Hon. James Marape Government ONE YEAR in OFFICE “Making PNG the Richest Black Christian TAKE BACK PNG! Nation Where No Child Is Left Behind”

PRIME MINISTER Hon. James Marape Government ONE YEAR IN OFFICE “Making PNG the Richest Black Christian TAKE BACK PNG! Nation where No Child is left Behind”

INTRODUCTION

The change of Government arose from a collective desire to “Take Back PNG” from the hands of people who practice greed, nepotism and cronyism, allowing for only a few individuals, companies, businesses and urban areas to gain at the expense of the vast majority of Papua New Guineans. “Dreams are free; I have dreamt it. But work of reconstruction must start now. Papua New Guinea is blessed with abundant natural resources and it is possible we can get it done in 10 years. The manner of harvest of these natural resources under better term sheets will be my journey and story”, Hon. James Marape, MP, 8th Prime Minister of Papua New Guinea (June 19th 2019). The underlying theme of the Marape-Steven Government is “Make PNG the Richest Black Christian Nation where No Child is left Behind”. The first 12 months focused on eight key areas to operationalise “Take Back PNG” in tandem with solving legacy problems and providing strong leadership on urgent and emerging issues.

THE EIGHT-POINT PLAN 6. SOEs reforms � outstanding public servant retirement of K Within the constraints of the 2020 Budget, 7. Amendments to Taxation and Investment 860 million; we introduced a carefully-targeted COVID-19 In February 1973, Michael Somare, the then Promotion Authority Economic Stimulus Package of K5.7 billion of Chief Minister, announced the ambitious Eight- � outstanding service provider costs of K 600 which K600 million constituted: Point Plan that sought to: increase Papua New 8. Public sector restructure million; Guineans controlling a better portion of the � K50 million for price support programme for 9. Resource and resource laws � outstanding office rentals of K 400 million; economy, equalisation and equal distribution of cocoa, copra and coffee; 10. Roads & Bridges and economic benefits, services, and participation � K113 million for district and provincial by our people, emphasise agricultural � outstanding Works’ contracts of K 300 agriculture development and food security developments, grow village trading and internal SOCIAL, LAW AND ORDER SECTOR (SLOS) million. support programme; and trade, emphasise small scale artisan services 11. Higher Education Loan Program (HELP) We have now established an arrears team to fully and business activities, build a more self-reliant 12. Health � K41.5 million for subsidising costs of economy less dependent upon imported goods establish outstanding bills and to better profile business operations (freight and logistics) in and services, increase capacity of Government 13. Internal security sovereign debt with a view to establishing the hope of protecting jobs for Papua New to raise local revenue, equal and more women 14. Law and justice savings and refinancing options capitalising Guineans in MSME businesses losses and on concessions on debt repayments, and participation in economic and social activity, 15. Bougainville boosting economic activities. and Government control of investment in the concessional loans and grants on offer by economy to achieve desired development. credible lenders. ECONOMIC SECTOR These pillar pronouncements resonate and are The Government delivered these programs 2. 2020 NATIONAL BUDGET amplified in the Marape Manifesto. through a two-pronged sectoral approach, The economic sector has sought in the first 12 namely Economic Sector headed jointly by Prime As part of the 2020 Budget, a five-year fiscal months to repair the Budget process, drive The Marape Manifesto is simply “Making PNG Minister Marape and Treasurer Ian Ling-Stuckey, consolidation strategy was developed that agriculture growth, generate job creation, the Richest Black Christian Nation where No and Social Law and Order Sector (SLOS) headed aims to bring debt-to-GDP ratio to below 40 provide a bedrock for MSMEs to grow, drive Child is Left Behind”. The Manifesto unilaterally by Deputy Prime Minister Davies Steven. per cent after breaches in the 2019 Budget reforms in State-owned enterprises to increase outlines that Papua New Guineans must become above the 35 per cent limit. This was due to contribution to GDP growth and private sector equal participants in their natural resource In tracking implementation, we are pleased to an expensive sovereign bond borrowing from expansion, and grow exports. harvesting, engage in SME opportunities, enjoy provide the following progress report under the Credit Suisse in 2018, which was not used to quality education and health system, and protect following categories: retire debt and arrears. We had to amend the The Marape-Steven Government is refocusing the growth of economy in a safer environment. Fiscal Responsibility Act to accommodate this economic priorities to jobs for our people, not It is all tailored for PNG to be economically major breach. just a resource focus. The focus is on inclusive independent and not wholly dependent. BUDGET jobs for growth, moving to honest budgeting, We delivered the 2020 Budget, which was moving to investment and away from the The Manifesto emphasises on citizens to be Fiscal policy, when timed well in an appropriate before COVID-19, and based on concessional operating budget (public service salaries and healthy, have Christian principles and ethics, policy mix with monetary policy, will deliver loan borrowings and along policy-based reform goods and services), moving to good and cheap and respect for rule of law. the best growth results both at macro- and matrix monitored by both the IMF and Asian international financing, and balancing out urban micro-economic levels. Using good budgeting Development Bank (ADB) to achieve the right The PNG Vision 2050 also sought to biased development of the past. deliver consistent and purposeful gains for approach, the Marape-Steven Government lifted results from recurrent and capital expenditures. ordinary Papua New Guineans based on the the GDP growth rate from a recession minus 0.8 We also delivered a COVID-19 Stimulus Package 3. AGRICULTURE AND MSME POLICY Independence aspirations. It emphasised the per cent in 2018 to 5 per cent in 2019. The focus of K5.7 billion focused on supporting the private importance of global trade and anticipated new is also on non-resource growth rates which are sector and rural economic livelihoods. Because Supporting micro small and medium enterprises global disease patterns in its deliberations. endorsed by the International Monetary Fund of the positive rating from global bench (MSMEs) is at the core of our Take Back PNG (IMF), which will deliver domestic growth from markers of good governance, local institutions strategy. Budget allocation of K200 million was “One Year in Office” outlines the Marape-Steven 2.9 per cent in 2020 to 4.6 per cent by 2024. We oversubscribed the Bank of PNG-issued COVID made out to the Department of Commerce and Government’s major achievements under the have also ensured that the share of the National Bond, an initial amount of K1.8 billion of K2.5 Industry in 2020. To date, we have successfully two pronged approach: Economic Sector and Budget going to capital/development budget billion. negotiated lower loan repayment rates from our Social Sector achievements. increased from K4715 million in 2019 to K6281 commercial banks: million in 2020. This major structural change in 2.1. MANAGING COVID-19 WITHIN BUDGET the Budget will continue. CONSTRAINTS � 5 per cent for 15 years at Bank South Pacific; POLICY BASED PROGRAMMES AND COVID-19 shook the world and presented our � 4 per cent for 25 years at National ACHIEVEMENTS—ECONOMIC AND 1. 2019 SUPPLEMENTARY BUDGET Development Bank; and SOCIAL SECTORS Government with a major Budget shock, but The first significant Policy Document the we took proactive steps to prevent its spread, � 4 per cent for 20 years at Kina Bank. The Marape-Steven Government, after taking Marape-Steven Government procured was the resulting in PNG hitherto having recorded zero office, instituted the following policy-based 2019 Supplementary Budget. The Government deaths and with only eight cases compared to In supporting this Government’s flagship programs that form the core of the 2020 Budget. delivered 95 per cent of the 2019 Budget after over 350,000 deaths globally. We shut down programme in agriculture, we have also They are being operationalised by the public revising the Mid-Year Economic and Fiscal our international borders and closed domestic progressed the following actions: Outlook (MYEFO), and despite the onslaught flights. We tested over 4000 cases and procured service, State-owned enterprises, provinces, � Revamped Kumul Agriculture Ltd as a SOE districts, and private and civil sector: of recession in 2019. We undertook due Personal Protection Equipment (PPE) and diligence on the 2019 Budget and established testing kits with the support of our international through State Equity Funding in partnership the platform for the Supplementary Budget friends. with National Agriculture Research Institute BUDGET and revealed a budget blow out of K 2.263 (NARI) to bolster Agricultural Investments. 1. 2019 Supplementary Budget billion. This represented K987 million in revenue 2. 2020 National Budget (Economic Stimulus shortfall and K1.275 billion in over expenditure. Package) We then retired the O’Neill-Abel Government liabilities and commitments that were simply left “... Papua New Guinea is blessed with abundant unsettled and left in the cupboards of over 500 ECONOMIC SECTOR Government agencies including courts. Some of natural resources and its POSSIBLE we can get it 3. Agriculture and MSME Policy these include: 4. Connect PNG � outstanding workers’ pay rise of K 122 done in 10 years...” - PM Marape 5. Special Economic Zones (SEZ) million; ECONOMIC & SOCIAL DEVELOPMENT

� Approved K340 million European Union � Telikom and BMobile (EU) grant to support smallholder famers lowered Internet rates in in East and West Sepik to produce vanilla, 2019 for more cheaper calls coffee, palm oil, livestock, cocoa, spice and and more date rates. strengthen rural entrepreneurship. � WaSH and Commercialisation � Freight subsidies for locally-produced food of Water and Sewerage: The crops to be transported to high-demand Marape/Steven Government markets in PNG has been earmarked K41.5 realises the fact that we have million. Initial funding support started with made no progress since 2015 on K3 million funding to Bismarck Shipping for the Millennium Development Goals local food crops from the Highlands to be (MDGs) due to: “There is no single transported without cost to farmers from method or tool to solve Water and Lae to Port Moresby. It is restricted to local Sanitation Issues in Rural PNG.” For MSMEs only. these reasons, every water district and sewerage operation around the � Setup of SME Advisory Technical Team. country requires greater participation The SME team has developed a holistic all- of local landowners, LLGs, DDAs, inclusive conceptual framework targeting Provincial Governments and the National 500,000 SMEs, 50 per cent of citizens to Government in all facets of operations. some form of business, own 70 percent of formal SME sector and create two million � Eda Ranu (NCD Water and Sewerage Ltd) will jobs by 2030. be the first to go under the new structure of benefit-sharing and ownership of water and � Parliament passed an Economic Zone Bill in sewerage infrastructure and operational December 2019 to achieve broad economic activities. State will own 60 per cent, Koiari development and cater for MSMEs. landowners will own 20 per cent, and 10 per Linkages for MSMEs to Special Economic cent each will go to National Capital District Zone (SEZ) projects have started, involving and Central Provincial Governments. These MSME partnerships, joint ventures and will be by way of transfer of free shares from co-ventures. The SME team has assisted the National Government. landowners set up ILGs and investor JV � Government has saved K475 million over arrangements to allow for more landowner 36 months and additional K12.5 million per participation as stipulated in the Oil and Gas annum with the cancellation of ill-conceived Act and National Content Plan. investment into Bunu Low-level Water Treatment Plant for the cost of K475 million. PM Marape visiting the Mushroom factory during his visit 5. SPECIAL ECONOMIC ZONES (SEZ) to Eastern Highlands Province To crystalise the economic benefits of Connect 7. INTERNAL REVENUE AND TAX LAW PNG, we moved quickly for the first time in AMENDMENTS the country to establish the Special Economic � We have commenced amendments to our Zones Authority (SEZ) Act 2019 that will tax laws and regulations to reduce the provide locational benefits and synergies to tax burden on local MSMEs and promote both local and off-shoring companies involved business opportunities, and at the same in manufacturing and services industries to time minimise competition with foreigners produce competitive products and services who tend to gain advantageous incentives for export. An initial funding of K16 million was over local companies to the benefit of their provided. We have earmarked potential SEZ non-resident shareholders. locations throughout the country. � In this regard, the Income Tax Act 1959 was Kumul Consolidated Holdings (KCH), through its amended during the 2020 National Budget General Business Trust (GBT), has been tasked paper presentation in favour of small with supporting SEZs in locations that are businesses. The new Income Tax for Small proximate to major ports. Business (2020 Budget) (Amendment)) was passed in November 2019, giving effect 6. STATE OWNED ENTERPRISES (SOE) to small businesses to pay less annual tax REFORM of K400 for annual turnover of K50, 000 or We commenced reforming our State-owned less, and for more than K50, 000 annual enterprises to deliver on their commercial turnovers, a tax of 2 per cent quarterly imperatives as well as support the service- would apply. The threshold for annual delivery objectives of Government around turnover is just being increased to K50, water, sewerage, electricity, telecommunication, 000. In comparison with normal company ports, large-scale agriculture investment, and profit tax of 30-40 per cent, or 10 per cent infrastructure. We directed for reforms through GST for every sale of an item, this is really NEC Decision 129/2019 with timely turnaround promoting local MSME businesses and thus strategies to be supported by ADB as well as complements our slogan of “Taking Back well as KCH Board finding commercial solutions PNG”. This alone was a major oversight by PM Marape meets with IRC Commissioner General, Sam Koim (2nd from right) and the staff during to improve balance sheet management. Whilst former regimes. his visit this year Covid-19 has affected the balance sheet of most 8. PUBLIC SECTOR RESTRUCTURE SOEs, we remain focused on: Amendments so by 2025, PNG would enjoy a end to the current unfair licensing system � SOE Reform to reduce the cost of doing As part of the policy-based reform to cut current sound Resource Law Enactment that is on foot where the State, the owner of the minerals business in PNG (i.e. reliable power, expenditure, we moved to reorganise the Office now. and oil and gas, is being made to pay for it cheap data) in line with Marape-Steven of the Prime Minister and NEC to consolidate with borrowed money, and continue to pay Governments “Growing and Diversifying functions through Secretary PM and NEC, OIL AND GAS for the operational costs of the mining or the Economy” policy focus; Secretary Personnel Management and Secretary oil and gas companies in proportion to the � The Government will replace the licensed- percentage of equity the State having been � Attorney-General in order to coordinate whole- Establishment of a pipeline of projects based legal regime (Oil and Gas Act 1998 acquired until the end of the project life. identified and solicited by the Marape- of-Government policy-making processes, State negotiations, Budget tracking and performance and the Mining Act 1992) with a production- Steven Government that align to the � Consistent with its policy, the State has management, thereby creating a flatter sharing regime to come into effect by 2025. “Connect PNG Policy” including economic already agreed to sign up the Wafi-Gold structure for the bureaucracy in recognition of Cabinet to receive amended legislation later corridors and Special Economic Zones; Mine under the current mining legislation. the high level skills set of portfolio ministers to this year. � Commenced the review of large-scale capital Whilst this may amount to giving away our guide their respective ministries (NEC Decision � In accordance with the announcement, the projects to ensure appropriate process minerals freely without bringing it under No.44/20). Government is drafting an Organic Law was followed in their implementation and the production-sharing arrangement, which will anchor the production-sharing business case forecast is in line with Marape To optimise on public sector efficiencies and the Government understands that the model constitutionally so that no future -Steven Government stance on getting productivity, the Parliamentary Committee Special Mining Lease was already granted Government can change it at the whim and “Value for Money”; and on Public Sector Reforms and Public Service and progress had been made, so it has Delivery chaired by Governor Garry Juffa behest of stakeholders in the industry. to respect its own laws and follow with it. � Transparent skills and merit-based This is different from Porgera, where SML was tasked to recommend to Parliament a � For equitable sharing of benefits, the appointment of new SOE Managing- had expired after 30 years of mining to the “fit for purpose” public sector structure with Government resurrected the National Gas Directors. benefit of overseas shareholders and the re-engineered business processes drawing Corporation (NGC) to become the entity to detriment to the environment. Reforms have accrued key benefits at the SOE from the lessons of front line essential service participate in the downstream processing level, including: providers during COVID-19 around public sector, taking charge of Domestic Market service proper, statutory authorities, state Obligations (DMO). FORESTRY � National Development Bank (NDB) enterprises, and municipal authorities such restructure and transition into a full as provincial health, district, city and market � Government has restored the lawful � The Government has placed a ban on round commercial bank status by fourth quarter of authorities. Lessons from both Australia and commercial business of the NGC for the log exports, honoring a key target of PNG 2020. NDB will be the fifth commercial bank New Zealand would be instructive as well given benefit of every Papua New Guinean in Vision 2050 earmarked for 2020. in PNG that will be owned by the people of their mature bureaucracies. their gas resources through their respective � The Forestry Act 1991 is being reviewed to this country. It will specialise in concessional provincial governments. development funding in agriculture, tourism Overall ministerial performances are now allow log processing onshore with majority and fisheries. tracked through Prime Minister’s Circular landowner ownership and State export No. 15/2019, where Ministers are required to MINING marketing agency operationalisation. � Merger and restructure of the two water provide regular updates on how they and their utilities (Eda Ranu and Water PNG) under � By reviewing resource laws, Government has Each Provincial Government is a shareholder respective agencies are achieving set targets. one management and one board will also see provided a solution to constant borrowing in the NGC. Not only for the oil and gas Ministers are expected to work in collaboration the transformation of the two entities to lift to fund our share of the equity in mining and producing provinces, but all provincial with their respective clusters for cohesion in the game with the creation of four regional oil and gas projects so that no problems of governments throughout the country, policy and budget allocation drawing at best business centres in Port Moresby (Southern), the UBS loan type ever arise again. will become beneficiaries of gas resource from shared services. development projects and related businesses in Lae (Northern), Goroka (Highlands) and � A new Mining Bill based on production- the downstream sector. Kokopo (NGI). These arrangements will sharing is undergoing editorial and proof- make technical and business support 9. RESOURCE LAW REFORMS reading stages, and soon it will be submitted The law to enable every Provincial Government accessible to our 110 District Development TAKE BACK PNG in principle is all about getting to Cabinet for approval and presentation in to benefit from our gas resource development Authorities and 20 Provincial Governments the best deals on negotiated term sheets for Parliament for debate and passage. projects is provided for in the Oil and Gas Act including the Autonomous Region of our people in the resource sector. The Marape- 1998. However, successive Governments, Bougainville. � The production-sharing models will bring an Steven Government initiated the Resource Laws beginning with the PNG LNG Project, have failed SOCIAL, LAW & ORDER SECTOR (SLOS)

to allow NGC to perform its legitimate role. files with 25 files successfully defended � 14-day initial Lock Down Marape/Steven Government honored the Instead, new shelf companies not even provided saving the State K2 billion. Bougainville Peace Agreement and allowed for and envisioned in the Oil and Gas Act could � Recalled Parliament to declare a two-month the people of Bougainville to vote for the State-of-Emergency on March 24, 2020, to carry the State’s equity in the PNG LNG Project, 11. LOWER EDUCATION SYSTEM AND Referendum, which was successfully held under thereby sidelining NGC that promises to benefit arrest the spread of the coronavirus in our the supervision of the Bougainville Referendum HIGHER EDUCATION LOAN PROGRAM communities; everyone in the country. (HELP) Commission in 2019. Most importantly, peace is � Police Commissioner assumed the role maintained in Bougainville. 10. INFRASTRUCTURE-CONNECT PNG LOWER EDUCATION of State-of-Emergency Controller at the On March 12, 2020, Prime Minister Marape AND ROADS established National Operation Centre and President Hon. Dr. Chief John Momis jointly The Marape-Steven Government abolished at Morauta Haus. The Joint Task Force chaired the Joint Supervisory Body Meeting This Government is serious about connecting the infamous Tuition Fee Free (TFF) Policy and Committee was established to coordinate (JSB) in Port Moresby discussing 12 agendas PNG through an extensive infrastructure introduced code-sharing responsibilities by the SOE; including the transfer of BCL shares and transfer network, under Connect PNG Programme. subsidising 63.6 per cent of school fees with of powers on fisheries, taxation, land matters, Connect PNG is critical to developing PNG as focus on quality education and investing in free � Closed all entry ports and delegated strict and financial powers and functions in the spirit a whole in order to address supply chain issues, higher education. protocols on designated ports; break down the tyranny of distance, improve of the 2001 Peace Agreement. Parents, districts and provincial governments � Zoned the country to narrow prevalence and access to services and markets, encourage Transitional arrangements in Bougainville meet 33.4 per cent school fee component. case detection; geographical clustering, deepen financial to effect Referendum results will be guided The Marape Administration is convinced that markets and therefore grow the economy, � International and bilateral Friends including through consultation process laid out through education is a powerful tool that will transform achieve long standing social development Australia made greater contributions to the JSB outcomes as mutually agreed to by both and sustain our prosperity and that quality outcomes and address increasing global health help combat the pandemic; Prime Minister Marape and President Momis. pandemics. education is to be provided to all students irrespective of background. � PNG’s eight tested positive have recovered. Connect PNG Programme is set to initially run One was flown out of country and contact for the next five years with an initial allocation Every student ought to receive quality education tracing was done to ensure there was no ADDRESSING FRONTLINE AND of K200 million. First to launch is the Finschaffen under a quality standard-based curriculum community transmission. No cases have yet LEGACY ISSUES Highway with K260 million. through a 1-6-6 school structure supported by been established; both State and parents. This explains our stand In the process of addressing key priorities, we The 20-year National Road Network Strategy for an education system that is underpinned � Deployment of health workers and security made progress on addressing Legacy Issues to 2018 - 2037 to improve PNG’s roads is part of by a shared responsibility charter between personnel to protect our borders with enable progress. Connect PNG and is set to begin in 2020. The parents, State and community. Indonesia; strategy aims to address both maintenance of Marape-Steven Government also addressed existing roads and building new connections We have introduced a sustainable and � Schools resumed after a month and other several urgent and emerging issues including: and captured in Connect PNG. responsible policy under the Government services are resuming as directed by the � Tuition Fee Subsidy (GTFS) replacing the former National Emergency Orders issued by Global COVID-19 Pandemic on March 14, Phase 1 (2018-2022) will be focused on the 2309 TFF through the NEC Decision 178/2019 Special Controller; 2020, shutting borders, declaring 14-day km of core national roads, with K4.49 billion Meeting. The total budget allocation of the lock down, declaring State-of-Emergency allocated. We want to boost those key economic GTFS for 2020 is K486,351,600. To date, the � Strict protocols are now in place to allow for that will end on June 2, 2020, and managing roads to ensure they are accessible and able to Department of Education has received and international travel; eight recorded infections with consequent support improvement of business in the country remitted K50-million to schools last month. A effects on the economy. Released COVID-19 � PPEs have arrived from China including Gene Economic Stimulus Package of K5.6 billion; Phase Two (2023-2027) will focus on the 2,502 further K20-million has been received and will Xpert machines and COVID-19 designed air km of priority national roads; K4.81 billion will be remitted to schools soon. conditioning machine from Australia and � Instituted Commission of Inquiry into be allocated. Phase Three (2028-2037) will be US; and UBS loan of K3 billion to establish legality directed at 4,639 km of non-priority national HIGHER EDUCATION of public funds use and why Oil Search, � State-of-Emergency ends on June 2, 2020. roads. It is expected that K11.82 billion will be through State borrowings, paid for its On higher education, we recognise that of the Parliament will reconvene to determine expended. minority purchase of LNG shares at triple annual 30,000 Grade 12 school leavers, TESAS the “new normal” or living with COVID-19 the price more than the other players; The national road network is to be built around is only able to support a third while leaving protocols and other announcements. five economic corridors: almost three quarters of students at a young � Parliamentary Inquiry into health corruption and productive age to fend for themselves in with referrals for prosecution; � Momase spanning West Sepik, East Sepik, society. To address this major imbalance, we AUTONOMOUS REGION OF � Madang and Morobe. moved quickly to establish HELP to support Enactment of ICAC Bill and Whistle Blowers’ BOUGAINVILLE Act; � Highlands corridor including Eastern those who are, although GPA-qualified, cannot Highlands, Chimbu, Jiwaka, Western afford to pay their tuition fees. This has been � Appointment of corruption fighters into Highlands and Enga. one of the greatest initiatives ever to shape bureaucracy and political positions; the future of PNG. An educated population is � Petroleum Resource Area-Southern Region essential to a nation’s prosperity. � Parliamentary presentation of APEC Report; (PRASR) corridor, which covers the provinces � Return of Porgera Gold Mine to PNG after of Hela, Southern Highlands, Gulf, Central, On May 15, 2020, Department of Higher mining development lease (SML) agreement Northern and Milne Bay. Education Research Science and Technology (DHERST) officially launched the HELP expiry; and � Islands Region which includes the provinces programme as per NEC Decision 179/2020. A � Resource law amendments to optimise of East New Britain, West New Britain, New key policy achievement just under one year in economic returns and equal benefit Ireland, Bougainville and Manus Island. office. At a glance: sharing between landowners, provincial � Border which spans West Sepik and Western � To qualify and participate in the HELP governments and State. provinces. programme, students enrolled in a university, college or DHERST-recognised 1. ICAC AND WHISTLE BLOWERS ACT Total expenditure in 2020 is expected to be Higher Education Institution (HEI) must K1.837 billion, of which 89 per cent will go consult with their school administration The major achievement by the Marape-Steven to roads and 11 per cent will go to bridges. to receive their credentials. HELP extends Government on the fight against corruption is Expenditure in 2021 is expected to be K2.165 further beyond undergraduate qualifications the successful enactment of the Whistle Blowers billion. and accommodates post-graduate studies, Act and a prompt and effective response on the Independent Commission Against Corruption The main focus of PNG’s road building including Masters and PhD programs. (ICAC). programme over the next five years includes � Upon successful completion, the participant rebuilding the 800km Highlands Highway, will begin the loan repayment into the PNG Parliament unanimously voted for the 2020 upgrading Lae and Port Moresby roads, Endowment Fund for the duration of his or Whistle-Blowers Act 90-0 votes on February 18, upgrading and sealing 2500km of PNG’s her employment with no interest. national highways, and building 1400km of new “Missing Links” roads to connect five key road � Additional pre-requisites include corridors. connectivity to MSME business activities by parents. Parents are expected to toil their Missing Links roads that will impact the land and seas. Districts in the country have nation are: Lae-Finschaffen, Gembogl-Bundi, been advised to become hubs for seedling Baiyer-Madang, Bogia-Angoram-Wewak, distributions and buying depots for any Gumine-Karamui-Wabo, Samberingi-Kikori, produce by the parents. Abau-Alotau, Ok Tedi-Telefomin, Bulolo-Aseki- Menyamya-Gulf, and all Island ring roads. � HELP is a catalyst to shaping the future and addressing the current poverty brackets rated by so-called “international SOCIAL, LAW & ORDER SECTOR institutions”. (SLOS) � For the academic year of 2020, the fund is available for 30, 000 students enrolled The Social, Law and Order Sector took nationwide. The Government has released responsibility for implementing several key K38 million to the DHERST for HELP programmes in the first 12 months of the Program. Marape-Steven Government. These included:

� Development of the SLOS Strategic CORONA VIRUS (COVID-19) PANDEMIC Framework 2019-2022 with the support of INTERVENTIONS the SLOS Ministerial Committee; As responsible Government, we took � Establishment of Post-COVID Advisory the smartest and proactive steps to Team to advise Government on major social guard our citizens’ safety when World and development issues; health Organisation (WHO) declared COVID-19 a Global Pandemic on � Forging multilateral and bilateral March 14, 2020. negotiations on development and national interests; Based on the advice from WHO through Health Department, � Introduction of Independent Commission the National Security Council, against Corruption (ICAC) Bill to Parliament through the National through First Reading; Security Advisory Body � Passage of the Whistleblowers Act 2020; and recommendations to NEC, the Marape/Steven Top: PM Marape addressing a point during the COVID-19 � Higher Education Loan Program (HELP); and Government took the lockdown period. � Office of the Solicitor-General cleared 463 following necessary steps: Main: PM Marape meets ABG President Chief Dr John Momis during JSB meeting at the APEC Haus recently SHAPING THE ISSUES OF THE FUTURE

2020. This law gives “protection” to public to The former Government was very report any corrupt practices both in the public reluctant to promote the fight and private sectors. To complement the Whistle- against corruption and suppressed Blowers Act 2020, the Bill on ICAC is expected the appointment of patriotic corruption to be passed in the third and final reading when fighters and dismantled or impaired Parliament resumes its meeting in June 2020. anti-corruption organisations such as Task Force Sweep, National Fraud Squad The Parliamentary Committee was already Directorate and delayed presentation to briefed on the ICAC Bill before it goes to Parliament of the ICAC Bill. Parliament in June 2020. The Chairman of the Parliamentary Committee, Sir Peter Ipatas, acknowledged the Marape-Steven Government 7. MOTUKEA PORT for positively responding to the public’s outcry The former regime allegedly signed an to crack down on corruption which is affecting agreement to purchase Motukea Port from the fabric of our society. Curtain Bros Ltd at the exorbitant Price of ICAC will be a watchdog on corruption, and its K725 Million in August 2015, with almost a role will be to receive and consider complaints, billion Kina paid to date. Government has investigate, educate (awareness), and prosecute frozen the contract with Curtain Brothers in late cases of corruption. 2019, pending proper investigation, and thus potentially saving millions of Kina for the people of PNG. 2. COMMISSION OF INQUIRY (COI) INTO UBS LOAN The other alleged overpriced project is Sir Hubert Murray Stadium, which is a failed The public was so concerned less attention arrangement. The initial funding of K11 million was given to prudent management of public was first committed but project failed. resource, including public finances. Under this Government, Hubert Murray Stadium The Marape-Steven Government established is now taken over by National Capital District the Commission of Inquiry (COI) into the Union through refinancing of K40 million and should Bank of Switzerland (UBS) loan deal with a be completed by end of 2020. PM Marape addressing a point at the launch of DHERST funding arrangement of K4 million straight after Help Program, May 15, 2020. installation of the new Government. The COI is Cabinet has sanctioned investigation into headed by the former Chief Justice of PNG Sir the purchase of the Motukea Port and other Salamo Injia. The main objective of the COI was dealings such as the Solwara Project. to investigate all aspects of the loan that was taken by the Government to acquire Oil Search 8. FUNDING OF UNFULFILLED LEGAL Ltd shares in 2014, the International Petroleum CONTRACTS Investment Company (IPIC) loan which was secured in 2009, and the UBS loan. Financing of unfulfilled legal contracts entered by O’Neill Government such as K300 million to On the March 6, 2020, Prime Minister Marape Works Department, K70 million to the National made himself available before the COI to be and Supreme Court Complex Building and K40 questioned. It is believed PNG lost around K3 million to the failed Hubert Murray Stadium are billion in the UBS loan deal. cases that warrant scrutiny.

3. PUBLIC ACCOUNTS COMMITTEE (PAC) Other overpriced Projects include University of PNG Pacific Games Village (K263 Million, The Marape-Steven Government also actual was K190 Million), Kumul Flyover Bridge established the Public Accounts Committee (K161 Million), and Sir John Guise Stadium, all (comprised of the Legislature) to study public of which attracted public criticism under the audits, investigate, question, and issue a report O’Neill Government. They will undergo cost of their findings back to the Parliament on PAC assessment to assess for value for money. recommendations. There were certain inquiries made by the PAC, starting with the most recent, 9. OTHER ENQUIRIES although the enquiry was put on hold due to the COVID-19 and State-of-Emergency situation: Many more organisations and programs have been given notice to come under PAC scrutiny. In April 2020, the PAC began an inquiry into the These include: sale of the old Parliament House. This enquiry was put on hold by the SOE and COVID-19, � APEC expenditure; however, will proceed as soon as Parliament � The NID programme; duties resume. � BSP Home Ownership Kumul Petroleum Holdings: this was the first Scheme; enquiry, but it has been delayed due to court Centre: PM Marape and Solomon Islands Prime Minister, proceedings filed by KPHL challenging the � Duran Farm project; Manasseh Songavare exchanging bilateral agreement in PAC’s scrutiny into their operations. Solomon Islands in February 2020. � National Housing Health Department: The PAC split the enquiry Corporation; Left: PM Marape with Australian Prime Minister, Scott into two parts: Part I: Road Map Forward—This Morrison addressing media during his state visit in 2019. first part has been concluded and the report � Mineral Resources to Parliament is to be reviewed and approved Development Corporation public goods through international financing. by the Committee Members. This first report (MRDC); The Marape-/ Government’s Foreign Policy shift presents the first and important conclusions and � Department of Works, recommendations for reform arising from the is to increase trade, labour mobility, and transfer Wild Cat and Asian of knowledge. Inquiry so that the Marape-Steven Government Development Bank’s can start immediately to chart a way forward. low rating of PNG on Prime Minister Marape wants to make PNG Part II: Management, corruption and abuse project contracting and a food bowl targeting the South-East Asian - The inquiry uncovered startling revelations implementation. population, thereby creating a partnership of alleged misuse, abuse, and incompetence. that has value and will provide economic Once the second part of the inquiry concludes, opportunities and savvy for the people of PNG. referrals will be made to relevant authorities to pursue through Leadership Code and Criminal SHAPING THE ISSUES The Marape/Steven Government is of the view Law. OF THE FUTURE that: “Foreign relations isn’t about politics any more, it’s about trade and commerce.” The first 12 months has 4. EDUCATION DEPARTMENT – TUITION guided the Prime Minster PNG wants to optimise economic benefits as an FEE FREE (TFF) POLICY and his Government towards Financial markets deepening to absorb debt input supplier and buyer from its relationships This is another major inquiry delayed due to addressing the Global Health COVID-19 and improve efficiency and productivity to with Australia, Japan, New Zealand, United COVID-19. The focus of the PAC enquiry will be pandemic that has killed over 300,000 people, improve PNGs global competitiveness; States, Indonesia, China and Taiwan, European on the TFF policy that cost the national purse while at the same time repositioning the country Union and African-Caribbean- Pacific (ACP), and towards self-sufficiency with less dependence Compulsory savings of all citizens to improve other regional groupings. billions of Kina. Notices and summons have domestic capital accumulation through been prepared and this enquiry will start on full on the global supply chain. Key urgent and emerging issues include: superannuation funds, savings and loans Marape/Steven Government will require more throttle in the coming weeks. societies, and secondary capital markets trade deliverables from our foreign missions. Expanding the tax base with legislations in IRC reforms through Securities Commission; and There will be also a need to streamline these 5. APEC REPORT to migrate 50 per cent of the population into posts with better focus resourcing to get better some form of formal business by 2030. In doing Focused strategy on improving rural livelihoods, results going forward. This is the hot topic on the social media, so, this will broaden the tax base and increase markets, markets, water and sanitation, and especially on Facebook. The Marape-Steven the current compliance rate of 9 per cent to a public motor vehicle safety. Government has taken a proactive approach projected 19 per cent by 2025; SUMMARY in addressing the audit report on the spending 1. A NEW “TRADE ORIENTED FOREIGN done on hosting the APEC. As per NEC Confirmation of agriculture and domestic food POLICY” In summary, Marape/Steven Government Decision, the Auditor-General will undertake production for self-sufficiency and export has brought back hope and dignity to a the APEC Report. All expendable details have incomes against global supply chain damage; An urgent matter to be addressed that will downtrodden and browbeaten people who been provided by the Department of Prime shape the future of PNG in the post-COVID era have been bullied by internationalists, big Minister and NEC. MSMEs as the backbone of economic growth is the need to reposition the country’s foreign and strengthening of stronger middle class; business, and a culture of corruption and lack of policy into a “Trade-Orientated Foreign Policy”. respect for the social and democratic ideals as 6. FIGHTING CORRUPTION. Factoring of global health pandemics as PNG’s foreign policy seeks to achieve national enshrined in the Preamble to the Constitution as influencing factor on global trend analysis; interests comprising democratic values, well as the civil liberties embedded in the same. Marape-Steven government has made economic prosperity and security including Despite COVID-19, there is for the first time extraordinary appointments of corruption Urgent need to set up Sovereign Wealth Fund as biosecurity. freedom of the press, freedom of information, fighters like Sam Koim, Bryan Kramer, and savings for future generations, given COVID-19 freedom of speech for Members of Parliament Kerenga Kua in its strategic administrative and experience; There is an urgent need to align foreign trade and the citizenry, freedom for the public political offices. Bryan Kramer even did not vote policy to domestic policy better to optimise including public servants to whistle blow, and for Prime Minister Marape, but through public Tapping into offshoring of manufacturing PNG’s interest from its multilateral and bilateral freedom for Police to do their work without fear views of seeing him as a corruption fighter, production line away from China to Indo-Pacific arrangements as well as from international or favor. This is the responsible democracy we Prime Minister Marape appointed him. region; regimes that govern global relationships such as the Law of the Sea that deliver international are restoring for our people.