Signing not setting option in stone: Sonk

KPHL MD Wapu Sonk.

By MATTHEW VARI

Sunday, January 1, 2017 (Sunday Chronicle, PNG)



KUMUL Petroleum Holdings Limited has told the governors and landowners of the five beneficiary provinces if the PNG LNG project that the signing of the Kroton option to accept KPHL’s vendor financing arrangement is not set in stone.

Managing Director of KPHL, Wapu Sonk, said the signing was to meet the national government’s deadline extension of December 31st before it lapses.

“That does not mean that it crystalizes everything. We understand that it is undivided so we will address those.”

“What we are doing is that we have to cross the bridge and the governors are formally elected, they are mandated and they are the right authority to do it.”

“Government has not given any further extension, so Kumul, like I said is only a partial vehicle to facilitate this so you can access the option and we have provided a backstop option.”

He said it is a safety net that KPHL had always maintained.

“We are providing an option that will catch you up from the small 1% to the big 19% owner so that it becomes an option for everyone and everyone accesses the option.”

Gulf signs with reservations

Gulf Governor Havila Kavo

By MATTHEW VARI

Sunday, January 1, 2017 (Sunday Chronicle, PNG)



DESPITE signing along with principle resource provinces of the PNG LNG project Southern Highlands and Hela provinces- Gulf Governor Havila Kavo maintained his reservations of the Kroton arrangement remained.

He made it known before signing the documents that prevented his province from benefiting from the state’s interest through its Kroton equity in the LNG project.

“Kroton was one of those issues that was hanging in the cloud for many years and we are thankful that the O’Neill Dion government has come good in understanding the cries of the people, the resource owners- giving an offer to the 5 provincial governments giving us a reduced equity price which I believe is a sign of a good government trying to give something more lighter than what it should have been,” Governor Kavo said.

“But I still have my issues which I thought should have been addressed earlier on before any signing could have taken place, but seeing that the principle resource owners and the provincial government have I have no other options but to support what they are doing.”

“They have signed and I will also sign but other issues pending our professional teams will sit together with the provincial government and also with affected landowners to actually relook at the figures and the calculations.”

He said that his team believed that figures were either inflated or deflated in instances.

“Figures that need to be properly calculated so that people are given an honest figure so that they are believing too much for too much, expecting little much and not getting frustrated because it is too low.”

“These are the things that clarity has to be given so that our people who are resource owners and the provincial governments are happy with the deal that they are going to receive from the signing and agreement that the leaders are making.”

Meetings will take place in the next two to three weeks between provincial governments of the 5 beneficiary provinces, landowners, and Kumul Petroleum Holdings Limited to iron out particulars regarding the 4.27% stake in the State’s 16.57% in the LNG project.

Free equity a must in the future: Potape

Acting Governor for Hela Francis Potape.

By MATTHEW VARI

Sunday, January 1, 2017 (Sunday Chronicle, PNG)



BEFORE putting ink to paper on Tuesday to sign Hela province to the Kroton vendor financing option- Acting Governor for Hela, Francis Potape has renewed the call for free equity to be considered by the National Government in the future of the PNG LNG project.

He said this when speaking about his reasons as governor to sign onto the much talked about vendor finance option through Kumul Petroleum Holdings Limited’s (KPHL) Kroton Equity in the multibillion kina project.

“The best option through the landowners and the provincial government that the State can offer is free equity.”

“That is the very best option, but that option is not available on the table and we want that option to be available sometime in the future.”

“With the number of people who will be benefiting from the LNG project is too many, 60,000 people, and when you look at the amount that each person will get is almost nothing,” the acting governor said.

He said the reality was that it was not on the table currently, so the next best option for his province is Kroton Equity, apart from various proposals touted about on the subject.

“And there are also no other option available- we have too many experts and too many people out there promoting different options but to this very day there is no option with the money.”

“The only option with the money is the one with the vendor finance.”

“On behalf of the Hela provincial Government and the Hela people I want to commend the government for making that option available. They have tried to take it back but we have asked them to put it back on the table and they have done that,” Potape said.

He also commended KPHL for being a lifesaver for the moment.

Key provinces finally cross Kroton Bridge

Governors link hands to signal signing with KPHL.

By MATTHEW VARI

Sunday, January 1, 2017 (Sunday Chronicle, PNG)



FOUR of the five provinces affected by the PNG LNG project took the vendor financing option in the State’s 16.57% Kroton equity in the PNG LNG project to take out the 4.27% of the equity as indirect shareholders in the LNG Project on Tuesday, December 27.

Governors (Acting) Francis Potape (Hela), William Powi (Southern Highlands), Kila Haoda (Central), and Havila Kavo (Gulf) were on hand to give effect the acceptance of their provincial governments and their affected landowner interest through Kumul Petroleum Holdings Limited (KPHL).

A pleased Managing Director of KPHL, Wapu Sonk, said with all announcements, debates and meets made in regard to the option had led to decisions made by the provincial leaders three days shy of 31st December extended deadline.

“It has come to this point that we are now realising that all the options that have been discussed and put forward at this time when the oil price and the LNG price is not feasible to do a commercial arrangement to finance the Kroton option and Kumul basically provided a safety net by issuing vendor notes,” Mr Sonk said.

“If the governors and landowners access the option it does not mean that we are closing the door as well.”

“The door is always open where you can go and get commercial financing when the time is right and replace those (vendor) notes with actual cash and the government also needs that money. So you can always come and replace it.”

Vendor notes are a type of debt instrument used in particular type of short-term loan agreement in which the seller of goods, in this case KPHL, sells them to the buyer, but also provides financing for the buyer in the form of a vendor note.

“What we are doing is to make sure that the option is exercised through Kumul and it is parked inside Kumul so the option can be exercised and closed out.”

Present to witness the signing were landowners from petroleum development licence areas to the pipeline segments.

In his remarks on the signing, Southern Highlands Governor William Powi, expressed to those present that the decision to sign was not a simple one- but was one that exhausted all other option to buy in directly into the multibillion kina LNG project.

“This decision did not just come from the blue. We have engaged competent reliable authority in the market through all the options that are available funding options including commercial option from the banks whether we could go out there and secure finance to acquire these things so most of these options were thoroughly assessed by that authority and we went through a lot of briefing process where we realised that we have now come to an understanding that vendor financing option is the optimal option that is available to us a beneficiaries,” Governor Powi said.

“What we have decided is the best view for our people, and I am confident and happy that I have been able to make this milestone decision in relation to the people I represent.”

“I have formalised this by a provincial executive council resolution last week. Three days before the deadline we are now taking ownership of the 4.2% offered by the State.”

With the current upheavals experienced in the Western Province- an official from KPHL confirmed that talks were underway with the province’s deputy governor Abini Gesele that could see the province get its 1% stake in the option before yesterday’s deadline.

Capacity biggest challenge for cybercrime law

Ian Mileng, NICTA Manager for Legal Services.

By MATTHEW VARI

Sunday, January 1, 2017 (Sunday Chronicle, PNG)



SINCE its passage through parliament last year, the Cybercrime Act 2016 still is a challenge to implement.

That was the assessment given by Ian Mileng, Manager for Legal Services at the National Information, and Communication Technology Authority (NICTA).

Mr Mileng said that capacity in both the judiciary and the police especially are lacking as the field in which the Cybercrime Act governs is very technical .

“One of the biggest challenges in implementing this legislation is the capacity because cybercrime is a very technical area that requires expertise,” Mileng said.

“Right now the police do not have the capacity and effective implementation will depend very much on up-skilling and building capacity to deal with these kinds of offenses.”

“Probably we will have a dedicated cybercrime unit within the police force then it will assist in the long run.”

Efforts by the ICT (information communication technology) regulator will take place in this year awaiting certification of the passed legislation for training programs that have been developed for the police and judicial services.

“Where experts will come in using ICT devices are able to detect where the user IP addresses are to detect the source,” NICTA CEO Charles Punaha said.

“As part of the process obviously they will have to go to court, get a court order and go to the service provider, through the administrator and go through the information of how this particular account has been created.”

“With that they will be able to identify that IP address and they can even trace it back to the device that it is registered from.”

Punaha explained that it is not NICTA did not have the jurisdiction to actually investigate.

“That is a matter for police and we would expect the victims or persons to lay complaints with the police to undertake investigations and NICTA will assist with the technical aspects of the investigation.”

“Police will then prosecute and the courts will look at the penalties under the Cyber Crime law including any specific orders that the courts may impose.”

“We are still waiting for the Cyber Crime bill to be certified so we are just undertaking this as part of the process to inform the public on what is in the law,” he said.

NICTA to set industry code with internet providers

NICTA CEO Charles Punaha. 

By MATTHEW VARI

Sunday, January 1, 2017 (Sunday Chronicle, PNG)



THE National Information and Communication Technology Authority (NICTA) has indicated plans to development a code of conduct for Internet Service Providers (ISPs) to govern the use of the internet in the country.

Revealed last week, the ICT regulator stated that in view of the large number of complaints being received- it has initiated consultation meetings with ISP to address the issues regarding the improper use of the internet in general.

“An agreement has been reached to collaborate and together endeavour to mitigate the abuse of the internet within the scope of the applicable laws.” NICTA CEO Charles Punaha said.

“NICTA and ISPs and other relevant stakeholders will establish how best to deal with the situation on a long term basis with the means available and without restricting freedom of expression.”

“NICTA will develop and industry code to determine the minimum standard that all members have to comply with in providing ISP services. Among other things, the code will deal with abuse of the internet and how the ISPs will deal with content on general and specifically how complaints will be addressed.”

He said a meeting held last week was attended by ISPs with plans to call other stakeholders to also get on board.

“We intend to reconvene after the New Year and start the process. Of course this has been undertaken by way of consultation because everything in the drafting of a code has to be done through a consultation process done in due process.”

“As a minimum requirement, each ISP will have an administrator to monitor the websites it hosts in order to ensure that no explicitly indecent content is published on its websites or passes through their system.”

When asked if the development of industry codes directly to ISPs would be seen by some as censorship of the web- Mr Punaha stressed that in no way was the regulator trying to prevent the rights of citizens in the areas of freedom of expression.

“Not necessarily. As we stated all along we respect the freedom of information the freedom of speech that is provided for under the constitution,” Punaha pointed out.

“But also to specify that people should not abuse those freedoms to commit against others. We are always mindful that our code will be developed within the confines of the law- the ACT and the legislation and we are also mindful to facilitate for freedoms provided.”

With plans underway to launch the country’s very first IXP (Internet Exchange Point) in the first half of 2017- NICTA has also indicated plans to consult its international partners assisting with the IXP set up to factor in the industry codes to the exchange point.

Survivor dream may take longer to materialise

By MATTHEW VARI

Sunday, December 18, 2016 (Sunday Chronicle, PNG)



WORLD famous reality TV program Survivor and the possibility of the much followed program to take place in Papua New Guinea, may take some more time as expected.

This was revealed by Minister for Tourism, Arts and Culture Tobias Kulang, when asked about the regulations and changes needed to enable the efficient entrance of commercial film and television productions in the country.

With less defined laws and what is termed by some cultural officials as the unnecessary charges imposed on potential exposure through international television programs through taxes and other duties on equipment- Minister Kulang said that the need to build the right framework was vital.

“We have to develop this industry systematically from bottom up to make sure that we have the right framework and infrastructure before we venture into things like Survivor,” he said.

“Survivor is a commercial enterprise driven with the commercial interest, they are coming on board trying to engage us but we are quiet not ready.”

“There is a string of legislations that have to be looked at in terms of tax, tariffs and quarantine, in terms of labour.”

He said the program owners have produced a list of what is needed which will need review of current legislations to accommodate such a global television program that will bring substantial benefits in marketing the country as a tourism destination.

“They want to bring skilled labour for that and it will be short term, so all of these issues come to the fore.”

“We are engaging them and they have given us a list of issues that we have to look at and what we are telling them is that it is going to take a while to be able to review our own legislations and internal arrangements and to be able to cater for their needs.”

“But at the moment we are talking to them,” Kulang concluded.

Officers will not be treated differently for gender violence: Baki

Police Commissioner Gary Baki.

By MATTHEW VARI

Sunday, December 18, 2016 (Sunday Chronicle, PNG)



POLICE Commissioner, Gary Baki, has reaffirmed his stance on the issue of Gender Based Violence in the country’s police force and repercussions on officers involved in the act.

The commissioner said that the issue of violence has always been a part of the force, however, stated that despite some actions being taken in the past, there was still a lot more to be done.

“In terms of dealing with our members. Let me put it bluntly that it was one of those issues that we have addressed in our conference in Kimbe and I made it very clear to my officers over there that any issues that comes out of the relationship between our police officers in the barracks, meaning that if you are a police officer and you have a polygamous relationship and then you create violence for your wife.”

“You will not be treated differently, you will be subject to the process and if you are violent and are reported and if you have assaulted your wife you will be arrested and charged. That is very clear.”

“The reason is simply because we’ve allowed this to happen and it has gone to deaf ears and no one has attended anything to it we turn a blind eye to it,” Mr Baki said.

He said the issue ultimately deals with the ill-discipline of the officers that conduct themselves in that manner and for those in charge to deal with the issue.

“It is very simple and it happens right in our very institution, and no one wants to take any responsibility.”

“If a member behaves like that then he is expected to be treated like that. I expect that every commissioned officer that if an incident happens involving his men and the family, meaning the wife, in there then they should stand up and deal with this issue.”

“It is not something that you pass on to someone else to do, as a police officer you have to behave consistently as an officer of the law.”

Last frontier status affirmed by tourism lax

Minister Tobias Kulang.

By MATTHEW VARI

Sunday, December 18, 2016 (Sunday Chronicle, PNG)



MINISTER for Tourism, Arts and Culture, Tobias Kulang has attributed the country’s last frontier status to the many issues that have plagued the industry.

He said with the interest now being focussed on tourism in the country- the recent addition of PNG in the National Geographic Travel magazine’s list of 21 must-see destinations in 2017 was an indication of interest in PNG’s untapped tourism potential.

“This is confirmation of the fact that we are one of the last frontier tourism destinations,” Minister Kulang said.

“A lot of the country is yet to be seen, and most parts of Papua New Guinea are unexplored, basically because of a couple of reasons one being we are still raw and not developed yet in terms of our products, so developing and having good destinations packaging properly is vital.”

“Much of our products in this country are yet to be developed, that is one of the reasons why we are still raw and exciting.”

“Secondly of the situation of law and order, this places are less travelled, and that when you turn that around the flipside is working positively for us, our beaches our dive sites, our mountains and lakes can be classified and our culture is unexplored.”

He added the diversity in the country is still raw while many of the nations in the world have lost their authenticity.

“In this country a lot of what we still have is still raw. I think we have done very well to attract some very renowned visitors this year.”

“We had a couple of personalities that came to a couple of our shows like the Goroka Show so when they went back I think that also contributed to our country being identified as one of the last frontiers and one of the 21 must see destinations to be seen in 2017.”

“That is a major announcement confidence boost for us, this kind of announcement by National Geography one of the respected publications in the world in terms of geography and travel that is a major recommendation for our country and all of us must be proud.”

Tourism can change the perception of law and order

Commissioner Baki and Tourism Arts and Culture Minister Tobias Kulang pose with the Mt Wilhelm Tourism Police.

By MATTHEW VARI

Sunday, December 18, 2016 (Sunday Chronicle, PNG)



COMMISSIONER for Police, Gary Baki, has supported the push for tourism policing, while affirming the support of the Royal Papua New Guinea Constabulary (RPNGC) towards the establishment of the Tourism Police concept and its incorporation into the RPNGC structure.

Mr Baki hailed the achievements of the concept, which has yielded positive result for pilot tourism hot spot Mount Wilhelm, in the district of Kundiawa-Gembogl district in the Simbu Province.

Speaking at the announcement of the Tourism Policing concept to be extended to the world famous Kokoda Track in 2017- he added that the concept was not new in the world, however, said such a concept needed a PNG tailored system to effectively carry out.

“I believe strongly that tourism can change the perceptions of law and order in Papua New Guinea,” Commissioner Baki said.

“I have a very strong conviction on it because I have travelled the world, I have gone to places that have tourism police, I have looked at the systems and the processes they are using, and we are still trying to find what we can do for Papua New Guinea.”

“For me I think a concept that we can look at, study and appreciate is a what we design is best for Papua New Guinea, based on our on sites, based on the number of visitors that come into the country, the issues affecting Law and order and look at how we can best use the concept.”

Mr Baki went further to announce proactive steps the RPNGC has taken in realigning the directorate of community policing to now take on a new role as the Tourism Police Directorate.

“The Directorate of Community Policing that most of you are so used to in headquarters that is going to be realigned to be the directorate of tourism police.”

“We have taken that step already and it is part of our restructure that we have gone through which will come out.”

“As I am talking to you now my minister is currently attend the MSG Police Ministers Conference in Fiji and he is always advocating on visiting Fiji and looking at the tourism policing concept that they have in Fiji.”

“”I am pretty certain that he will be looking at it whilst his over there,” the commissioner said.