Media Release 30 November 2006 - Rt Hon Sir Mekere Morauta

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Rt Hon Sir Mekere Morauta, Member for Moresby North-West, said today that the amendments to the NCDC Act passed by Parliament on 28 November laid fertile ground for abuse, corruption and maladministration. “This is one of the worst pieces of legislation ever passed by Parliament, “ Sir Mekere said. “It is a national disgrace, a national shame.”

Sir Mekere said that the manner in which the bill was presented to Parliament raised many questions. “At the end of the marathon budget session on Tuesday, around 6pm, when Members were tired and wanting to go home, the Leader of Government Business suspended Standing Orders to allow the Member for NCD to introduce these amendments as a Private Member’s Bill.

“Clearly, the inner circle of the Government planned it this way. Two weeks ago the proposed amendments were discussed by the Government Caucus, and were thrown out. The Minister for InterGovernment Relations said that his ministry and department had not been consulted and did not support the changes. By bringing a Private Member’s Bill, the proposed changes did not require prior approval of the National Executive Council or scrutiny by the Legislative Counsel.”

Sir Mekere said that the method and timing of the bill appeared to be a deliberate and cynical act by an inner clique of the Government supporting Wari Vele’s desire to control the NCDC.

“Why did the Prime Minister and senior ministers sit quietly and vote in favour of this dangerous legislation? Why? These are the same leaders who loudly profess they oppose corruption and malpractice. They have deliberately put in place a system that can only promote and entrench abuse, corruption and malpractice. I am ashamed, angered and saddened by this piece of legislation. Parliament has passed a very bad, and very dangerous law.”

“The amendments have the fingerprints of people who want to politicise the city administration and use the resources of the city to promote and entrench party and personal political interests. The legislation gives one person, the so-called Governor, total access and control over every aspect of the operations of City Hall.”

Sir Mekere said that the Governor, Wari Vele, now has under his direct control a budget of over 100 million kina this year and an expected budget of around 130 million kina next year.

“The NCD Governor has been given powers by these amendments that no other Governor has. The amendments give the Governor basically total and sole control over the management of NCDC. He can act in isolation from the Board, and direct management on his own. He has taken the role and functions of the City Manager away – the City Manager is now just a tea boy. Governor Wari Vele is Executive Chairman and City Manager rolled into one.”

“The amendments give the Governor control of the Board. He alone, unlike any other Governor, has the power to appoint members to the city “Assembly”. These five people, along with him, constitute a majority. This gives him the legal power to stack the Board with his cronies and lackeys. What on earth is the Government up to?”

Sir Mekere said that before, under the law his Government passed, Cabinet appointed all non ex-officio Board members, following a clear process set out in law which made for transparency and inclusiveness in appointing representatives. Before, the relevant interest groups supplied names of three nominees, which were then assessed and graded by both the NCDC Board and the Public Services Commission for the Minister to submit to NEC for selection.

“Now, the Governor, without consulting the Commission, the Minister or NEC, has sole power to appoint 5 members of the Board. This is a complete disaster in the making.”

Before, six interest groups were represented on the Board and appointed by NEC. These were: churches, business and professional groups, trade unions, women, youth and settlements.

Now, the Governor alone appoints 4 people to represent 3 interest groups – women, youth and trade unions. The churches, business and professional groups, and settlements are left out.

“What is Vele up to? Does he fear the cleansing effect and moral scrutiny of churches? Is he uncomfortable with the commercial discipline and professionalism of the private sector? The business community is the major revenue source of NCDC, but now has no say in the city administration. Most of the K100 million budget that the Governor has sole control over comes from GST, from revenue from business. In making these amendments Parliament has basically legalised daylight robbery,” Sir Mekere said.

Sir Mekere said that Motu-Koita had also lost out through the amendments.

“Before, there were 3 Motu-Koita representatives on the NCDC Board: the Chairman of Motu-Koita as an ex-officio member, and 2 other representatives chosen by the Motu-Koita Council.

Now, Motu-Koita has only 2 representatives, the ex-officio Chairman plus one appointed by Wari Vele. What has Wari Vele got against Motu-Koita?

Sir Mekere said that when Wari Vele presented the amendments to Parliament, he stated that the office of the Governor would have power to hire and fire staff.

“This power is not available to or exercisable by any other Governor. Again this makes the NCD Governor unique. In relation to the city, he is more powerful than NEC. We now have one person solely running the nation’s capital.”

“In addition to giving the Governor the power to stack the board with his own people, Parliament has given the Governor the power to stack management with his own people. The Governor has total control of both the Board and the management. It is nothing but a naked grab for power.”

Sir Mekere said that the staff of NCDC had been turned into political tools, and that the amendments would totally destroy the independence and professionalism of the city management.

“When I became Chairman I worked long and hard with the then City Manager Peter Loko and Deputy City Manager Iva Kola to institute proper procedures, to separate clearly the roles of Board and management, and build up the independent advisory and professional role of management. This has all gone out the window. Peter Loko resigned because he could not work in the changed environment. We now wait to see whom the Governor is going to fire and hire. No professional person in his or her right mind will want to work there. NCDC will be come an employment agency for cowboys and cowgirls. I pity the hundreds of existing loyal and professional employees who are now at the mercy of one man.”

“No doubt we will soon have new City Managers, Deputies, Divisional Managers and Section Heads. No doubt we will soon have the superman consultant on the payroll. The rumour is that a firm has already been selected to play the part of superman. It has no track record – the company was apparently registered days before the advertisement for superman was published. The rumour is that the terms are payment of K4 million up front, on signing the contract, and K75,000 a year for five years on top. This is just for superman, before any of his “sub-contracting” takes place. Who knows what the total cost of superman will be?”

Sir Mekere said that the changes to the NCDC Act had come about as the result of the political commitment made by the leader of National Alliance during the NCD by-election campaign. “While I respect any Government’s power to make changes, I am surprised that the actual changes that have been made were contemplated, let alone enacted. They open the way for corruption, for blatant abuse, and total politicisation of NCDC as an organization.”

“While I do not agree with the concept, if the Government wanted to make the national capital a province, it should have first put in place the requisite components of a provincial government as they exist everywhere else in the country – a provincial government system sitting on the pillar of elected local level governments. Why has the Government chosen instead this piecemeal selective corrupted approach, which puts power in the hands of one person?”

Sir Mekere said he was adamant in his view that NCD as the nation’s capital could not and should not be likened to a province.

“Port Moresby is not a province. It does not have the characteristics of our 19 provinces. It is the nation’s capital. It is the home of Papua New Guineans from every part of the country, of representatives of thousands of cultures and hundreds of languages. These characteristics are unique. Port Moresby is also the home of our national legislature, of the executive government, of the judiciary, of headquarters of business houses, of international organizations and foreign governments. How can the fate of the nation’s capital be placed entirely and mercilessly in one person’s hand? It is ridiculous. It is mindless. It is dangerous. It is simply sickening. It can only be seen as a blatant political move to use the resources of the people and businesses of Port Moresby to “prepay” (as the saying goes) 2007 election campaigns.”

“I urge the Prime Minister and Cabinet to reconsider this ill-advised legislation and repeal it at the first opportunity – that is in January 2007. The NCDC as it was in the past 2 years was working very well. Just get back to it. The Commission should be reinstated as the supreme decision making body. Greater representation for Motu-Koita should be reinstated, as should representation from churches, business and professional groups and settlements. I also suggest that the reconstituted Commission should include representatives from the ward committees of the three electorates.”

Sir Mekere concluded by saying that he was surprised that the State Solicitor gave a Certificate of Necessity for these amendments. “The amended NCDC Act is defective. Some of the amendments are in conflict with other laws. Others are inconsistent with existing provisions of the NCDC Act that were not repealed. The author of the amendments cannot even count! The amended Section 5 says the NCDC shall consist of 10 members, and then it goes on to specify 11 members!”

“It appears to be a legal minefield, ready to be detonated. I am looking closely at the amendments and their legal deficiencies. The book is not closed yet.”


Mekere Morauta, Kt MP - Member for Moresby North-West

OFFICE OF THE MEMBER FOR MORESBY NORTH-WEST
Parliament House, Waigani, National Capital District
Ph 327 7537 / 321 7986 Fax 321 1630