Briefs

PNG Central Bank rescinds financial institutions licences amid worries about scam financiers THE Bank of Papua New Guinea is in the process of rescinding the licences of two financial institutions, including a bank, following their failure to meet financial regulations.

The two institutions were not named when PIM went to press. They were issued licences in 1996 but have not opened up for business yet. It is understood the Bank of PNG has withheld the licence for one of the parties pending full details of share holders operating through holding compa nies with interests in two tax havens.

National Broadcasting Corporation News says when the Bank insisted on more details about individual directors, the pro moters were believed to have dropped their partners from tax havens. Meanwhile, the PNG Central Bank has revealed it has no powers to prosecute scam operators estab lishing finance businesses in the country.

The Central Bank’s deputy governor, Wilson Kamit, says promoters of such schemes usually ask for “up front” fees in return for non-existent financial services.

He says a “two-kina” company had approached the government and offered US$5OO million at very competitive rates for a front-end fee of 10 per cent of the pro

posed loan. Kamit says the Bank was unable to prosecute the operator but was able to check with authorities in other countries on the operator’s credibility.

Downer signs Australian youth ambas sadors programme THE Australian government is embark ing on a programme for its young people to experience and better understand the

region. Australian foreign minister,

Alexander Downer, signed a memorandum of understanding with Solomon Islands development minister, Fred Fono, in December on the Australian Youth Ambassadors Development Programme.

The programme aims to help young Australians broaden their experience and understanding of the region’s cultural, eco nomic, social and political environment.

Downer told a news conference that the programme will enable 500 young Australians to take part in volunteer assignments in the Asia Pacific region. He says it will enable them to apply their skills with governments, local business, and edu cation and community services.

The selected youths will be posted to their respective assignments for five months. The Australian Federal govern ment has allocated Aslo million for the first two years of the programme.

Downer was on a five-nation tour of the South Pacific, covering the Solomons, PNG, Kiribati, Tuvalu and Fiji.

Assassination threat hangs over PNG

opposition leader

PAPUA New Guinea police are keeping a close watch on opposition leader Bernard Narakobi, after receiving reports of a plot to assassinate him.

Last month, criminals targeted Narakobi’s family car in broad daylight at the Jackson’s International Airport. The car was later found completely destroyed near Mount Diamond High School outside Port Moresby. Narakobi has been told about the assassination plot, which is reportedly linked to his constant bashing of the Skate government and plans by the opposition to move a vote of no-confidence against the

prime minister.

Police say they are treating the matter very seriously. Opposition members have restricted their movements in Port Moresby.

Pollution danger from Gold Ridge copper mine in Guadalcanal AN Australian law firm has further raised fears of environmental pollution at

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BRIEFS continued

gold Ridge copper mine in the Central Guadalcanal region of the Solomon Islands. Nicholas Styant-Browne, of the Melbourne law firm Slater and Gordon, says waste from the Gold Ridge opera tion will ultimately pollute the river sys tem in the mine’s vicinity.

He says the river system will be seri ously affected because the waste will inevitably find its way into the system.

Styant-Browne says any mining engi

neer will agree that a Gold Ridge-type mine in the tropics, which does not con tain its waste, would pollute the river.

He says this puts the environment and the people living in downstream areas at risk.

The Solomon Islands government has already warned that it would not tolerate any environmentally unsafe practices at

the mining operation, after nearby resi

dents found dead fish in the river.

FSM Compact committee meets THE Federated States of Micronesia’s Joint Committee on Compact Economic Negotiations has concluded its fifth ses sion.

The Committee is preparing for nego tiations with the United States over renewal of the current 15-year Compact of Free Association.

The current US assistance compact expires in the year 2001.

During the meeting, the committee’s secretariat reported on progress in devel oping a framework for economic propos als to be presented to the United States and provided a briefing on current FSM economic conditions.

The secretariat also announced the appointment of Doctor Glen Skaggs as a defence and security analyst.

The FSM’s Joint Committee on Compact Economic Negotiations has scheduled its next meeting to take place during March 1999. ■