Tag Archives: Infrastructure

School Contractors Warned! – O’Neill

**** PM O’Neill: Contractors to be Held Accountable as More Schools and Classrooms Built Around Papua New Guinea ****

4th December 2017

 

With more schools and classrooms being built around the Nation, contractors will be held accountable for every Toea in public funds they are given for construction.

That is the clear message delivered by the Prime Minister, Hon. Peter O’Neill CMG MP, when opening a new classroom building in in Kimbe, West New Britain Province.

“Continuing to improve education is our government’s commitment to our future generations.

“Better education provides the greatest hope for our children, particularly in remote and rural areas.

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“In 2018 we have allocated 1.29 billion Kina for the Education Sector, which is nearly nine per cent of National Budget. This is an increase of 13 per cent from the 2017 Supplementary Budget.

“We have placed more than an additional one million students in school over the past five years, and now we are applying additional focus on improving the quality of education.

“Now we are building more schools and classrooms right around the country.”

The Prime Minister issued a stern warning to all companies involved in the construction of school projects, that public money will be fully accounted for and documented.

“Many times the Government has given contracts to certain contractors who fail to complete their jobs and run off with payments.

“This must stop and we are looking back at previous contracts to identify any irregularities for further investigation.

 

“It is vital for our children to have proper buildings to learn, and any time there is fraud this deprives our children of their right to education.

“We also have seen a number of builders that have delivered high-quality school buildings, and their commitment and accountability is helping us to advance the Nation.”

In opening the new classroom building at the Waisisi Primary School in the Talasea District, West New Britain Province, PM O’Neill congratulated all who had worked on the project.

“As I officially open this newly built classroom building, today, I thank the school board and the builders for doing an outstanding job.”

The Prime Minister further noted the growth that was occurring in the Talasea District and said the Government has met with the Boundaries Committee and have decided that Talasea District will soon become two districts, given it’s vast population and land boundaries.

Australia ‘GIFT’ a New International Fiber Cable to PNG

1st December

The much talked about New International Fiber Cable from Port Moresby to Sydney will be a ‘GIFT’ from the Government of Australia to the people of Papua New Guinea.

Highlighted in the 2018 National Budget, the 1,800km of Fiber Cable would costs about $USD95m to build and would be in operation in 24 months.

This new Fiber Cable when in operation has the potential to lower internet costs and brings faster speed to Papua New Guinea.

The New Fiber being called as APNG3 and will carry ‘Terabytes of Capacity” can bring up to USD$500 millions annual revenue if managed properly.

NO NEW TAXES – Tax Payers Delight

30th November 2017

 

The handing down of the National Budget 2018 drew a sigh of relief for averages citizens in the country. For the first time in many years, there was NO NEW TAXES in the budget.

 

The Government has however decided to ensure that the Internal Revenue Commission goes out and does what it is required to do, COLLECT TAXES!

 

The Tax Collection has been lacking in the Commission for many years piling the pressure on the Government to increase taxes in the past. This year, that has been changed and NO new Taxes or any increase in Taxes are included in the Budget.

 

The Government has also removed the “Training Levy” which was supposed to raise K75m in the 2018 budget

Government taken measures to manage wild spendings by SOE’s

November 30, 2017

By ISAAC NICHOLAS

The Government has taken steps to centralise the budgetary process by cracking down on some public and statutory bodies collecting public monies and spend these outside of the Budget.

Deputy Prime Minister and Minister for Treasury and Finance Charles Abel said the Government is serious about improving the fiscal health of the country and this bill is a demonstration of that serious intent.

“Public funds that are raised by public and statutory bodies as non-tax revenue rightly belong in the Consolidated Revenue Fund so that they may be appropriated for expenditure by Parliament to meet the objectives of the Government.”

Opposition Leader Patrick Pruaitch interjected claiming that the bill is part of the budget bills and in normal tradition this bill must be passed along with the budget.

“Why are we dealing with Budget Bills separately when the debate on the budget has been adjourned to next week Tuesday? Can we stop sneaking in stuff? We need to be able to understand the bills and it is part of the budget papers. It is attached to the budget bills.”

Prime Minister Peter O’Neill had to intervene to allow Mr Abel to introduce the bill, make his speech and defer the passing to Tuesday next week.

Minister Abel then proceeded saying that for too long, it has been the practice of some public and statutory bodies to retain, without authority, this non tax revenue to meet operational and other expenditures.

“These expenditures have taken place outside the budget process and this is unacceptable to government. Some, but not all, public and statutory do have legislation in place that purportedly allows them to retain this non-profit revenue, but those provisions have always offended against the best principles of public financial management and this Bill remedies those matters.

The Bill binds all public and statutory bodies. State owned Enterprises are excluded as they are not statutory bodies.

The Bill does not apply to the Bougainville or any public or statutory body created by the Bougainville Government.

The Government has decided to explicitly exempt Kumul Consolidated Holdings, Kumul Petroleum Company and the Kumul Minerals Company from this law as fiscal arrangements to them are currently being reviewed.

Govt cracks down on out of budget spending by SOEs

Tax Revenue to reach K3.2 Billion in 2018

BY GORETHY KENNETH

The new revenue strategy, major tax head contributions to revenue are expected to increase above 2017 levels with personal income tax collections expected to reach K3.2 billion in 2018.

It is expected that company tax will reach K1.9 billion; mining and petroleum tax K179 million, gaming machine tax K174.4 million; dividend withholding tax K137.4 million and interest withholding tax K84.2 million.

For the indirect taxes, GST is expected to reach K1.9 billion, excise cuty K782.3 million, import excise K395.1 million, export tax K330 million and import duties K296.1 million.

Non-tax revenues are expected to be substantially higher comprising fees and charges which are expected to reach K175.2 million. Dividends from state owned enterprises and mining and petroleum projects which are expected to reach K1.3 billion.

The dividends are expected from National Fisheries Authority K400 million, Kumul Petroleum Holding Limited K300 million, Ok Tedi K200 million, Bank of PNG K150 million, Kumul Consolidated Holdings K100 million, National Gaming Control Board K75 million and Motor Vehicle Insurance Limited K25 million.

In addition to this, the newly introduced 90:10 Statutory Transfer rule will generate an additional K565 million comprising one off receipts from the National Fisheries Authority of K400 million, National Gaming Control Board K75 million, Kumul Consolidated Holding K40 million, Mineral Resource Authority K30 million, National Maritime Safety Authority K10 million and the Conservation and Environment Protection Authority K10 million

Grants from donor agencies are expected to total K1024.6 million in 2018. Donor grants are subjected to movements in the exchange rates and policies of donors.

Revenue excluding grants as a percentage of GDP has declined over the years from around 20 per cent in 2012 to 13 per cent in 2017.

The 2018 Total Revenue and Grants Budget is projected at K12,730.7 million, an increase of K1751.5 million or 16.0 per cent, compared to the 2017 Supplementary Budget estimates. A number of the revenue increases are one off in nature and these will be utilised to fund adjustment costs such as clearing outstanding arrears and funding one-off expenditure categories such as APEC.


https://postcourier.com.pg/revenue-tax-expected-reach-k3-2-bil-2018/

Wereh Stresses On Transport

Source: PC Online

BY GORETHY KENNETH

WORKS Secretary David Wereh has warned all landowners and people vandalising state assets on the roads throughout the country that the Protection of Transport Infrastructure Act 2010 is in operation and very effective.

This is the act that saved K120 million of claims against the state on roads issues. Wereh warned that vandalism, blocking of roads and others along the Highlands Highway and other national highways will have severe penalties under this Act – some of which is up to a five-year jail term or K100,000 to K1 million fine.

Wereh said the first Kainantu case undertaken in court under this had saved K120 million in claims and that there were more cases pending.

The act deals with demands for compensation or other payment, extended responsibility for family and other persons, attempts and like offences and threat to commit an offence.

“Being an Act to provide for the protection of transport infrastructure and the land, water and air on or in which transport infrastructure is located and for related purposes, it has got severe penalties – block off public transport infrastructure assets etc,” Mr Wereh said.

“The law is already in operation. It’s the enforcement rate and the Kainantu case is the first case. We successfully obtained a restraining order using this law.”

Wereh said the government’s position is very clear on unreasonable compensation demands by opportunists living along the national highway corridors, that it would not entertain any compensation claims by people and business houses alongside major roads.

He said that his department was already acquiring and paying genuine customary land and property owners affected on all road projects sites around the country through the establish process. We will not entertain any self-valued and assessed claims.

“This is an illegal practice and will be dealt with by law,” he said. No individuals or tribe living along the highway should take their grievance to the national Highways. There is an established process to follow in pursuing grievance and claims affecting the greater public. “

He said the Transport Infrastructure assets around the country are now protected by the Transport Infrastructure protection Act 2010. All citizens living along these important infrastructure corridors are required by law not to conduct any of their self-serving activities.

Wereh said that the Kainantu court order was issued after landowners set up a roadblock at Bane which was illegal and police personnel had to clear the highway, which belonged to the public and not to any particular tribe or clan.

“We must be very considerate of many others who depend on the highways as a lifeline for service delivery and business for their daily living.

“The laws are very tough and will severely deal with anyone who want to stage illegal road blocks and vandalize road assets.”

“The message to the people is simple: Do not block public roads because they do not belong to you even if they run through your land. You are just creating problems for yourself.”

PM O’Neill Arrives in Vietnam for APEC Summit

**** – Key Focus is on Enhancing Growth in Developing Economies ****

Apec - vietname2

The Prime Minister, Hon. Peter O’Neill CMG MP, has arrived in the city of Da Nang, in Viet Nam, for the 2017 APEC Leaders’ Summit.
On his arrival, the Prime Minister highlighted the importance of the APEC policy agenda that will help boost growth in key sectors of the Papua New Guinea economy.
“APEC is an important forum for growth and development in our region, and in the coming year will be even more important for Papua New Guinea when we host Leaders from around the region.
“The whole focus of the APEC Leaders’ Week is to strengthen our capacity to trade and to grow our economies.
“Through APEC we have the opportunity to generate more business, and that in turn creates more jobs.
“As a developing economy in APEC, Papua New Guinea also has the opportunity to strengthen capacity and skills in key sectors around the country.
“APEC is more than a single meeting each year, but it has a broad agenda covering agriculture, fisheries, women in the economy, transport and many other sectors that are vital for Papua New Guinea’s growth.
“Ultimately our work through APEC in these sectors is delivering direct benefits for our people.
“This APEC meeting will have a strong focus on adopting better digital technologies.
“For Papua New Guinea, expanding into the digital age, particularly for remote and rural communities is very important.”
The week-long series of APEC meetings also includes the 2017 APEC CEO Summit at which the Prime Minister will deliver an address.
“We have a number of Papua New Guinea business leaders who have come to Vietnam with our delegation.
“At the APEC CEO Summit our business representatives will be working to build better links with companies in Viet Nam and around the region.”
The Prime Minister is accompanied by the Minister for Foreign Affairs and Trade, Hon. Rimbink Pato MP, and APEC Minister, Hon. Justin Tkatchenko MP.

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