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Revenue from a Black Economy

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Gary Juffa_Inside PNG

A member of parliament has urged government to ensure the revised 2022 money plan is implemented soundly.

Northern Governor, Gary Juffa said while many local citizens were being over taxed and paying their dues, others weren’t.

“We have a black economy! It is an area where a lot of illegal activities happen or taxes are evaded or transferred,” Governor Juffa said.

The former PNG Customs Chief turned politician said, “The black economy has billions of Kina in there that never make it into our (PNG) coffers”.

He alleged that there were illegal activities taking place outside PNG waters.

“Did you know Mr. Treasurer, that significant or large volumes of fuel used by some of the players in this black economy, especially those in the forestry sector and those in the fisheries sector come across from the borders of Indonesia?”

“They are never taxed, they just hover outside our EEZ (Exclusive Economic Zones), ships go out (to sea) and get the fuel and come here and spread it out to their operations, and they pay absolutely no excise duty on this,” Garry Juffa said.

“We need to take these guys (companies not paying tax) on, we need to hold them accountable, we are not doing that!” Governor Juffa added.

“Most of it is transmitted offshore to build empires in other countries,” he concluded.

He said it was time institutions of government step up, and ensure that they serve the interest of the nation with integrity.

“We need to carry out a review of all the creatures (government entities) that we have created”.

According to an Attorney General’s report of the year 2018, 1419 government entities are operating in the country.

“Many of these organizations are performing in the best interest of the country, they are assets but there are a great number of them that are liabilities,” Governor Juffa said.

“They have executives, some have boards, they have a budget line, we don’t know what they do.

The state entities soak up significant amounts of money that ought to go to schools, aid posts, roads, bridges etc,” said Juffa.

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News

Supplementary Budget Tabled

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Treasurer Ian Ling-Stuckey_Inside PNG

The seven new electorates have been included in the Supplementary budget of 2022 which captures revenue from reviewed tax measures, plus surge in global oil prices, versus a K611 million Household Assistance Package.

“We have major increase in net revenues as well as the need for specific appropriations such as, K160 million school project fee subsidies announced as part of our household Assistance package,” Treasurer Ian Ling-Stuckey said in parliament.

The Supplementary budget is framed following the country’s election aimed at continuing the promise by government to steer the country to the Prime Minister’s dream of “becoming the richest black Christian nation.”

“There is also the need to provide additional funding for the seven (7) new districts that have been created and K3million each has been provided,” he said.

This is Ling-Stuckey’s fourth Supplementary Budget since being elevated to the Ministry and one that is still framed amidst pressure from external economic conditions.

“(Budget) is framed in what the IMF (International Monetary Fund) calls, the ‘gloomy and uncertain‘ outlook for the global economy, however, there are promising economic times ahead for PNG.

“PNG is experiencing by far its highest growth rate, in the Kina size of our economy in its history,” the treasurer added.

While the announcement may seem as welcome news for many, the real pressure of the rising price of goods and services is still being felt by the average Papua New Guineans.

“As highlighted in the comments on MYEFO (Mid Year Economic Fiscal Outlook) report, we must make sure, that positive macro economic news, does not blind us to the pain being faced by many families,” he said.

The priority areas of government expended through the K611million Household Assistance include:

  1. K250 million for continued removal on tax on all fuel products.
  2. K126 million for school project fees.
  3. K135 million from Tax collection
  4. K100 million for subsidizing household commodities.

Tax measures are again a key feature in the 2022 revised money plan, this time with cuts in Personal Income Tax for all wage earners.

“I was pleased that from 1 June 2022, all wage earners paying tax are receiving up to an extra K42.30, in their fortnightly pay packets,” Ling-Stuckey said.

He also noted the Additional Profits Tax which was supposed to be implemented on the banking sector, has not been implemented.

“For some reason, the tax cuts have not been processed, through the ALESO pay (roll) system”, the Treasurer said.

Another initiative of the Pangu led government is to subsidize household items.

“In April, we announced, that arrangements will be made by IRC with local firms, whereby firms would lower cost on key items such as flour, tinned fish, rice and OX and palm and in return they would be granted an equivalent reduction in taxes,” Ling-Stuckey said.

The assistance, however, took time to implement earlier this year because of the need for several legislative changes.

“We apologize for the delay…we will be watching closely the performance of IRC in this area, to ensure the changes are put in place this year,” he said.

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News

Online Visa Auto-Grant Function Reactivated

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IN an effort to reduce the high number of visa applications and turnaround time for clients, the Minister for Immigration and Labour, Bryan Kramer, reactivated the visa auto-grant function for selected visa classes on Wednesday (August 31).

Kramer said the visa auto-grant system operates independently, and when the applicant meets all the requirements of a selected visa class, the visa is automatically granted and emailed to their nominated email address almost instantaneously.

“This system is now available. PNG Immigration have used it before during the APEC in 2018, the Women’s Soccer World Cup and the Pacific Games in Port Moresby to facilitate large volumes of delegates. I want to reactivate this in a similar way but with strict conditions attached to the auto-grant letters,” he said.

The auto-grant only applies to visitors who apply online and meet all requirements under the visitor visa classes including Tourists (own itinerary and tour package), visiting relative, yacht person (crew and owner), easy visitor permit (30/60 days) and the Restricted Employment Visa.

The Minister said the auto-grant will allow tourists and visitors on short-term visits to get their visa granted immediately instead of waiting for seven days to get an approval.

He said the PNG Immigration and Citizenship Authority (ICA) will step up its compliance and enforcement efforts to ensure visitors are complying with the conditions set out in the auto-grant letters.

“With limited staff on strength, I am taking this option so personnel in the department can concentrate on other visa categories that need careful assessment and consideration. The auto-granting of applications does not in any way compromise the integrity of our systems or pose security risks as there are border officers to monitor any unusual movements,” Kramer says.

Minister Kramer re-launched the auto-grant system at the PNG ICA Headquarters in Waigani, Port Moresby, witnessed by senior officials from the department, and the media.

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Airlines Suspend Flights to Nadzab and Kiunga.

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Air Niugini and PNG Air have suspended all flights into Nadzab and Kiunga starting tomorrow (1st September).  

This follows a notice from the Civil Aviation Safety Authority (CASA) to the National Airports Corporation for failure to compile and meet administrative regulations.

NAC Managing Director, Rex Kiponge said CASA had accused NAC staff of not completing the Fit and Proper Person Test, which was an administrative matter.

“To put on record, the Airport Manager for Nadzab had passed the FPP Test and was certified by CASA. While for Kiunga, the Airport Safety Manager has submitted his application for FPP Test which is with CASA awaiting schedule of his test,” said Kiponge.

This afternoon, PNG Air issued a statement saying the suspension of flights will remain indefinite because airport regulation works on resolving this issue relates to both aerodromes. While Air Niugini stated it will resume services as soon as the airports are reopened by CASA.

Meanwhile, Minister for Transport and Civil Aviation Walter Schnaubelt has confirmed that both airports will be closed starting tomorrow. The Minister said an update will be posted tomorrow (1st, September) and has urged CASA and NAC to solve the issue swiftly.

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News

Policeman Sentenced to 20 Years in Prison

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A policeman in Kimbe was found guilty and sentenced to 20 years in prison for the death of a known criminal.

29-year-old Darryl Yakali from Avatip in the Ambunti-Drekikier District of East Sepik Province was convicted on the charge of murder on the 22nd of August, 2022.

The National Court in Kimbe heard that on 25th June 2020, Yakali and other policemen went searching for Dale Benny at Section 15 Area.

Between 4:30 pm-5 pm, they saw Benny Torua, Dale Benny’s father. Yakali spoke to Benny and told him to bring his son to the police station the next day with K500. Soon after, gunshots were heard around that same area. Dale Benny was shot and injured and taken to the hospital. He later died that evening. 

Yakali had pleaded not guilty but admitted to shooting Dale Benny in the defence of self-accident. However, the court found that there was no evidence to support Yakali’s belief.

From the post-mortem report submitted in court as evidence, Dale Benny sustained fractures to his left and right lower bones in the leg (tibia) and both his artery had been severed.

Yakali also argued that the deceased was listed in the most dangerous person category of the Kimbe Police.

Dale Benny was said to be involved in an armed robbery at Biala and was arrested on 19th August 2019. However, while in police custody, he escaped through the cell ceiling. Whilst on the run, Benny was said to have broken into JJ Mart in Kimbe Town and Yakali was tasked as the case offer to that case.

Benny was also said to have had countless cases of phones and bilums snatching and attempts to catch him were unsuccessful because he was harboured by his community.

Justice Panuel Mogish in his judgement said, despite the deceased being a Person of Interest to the Police, he was entitled to the full protection of the law.

“The offender was a policeman at the time of the offence. He held a position of trust to the community he served and that was to protect life and property. He abused that trust when he killed the deceased,” said Mogish.

Kimbe Police Station, West New Britain Province.
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Nadzab and Kuinga Airports Remain Open

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The Board and Management of the National Airports Corporation (NAC) have brushed aside reports of shutting down the Nadzab and Kiunga aerodromes following the expiration of vital operation certificates alluded to by the Civil Aviation Safety Authority (CASA).

Managing Director and CEO Rex Kiponge said NAC as the Aerodrome Operating Certificate Holder was not served any notice on the claimed adverse decision as required under the Civil Aviation Act.

“As the aviation document holder, I have not received any adverse decision nor notice of an adverse decision from the Director of CASA. Therefore, I want to assure the travelling public that Nadzab and Kuinga airports are safe for operations and remain operational today and are business as usual,” Kiponge said.

Mr Kiponge was responding to an article published today in one of the dailies. According to the report, Nadzab has 21 non-compliances, and 7 non-compliances for Kiunga. However, Kiponge added that non-compliance is an administrative matter that doesn’t warrant the immediate closure of the airports.

“In this case, the CASA director is alleging that the staff of NAC have not passed the Fit and Proper Person (FPP) Test which is an administrative matter. To put on record, my Airport Operations Manager in Nadzab has passed the FPP Test, and is certified by CASA.”

“For Kiunga Airport, my Senior Manager who is in charge is a Fit and Proper Person also certified by CASA. The Airport Safety Officer for Kiunga has submitted his application for FPP Test which is with CASA awaiting scheduling for his test,” Kiponge said.

Kiponge called on for better dialogue between CASA and NAC stating this is the first blunder of notices the two agencies have had in 10 years.

NAC Management in today’s media Conference in Port Moresby.
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Transforming a Nation through Women Leaders

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On the eve of Repentance Day in PNG, 26th August 2022, a Christian Women’s Magazine was launched, appropriately titled “EVE’’.

It had been in the making about five years ago, at a time when a lot of violence against women was being reported in the media; sadly the violence is rampant today, particularly sorcery related violence against women in PNG.  The latest in July, four women killed in Enga province while five sustained serious injuries. They were accused of sorcery and causing the death of a well-known businessman.

Eve Magazine is founded by Priscilla Raepom and Imelda Griffin.  Priscilla Raepom currently works at the National Parliament.  She was the founding editor for Newagewoman, PNG’s first Women’s Magazine launched in 2000.  While Imelda Griffin is a Communications Specialist. Both women decided that a women’s magazine will give voice to the womenfolk to inspire and equip them and give hope through Christian principles and belief.  They launched their publication on Thursday August 25 at the Hilton Hotel in Port Moresby.  The breakfast meeting was effectively titled, Breakfast with a Lady and the theme, ‘’Transforming a Nation through Women Leaders.

In reference to the breakfast’s theme, Guest speaker, Lady Emeline Dadae, the spouse of Governor General, Grand Chief Sir Bob Dadae said, “transforming a nation through women leaders was not only thought provoking but timely as well, at an age where PNG is going through its own transformation politically, socially and from unique cultures to one that is embracing the modern way of life.” She also paid tribute to the two newly elected women in Parliament, Rufina Peter, Governor for Central Province and Kessy Sawang the Member for Rai Coast.

Four esteemed women leaders with shared Christian values made up the panel at the breakfast meeting.

There was Lesieli Taviri, known for her many leadership roles in the corporate sector, she is currently the Executive General Manager for Kina Bank, however, she credits her most important role to that of being a Sunday School teacher in her local church and quoted a bible verse ‘teach your child how they should live and they will never depart from it.’

Another panelist, Ruth Kisam Tindiwi is recognized for her work in Sorcery Related Violence against women in PNG, her tireless efforts are also recognized globally.  While it is stressful and challenging knowing the statistics of women being tortured and murdered and children sexually assaulted, Ruth draws her strength from God. She says, a personal relationship with God will cost you time and rearranges your focus. 

“It’s either the world or the word, we as leaders are competing against a world that is relentless to destroy the lives of young people and women but when there is so much darkness, there is grace, “she said. 

Esther Igo the 3rd Panelist contested the Wewak Open Seat in the 2017 National General Election. She is a Strategist Advisor and sits on various boards and brings perspective of women to candidates who want to represent women in Parliament. When asked to name a woman she looked up to in the bible, Esther said, ‘’Ave Maria’, she bore a leader.”

The final panelist, Imelda Griffin is a communications specialist and one of the founders of Eve Magazine, when asked why the name ‘EVE’, Imelda said, it all goes back to the bible, the blue print of why a woman was created.  She is also inspired by the story of Miriam in the Bible who she said is the strategic thinker, a teenage girl that brought redemption to a people nation, the Israelites. 

The women captivated the audience with their messages of transformation and hope for more women leaders to rise up and address issues affecting them. 

The Christian Women’s Magazine is a quarterly publication with a limited edition released on the 25th of August 2022.  If you are interested in a copy, you can subscribe via email evemag.png@gmail.com or go the Facebook page https://www.facebook.com/EVEmagazine.

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Visit Vital For PNG-AUS Trade

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Australia’s Foreign Affairs Minister Penny Wong will visit the country this Monday as part of her mission in the region.

The Minister in a statement said her visit is part of the important relationship Australia has with PNG.

“I will meet with Prime Minister the Hon. James Marape following his re-election, as well as my counterpart, the Hon. Justin Tkatchenko and other members of PNG’s new cabinet” stated Wong.

Her visit comes at an opportune time when PNG is aiming to review a number of its foreign trade policies with its partner countries, especially Australia. Recently PM Marape stated that Australia must balance its trade with PNG and buy more PNG-Made exports.

“We want to move now into industrialisation by tapping into downstream processing of our natural resources,”

“Australia and PNG businesses have had a relationship for a long time and that is good but we need to reach new heights. With Australia as a place of export for our products, we have a huge trade imbalance where we import more from Australia and export less there,” said PM Marape.

Meanwhile, Foreign Affairs Minister Wong will also have a special audience with Central Governor Rufina Peter and Rai-Coast MP Kessy Sawang – the only two women elected into the 11th Parliament.

“I look forward to hearing views from PNG’s leaders and my priority will be to ensure we are pursuing our shared ambitions on the basis of trust, open communication and mutual support,” said Minister Wong.

The Minister will leave the country on Wednesday for Timo-Leste.  

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Climate Change

Steps To Accessing Climate Funding

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Steps are now afoot to ensure the country has access to the climate funding that’s available for climate change preparedness and adaptation available to affected smaller island nations like Papua New Guinea.

Lead agency Climate Change Development Authority together with its partners and stakeholders concluded a two-day validation work on the final draft of the National Adaptation Plan which is the first step to achieving the cause.

“There are two sides to climate change, you have the mitigation and adaptation. Climate change adaptation is mainly to do with enhancing the capacity of people at this time with the event of climate change with its intensity and frequency of the adverse effects happening to us,” General Manager Adaptation and Project Division Jacob Ekinye said.

He added, “We have to reduce the level of vulnerability and exposure of our people to those effects and we have to build their resilience so that they are able to cope with the adversities”.

“Under the Paris Agreement article, 79 under the climate change manage act section 74 provides for a national adaptation plan. Even you have heard of the global climate change facilities like the climate investment fund, especially Global Climate Fund (GCF), in order to solicit funding from those financing institutions; this is the box you have to tick,” Mr Ekinye said.

The Adaptation plan will be the first for the country in terms of its strategies and actions needed to deal with climate change impacts and meet international standards.

“This National Adaptation Plan, it has taken us two years, GCF funding we got if from a resource pool called the Reediness Finance to the tune of US D 1.7 million (to deliver this plan) and UNDP is our delivery partner,” Mr Ekinye said.

He added, “It’s not business as usual anymore, we have to factor in the climate change element in every development planning process”.

The CCDA is committed to ensuring this document is in place before the year-end.

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Stop Election Violence

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Caritas PNG, a major partner of the PNG Electoral Commission in the 2022 National General Elections has called on the National Government to intervene and end all forms of election-related violence.

The organization before the elections rolled out a nationwide voter education awareness program with the intent to educate people and prepare them to make informed choices in a free, fair and safe election.  

However, with the number of election-related violence throughout the country including ongoing fights in Mendi, the organization is calling for a swift response from the Government.

National Director, Mavis Tito in a statement said the responsibility falls on the candidates, including the ones that were elected into parliament.

“It is a mass that you created, and we are calling on you to resolve it immediately. Damage to property and lives taken is unnecessary and should be prevented at all costs,” stated Tito.

They have also highlighted the despair of concerned citizens who were not satisfied with the outcome of this election. Four regional forums will be organized to gather the views of citizens and will be given to relevant authorities to consider going forward.

“We are now calling on every one of you to come forward, attend these forums and express your views. We will process this and see to it the next NGE would be a better one, that is truly free and fair for us all,” Tito said.

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