Mekere Morauta Gives His Response On PNGSDP (Info Graphs)

After a long time of dumping accusations into the flow of PNGSDP’s operations. Sir Mek has finally come back with his say on what’s what at PNGSDP.

He opens his statement with this, “For several months, a number of positive and negative public statements have been made about the future of mining at Ok Tedi and about PNG Sustainable Development Program Ltd, the trust company that holds 63.4 percent of the shares of Ok Tedi Mining Limited in trust for the people of Western Province. I have not, until now, responded to any of these statements, believing that the issues were best dealt with through direct discussion and negotiation between the parties concerned.” Some key points (out of many which Liam Fox noted on Twitter) were:

  • “BHP has no involvement in PNGSDP or OTML whatsoever”
  • PNGSDP is “too bureaucratic … a review is underway to reduce red tape and increase development action”
  • “to say BHP is solely responsible for enviro damage is incorrect. OTML’s enviro program has had explicit approval of PNG govt”.

You can download the full Media Statement here

As I pointed out in a previous post, PNGSDP is an important and large PNG Government related fund which adds value overall to the country’s development. So in addition to the governments Consolidated Revenue, the Sovereign Wealth Fund and proposed Kumul entities, it is important that management across all these sources of wealth work together and have aligned goals.

Below are some stats from PNGSDP on what they have done so far.

20120411-PNGSDP-Media-Statement-320120411-PNGSDP-Media-Statement-8  20120411-PNGSDP-Media-Statement-4 20120411-PNGSDP-Media-Statement-7

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5 thoughts on “Mekere Morauta Gives His Response On PNGSDP (Info Graphs)

  1. Thanks Sir Mekere, for the facts that are clear where the money goes.

    What then, is the rationale for setting up the wealth creation fund? and Petromin, and the Kumul Projects?

    How much of these funds will go for infrastructure development that is also budgeted for in all other budgets? This is a case of money concentrated in one area.

    Some of the infrastructure developments are continuously budgeted year after year-is it a case of cheap products, or materials and ill-qualified contractors? who comes under the label ‘jobs for the boys’?.

    I would rather, PNG train itself in managing these monies in transparent and accountable manner before setting up new projects that has no direct impact in individual lives in the rural areas.

  2. Hi Emmanuel,

    Any chance of someone locally following up one a few examples to see what was actually achieved?

    To anyone who has had some association with government data, the old saying ‘Lies, Damn lies and statistics’ immediately comes to mind.

    If these are the amounts that were allocated and spent, where are the statistics on what was actually achieved?

    In order to properly evaluate this effectiveness of this expenditure, what is required is a process of drilling down to the kunai level and advertising what was actually achieved.

    Everyone these days should be familiar with the old political game of handing out financial statistics as a way of fending off current criticism that the politicians are not actually doing anything. One notable Australian politician of yesteryear used to call it ‘feeding the chooks (chickens)’.

    What arrangements are there for those who these projects are actually supposed to be helping, reporting back to the public what was actually achieved? There must be an effective feedback loop otherwise these are just figures in a report.

    If these large amounts were merely spent on administration, salaries and wages of those who were supposed to be doing something and yet achieve very little, what is ultimately achieved except more funds disappearing into foreign owned food, clothing and electrical gadget type businesses and disappearing off shore?

  3. A good place to look might be the PNGSDP annual reports, which I believe are generally more accessible (and more informative) than the corresponding gov’t docs…

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