until 6pm. By this morning, much of what was a Guest House was burnt to the ground.
The news of police senior sergeant, Ludwig Dondo’s passing came as a shock to his wife, Miriam Dondo and daughter, Ludwina.
Wife, Miriam Dondo who is employed with the Department of Justice and Attorney General, said she was on lunch break when she learned that her husband was shot.
She rushed to the hospital only to be told that her husband had died.
Meanwhile, three men are now in police custody, in relation to the killing.
But police say the prime suspect who launched the bow and arrow that killed Dondo is still on the run.
NCD and Central Divisional Commander, Anthony Wagambie said three suspects were brought in by Central police after community leaders at ATS gathered them at 7am this morning.
“I condemn those responsible for the death of my policeman and I am calling on the community at ATS to stand up together and find the prime suspect responsible for this heinous crime.
“You must give him to me, so he can face the law,” said Wagambie.
Jimmy Uguro, the Member of Parliament for Usino Bundi, has urged his community to become productive members of the district by prioritizing agriculture.
In a recent financial literacy training held in Bill Gara village, nearly 500 men and women graduated with certificates after successfully completing the program.
The training was facilitated by Bank of South Pacific/BSP and helped to capture the district’s goals and visions.
Uguro recognized the significant development that the district has experienced in recent years, such as the establishment of new schools and a sports precinct.
However, he emphasized that now is the time for further progress and community involvement.
Mary Koi, the Madang Branch Manageress of BSP, expressed BSP’s interest in partnering with the local district to set up a cash agent. She also encouraged small- to medium-sized entrepreneurs to register their businesses to receive the necessary support from BSP.
Brenda Igusam, the Officer in Charge of BSP sub branch in Walium, explained that the financial literacy training aims to educate individuals about how they can save and budget their money wisely.
The training covered various topics, including saving terminology, effective saving strategies, spending wisely, and the advantages and disadvantages of saving.
This financial literacy training fills a concerning knowledge gap within Papua New Guinea.
K1 Million was presented to the cocoa program for its continuous roll out in the district and a further k100,000 was committed for BSP to continue rolling out its financial literacy training in the district. Two trucks were also committed to the SME Group. BSP is committed to promoting financial literacy and partnering with local communities to provide the necessary support to help them achieve their economic goals.
