transparency international papua new guinea inc....parency international, a global non-proflt, ngo...

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Who we are: Transparency International PNG is a chapter of trans- parency international, a global non-profit, NGO dedi- cated to empowering people to take action against corruption. TIPNG was formed in 1997 with the aim of combatting corruption in PNG and promoting open- ness, honesty and accountability in private and public dealings. TIPNG is a membership-based association, guided by voluntary Board of Directors who are leaders in the respective sectors in which they work. Our Mission: TIPNG empowers people to act against corruption. What is corruption? Corruption is the abuse of entrusted power for private gain, it hurts everyone whose life, livelihood or happi- ness depends on the integrity of people in a position of authority. Our Programs: • Advocacy and Legal Advice Center • Policy and Advocacy • Mike Manning Youth Democracy Camp • School Based Civic Education Project • Sir Anthony Siaguru Walk Against Corruption Contact Us: Transparency International PNG Inc. PO Box 591, Port Moresby, NCD Office location: Lokua Avenue, Boroko, Section 54, Lot 31 Phone: 323 4917 / 7517 Email: [email protected] Or visit: www.transparencypng.org.pg January - March 2020 1 Transparency International PAPUA NEW GUINEA INC. Our Values: Accountability, Fairness & Justice, Patience & Perserverence, Courage & Committment, Respect THE TRANSPARENCY INTERNATIONAL PNG QUARTERLY NEWSLETTER In a welcomed response to a stagnant 2019 Corruption Perceptions Index (CPI) score presented at the official Transparency International PNG (TIPNG) launch in January, PNG Prime Minister James Marape has vowed to have a fully Independent Commission Against Corruption (ICAC) established before the end of this year. In his official government response to the CPI findings during the official launch, Mr Marape acknowledged that corruption was a long-standing issue in PNG, which demanded greater cooperation between the government and citizens. He added that his current government is now committed to passing major legislative reforms in the shape of the ICAC enabling legislation, as well as the Whistle-Blowers Act, within the 2020 parliament year. Mr Marape during the launch, said that the ICAC enabling legislation and the Whistle-Blowers Act would be key vessels in reforming PNG and that these legislations are only two of what Papua New Guineans can expect to be a year filled with reform legislations that the current government plans to introduce. Although no official study into the costs of corruption has ever been commissioned in PNG, former Prime Minister Sir Mekere Morauta in a press statement in 2017, stated that the PNG Fraud Squad had estimated the cost of corruption to the PNG government at approximately K1.5 billion in 2016 alone (this means approximately K28 million was lost to corruption every week!). In officially launching of the 2019 CPI last Thursday (which was themed: “Let’s Clean Up our Act, Set Up The ICAC”), TIPNG Chairman Peter Aitsi stressed the importance of establishing strong and independent anti-corruption enforcement tools to minimizing leakages in the national budget. The push by TIPNG for government to establish the ICAC reflected similar trends identified in a 2016 report by multinational finance firm Price Waterhouse Coopers (PwC), which cross-referenced CPI scores against International Monetary Fund records of Gross Domestic Product (GDP) per capita. The report highlighted a trend where higher CPI scores correlated with higher GDP per capita; adding that, “Our (PwC) analysis shows that a one-notch increase in perceived corruption levels is associated with a $380 decrease in GDP per-capita and lower standards of living.” If this formula was applied to our current PNG population of 8.251 million, it would mean a one-point increase in our CPI score would be equal to an estimated K10.857 billion boost to the national economy. Papua New Guinea’s score in the 2019 CPI results showed no improvement or decline from the previous year; scoring 28 out of 100 on the index and ranking 137 out of a total of 180 participating countries. Marape vows to deliver ICAC in 2020 PNG Prime Minister Hon. James Marape delivering the government response during the official launching of the Transparency International 2019 Corruption Perceptions Index at the Lamana Hotel in January.

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Page 1: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

Who we are:Transparency International PNG is a chapter of trans-parency international, a global non-profit, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed in 1997 with the aim of combatting corruption in PNG and promoting open-ness, honesty and accountability in private and public dealings. TIPNG is a membership-based association, guided by voluntary Board of Directors who are leaders in the respective sectors in which they work.

Our Mission:TIPNG empowers people to act against corruption.

What is corruption?Corruption is the abuse of entrusted power for private gain, it hurts everyone whose life, livelihood or happi-ness depends on the integrity of people in a position of authority.

Our Programs: • Advocacy and Legal Advice Center • Policy and Advocacy • Mike Manning Youth Democracy Camp • School Based Civic Education Project • Sir Anthony Siaguru Walk Against Corruption

Contact Us:Transparency International PNG Inc.PO Box 591, Port Moresby, NCDOffice location: Lokua Avenue, Boroko, Section 54, Lot 31Phone: 323 4917 / 7517Email: [email protected] visit: www.transparencypng.org.pg

January - March 2020 1

Transparency InternationalPAPUA NEW GUINEA INC.

Our Values: Accountability, Fairness & Justice, Patience & Perserverence, Courage & Committment, Respect

T H E T R A N S P A R E N C Y I N T E R N A T I O N A L P N G Q U A R T E R L Y N E W S L E T T E R

In a welcomed response to a stagnant 2019 Corruption Perceptions Index (CPI) score presented at the official Transparency International PNG (TIPNG) launch in January, PNG Prime Minister James Marape has vowed to have a fully Independent Commission Against Corruption (ICAC) established before the end of this year.

In his official government response to the CPI findings during the official launch, Mr Marape acknowledged that corruption was a long-standing issue in PNG, which demanded greater cooperation between the government and citizens.

He added that his current government is now committed to passing major legislative reforms in the shape of the ICAC enabling legislation, as well as the Whistle-Blowers Act, within the 2020 parliament year.

Mr Marape during the launch, said that the ICAC enabling legislation and the Whistle-Blowers Act would be key vessels in reforming PNG and that these legislations are only two of what Papua New Guineans can expect to be a year filled with reform legislations that the current government plans to introduce.

Although no official study into the costs of corruption has ever been commissioned in PNG, former Prime Minister Sir Mekere Morauta in a press statement in 2017, stated that the PNG Fraud Squad had estimated the cost of corruption to the PNG government at approximately K1.5 billion in 2016 alone (this means approximately K28 million was lost to corruption every week!).

In officially launching of the 2019 CPI last Thursday (which was themed: “Let’s Clean Up our Act, Set Up The ICAC”), TIPNG Chairman Peter Aitsi stressed the importance of establishing strong and independent anti-corruption enforcement tools to minimizing leakages in the national budget.

The push by TIPNG for government to establish the ICAC reflected similar trends identified in a 2016 report by multinational finance firm Price Waterhouse Coopers (PwC), which cross-referenced CPI scores against International Monetary Fund records of Gross Domestic Product (GDP) per capita.

The report highlighted a trend where higher CPI scores correlated with higher GDP per capita; adding that, “Our (PwC) analysis shows that a one-notch increase in perceived corruption levels is associated with a $380 decrease in GDP per-capita and lower standards of living.”

If this formula was applied to our current PNG population of 8.251 million, it would mean a one-point increase in our CPI score would be equal to an estimated K10.857 billion boost to the national economy.

Papua New Guinea’s score in the 2019 CPI results showed no improvement or decline from the previous year; scoring 28 out of 100 on the index and ranking 137 out of a total of 180 participating countries.

Marape vows to deliver ICAC in 2020

PNG Prime Minister Hon. James Marape delivering the government response during the official launching of the Transparency International 2019 Corruption Perceptions Index at the Lamana Hotel in January.

Page 2: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

From theExecutive Director

2

Dear Members & Supporters,

Welcome to the year 2020 and what a start to the new year it has been! Much as the year 2020 has come blasting out of the blocks in this first quarter, TIPNG has also had an equally hectic start to the year.

Our team has had remarkable success executing, engaging and advocating a number of key events this quarter, including the official launching of the 2019 Corruption Perceptions Index in January, which was attended by Prime Minister James Marape, who presented the official government response to the study and its implications in PNG.

Also during this quarter, we hosted our first ever Corporate Membership-Drive launch in partnership with NASFUND and successfully launched the 2019 Bougainville Referendum Observations report. While preparations for the 2020 Sir Anthony Siaguru Walk Against Corruption are also now underway.

Furthermore, in response to the current global outbreak of Novel Corona Virus (COVID-19), we have now adequately equipped and allowed all TIPNG staff to work remotely from home for 14 days, from March 23rd – April 3rd 2020.

These measures have been taken in order to safeguard our staff and ensure our operational capabilities are not crippled by any contingencies.

Unfortunately, as a result we have also had to postpone our 5th Biennial Exhibition (which was initially planned for April 3-4 in Lae) to a date yet to be determined. In spite of this, we are cautiously optimistic that the rest of our major calendar events this year will be able to go ahead as planned.

Despite the challenges, we know that our team as well as our partners and stakeholders are persevering in these uncertain times and we are as committed as ever to continue deliverig all our projects, campaigns and calendar events moving forward.

While our operations are being facilitated remotely from March 23rd – April 3rd, our core services like our corruption complaints desk will remain operational during this time along with our toll-free lines.

To all our partners, stakeholders and members, we look forward to your continued support and solidarity through the next quarter and we encourage everyone to take heed of the information put out by the World Health Organization.

My best regardsArianne Kassman

Aligning anti-corruption efforts in the pacific regionEarly February, our Executive Director Ms Arianne Kassman was invited to speak at the Pacific Regional Conference on Anti-Corruption in Tarawa, Kiribati.

The objective of the conference was to integrate and align anti-corruption work performed carried out in the Region with the sustainable development agenda and to enhance the resilience of Pacific Island countries.

The theme of the conference was Pacific Unity Against Corruption and had a special focus on regional cooperation to develop effective anti-corruption strategies and frameworks in the Pacific.

The discussion topics of the conference were centered around the economic and social impact of corruption in the Pacific, combatting corruption to improve public service delivery, what a holistic anti-corruption framework looks like and the role of traditions and culture in fighting corruption.

Ms Kassman was one of two invited Key Presenters at the Pacific Regional Conference on Anti-Corruption in Tarawa, Kiribati. The presentation was given to leaders of Pacific Island Countries, and invited representatives from the Commonwealth, youth and private sector. Ms Kassman’s presentation was on the Economic and Social Impact of Corruption on Small Island Economies.

Some of the social impacts of corruption that Ms Kassman shared at the conference were:

• limited to no space for civil society to speak up;• lack of oversight of decision-making processes;• lack of an independent and/or free media; and• a lack of participation of citizens as beneficiaries of public service delivery.

She also highlighted a finding from the 2017 Survey of Business in Papua New Guinea by the Institute of National Affairs that the need to make corrupt payments has negative effects on productivity and investment.

Ms Kassman shared TIPNG’s view on what needed to be done to minimize the impacts stated:

• the need for stronger enforcement of existing laws and conventions;• development and implementation of anti-corruption policies and standards;• protection of freedom of speech and the right to protest; and• ensuring the independence of the institutions that provide checks and balances, such as the judiciary, the police and the media.

TIPNG Executive Director, Ms Arianne Kassman (left) and Mr Michael Macaulay (right) from the Wellington School of Business and Government were speakers at a plenary discussion during the Pacific Regional Conference on Anti-Corruption in Kiribati.

Page 3: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

January - March 2020 3

180 6000 or 760 14636180 6000 or 760 14636to report corrupt activities and get FREE legal information and referral.

CORRUPTIONTODAY!

UNCOVER

Call the Tranparency International PNG Advocacy and Legal Advice Center on:Call the Tranparency International PNG Advocacy and Legal Advice Center on:

With the official global launch of results from the 2019 Corruption Perceptions Index (CPI) in January, Transparency International PNG (TIPNG) restated its call on the PNG Government to establish a fully Independent Commission Against Corruption (ICAC).

This will be a major step in fighting corruption and helping to prevent the leaks in the Government budget, which is contributing to PNG’s money woes.

Scoring 28 out of 100 and ranking 137 out of 180 countries surveyed in the 2019 CPI, PNG now finds itself among two thirds of participant countries that have shown little to no improvement on their scores from the 2018 CPI.

In a short presentation during the official launch in January, TIPNG Chairman Peter Aitsi, highlighted CPI trends showing that most countries that performed well on the 2019 CPI had strong and independent institutions supported by active and independent watchdog agencies.

Mr. Aitsi said that unlike many other countries that found themselves in a similar position, PNG had actually taken a number of steps to address the issue of

corruption in the country such as signing on to global anti-corruption initiatives (United Nations Commission Against Corruption and Extractive Industries Transparency Initiative), as well as the development of the National Anti-Corruption Strategy (NACS) 2010-2030.

However, he added that having an independent anti-corruption enforcement agency like the ICAC is not only essential to boosting the effectiveness of the NACS, but would also allow for the most effective implementation of the National Budget, by preventing wastage through corrupt activities.

Figures cited previously by former Operation Task Force Sweep head, Sam Koim in 2015, suggested the cost of corruption to government revenue was estimated to be above K5 billion.

Furthermore, in 2016 former Prime Minister Sir Mekere Morauta also cited

Police Fraud Squad estimates of over K1.5 billion per year being lost to corruption.

In a time when the PNG government has prioritized repairing the National Budget and reducing National Debt, Mr. Aitsi gave the example of Indonesia’s premiere anti-corruption enforcement agency, Komisi Pemberantasan Korupsi (KPK), which was recently reported to have saved the Indonesian government about 63. 8 trillion rupiah (approximately US$4.52 billion or K15.59 billion) in potential losses, in the past four years alone.

Our launch of the 2019 CPI results coincided with the lifting of a global embargo on the results, in a coordinated global launch throughout all Transparency International Inc. chapters around the world.

This year’s 2019 CPI launch was centred on the theme of “POLITICAL INTEGRITY”, while the PNG launch was themed “LET’S CLEAN UP OUR ACT, SET UP THE ICAC.”

For more information on the 2019 CPI methodology and detailed records of the global ranking visit our website at www.transparencypng.org.pg.

ICAC to “plug the leaks” in National Budget“Former Operation Task Force Sweep head, Sam Koim estimated the cost of corruption to government revenue to be above K5 billion in 2015.

TIPNG Chairman Peter Aitsi making a presentation on the 2019 CPI results during the official launchcing of the results at the Lamana Hotel in January.

Page 4: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

4

Markham Culverts Ltd donates new fence

TIPNG is focused on strengthening and maintaining its partnerships with like-minded organizations. In February this year, we signed a Memorandum of Understanding with the Centre for Environmental Law and Community Rights (CELCOR)

Like us, CELCOR shares TIPNG’s goals of promoting good governance and accountability in the sustainable management of natural resources in Papua New Guinea.

We will be working with CELCOR on: • relevant cases of corruption reported to TIPNG’s corruption complaints desk;• promoting the adoption of Right To Information (RTI) Legislation under the PNG Open Government Partnership National Action Plan 2018-2020 and beyond.

CELCOR joins forces with TIPNG

In the lead up to the 2022 national elections, TIPNG has designed a three-year Voter Education Plan 2019-2022 to enhance voters understanding of their rights prescribed by the law. This includes:

knowing the importance of your vote and what it represents;

• citizens exercising their democratic rights to vote for the candidate they want and freely vote without intimidation/coercion;• being informed that their votes gives the mandate to the leader to speak on their behalf (representative democracy) • understanding the role of an elected leader; and • being able to hold the leader accountable.

The election findings from the 2017 Election Observation Report showed widespread election fraud, irregulari-ties and election related violence. This suggested that most citizens lack election and voter education. More education and awareness programs needed to be rolled

out to districts to increase awareness of the role of election in a constitutional democracy, voter rights and responsibili-ties and increasing citizens’ access to vital election information.

The TIPNG Voter Education Plan aims to increase understanding of the citizens’ about the roles of the government institutions (police, electoral commission) to conduct free and fair elections.

It is a guide for TIPNG to deliver Civic and Voter Education and Voter information

(outreach) to prepare citizens for the National General Elections, LLG elections and other subsequent elections held in PNG.

We have begun our series of meetings with key stakeholders to make our Voter Education Plan a reality. We met with the Information & Awareness Division of the PNG Electoral Commission today to discuss the roll out of TIPNG’s Voter & Civic Education activities over the next 3 years.

Voter education program gaining traction

One of the recent developments at the TIPNG office yard at Boroko is a new fence, kindly donated and constructed by Markham Culverts Ltd.

We are grateful for the in-kind support from Markham Culverts Ltd.

Markham Culverts Ltd is a manufacturer and supplier of international standard construction products.

(L-R) Program Coordinator, Mr Samson Kandata and Ms Kassman with officers from the Electoral Commission of PNG.

CELCOR Executive Director, Mr Peter Bosip (right) and our Executive Director, Ms Arianne Kassman (left) sealing the MoU with a handshake.

(L-R) TIPNG Day shift security guard Sean and groundskeeper Papua posing in front of the new galvanized-steel perimeter fence donated by Markham Culverts Ltd.

Page 5: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

January - March 2020 5

As the PNG chapter of Transparency International Incorporated (TIPNG) celebrated their twenty-third anniversary in February, we honoured four local companies who have demonstrated outstanding commitment to TIPNG and the fight against corruption in PNG.

Founding members of the TIPNG board, Richard Kassman and Dame Meg Taylor were on hand at the short ceremony, in an event which was hosted in partnership with NASFUND PNG Limited, to commemorate over two decades of the anti-corruption movement in PNG.

The awardees on the night were Johnston’s Pharmacy, Kenmore Limited, ExxonMobil PNG, and, the Bank of PNG who were honoured in two categories for, dedicated commitment and exceptional contribution respectively.

In her remarks during the presentation of the awards, TIPNG Executive Director Arianne Kassman congratulated Johnston’s Pharmacy and the Kenmore Group for over thirteen consecutive years of dedicated financial support to the work of TIPNG.

Ms Kassman also congratulated recipients of the exceptional contribution award, Bank of PNG which has contributed over K139,000 to TIPNG programs since 2007 and ExxonMobil PNG Limited whose contributions have amounted to over K106,000 over the past decade.

ExxonMobil PNG’s contribution towards the annual Mike Manning Youth Democracy Camp, which has become a trademark project of TIPNG for over a decade.

Lady Mina Siaguru, spouse of the founding Chairman of TIPNG, late Sir Anthony Siaguru, was also present during the ceremony, which gave corporate supporters of the anti-corruption organisation the opportunity to learn more about TIPNG and their work.

Now positioning ourselves to take on the challenges of the new year 2020, TIPNG is looking to build on a number of ongoing and new initiatives, including our flagship Mike Manning Youth Democracy Camp, the Open Government Program, the Promoting Anti-Corruption and Integrity Strategies (PAIS) program and the push to have civic educations materials included in the national curriculum, to name a few.

Corporates awarded for committment

On the youth front, we’ve started our School Talks for 2020. The School Talks are carried out by our Youth Integrity Program. It is outreach program where we share the work that we do as an organization with young people in schools, have interactive discussions about rejecting corruption in their schools or communities and how they can get involved in our programs.

The School Talks also ensures that TIPNG maintains an active presence within secondary schools whilst also increasing its brand visibility as the only civil society

organization that focuses on addressing corruption within Papua New Guinea.

The first we visited was Tokarara Secondary School. We thank the school administration for allowing us to speak to the grade 11 and 12 students.

Then we visited the newly established Kundu International School. The students generated a great discussion on the issue of corruption and what they can do as young people to create change in their schools and communities. TIPNG greatly

appreciates how outgoing and interactive the students were and their willingness to learn about the work of TIPNG.

We also visited La Salle Technical College at Hohola in Port Moresby. The students were receptive as well as interactive.

If you would like us to visit your school than get in touch with us today either through Facebook or email:[email protected].

School anti-corruption talks underway

Exxon Mobil PNG Limited represenatives posing for a photo with Lady Mina Siaguru (middle), our Chairman Peter Aitsi (far left) and Executive Director Arianne Kassman (far right), after they were awarded for their exceptional contribution to TIPNG over the years.

Youth Integrity Program Coordinator Dagia Aka posing for a photo with grade 11 and 12 students from the Tokarara Secondary School earlier this month after a sucessful school talk earlier this month.

Page 6: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

6

In February, TIPNG has initiated a call for the Prime Minister and relevant Papua New Guinean agencies to investigate what appear to be serious allegations of grand corruption against State Minister William Duma, as reported in the Australian Financial Review.

As Parliament made preparations to convene its first sitting of the year, TIPNG urged Prime Minister Marape to live by his words that he will fight corruption and that the example needed to start with his own cabinet.

“When the Manumanu land deal allegations first surfaced in 2017, TIPNG supported the former Prime Minister’s call for an investigation and in the interest of good governance, that Mr. Duma must step down as minister until he is cleared. We now hear of similar allegations involving the setting up of shell companies and the purported abuse of office to enrich certain individuals, all at the expense of the People of Papua New Guinea,” said TIPNG Chairman, Peter Aitsi.

TIPNG now maintains the same call to Prime Minister Marape, that the Minister at the centre of this report must be directed to step down and a proper independent investigation into the allegations must be undertaken immediately.

Given the transaction involved US dollars and an Australian listed company, there is prospect for the PNG Police and anti-corruption agencies to work closely with the Australian Federal Police, the US Securities Exchange Commission and the US Department of Justice to investigate the evidence exposed by the Australia Financial Review.

The main question that needs to be asked is why a company with only K2 capital, was set up days before being granted a petroleum licence; before selling this same license to an international mining company for US$10.3m (K36m) shortly thereafter.

Most importantly who is the behind this company? Who are its beneficiaries? and what role did they play?

We believe that failure by Prime Minister Marape to act on principles of good governance will only embolden corrupted individuals and networks to continue their activities.

While there are certain distinctions from the Manumanu land scandal, as the matter involves a foreign firm & petroleum licenses, the principles of proper governance & accountability of public office must still apply.

The use of shell companies and opaque company structures demonstrates the need for legislating a beneficial ownership registry through the PNG Extractive Industries Transparency Initiative (PNGEITI).

Heightening the scrutiny of beneficial ownership through the activation of the PNGEITI processes will assist in improving transparency in licensing and revenue flows from major resource projects.

We reminded Prime Minister James Marape of his various statements declaring his commitment to fight corruption; the time for talking is over.

The PEOPLE OF PNG now NEED ACTION, before new projects like P’nyang and others meet the same fate.

END THIS IMPUNITY!

New campaign calls for higher standards from MPs

In February, we launched a report outlining findings from its Observation of the Bougainville Referendum last year, to stakeholders and partners.

Our observation of the Bougainville Referendum was conducted across 28 polling sites in North and Central Bougainville with well over 100 voters interviewed. However, TIPNG only observed the Polling Process and not the Counting.

“The TIPNG Observers played a critical role in the Referendum by observing the conduct of polling and counting, to ascertain if the process was free, open, transparent, democratic and fair – based on national legislation and according to national and international standards,” said Mr. Yuambari Haihuie, TIPNG Deputy Director (Policy & Advocacy)

and coordinator of the Bougainville Referendum Observation (BRO) Project.

“In terms of TIPNG’s overall assessment of the Bougainville Referendum, while there were minor procedural issues, if measured against the standard of previous elections in PNG, the Bougainville Referendum was free, fair & safe and credibly reflects the will of the people of Bougainville. Observers were all welcomed and did not encounter any hostility or violence; in fact, most polling stations had a sense of celebration by communities as polling commenced,” said Mr. Haihuie in presentation at the launch of the report.

Furthermore, all voters that were interviewed by our Observers were forthcoming in their answers and gave answers freely.

Our team of observers was comprised of TIPNG Staff & Directors, and volunteers from partners institutions such as the University of Papua New Guinea (UPNG), PNG National Research Institute (NRI), Public Service Commission (PSC) and the Integrity of Political Parties and Candidates Commission (IPPCC).

We thank the people of Bougainville and the Bougainville Referendum Commission (BRC) Polling Officials for their unanimous support in answering survey questions over the week of polling.

The TIPNG B.R.O. Project was funded by the European Union (EU) and it is hoped that our report will be of use to the Government of PNG and the Autonomous Bougainville Government in their deliberation on the outcome of the Referendum.

Report shows Bougainville referendum was fair

AFRGA1 A001

PNGminister’slink to $US10mHorizondeal

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

JemimaWhyteandAngusGrigg

Continued p4

Horizon Oil paid $US10.3 million to ashell company where the sole directorand shareholder had close personaland business links to Papua NewGuinea’s thenpetroleumminister,Wil-liamDuma, newdocuments reveal.The revelations come as Horizon

stood down chief executive MichaelSheridan yesterday, pending an inde-pendent investigation by lawyers atHerbert Smith Freehills and theaccounting firmDeloitte.The company, which has seen its

stock price fall 35 per cent this week,said a board committee had beenestablished to oversee the processafter an investigation by The Austra-lian Financial Review found the com-pany had repeatedly ignoredcorruptionwarnings.‘‘Should any investigation into these

matters be conducted by theAustralianFederal Police, the company intends toco-operate,’’ Horizon said in a state-ment.At the centre of the scandal is Mr

Duma’s relationship with PNG lawyerSimon Ketan, who controlled the shellcompany, ElevalaEnergy.Elevala was granted a 10 per cent

stake in a petroleum developmentlicence by Mr Duma’s department in2011, despite having no experience inthe sector or sufficient capital todevelop the asset.Horizon’s 70 per cent stake in the

same licence was issued as part of asealed legal settlement between MrDuma and Horizon, which followed aprotracted dispute over the minister’sdecision to retract the previous licence.In the weeks following the settle-

ment, Horizon purchased Elevala’sstake for $US10.3 million, despiterepeated corruption warnings fromlawyersworking on the deal.Those warnings look to be increas-

ingly pertinent, as new documentsshow the relationship between Mr

CBAtograbbigger shareofbusiness

�CEOchallenges rivals after $4.47bprofit

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

JamesFrost

Continued p20

Commonwealth Bank of Australia ispreparing to attack rivals for a biggershare of the spoils frombusiness bank-ing after delivering one of the standoutresults of the reporting season and fur-ther entrenching its dominance ofretail banking inAustralia.CBA chief executive Matt Comyn

delivered abullish outlook for thebankand the economy yesterday when herevealed it had extended its lead on itsrivals with strong gains in the keyproduct areas of mortgages, depositsandbusiness accounts.Two weeks after Mr Comyn said the

bank was ready to draw a line undertheHayne royal commissionandmoveon, CBA has delivered loyal sharehold-ers a $4.47 billion first-half cash profit,a $2 interimdividend and a 4.1 per centrally in the share price.‘‘We’ve seen an improvement, cer-

tainly, in the housing market. We’veseen recent unemployment figureswhich have been very strong – in NSWsome of the lowest unemploymentrates since the 1970s,’’MrComyn said.‘‘Strong operational performance

has underpinned a very solid result.Our home lending was up 4 per cent,business lending up 3 per cent over theperiod, andavery strongdeposit result,up 9per cent.’’Close to 36 per cent of Australians

countCBAas theirmainfinancial insti-tution. It has 24.9 per cent of the homeloan market and 26.8 per cent of thedepositmarket.Cash profit for the first half of

2019-20 fell 4.3 per cent, much lowerthanwas expected, to $4.47 billion in asurprise result that prompted one ana-lyst to say it ‘‘shot the lights out’’.Mr Comyn was confident about the

economic outlook, citing the govern-ment’s strong fiscal position, infrastruc-ture investment, lower unemploymentanda recoveringpropertymarket.He said the bank planned to use

improving conditions and the strengthof its business to capture even moreyounger customers and business

www.afr.com | Thursday 13 February 2020 $4 INCLUDES GST

FINANCIAL REVIEWFutureBriefingsMicrosoft’s warning to business on AI News p8

The AFR View p46

Cashedup

■Capitalmanagement isfront ofmind forCBA investors afterresults that show

the bankhas billions of dollarsin excess capital. Chanticleer p48

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Blackmoresplunges,scrapsdividendVitamins group Blackmores has scrap-ped its first-half dividend after a dra-matic 48 per cent slide in profits andwarned the second half will be evenworse because of disruption from thecoronavirus outbreak, and upheaval atits Melbourne factory. Shares in thecompany slumped by 20 per cent atthe opening of trade yesterday andclosed down 13 per cent at $78. FlightCentre warned last week the coronavi-rus could squeeze its second-halfprofits.� Companies More reports p14� Coronavirus p10, 11, 27, Features p44

JPMorganhot shots,NAB’s $1bhybridStreet Talk | Exclusives Wall Streetgiant JPMorgan has tapped JabeJerram and Dyson Bowditch to runinvestment banking and equity capitalmarkets in Australia, in a dramaticshake-up of its senior ranks.As NAB’s new boss, Ross McEwan,

fronts investors today for the first timefor the bank’s trading update, StreetTalk can reveal he is preparing to rollout a $1 billion hybrid offer. The ques-tion is whether NAB goes this week, orwaits until after reporting season.� Street Talk p15

� Companies Topping the loan charts p14� Markets What lifted stocks p28� James Thomson How CBA reigns p30� What we learnt from the results p30

Sanderswinadisaster for rivalBiden● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

JacobGreberAFRcorrespondent

Continued p11

Concord, New Hampshire | Left-wingerBernie Sanders narrowly beat upstartformer mayor Pete Buttigieg in theopening New Hampshire primary, in anight that trashed former vice-president Joe Biden’s claim toelectability and left moderate Demo-crats divided onwhere to put their votein a still-crowdedfield.Afternarrowly falling just short of first

place in last week’sIowa primary, Sen-ator Sanders (pic-tured left)won26percent support fromDemocrats, accord-ing to US mediareports based on

90 per centof thevote counted.Iowa winner Mr Buttigieg came in

second on 24.4 per cent but, in thebiggest surprise of thenight,Minnesotasenator Amy Klobuchar ranked third

on 19.8 per cent. The outcome showsDemocrats remain deeply divided onwhether to elect the high-taxing, bigspending, anti-establishmentnon-partymember Sanders, or one of the viableremaining moderates, which includesMr Buttigieg, Senator Klobuchar andbillionaireMichael Bloomberg.Among thebiggest victimsof thevote

� World Uproar over Roger Stone p12� Martin Wolf Trump’s re-election p27

Horizon CEO Michael Sheridan, top, who was stood down yesterday; lawyer SimonKetan, above left; and William Duma. MAIN PHOTO: RENEE NOWYTARGER

A snippet from one of a series of articles published in the Australian Financial Review which levelled serious allegations of grand corruption against PNG cabinet ministers over their alleged involvement with multinational private companies.

Page 7: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

January - March 2020 7

In February, we farewelled three students from the University of Papua New Guinea (UPNG) School of Law who completed their eight-week internship with us.

The interns; Mr Alois Sinen, Ms Rhonda Tevlone and Ms Melvia Lyandenge, began their internship last December 2019 with our corruption complaints helpdesk, the Advocacy and Legal Advice Centre (ALAC). The ALAC provides information to assist witnesses and victims of corruption in PNG.

“Since 2017, there have been two cohorts of interns. The 2019-2020 TIPNG Interns are the third cohort to have completed the program. We are proud to have these budding legal professionals gain experience of TIPNG’s activities and programs which empower citizens to address corruption,” said Mr Samson Kandata, coordinator of the TIPNG Legal Internship Program (LIP).

“The 2-month internship involved attending to complainants through phone calls and face-to-face meetings with clients. TIPNG is a non-government organization so we do not investigate, arrest or prosecute perpetrators of corruption. The LIP Interns compiled case briefs and followed up on cases referred to responsible agencies on behalf of complainants,” added Mr Kandata.

In addition to their legal internship, the students also contributed to research & policy work on outstanding national cases of corruption, met with TIPNG stakeholders and partners in the public and private sector and assisted with advocacy & outreach events by TIPNG.

The Legal Internship, now in its 3rd year, is an arrangement between the UPNG Law School and TIPNG, with funding support from ExxonMobil PNG (EMPNG).

LIP graduates three more

We were honored to have United Nations Secretary General’s Youth Envoy, Ms Jayathma Wickramanayake visit our office to discuss the work that we do to empower young people in Papua New Guinea, such as our Mike Manning Youth Democracy Camp & the Youth Against Corruption Association.We also showcased our collaboration with partners such as The Voice Inc in the Youth Coalition.

During the meeting TIPNG made recommendations on areas that the United Nations could focus on in Papua New Guinea and also at the global level to improve the development outcomes available to youth.

UNSG’s Youth Envoy visits TIPNG

UPCOMINGUPCOMING20202020

EVENTS:EVENTS:

We will be hosting the Sir Anthony Siaguru Walk Against Corruption in Port Moresby and Lae!

14Jun

2020 SASWAC:2020 SASWAC:

We will be hosting the 2019 Annual General Meeting and the appointment of new directors!

25Jun

2020 ANNUAL GENERAL MEETING:2020 ANNUAL GENERAL MEETING:

Our Advocacy and Legal Advice Center will be hosting a legal aid clinic outreach in Enga Province!

30Jun

LEGAL AID CLINIC OUTREACH: ENGALEGAL AID CLINIC OUTREACH: ENGA

TIPNG Legal Interns 2019 -2020: (L – R) Alois Sinen, Melvia Lyandenge and Rhonda Tevlone posing with their 2020 Legal Internship memorabilia after their graduation.

United Nations Secretary General’s Youth Envoy, Ms Jayathma Wickramanayake (far left) and Mr Bruno Mickey (middle) from The Voice Inc share a light moment with members of the TIPNG team after her visit.

Page 8: Transparency International PAPUA NEW GUINEA INC....parency international, a global non-proflt, NGO dedi-cated to empowering people to take action against corruption. TIPNG was formed

8January - March 2020

MERMBERSHIP AND FEES:

Join TIPNG and help fight corruption. Supporting our members is expensive. Each new member will receive a membership certificate and a pledge card. Your Membership will entitle you to contribute to decisions taken at the AGM and other informa-tion of interest to you. Membership is an annual subscription. Corporate membership will receive additional recognition.

(Please indicate membership category by ticking the appropriate box)

Please send completed forms and other necessary details to: Transparency International (PNG) Inc. P.O. Box 591 Port Moresby, NCD Email: [email protected]

Account Name: Transparency International (PNG) Inc.Account: 1000038232Bank: Bank South PacificBranch: BSP HausBSB Number: 088950

PAYMENT METHOD AND BANK DETAILSPayment can be made in the form of a cheque, bank transfer or direct deposit to:

Reciept #:

(Please indicate by ticking)

MEMBERSHIP APPLICATION FORM

New Member Renewal

Date:

Title: Mr Mrs

Ms DrName:

Employer/School:

Postal Address:

Telephone #: Fax#:Mobile #:

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Gender:

Age range: 13-17 18-34

35-49 50 and aboveAdditional Information:If you have any skills, quali-fications, knowledge, specific interests that you are able to offer to assist with things such as ideas, research, monitoring, leaflet distribu-tion or just being able to get out and about to speak to people in your area, please make mention in this space.

2020

INDIVIDUAL:K10 +

CORPORATE:K1,000 +

FAMILY:K100+

ASSOCIATION:K200 +

TIPNG engages in UN75 dialogueOur Deputy Director-Policy & Advocacy, Mr Yuambari Haihuie and our Youth & Digital Media Creative Mr Dagia Aka were privileged to be part of a cohort of 26 young leaders from around Papua New Guinea to engage in a dialogue with the United Nations Deputy Secretary General, Ms. Amina Mohammed, who visited PNG for the first time in March this year.

The dialogue was the first of a series of meetings that the Deputy Secretary General had during her time in Papua New Guinea to commemorate the 75 years of the United Nations existence and to influence the work of the UN in the next 25 years as they work towards 2045.

This important dialogue allowed for all participants to bring to the attention of the Deputy Secretary General issues of importance in Papua New Guinea and also provide recommendations to address these issues collectively and inclusively. Also in attendance at the Dialogue were the head of the UN AIDS programme and the UN Secretary General’s Youth Envoy.

The two representatives from TIPNG shared with the Deputy Secretary General, about the priorities for Papua New Guinea in the areas of Peace and Strong Institutions. In particular the need in Papua New Guinea for informed laws, that are applied fairly, and for greater civic participation for Peace & Strong Institutions.

TIPNG is grateful to the United Nations in Papua New Guinea for the opportunity given to be part of that important Dialogue.

If you need anymore information about any of our programs or how to

become a member, contact us:

(L-R) Our Youth Integrity Program Coordinator Dagia Aka and Deputy Director Policy & Advoccy Yuambari Haihuie posing for a photo after the UN75 Dialogue.

Lokua Avenue, Section 54, Lot 31, Boroko Lokua Avenue, Section 54, Lot 31, Boroko

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[email protected]@transparencypng.org.pg

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