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UN rejects Papua New Guinea's claims it repaid overdue fees which led to voting suspension PNG seeks to play down UN suspension amid string of budget embarrassments
(35 minutes later)
The United Nations has rejected claims by the Papua New Guinea foreign affairs minister that outstanding fees which led to their suspension of voting rights have been repaid. Papua New Guinea’s government has sought to downplay the announcement by the United Nations that the country’s voting rights in the general assembly would be suspended for failing to pay $180,000 in dues – claiming it was an administrative error.
Last week the UN revealed Papua New Guinea and a number of other countries had been temporarily stripped of voting rights for failing to pay its dues to the global organisation. PNG reportedly owed at least $180,000. Papua New Guinea’s foreign affairs minister said the outstanding fees which led to the suspension had now been paid but the United Nations stood by its decision and said no funds had been received.
The government sought to downplay the announcement, which followed a run of financial embarrassments, including the national electricity provider shutting off power to a number of government agencies for failure to pay the bills. It also comes as the government prepares for a national election and the 2018 Apec summit. The UN’s action followed a run of financial embarrassments, including the national electricity provider shutting off power to a number of government agencies for failure to pay the bills. It also comes as the government prepares for a national election and the 2018 Apec summit.
The foreign affairs minister, Rimbink Pato, denied the country had been suspended from voting and claimed the unpaid dues were an administration error which saw the contribution funds erroneously used for operational costs in PNG’s overseas missions.The foreign affairs minister, Rimbink Pato, denied the country had been suspended from voting and claimed the unpaid dues were an administration error which saw the contribution funds erroneously used for operational costs in PNG’s overseas missions.
“This had been realised, and by Friday the transfer of additional funds was under way with the allocation due to arrive in PNG UN mission account over the weekend,” he told the Post Courier.“This had been realised, and by Friday the transfer of additional funds was under way with the allocation due to arrive in PNG UN mission account over the weekend,” he told the Post Courier.
“The misunderstanding was likely also compounded due to reform and change being undertaken in foreign missions that can take time for systems to adjust.”“The misunderstanding was likely also compounded due to reform and change being undertaken in foreign missions that can take time for systems to adjust.”
However a spokesman for the UN secretary general told Guardian Australia the organisation had received no funds from PNG recently.However a spokesman for the UN secretary general told Guardian Australia the organisation had received no funds from PNG recently.
“The committee on contributions will meet in June 2017, and no request for exemption due to conditions beyond the country’s control has been made by PNG to date,” he said.“The committee on contributions will meet in June 2017, and no request for exemption due to conditions beyond the country’s control has been made by PNG to date,” he said.
Pato declined an interview request from the Guardian.Pato declined an interview request from the Guardian.
Research fellow in the Myer Foundation Melanesia program at the Lowy Institute, Jonathan Pryke, said the PNG government appeared to be “selling a line of denial” about the challenges they are facing, but the real reason behind the problems were not known.Research fellow in the Myer Foundation Melanesia program at the Lowy Institute, Jonathan Pryke, said the PNG government appeared to be “selling a line of denial” about the challenges they are facing, but the real reason behind the problems were not known.
“It could be one of two things. It’s no secret the government is cash-strapped at the moment. They’re facing significant pressure on their budget and they have a large deficit they’re struggling to finance,” said Pryke.“It could be one of two things. It’s no secret the government is cash-strapped at the moment. They’re facing significant pressure on their budget and they have a large deficit they’re struggling to finance,” said Pryke.
“But on the other hand it could simply be that the state of bureaucracy in many parts of PNG is pretty thin, quite fragile. So it could be just that it was a bureaucratic stuff-up within the foreign ministry.”“But on the other hand it could simply be that the state of bureaucracy in many parts of PNG is pretty thin, quite fragile. So it could be just that it was a bureaucratic stuff-up within the foreign ministry.”
Either way it doesn’t look good for a government trying to increase its presence on the world stage, Pryke said.Either way it doesn’t look good for a government trying to increase its presence on the world stage, Pryke said.
“Considering the amount of money we’re talking about, only a couple of hundred thousand dollars, you’re really shooting yourself in the foot with these sorts of mistakes.”“Considering the amount of money we’re talking about, only a couple of hundred thousand dollars, you’re really shooting yourself in the foot with these sorts of mistakes.”
Meanwhile two separate resource projects have been blockaded in the past six months, by residents protesting the government’s failure to pay royalties. In both cases the government has blamed disputes over the identification of landowners.Meanwhile two separate resource projects have been blockaded in the past six months, by residents protesting the government’s failure to pay royalties. In both cases the government has blamed disputes over the identification of landowners.
PNG Power also disconnected the national parliament, the government house and several government departments as part of a “drive to recoup the huge amount of money that Government Department and entities owe in outstanding bills”.PNG Power also disconnected the national parliament, the government house and several government departments as part of a “drive to recoup the huge amount of money that Government Department and entities owe in outstanding bills”.
At the end of last year PNG government departments owed PNG Power 27m kina ($11.06m). It had paid back 7m kina ($2.86m) by late February.At the end of last year PNG government departments owed PNG Power 27m kina ($11.06m). It had paid back 7m kina ($2.86m) by late February.
“Customers were issued with notices to come forward and pay up their bills for 2016 but those that have failed have forced PNG Power to carry out the disconnection exercise,” the company said in February.“Customers were issued with notices to come forward and pay up their bills for 2016 but those that have failed have forced PNG Power to carry out the disconnection exercise,” the company said in February.
“We are working closely with the chief secretary’s office to come up with a repayment plan so that the government organisations can settle their outstanding bills.”“We are working closely with the chief secretary’s office to come up with a repayment plan so that the government organisations can settle their outstanding bills.”
Again, Pryke said it isn’t known if this was a sign of a cash-strapped government or just struggling bureaucracy.Again, Pryke said it isn’t known if this was a sign of a cash-strapped government or just struggling bureaucracy.
It comes as the government prepares to host next year’s Apec summit, with a reported budget of about $330m. Australia will have contributed around $100m by the time the summit begins, including $48m on the continuing presence of 73 Australian federal police officers, according to the ABC. Australia’s justice minister, Michael Keenan, acknowledged the high level of support was in part to prevent China stepping in.It comes as the government prepares to host next year’s Apec summit, with a reported budget of about $330m. Australia will have contributed around $100m by the time the summit begins, including $48m on the continuing presence of 73 Australian federal police officers, according to the ABC. Australia’s justice minister, Michael Keenan, acknowledged the high level of support was in part to prevent China stepping in.
Last month the PNG minister for sport, national events and Apec, Justin Tkatchenko, described the contribution of Australia, New Zealand and the US as “beyond that which would ordinarily be afforded to an Apec host”.Last month the PNG minister for sport, national events and Apec, Justin Tkatchenko, described the contribution of Australia, New Zealand and the US as “beyond that which would ordinarily be afforded to an Apec host”.
PNG’s fiscal outlook was very different when it agreed to host the summit, Pryke said. Off the back of lower commodity prices and government revenues, as well as the El Niño drought, the country’s real GDP growth has fallen from 11.8% in 2015 to a forecast 2.8% in 2017.PNG’s fiscal outlook was very different when it agreed to host the summit, Pryke said. Off the back of lower commodity prices and government revenues, as well as the El Niño drought, the country’s real GDP growth has fallen from 11.8% in 2015 to a forecast 2.8% in 2017.
“Back when they committed to host Apec their commodity process were at an all-time high, and they were about to start producing from their largest ever project in the natural resources sector which was going to increase their GDP by a third,” he said.“Back when they committed to host Apec their commodity process were at an all-time high, and they were about to start producing from their largest ever project in the natural resources sector which was going to increase their GDP by a third,” he said.
“They expected to have overflowing government revenues, then they got hit at the worst possible time by global commodity prices. What they expected to be their heyday turned into quite the opposite.“They expected to have overflowing government revenues, then they got hit at the worst possible time by global commodity prices. What they expected to be their heyday turned into quite the opposite.
“They are committed to hosting Apec and rightly or wrongly it is going to go ahead, and unfortunately it’s going to come at a significant cost to the taxpayers in that country.”“They are committed to hosting Apec and rightly or wrongly it is going to go ahead, and unfortunately it’s going to come at a significant cost to the taxpayers in that country.”
In June the country also goes to a national election. Pryke said the government’s spending on Apec while it fails to keep the lights on in parliament is causing consternation among the Port Moresby middle class, but it’s hard to know what affect it will have in the provinces. An estimated 85% of Papua New Guineans live in rural areas.In June the country also goes to a national election. Pryke said the government’s spending on Apec while it fails to keep the lights on in parliament is causing consternation among the Port Moresby middle class, but it’s hard to know what affect it will have in the provinces. An estimated 85% of Papua New Guineans live in rural areas.
“PNG politics ultimately is very local,” said Pryke.“PNG politics ultimately is very local,” said Pryke.
“It matters less for the rank and file voter – these national scandals and challenges … Because we don’t have a great network out to these rural communities it’s really hard to make a prediction from outside PNG as to what going to happen.”“It matters less for the rank and file voter – these national scandals and challenges … Because we don’t have a great network out to these rural communities it’s really hard to make a prediction from outside PNG as to what going to happen.”