Banking at your fingertips

BSP’s Mobile Banking 3^rd Party Funds Transfer is the creative, safe, convenient and cheap approach to the often long winded process of cash transfers.

Not so long ago, to transfer funds from one BSP account to another within or another bank, BSP customers had to leave the comforts of their home or office, travel to the branch, stand in line, fill a deposit form to get it done.

It was a hassle, a daunting task that consumed so much time, effort and money.

BSP has harnessed the advances in technology and has transformed traditional banking to innovative mobile banking. Today, BSP’s innovative Mobile Banking service makes transferring funds simple and convenient with minimal hassle to its customers.

How it works

With BSP Mobile Banking funds transfer, you have the option of transferring funds from your BSP account to another account within BSP. BSP customers can also transfer funds to accounts at other banks.

Funds are transferred in real-time and helps reduce the risks and costs of cash handling. Doing an over the counter transfer to a third party is also quite expensive.

If you are a BSP customer, simply call BSP’s Customer Service Centre to register your number for Mobile Banking. You will need a registered Digicel mobile phone number.

If you are registered for BSP Mobile Banking, these are the following steps:

·         STEP 1: Dial *131#

·         STEP 2: Enter your  Mpin,

·         STEP 3: Press 2 – FUNDS TRANSFER

·         STEP 4: Press 2 – 3^rd PARTY TRANSFER

·         STEP 5: Select your Account that you will transfer funds from

·         STEP 6: Enter 3^rd party account number

·         STEP 5: Select bank

·         STEP 6: Enter amount

·         STEP 7: Confirm the transaction.

 

Once this transaction is complete, the customer gets an SMS confirming the transaction has been processed.
 

BSP is the only bank, which offers a 24/7 Customer Service Centre, so customers can contact email: servicebsp@bsp.com.pg or telephone 320 1212 or 7030 1212 if they need more information or require assistance.  

Why it's Helpful

BSP’s Mobile Banking essentially eliminates the need for customers to go to a bank when they want to transfer funds. For instance, if a child is away at university and needs some urgent cash for stationary, the mum and dad can use their mobile phone to transfer the funds.

No more using third party vendors for wires or cash transfers, which saves a lot of time. With only a mobile phone, the transfer is completed immediately. The child can then use his or her BSP Sumatin Card to access the funds at the nearest BSP ATM or EFTPoS merchant.

For “on the go” businessmen or people who frequently travel, the ability to transfer funds via mobile phone cuts down on potentially stressful situations. Just “type, click, and send”.

Traci Saruva, is one of thousands of happy BSP Mobile Banking customers who can attest to this.  

She says “Mobile Banking enables me to do various transactions without coming into a branch, which is time-consuming.  As BSP’s has locations nationwide, and most of my family members have BSP accounts, it’s easier to transact using Mobile Banking”.

Another BSP Mobile Banking customer, Gerard Varily, could not agree more.

Gerard works in a remote Highlands Province, while his family resides in Kokopo, East New Britain Province.

Because of the nature and location of his job, finding time to go to the nearest bank branch to transfer funds to his family is not a luxury he can afford. His nearest BSP branch is four (4) hours away.  

“I have practically used BSP Mobile Banking and can confidently say, as a father working in a remote location, funds transfer via mobile banking is convenient. It saves me the hassle of travelling long distances to the nearest BSP branch and worry of sending money to my children on time,” he says. 

“Sometimes my children just request for K20 which I can easily transfer to their Sumatin Account,” he adds.

Because he has BSP Mobile Banking, he often assists his work mates who are not registered for Mobile Banking.

“They give me cash, so I transfer funds to their family, but I’ve encouraged them to sign up for mobile banking,” he says.

For Gerard, BSP has made his life so much more easier, because apart from utilising the 3^rd Party Funds Transfer option, he also receives Salary Alerts via his mobile phone, so he knows when pay is credited to his bank account.

Many ordinary Papua New Guineans have embraced the mobile phone as a means to communicate conveniently and cheaply. For BSP customers, they can now, use their mobile phone to communicate and also do banking in the virtual world instead of paper.

No need to worry, because banking is now at your fingertips, as they saying goes.

The Controversy of the Asylum Seekers Deal

By Gande James*

THERE are a lot of controversies that surround the recent asylum seekers deal signed between Papua New Guinea Prime Minister – Peter O’Neill and his Australian counterpart - Kevin Rudd.

The PNG government says that the arrangement in itself is beneficial and those who side with it are those who hold similar views. There are, nevertheless, strong sentiments amongst the people, institutions, international organizations, Non-Governmental Organisation, and even other neighboring countries such as Fiji about the signing of the deal. There are many arguments for and against but only few of perceived advantages and disadvantages of the asylum seekers deal will be highlighted and looked at in this commentary. We will start by looking at some of the negativities associated with it.

First, there are no proper institutional mechanisms put in place to regulate the effects of the arrangement. For example, there are no separate laws like the Asylum Seeker Act to deal with any issues of asylum seekers. In the absence of a legal framework, the implementation of the deal will be ad hoc as policies, procedures and processes would not have been put in place as yet.

Bens Saul, a Professor of International Law at the University of Sydney, following the signing of the deal, stated that those who will be recognized as refugees and settled in PNG are highly unlikely to enjoy all of the human rights owed to them under the refugee convention. Violence, including sexual violence is endemic in PNG, so refugees will not be physically safe.

Second, basic rights to health care, education, work, social security and an adequate standard of living are also highly unlikely to be sufficiently provided, given the chronic poverty in PNG and the lack of capacity of the PNG government and institutions.

In the same statement, Saul also made it clear that the quality of the status determination processes in PNG is likely to be very poor and not in conformity with international standards. It all points to the fact of having proper mechanisms to regulate the consequences of the deal.

Past governments have been experts in running into signing such deals without having proper regulatory institutions to house and cater for the accruing consequences. A good example, amongst others, in this light is the carbon trade. Papua New Guinea has signed the agreement amongst member countries to help reduce carbon emission. However, without a proper regulatory institution in place, the people don’t know where and how the benefits that are due to them would be handled.

Without a proper mechanism in place, the expected benefits of the asylum seeker deal will, most likely be dealt with in an ad hoc and arbitrary manner.

Third, the deal is against International Law and other supporting legislation. For example, Australia is likely to violate Article 31 of the refugee convention not to penalize an asylum seeker on account of his or her “illegal” mode of entry to Australia. The deal also brings to question Section 42 of PNG Constitution, particularly Subsections 1 (f) and (g).These sections stipulate that for the purpose of preventing the introduction of diseases or suspected diseases, whether by human, animals or plants…or for the purpose of preventing unlawful entry of a person into Papua New Guinea…respectively, a person shall not be deprived of his personal liberty. The dilemma here in that the deal brings into  question these principles of the Constitution as there are no proper systems and laws in place to ensure that. What guarantee is there that the principles of the refugee convention and the PNG constitution will not be violated? Most fundamental of all, it is not clear whether the deal would be administered under PNG or Australian jurisdiction? If it is the latter, then PNG’s sovereignty will most likely be compromised. This is a large part of the reason why sections of the PNG public have been vocal on the deal.

In terms of the benefits, the Government of Papua New Guinea, together with various individuals and business houses, has largely hinged their argument on the spin off benefits that will be enjoyed from the asylum seeker deal.

First, when signing the deal, the understanding between the two Governments – PNG and Australia, was that funds will be chipped in to reform major University sectors and a construction of a major referral hospital in Lae.

Second, as a friend and a neighbor, with relationships going back to World War II, PNG felt it mandatory to reciprocate its regional obligations. Australia has always been good at all fronts-development aid, rescue mission, trade, security etc.

In addition to that, certain individuals and business houses are of the view that the deal will promote business activities and enhance economic growth. Business organizations will contribute to the development of proper processes to be put in place and also supply what it would need to keep the detention center functioning, such as proper water supply, sanitation and infrastructure maintenance.

There are other pros and cons of the deal that need careful attention.

First, Australia has the vast expanse of land to resettle the refugees, knowing that PNG lacks technical capacities to adequately deal with the issues that may transpire afterwards.

Second, Australia is kind of deliberately running away from it regional obligations, pertaining to her commitment when she signed at the refugee convention in 1954, to protect refugees from further prosecution. She probably may have reflected her incapacity to handle sensitive regional issues by signing the deal.

Third, PNG does not need extra money or aid to enhance its economic development.  Definitely not. We have a lot of agricultural and extractive industries, combined with the expected massive revenue from the PNG LNG gas - there would be sufficient financial liquidity to sustain and enhance economic development of the country.

Notwithstanding the economic benefits, the negative repercussions need to be carefully considered. They include potential violation of international laws, sections of the PNG constitution, and other supporting legislation like the Article 31 of the refugee convention. The PNG government could lose its popularity in the aftermath of the deal. There are sovereignty issues as mentioned above.

The deal boils down to a diplomatic power game in which Kevin Rudd can claim victory, in light of the looming federal elections in Australia. For PNG, on balance, the sovereignty and human rights issues are of more fundamental importance than the financial and economic benefits. Did PNG give the game away to Australia?

* Gande James is a Research Cadet under the Governance Research program at the National Research Institute. 

Rigo farmers are eager to save

Christine Iauve is a vegetable farmer from Magautou Village, who was among 90 subsistence farmers from the Oman Area of Rigo District in Central Province to open new bank accounts with BSP recently.
Christine and her husband grow capsicum, corn, peanut and recently zucchini as their cash crops, which they transport to Port Moresby and supply to hotels and shops. The hard earned cash is usually kept by Christine in her safe corner back in the village.

When opening her new BSP Kundu Account, an elated Christine said she is very thankful and applauded BSP for taking banking services right to the people in remote areas, in the heart of their communities.

Christine opened a Kundu Standard Account which suits those in rural areas.  BSP has two Kundu Accounts available for its customers, the Kundu Standard is a cheaper option for those who do not use their accounts frequently. The Kundu Standard has no monthly maintenance fee, there is no requirement for a minimum balance and its pay as you go.

The Kundu Standard also gives access to Mobile Banking, so Christine can check her account balance or transfer funds at the comfort of her home, while in the garden farming, or while on the road travelling into Port Moresby.

With her new Kundu Card, Christine and the other farmers now have access to BSP’s ATMs and EFTPoS to withdraw money or obtain goods and services.  

“We are very thankful for signing up with BSP and for receiving our Kundu Cards instantly, and not having to wait weeks,” she said.

The advantage of having an bank account, is that Christine and all the other farmers can now save their money. For Christine, the money she saves, she plans to buy a PMV truck to service the Maggi Highway, a dream she and her family has had for many years.

Another happy farmer, Martin Emilio, opened his account with K40 worth of coins (K1, 50t, 20t & 10t), he had collected from selling sweets, like lollies and biscuits in front of his house. Like Christine, Martin plans to save his money.

Martin say his fellow farmers and him have had discussions with a major retailer in Port Moresby on selling their produce, however, one of the requirements was for farmers to have bank accounts so the retailer can make electronic payments, reducing the risk and costs of cash handling.  

“Opening bank accounts is a milestone for us if we are going to sell our produce to retailers in Port Moresby, because they want us to have bank accounts, so deposits can be made electronically, without too much cash, its good for us too, because we don’t just spend all the money, as we now do, when we have cash on hand,” he said. 

The trip to Rigo by BSP was made possible with assistance from ChildFund PNG, an international NGO that has been delivering projects in Food Security, Water and Sanitation, Education, Health and Child Rights in the area for many years.

ChildFund’s Senior Programme Officer, Sharon B Pondros, says their Food Security and Livelihood projects introduced backyard farming to farmers in the rural communities, with the objective to improve livelihoods, by way of improved diets, and ways to earn an income.

She says there is also huge potential for the farmers to grow on a larger scale for cash income.

To encourage farmers to tap into these opportunities, ChildFund through its partner Fresh Produce Development Agency carry out regular financial literacy trainings to equip farmers with the fundamentals of managing and saving their money.

Childfund PNG also encourages farmers to have bank accounts so they save their money, and become self-reliant by investing in areas that will further help sustain their livelihoods.

“We value our partnership with BSP, because through the bank’s rural outreach initiative they willingly offer to support our cause for the benefit of the rural people. And in doing so our farmers are now one step ahead, so when we link them with buyers they get their payments straight into their accounts and they can access it using their Kundu cards,” Sharon says.

“The good thing about having an account, is they don’t spend all their hard earned cash immediately, like previously when they held hard cash in their hands. They are now able to budget and spend wisely, and with the savings they have over time, they can invest in other areas that can further improve their lives,” she adds.

Ends

Control middle and backbenchers

By Andrew Anton Mako*

PNG politics was labeled unstable for many years, for some it’s analogous to the well-known political impasse in 2011.

Today we’re still experiencing these problems.

The notion of political “stability” in PNG has often been used by many governments to increase their political longevity in Parliament, and to quash any attempts of change in government. This is a narrow definition of political stability, which was described as elusive at best and been “achieved” in many ways, that undermined parliamentary democracy, and lessened the power of the Parliament or the Legislature over the years.

Constant change in government is disruptive to socio-economic development and should not be encouraged. However, in PNG the Executive Government’s practice of amassing power, particularly in the last decade, at the expense of the Legislature, the second arm of government, is in itself undemocratic, and impedes the separation of power between these two arms of government.

Since 1977, PNG has had only coalition governments – small parties coming together to join a party which had won many more seats (although on average less than 30 percent of total seats contested across PNG) than the other parties. Successive coalition governments have been fragile and, until the last decade, haven’t lived out their full terms of five years in Parliament. In the PNG Parliament, the balance of power that ultimately determines the lifespan of a government lies with the middle and backbenches of the Parliament. This is where “unattached” Members of Parliament (MPs) are seated. By “unattached” I mean those MPs who either aren’t in government, or at least not occupying portfolios in the government. They aren’t important powerbrokers in the coalition.

History shows that ensuring the support of the middle and backbenchers has been an important goal of any government. If a coalition government can successfully “shut out” the middle and backbenchers of the Parliament, it can ably last a full term of five years. This was brought to the fore in the last decade under Prime Minister (PM) Somare’s two terms of government.

How did the previous governments control the middle and backbenchers?

Formal attempts were made by the Executive Government during the early 2000 to bring stability into Parliament – in the context of this article - to “control” the middle and backbenchers. The government headed by then PM Sir Mekere Morauta enacted the Organic Law on Integrity of Political Parties & Candidates (OLIGPAC) in 2000 which required that all MPs voted along party lines, including in an event of a change in government. For a decade, the OLIGPAC successfully “controlled” the power shifting forces of the Parliament until 2010, when Supreme Court ruled that the particular provision (of compelling voting along party lines) of OLIGPAC was unconstitutional. This high court ruling rendered OLIGPAC ineffective as far as “controlling” the middle and backbenchers was concerned. The middle and backbenchers of the Parliament have since become the key power brokering/shifting force of the political landscape of PNG.

Before the 2010 Supreme Court ruling, from 2002 to 2010, the coalition government headed by then PM Sir Michael enjoyed nearly a decade of political “stability” in the history of this nation. This is largely due to OLIGPAC, as well as by employing other control mechanisms to evade any opposition. This included gagging of debate in Parliament, and “appeasement” of the middle and backbenchers by promises of privileges like easy access and timely release of District Services Improvement Program (DSIP) funds, and other funding streams like the Provincial Services Improvement Program (PSIP). However, during this period, a dangerous precedent was set as far as the balance of power between the Executive Government and the Legislature is concerned, i.e. the former amassed powers by eating into the latter’s powers in its quest to successfully control the middle and backbenchers.

Yet, there would always be disgruntled middle and backbenchers that made this group a “powder keg”, ready to explode any time when ignited. This became apparent at the end of the last decade, and apparently after the OLIGPAC was quashed by the Supreme Court in 2010. In 2011, when the opposition finally had a breakthrough in having its voice heard in Parliament, it moved for a change in government when the incumbent PM was in hospital overseas. Almost the entire middle and backbenchers crossed floor to join the opposition to form a new government. 

How is the government currently dealing with power shifting forces of Parliament?

The above is the unfortunate situation of PNG Parliament the current coalition government inherited after the 2012 National Elections. Given the legislative void, the Executive Government faces a mammoth challenge in ensuring the middle and backbenchers are appeased and supportive. The current coalition government couldn’t use the same tactics as its predecessor mainly because: (i) the Parliament now has a Speaker who is “resilient”, and  has proven that he cannot be easily influenced to gag Parliamentary debate; (ii) promises of privileges to “appease” the middle & backbenchers can be ineffective mechanism to contain them because, like in 2011, they can easily cross floor to form a new government; and (iii) the coalition government has publicly announced that it will be a transparent and responsible government.  So to ensure political “stability” or for the coalition government to live out the full five years term in Parliament, the Executive Government had to further lessen the powers of the Legislature by amending key legislations including specific sections of the supreme law of the land, the Constitution. An example of such legislative change enacted in recent months was to extend the grace period to 30 months (from 18 months).

Recently, the government has announced that further legislative changes will be made to ensure political “stability”. The proposed Constitutional amendments will: (i) require a mover of motion of no-confidence against an incumbent PM/Government give three advance months (an increase from one week), and ensure signatures of 1/3 (an increase from 1/10) of total MPs nominating an alternative PM; and (ii) reduce the minimum sitting days of Parliament from 63 to 40 days.  The nature of the proposed legislative changes is such that the demarcation of powers will again be negatively impacted – more powers will be amassed by the Executive Government at the expense of the Legislature. Essentially, this will lessen the noise (if any) the middle and backbenchers could make against the government.

The opposition has strongly opposed these proposed legislative changes. However, it is powerless to effect change given it now has less than eight MPs as the majority of its initial MPs (some of whom were very vocal and critical of the Executive Government) have left. They have either joined the government (and become backbenchers) or are in the middle-benches. All these former opposition MPs claimed on their dates of departure that being in the opposition would be to miss out on bringing development to their electorates/provinces. This is a diplomatic way of saying they’d miss out on privileges enjoyed by those MPs in government or middle-benches, e.g. the timely and easier access of DSIP and PSIP funds. And those still in opposition claim their development funds have been withheld.

What has been happening in the parliament and the actions successive Executive Governments had taken since the last decade (and proposes to take) are due to the “fear” the incumbent governments have of being ousted by the (minority) opposition when the (majority) middle and backbenchers rise against them. How can this dilemma be addressed? This calls for a bi-partisan approach that could introduce radical political reforms to be passed by Parliament which would bring meaningful solution(s). Reforms that would turn political “stability” in PNG on its head are needed. Such reforms for example, should include the reduction of the number of political parties. This could be done without restricting democracy, for example, by lifting the bar on the registration of political parties, and/or, requiring that they contest a larger minimum number of seats 

*Andrew Anton Mako is a Research Fellow under the Economic Policy Research program at the National Research Institute. The views expressed here are his own and do not necessarily reflect those of NRI or any political party.

BSP and SVS sign MoU for Supa Stoa

Port Moresby, 9th July 2013 | Bank of South Pacific Ltd (BSP) and Super Value Stores Ltd (SVS) today announced the signing of a Memorandum of Understanding (MoU) to formalise a strategic relationship to facilitate financial inclusion and expansion of small business opportunities in Papua New Guinea.

SVS, as one of the nations' largest retailers, recently announced their pla...ns to rollout 3000 Supa Village Stoas throughout PNG, and has elected to enter into an exclusive and strategic business relationship with BSP.

Under the scope of the MoU each Supa Village Stoa will become a BSP Agent and benefit from BSP's range of e-payment solutions and be eligible for specially tailored Smart Business financing.

The MoU paves the way for BSP and SVS to further assist in growing local businesses and delivering their respective services.

Bringing together the country's leading bank and retailer will be a catalyst for local communities to be supplied with high quality goods, financial services and new business opportunities on a national scale.

BSP Group CEO Robin Fleming said, "BSP is committed to helping small businesses grow and is proud to work with the Supa Village Stoa project".

"Our collaboration with SVS is a unique opportunity to offer banking services in rural areas, through a trusted businessperson in the local community under a nationally recognised retail brand".

BSP currently has more than 200 Agents nationwide and continues to build on its award-winning innovative solutions to deliver the most affordable and accessible banking services.

PNG gas boom could cause economic woes

PNG gas boom could cause economic woes

Updated 9 July 2013, 19:07 AEST

Papua New Guinea's central bank is warning the government to take care of the economy amid big changes wrought by the country's expanding mining projects.

The construction phase of the 19 billion dollar Esso Highlands project is nearing completion...

It's created a housing boom in the capital and employed thousands of locals.
But the Bank of Papua New Guinea says not all the changes will be positive and some come with major risks. Timothy Pope reports.
Reporter: Timothy Pope
Speaker: Robin Fleming, CEO Bank of South Pacific. Bryant Allen, Australian National University. Kelly Howlett, Port Hedland mayor

POPE: The latest economic outlook has some blunt warnings for the PNG government. With the end of construction in sight for Exxon Mobil's massive ESSO Highlands project, the Central Bank Governor is forecasting the onset of so-called Dutch Disease. It's an economic malaise brought on when the mining industry booms and strangles the rest of the economy.
Bank of Papua New Guinea Governor Loi Bakani says urgent investment is needed in the country's traditional agriculture industry. He says high wages offered by resource companies have lured workers away from farming.

CEO of Bank South Pacific Robin Fleming:
FLEMING: Certainly agriculture has suffered and that's been a combination of a number of factors. First it has been in the soft commodity area there's been a slowdown in demand. It dis-incentifies landowners and people who harvest those types of crops to participate in that particular sector.

POPE: Spurred on by the Central Bank's warnings the government has already mooted an economic stabilisation fund to make agriculture more attractive.

FLEMING: If properly funded and properly managed could be able to allow for the downturn in commodity prices, put aside revenues during the more buoyant times to be able to stabilise the prices, stabilise the output, outcomes for people involved.

POPE: But agriculture isn't the only area that's lost workers to the resources boom. Bryant Allen is a former community affairs field manager for Esso Highlands and a visiting fellow at the Australian National University's State Society and Governance in Melanesia project. He says just as in Australia's mining industry, workers are drawn from every field.

ALLEN: The wages paid by the gas and petroleum industries are much higher than the wages paid say to a school teacher, but the school teachers have qualifications that are needed by the gas industry, school teachers can read and write and there's plenty of evidence that school teachers are leaving their jobs to join the industry.

POPE: But he says these workers aren't lost to their professions forever.

ALLEN: The other side of it is that when the construction phase of the industry's over and employment drops by about 80 per cent, they'll come back into the general economy and they'll be better skilled and better qualified.

POPE: Robin Fleming says the government has planned for one situation the Central Bank is warning of, when construction workers are laid off there are a host of government projects in the pipeline.

FLEMING: That's certainly a clear intention of the government when they introduced the budget last year, the total budget was about 13-point-eight-billion kina of which five to six-billion kina is in infrastructure development, and the intention of the government was they could anticipate that there would be skilled workforce who would be available for redeployment.

POPE: But the Bank of Papua New Guinea is also concerned about the cost of living. High wages and an influx of foreign workers on these projects has seen a housing bubble in Port Moresby.
Bryant Allen, himself a former fly-in fly-out worker in PNG, says prices are soaring.

ALLEN: For normal sorts of accommodation they've gone through the roof. There's been a building boom in Port Moresby which for apartments and serviced apartments and things like that where expatriates, people who've worked in the oil industry come from all over the world because of their particular skills and need somewhere to stay.

POPE: Bank South Pacific says the locals not employed in the resource sector are the losers, with a severe shortage of affordable housing. It's a problem faced in mining towns like Port Hedland in Australia's Pilbara, home to a huge iron ore industry.
Port Hedland mayor Kelly Howlett:

HOWLETT: Particularly if you're not working in the resource industry or not having the company paying for those house prices or those house rents, you find if long-time locals, if they can't afford to live and remain in the community anymore, you'll see a drain of those people leaving town.

POPE: She says PNG should also watch its tourism industry, as housing in her town has become so tight there's no room for visitors.

HOWLETT: I guess it's really difficult to provide that incentive for anyone to operate say a backpackers accommodation when they know they can rent out their premises to resource industry for in excess of three-thousand dollars a week.

POPE: The Bank of Papua New Guinea says with careful planning all these issues can be managed, but it wants to be sure the LNG slowdown doesn't lead to economic disaster.

http://www.radioaustralia.net.au/international/radio/program/pacific-beat/png-gas-boom-could-cause-economic-woes/1158826

Papua New Guinea: Banks eye rural areas for growth

Asia | 24 Apr 2013

The rapid evolution of mobile technology across Papua New Guinea (PNG) is proving to be a key driver for banks as they step up their efforts to seek out growth in rural areas. Banks’ moves to shift their focus from urban centres to rural areas sits well with the government’s financial inclusion policies, although lenders are likely to face a number of challenges as they look to expand in what remains a predominantly cash-based economy.
The banking sector has struggled to weather a series of crises over the past three decades. By 1996, commercial lenders found themselves compelled to reduce their combined number of branches, which dropped from 485 to 195 and, since then, the number of banks operating in the country has dwindled from seven to four.
Findings from the Asian Development Bank (ADB) suggest around 85% of PNG’s population remained unbanked in 2012, while the Bank of PNG (BPNG) estimated in the same year that just 22% of the PGK900m ($417m) thought to be in rural circulation was held by commercial banks.
The latest IMF Financial Access Survey of 2009 found there were just 1.71 branches and 0.47 ATMs per 1000 sq km in PNG, while the number of bank accounts stood at around 1.6m amongst a rapidly expanding population of 7.2m. “There are two trends in PNG’s banking system,” Ian Clyne, group CEO of Bank South Pacific (BSP), told OBG. “The first is an aggressive drive to provide financial services through electronic solutions to the majority of Papua New Guineans; the second is to grow the premium services offered to high-net individuals and corporates.”
BSP remains PNG’s market leader, holding about 1.2m bank accounts in 2013, up from 550,000 in 2011. Australia and New Zealand Banking Group (ANZ) and Westpac Banking Corporation, meanwhile, place second and third, respectively, with a combined total of 250,000 accounts, although both have traditionally targeted the high-revenue corporate and more affluent retail segments. Malaysia’s Maybank (Malayan Banking) was granted a licence in 1994 and remains the sector’s smallest player.
Since merging with PNG Banking Corporation (PNGBC) in 2002, BSP has faced little competition in the retail market, despite the central bank favouring the introduction of a new entrant. Currently, more than 80% of BSP’s accounts are retail based, and the bank is in a strong position to lead the advance into rural markets. BSP’s rural banking strategy includes plans to open 75 branches in remote areas and see a 10-20% growth in number of accounts.
The drive is being spearheaded through the bank’s subsidiary, BSP Rural, over the course of the year. The financial institution currently operates 270 ATMs and aims to open around 35 scaled-down rural branches per year. Westpac operates 16 branches and over 30 ATMs which are mostly located in urban centres, while ANZ has 66 ATMs and is adding to its 14 outlets at a rate of about one per year.
However, despite BSP’s plans to accelerate into rural areas, some experts question whether serving the mass market will prove profitable. In a survey carried out by International Finance Corporation (IFC) and UNDP’s Pacific Financial Inclusion Programme (PFIP) in 2008, almost three quarters of PNG respondents put the weekly amount they could afford to save at under PGK100 ($46).
In the 2012 budget, BPNG extended tax incentives for banks opening rural branches through to 2017. However, lenders are still seeking out low-cost channels in a bid to achieve the economies of scale they need to break even. “Rural branches will unlikely ever be profitable in PNG,” Clyne told OBG. “It is a social service BSP is providing as part of our ‘Financial Inclusion’ initiatives. A rural branch needs approximately 2000 customers to break even in terms of direct costs involved in installation and operation.”
He continued, “BSP has over 1m retail accounts in PNG, of which roughly 98% are transactional banking services only - customers are purely cash in, cash out service focused - partly because the formal economy is so small. We estimate some 40% of clients who conduct transactions through our branches would be better served through alternative channels, such as rural branches, mobile banking or by using EFTPoS (electronic funds transfer at point of sale).”
A drive to push into rural areas last year helped boost customer numbers for PNG’s banks, with ANZ and Westpac both almost doubling their accounts tally. Each of the two banks opened around 55,000 new basic accounts during 2012.
BSP launched its flat-fee basic Kundu account in 2011 on the back of PNG’s mobile revolution, following in the footsteps of mobile telecommunications provider Digicel which set up its EasiPAY (Easipawa) service in 2009 and PNG Post, which operates a Salim Moni Kwik (“Send Money Kwik”, SMK) facility. Around 275,000 Kundu accounts were opened in 2012, helping to earn BSP the Connected World Forum Award for the world’s “Best Bank-led Mobile Money Programme”. The award marked a first for both the bank and PNG.
While PNG’s formally banked economy remains small, international recognition is likely to galvanise activity within the financial services sector. Forthcoming revenues from the liquefied natural gas project, coupled with rising formal employment, which is estimated to be growing at around 7%, should boost demand and help strengthen the banking sector’s expansion efforts.

http://www.oxfordbusinessgroup.com/economic_updates/papua-new-guinea-banks-eye-rural-areas-growth

Policing in PNG is failing the interests of citizens

PNG police have been subject to recent criticism for not dealing forcefully with heinous crimes against citizens. PAUL OATES looks at relevant historical, cultural and political factors….

THE CONCEPT OF A POLICE FORCE (or ‘service’ as many are now known), is foreign to Papua New Guinea. But it’s fair to add that, until around 200 years ago, the idea was unknown in most parts of the world.

In Britain and Australia, law and order was the responsibility of local armed militia units theoretically answerable to local magistrates and government.
In practice, this allowed local militia ‘colonels’, who may well also have been the local landowner and magistrate, a good deal of leeway in how law and order was maintained.
Sir Robert Peel, a British prime minister is generally credited with the inception of the concept of a modern police force.

In 1822 Peel set up a committee to reorganise what was a group of watchmen and local constables known as the ‘Bow Street Runners’ and create a centralised organisation that became the London Metropolitan Police Force.
By 1829, the Metropolitan Police Bill saw the establishment of a force of 895 constables, 88 sergeants, 20 inspectors and eight superintendents who were responsible for six police districts in London.
The members of this force eventually became colloquially known as ‘Peelers’ or ‘Bobbies’ after Sir Robert. The name ‘Bobby’ stuck, and is still in use in Britain today.
In the USA (where the New York Police Department was founded in the 1840s), the police had shiny copper badges on their uniforms which gave rise to the slang word ‘Copper’ and derivatives such as ‘Cop’.
To understand the current Royal Papua New Guinea Constabulary one must first go back to before its origins.
Until colonial times, traditional PNG village culture did not have anything like a role for a designated official whose duty it was to physically enforce the rules of society. 
The traditional sanctions often centred on shaming and alienating those who didn’t conform. Laws and codes of conduct varied between societies and were maintained by village councils of mostly senior males.
Constant reminders about the omnipresent spiritual world and retribution for those who breached custom also helped ensure clan members conformed to social and cultural expectations.
With the arrival of the Australian administration, previous controls within each clan and village had to cope with yet another level of control and sanction that had to be learned, adjusted to and actively followed, albeit possibly only when the need arose, e.g. when the Kiap arrived in the village on patrol.
An important aspect of traditional controls in PNG was that they were essentially proactive. If you followed clan law and appeased the spirit world, you had every expectation of not falling ill or of contracting disease.
A problem only arose if you might not be aware of something or someone who might be antagonistic towards you. If however something unexpected then happened to you, then you had every right to be personally reactive and try to extract what you saw as effective and justifiable retribution.
With the gradual enforcement of Pax Australiana, the rule of so called western law was imposed over PNG through the role of the Kiap and a loyal and trained police force. PNG people then perceived they had a dual set of laws to follow.
However, unless a major crime occurred, often people in rural areas might only see the Kiap every now and again. The day to day customary laws still had to be followed. Perhaps that situation started to give rise to the notion that Kiap and police law was only reactive and punitive in nature.
Originally, the RPNGC officer corps was staffed with expatriates who could be perceived at village level as being impartial due to their non PNG origins. Additionally, these officers were constantly moved between various outstations.
As independence approached, senior officer levels were gradually localised. As localisation continued, a potentially complicating factor arose, given regional loyalties and recognised ethnicity.
Papua New Guinean police officers could be perceived as being a member of an enemy clan. There have been reported instances where local police tried to use their position and authority to intimidate those from other regions.
Post PNG Independence, the interaction with the newly emerging political elite has often led to a confused state of senior command of the RPNGC. Political leaders, long expected to be good examples to be emulated, became subject to many claims of corruption and malfeance in office.
When police investigations resulted in charges being laid, political interference often led to acquittals or a lack of will to carry through with prosecution and conviction.
Over the last few years, PNG Police Commissioners seemed to come and go, often depending on whether they supported or were acceptable to the political leadership of the time.
Recently, there occurred a political impasse in which two politicians each claiming to be prime minister appointed different police commissioners. This led to conflict between police who tried to remain loyal to one PM and those supporting the other claimant.
Tense situations occurred when Special Response Team members flew to Port Moresby to push their champion’s claims only to be outnumbered when the majority government flew in more loyal police to support their government and their appointed Commissioner.
The gradual demise of police resources, manpower and especially prestige must have played heavily upon the minds of those police who saw their own careers and public standing being drastically eroded.
In addition, some officers and members of the RPNGC who dealt with people other than from their own clans may have felt they had to maintain control by the use of reactive and punitive measures.
The PNG Defence Force was historically part of the Australian Army and, as such, received a much greater resources than the police force. This aspect clearly rankled many police and has led in the past to direct conflict between the two armed services.
Proactive versus reactive policing
Sir Robert Peel’s views on policing included that ‘the police are the people and the people are the police’. He established a number of principles just as relevant today as they were 200 years ago. His first principle was the ‘basic mission for which police exist is to prevent crime and disorder.’
Police foot patrols or ‘beats’ were considered essential to combat crime. Peel maintained that in order for police to effectively perform their duties, they must have the willing cooperation of the public. To achieve this cooperation, police must have the respect of the public.
In a telling observation, Peel claimed: ‘The degree of co-operation of the public that can be secured diminishes proportionately to the necessity of the use of physical force to the extent necessary to secure observance of the law or to restore order only when the exercise of persuasion, advice and warning is found to be insufficient’.
One of the most important and basic changes in the life of the majority (85%) of Papua New Guineans who live in rural areas is the dearth of active patrolling and physical contact by police at the village level.
In addition, due to PNG having the lowest reported ratio of police to population in the Pacific area after a long period of under-resourcing, RPNGC activities have been gradually reduced to mostly reactive policing.
The often heard claim ‘nogat petrol’ (no petrol to drive to a crime scene), seems to sum up the situation to which that even reactive policing has descended to over the last few decades.
PNG’s prime minister Peter O’Neill and the current police minister Nixon Duban have recently announced a K267 million increase in funding of the Constabulary over the next five years.
While this is good news, it will take a considerable effort at all levels of the force to improve what has been years of under-resourcing, reduced and ageing personnel and low priority for the maintenance of facilities.
In addition, the attitude of some of today’s Constabulary may well need to be readjusted from what has become almost a hand to mouth existence. Illegal road blocks and other punitive activities do not endear police to the public, in whose name they are essentially supposed  to help.
The road maps identified by Sir Robert Peel are still as relevant as they were 200 years when the foundations of today’s modern police forces were created.
Current claims that PNG is one of the most dangerous countries to visit could well be a thing of the past. It will however take a concerted effort by all levels of the Constabulary to bring the future changes everyone is now hoping for. - Source Keith Jackson.

http://asopa.typepad.com/asopa_people/2013/04/why-policing-in-png-is-betraying-the-interests-of-citizens.html

American recounts horrific gang rape at the hands ...

Malum Nalu: American recounts horrific gang rape at the hands ...: The woman, her husband and a guide were ambushed and left alone on Karkar Island, hours away from the nearest village. By Sasha Gol...

Barney's Beat : POLICE POWERLESS, MINISTER SILENT

Barney's Beat : POLICE POWERLESS, MINISTER SILENT: TIM PALMER: The powerlessness or unwillingness of police in Papua New Guinea in the face of violence against people accused of black magi...

POLICE POWERLESS, MINISTER SILENT

TIM PALMER: The powerlessness or unwillingness of police in Papua New Guinea in the face of violence against people accused of black magic has been demonstrated again in yet another brutal killing.

A women accused of sorcery has been beheaded on the island of Bougainville.

Her murderers are also detaining three other people but local police say they don't have the manpower or the firepower to do anything about it.

The human rights group Amnesty International says that's not good enough and is demanding the police do their jobs.

PNG correspondent Liam Fox reports.

LIAM FOX: It's hard to imagine that police would respond to the kidnapping of four people and the subsequent murder of one of them, by throwing their hands up in defeat. But that is exactly what's happening in the south of Bougainville.

Paul Kamuai is the acting assistant police commissioner for the region.

PAUL KAMUAI: In this situation it was a very extraordinary situation that men and women were there and it was at night and then we found out that there were arms around and we couldn't use the arms, so there would be a lot of killings from the police and then from the civilians as well.

LIAM FOX: Last Tuesday two women, Helen Rumbali and her sister Nikono and the Nikonos' two teenage daughters were kidnapped by an armed mob and taken to Lopele village in the Bana district.

The women were accused of using sorcery or black magic to kill someone and they were tortured for several days. Then on Friday the mob murdered Helen Rumbali by cutting her head off.

After negotiations with community leaders the mob allowed Nikono and her daughters to go to a local health clinic but they've set up a roadblock preventing them from leaving the area.

Nikono Rumbali is believed to be in a critical condition after the mob tried unsuccessfully to decapitate her.

Assistant commissioner Kamuai says police have no immediate plans to try and rescue the trio or arrest the murderers. He says they're outnumbered and outgunned.

PAUL KAMUAI: Police on Bougainville are not armed. Even if we are armed there is more arms still out there. I have eight regular police. They do not have a proper police station. They live in the villages so we can't very quickly get them in to act in a group.

LIAM FOX: It's a common problem. Across PNG police lack the resources and manpower to keep the peace.

But on Bougainville they face an added problem. The island is awash with guns, a hangover of the bitter civil war fought there during the 1990s.

The fighting ended with a peace agreement in 2001 but disarmament efforts have stalled and there are plenty of factory and home-made weapons in the hands of ex-combatants and others.

Despite those difficulties, Amnesty International says the police response, or lack thereof, is not good enough.

KATE SCHUETZE: If all the police can do is stand by and watch while women are executed that's a very sad situation for the country indeed.

LIAM FOX: Kate Schuetze is Amnesty International's Pacific researcher and she says the PNG government must provide police with the resources they need to do their jobs.

KATE SCHUETZE: I understand that there are limitations with resources but it's not an adequate excuse for government to say that they can't protect someone's life and meet their responsibilities that they've signed up to, just because they don't have the capacity.

LIAM FOX: Sadly, sorcery killings are not uncommon in PNG.

In February a woman who was burnt alive on a street in Mt Hagen, the biggest town in PNG's highlands, made headlines around the world.

But Bougainvilleans say the murder of Helen Rumbali is the first sorcery killing on their island.

Helen Hakena from the North Bougainville Human Rights Committee believes the murderers have used sorcery as a cover for other motives.

HELEN HAKENA: It's pure jealousy of a family who is well known, that they've got positions in government and this woman is a woman leader and they've got good homes.

LIAM FOX: Ms Hakena says Bougainvillean women are horrified at what has happened and they too want the police to take action.

HELEN HAKENA: If this one woman is not respected then all of us will face the same consequences too in the hands of our sons here.

LIAM FOX: But it's not only the police that are standing by doing nothing.

When the ABC contacted Steven Kamma, the Minister for Bougainville Affairs, he declined to comment, saying he didn't want to get involved.

This is Liam Fox in Port Moresby reporting for PM. - ABC

Barney's Beat : Magical Sunset Milne Bay

Barney's Beat : Magical Sunset Milne Bay: Sunset in Alotau 2011. By Barney Pondros Majestic sunset in Alotau, Milne Bay. Milne Bay is an exceptionally beautiful province, lo...

Magical Sunset Milne Bay

Sunset in Alotau 2011. By Barney Pondros

Majestic sunset in Alotau, Milne Bay. Milne Bay is an exceptionally beautiful province, located on the most Eastern tip of mainland Papua New Guinea. The province is rich in culture and tradition, particularly known for its exotic dances. Alotau plays host to the Kanu and Kundu Festival, among others.  

The Festival is a rare opportunity to witness the amazing diversity of cultures and canoes unique to the Milne Bay region and other parts of the country.

It is interesting to note that closely linked to the canoes are the traditional songs, rituals, customs and dancing for each region that are showcased.

The mix of canoes, ceremonies and dancing makes a spectacular visual experience, but at the end of the festival it is paramount that participants, visitors and the community leave with a commitment to preserving the unique cultures and traditions.

Vacation in Paradise

Papua New Guinea is an awesome and magnificently beautiful country. In December, my family and I spent our vacation in Vanimo, Sandaun Province. Sandaun is renowned for its sand and surf. I will post some photos and an article in due course. The photograph I attach is my last son Caleb, playing in the sand on a beautiful sunny day. This is what PNG can offer.