Home > Corruption, Human rights, Papua New Guinea, PMIZ > O’Neill allowing China to cash in on PNG resources – and making us foot the bill!

O’Neill allowing China to cash in on PNG resources – and making us foot the bill!

September 26, 2012 Leave a comment Go to comments

Prime Minister Peter O’Neill claims he is trying to improve the living standards of ordinary people and ensure they have access to basic services, but this is far from the truth.

Confidential government documents show that, just like his predecessor Michael Somare, O’Neill is not only being bullied by the Chinese to give them preferential access to PNG resources – he is using PNG tax payers money to subsidize the Chinese.

The O’Neill government says the controversial Pacific Marine Industrial Zone in Madang province is one of its priorities to boost the national economy but has not revealed:

  • The USD79 million dollars it is borrowing from the Chinese to fund the project will be plowed straight back into the Chinese company building the PMIZ rather than being invested in PNG companies and people
  • China Shenyang International Corp has been contracted by the PNG government to design, build and supply equipment and materials for the PMIZ rather than the PNG government using local businesses
  • The total PNG government contract with China Shenyang International is for USD 95 million, which means PNG taxpayers will be directly subsidizing this Chinese company to the tune of USD16 million.

  • All the goods, technologies and services purchased for PMIZ will come from China – not PNG suppliers

  • China Shenyang International will operate completely tax free in PNG, exempt from any “rate, charge, duty or imposition of any kind under PNG laws” – a concession the PNG government NEVER gives to PNG businesses

The PNG government has also granted Chinese officials full and unlimited rights to examine and supervise the project funding including granting a long-term multiple entry visa to the Chinese loan officer.

The government has also “irrevocably waived” any sovereign immunity for PNG in any dispute over the loan, AND agreed while PNG may not assign or transfer any of its rights or obligations China has full rights to assign or transfer any of its rights and obligations!

Finally the PNG government has agreed the loan contract, although signed in PNG and to be effected in PNG will be “governed by and construed in accordance with the laws of China” – bet you don’t even know what those laws are do you Mr O’Neill!

  1. September 26, 2012 at 5:39 pm

    Incredible! This is indeed damaging. Can you post the full document – or do you only have portions of it?

    • SorryPNG
      November 12, 2012 at 11:20 pm

      My goodness! What are you so called leaders doing to your people? Why are they doing this? Somare, O’Neill, why are you doing this? PNG needs a revolution! Momase people, we need to break away from the rest of PNG and stop the Chinese from coming to Madang etc.

      The Somares can go and live in China! And Madang and Morobe people, stop the highlanders from coming to our coast, They can have their gas and allow ONiell to sell to the sleezy eyes from China.

      PNG is in serious trouble!

  2. September 26, 2012 at 7:39 pm

    Oh my!…what is the gov’t up to now?

  3. Jude
    September 27, 2012 at 12:53 pm

    Is this a blary noose?

  4. ToPam
    September 28, 2012 at 12:25 pm

    Come on PM you can do better than this CHEAP STINT!!!!! Where is all these nonsense about fighting corruption. Is this deal not corruption at its BEST!!!!! This is a SMELLY TIN OF FISH in a carton. We are literally selling PNG to China, or why not let PNG become another province of China, if that is the indication with this deal. For far too long, government after government have signed this kind of deals, at the expense of the citizens of this country, and than you expect us, ordinary citizens to succumb to ever-increasing high living standards, by which governments have failed to subsidize us. Where are we heading???????

  5. PK
    September 28, 2012 at 8:04 pm

    These people think thru greedy brain cells

  6. Tipil Kyak
    September 29, 2012 at 11:14 am

    Where is Namah? Can he shed some light on this issues?

  7. joshuaGEN
    October 1, 2012 at 10:04 am

    If this is from Peter Oneil’s led government then what a shame. Shame! shame! shame! Mr Oneil. How do you sleep at night? Knowing that what you have signed is basically putting a collar (made of chains) around the neck of PNG. It can walk and move its hands but is leashed to a Chinese hand. Where are your balls to be a man and leader?! Mr Big man??

  8. Gash Gashi
    October 2, 2012 at 8:02 am

    To all blogers. I honestly hate pipol like O’ Neil neither his members. They’ve never act on what they preach. So people why r we blogging or posting our views here, Please can we take some actions.

    • Up N. Coming
      October 3, 2012 at 6:24 pm

      As a full blooded Papua New Guinean having principal customary rights of my ancestors on land and resources, I question what is Peter O’Neill’s customarily inherited rights that he can so boldly see fit to sell our mother land and trade off our economy just like that. If he originates from a patreliniel society (Ialubu / Pangia) and his native blood is from his mother side, and not his white father, then we are seeing here a deserted bustard who couldn’t give a second thought because what is there for him to fall back to and uphold in this country as a real Papua New Guinean? 

      We seem to have forgotten how this ‘wolf in sheep skin’ corrupted state entities, had millions of kina of his PNGBC loans written off as the then Chairman, breaks the constitution ‘mama law’ at will, sets up the SWEEP team as his ‘hunting dog’ to scare off political rivals, makes a mockery of the Judiciary system and its Judges, causes a budget deficit of K500 million, corrupt the election process and wins back his open member seat, manipulates weak-minded politicians to gain numbers to form the government and become Prime Minister and now enters into an unprecedented loan of K6 billion. 

      What manner of person do we have as the Prime Minister to mock the living God of Heaven by saying it is in the best interest of the development of this God fearing and great nation of Papua New Guinea? There is an appointed time and it will come to pass that this foreigner will face the full consequences of his actions for being in the highest position of trust over the lives of the 7 million+ citizens. 

      No matter how much praise Peter O’neill can try to bestow upon himself through the numerous attempts to please our countrymen, it will in no way hide his corrupt nature and character that leaves his filthy finger prints in whatever he does politically and on a personal level. Rottenness will always be the fruits of this person  no matter how colorful and tasty he may want to show it in publicity.

      It may not be an overnight job, but I will ensure that by the power of the living God of heaven in whom this foreigner has seen fit to mock through his actions, I will see to it that he is removed as Prime Minister and as Member representing his people and given to the dogs where he will reap what he has sown.

  9. PNG Poro
    October 17, 2012 at 2:45 pm

    Not sure how much O’Neill had to do with this poorly negotiated agreement, signed off some years ago. I think you’d be better off directing your curses at a former Commerce Minister and a former Fisheries Minister.

  10. MangiOkTedi
    November 12, 2012 at 12:13 pm

    Is Ok Tedi next on the Chinese hit list? O’Neill recently attacked on BHP and Garnaut and told them both to get out. Meanwhile O’Neill’s PNC open members in Western Province have called for the Ok Tedi mine to be closed. Are these attacks a coincidence? Insiders in Waigain are reporting rumours that O’Niell is wants PNGSDP out so that he can let the Chinese take-over. Given the track record of Chinese miners in PNG, let’s hope this isn’t the case–its the last thing the people of Western province need!

    • Mangi Tabubil
      November 12, 2012 at 11:11 pm

      MangiOk Tedi, you don’t have to worry about the PM bringing in the Chinese or Asians to take over Ok Tedi mine because you already have a pro-Asian as the CEO of OTML. Despite the fact that he is from Australia, he has Asian connections and is slowly but surely replacing key positions at OTML with his subjects from various Asian countries.

      Talk about the enemy within! The talk within OTML is that he prefers Asians because he can tell them to kiss his fat white arse …and they would too! PNG Nationals would certainly not!

  11. Mangi OkTedi
    November 13, 2012 at 6:42 pm

    Mangi Tabubil, enap giaman tok. Ok Tedi numbers speak for themselves:

    ‘workforce is drawn from 21 provincial regions, each with its own unique language and customs. We are committed to employing and empowering local people with skills
    and opportunities to advance their careers. Of the 2,156 employees with our Company, 95% (2044) are from Papua New Guinea. Of these, 34% hold management positions.’

    Can the Chinese say they could do same?

  1. October 17, 2012 at 9:35 am

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