PNG: Opposition calls for PM's shareholding inquiry
Updated
Papua New Guinea's Opposition party has called for an investigation into claims that Prime Minister Sir Michael Somare has shares in a ship safety certification company, which he denied in parliament. The firm, Pacific Registry of Ships, was incorporated in 2004, without proper legal processes or outside PNG's Maritime Safety Authority regulations.
Presenter: Firmin Nanol
Speakers: PNG's Deputy Opposition Leader Bart Philemon, Prime Minister's spokeswoman Beth Somare; Maritime Authority director Hamish Sharp; chairman of PNG's anti-corruption group, Transparency International-PNG, Mike Manning
NANOL: The Pacific Registry of Ships was incorporated in November, 2004, with an office in Port Moresby's central business district. But its legality is being challenged in court. Last year in parliament, Opposition leader, Sir Maekae Morota asked Sir Michael to disclose his shareholding in Pacific Registry. However, Sir Michael denied he owned any shares and said he had nothing to declare to the PNG Ombudsman. Now PNG's Post Courier newspaper has revealed Sir Michael does indeed have a shareholding. The PNG's Investment Promotion Authority states he holds shares in trust for the state, that the shareholders are Malaysians Lu Shu Hui, and Wong Kai Ming, Australian Land Michaels and Papau New Guinean Pias Pundi. The prime minister's spokeswoman, Beth Somare, says Sir Michael gave the denial in parliament, because he was ill-advised. She says she has no personal shares, but does hold shares in trust on behalf of the government and people of PNG.
SOMARE. At the time the prime minister made his statement, all of us were unaware the prime minister had taken shares from PRS, not personal shares. He obviously holds shares in trust, but I did not have that information before.
NANOL: The Post Courier newspaper has also claimed Sir Michael Somare had returned a letter to the PNG Transport Secretary, Andria Preika, to allow the Pacific Registry to carry out safety checks and issue certificates to ship's wing under 500 tonnes. PNG's Maritime Safety Authority alone has the power to issue contracts or allow private companies to do safety checks. The Post Courier newspaper report has also implicated the Maritime Authority boss, Hamish Sharp, who owns Bismark Shipping of having a conflict of interest. One of his employees, Pias Pundi, allegedly owns shares in the company. When I asked Mr Sharp if he had a conflict of interest, he hung up and accused the journalists of discrediting Prime Minister, Sir Michael Somare.
SHARP: I have no interest in Pacific Register of Shipping. The bottom line is here the National Court is going through a judicial review and I cannot talk about it.
NANOL: What is the judicial review about?
SHARP: Oh, I'm not allowed to talk about it.
NANOL: Meaning PRS was illegally set up?
SHARP: No, not at all. Because one of my people is a shareholder, is anything wrong with that?
NANOL: By why are you allowing one of your own person, whose also...
SHARP: Why shouldn't I? What's wrong with it?
NANOL: It's wrong because he works for you and you are also major shipping company owner.
SHARP: So what?
NANOL: And your the chairman of the Maritime Safety Authority. Don't you think you have a conflict?
SHARP: No, no there's nothing wrong with that. How do you think the various shipping surveying companies come into being?
NANOL: Mr. Sharp, how credible would you be if you let one of your ships that is not seaworthy to run, claiming that PRS issued a certificate? Wouldn't that be a conflict of interest situation?
SHARP: Oh, get real, get real. Just wake up to yourself. I'm not going to talk to you anymore.
NANOL: The chairman of PNG's anti-corruption group, Transparency International PNG, Mike Manning, says the prime minister should be investigated.
MANNING: The prime minister if he does hold these shares on behalf of the state has to produce some evidence that that is the case and we would like to see his name either cleared or him being referred to a leadership tribunal as quickly as possible, to make sure that the name and the office of prime minister is not held under any suspicion.
NANOL: However, PNG's Deputy Opposition leader, Bart Philemon, says it is unusual for a prime minister to hold shares in trust in any company.
PHILEMON: The Ombudsman Commissioners they should investigate this matter, because it's unusual for the government of Papua New Guinea to hold one share in a company and the prime minister is holding it in trust for the people of Papua New Guinea.
