Media Release

JOHN SUPA – Public Relations Officer, Coffee Industry Corporation Ltd. 14th July 2016

Goroka District Court Senior Magistrate Gerard Vetunawa, on Wednesday (13/07/16), convicted and fined a man K1,000.00 or in default to serve 6 months imprisonment for breaching regulations under the Coffee Industry Corporation (CIC) Statutory Powers & Functions Act, 1991.

The defendant Timothy Jona aged 30 of Kimi in Okapa, Eastern Highlands Province was arrested during a joint Police and CIC operation two weeks ago at Ifiufa Village outside of Goroka, for illegally buying cherry coffee. He was arraigned under Section 21 (1) of the CIC Statutory Powers & Functions Act, 1991 and released on a Police Bail of K500.00.

Jona pleaded guilty before Magistrate Vetunawa last week and the case was adjourned to Wednesday for sentencing. In his pre-sentencing remarks before a packed courtroom, Mr Vetunawa also warned other illegal coffee dealers that;

“The Coffee Industry Corporation is a legally regulated industry”.
“Like any other industries, CIC is one such institution that is empowered by an Act of Parliament to deal with the coffee industry alone and nothing else”.
“CIC is the ultimate Boss to regulate and maintain coffee quality”  
“Paramount obligation of CIC is to export quality coffee to its overseas destinations – not substandard quality of coffee”.
“No Tom, Dick and Harry should try to breach the CIC Act”
“No one should compromise quality of coffee through breaching rules and regulations under the CIC Act”.
“If quality is there the farmer will get good money, no quality means no money or less money”

Senior Police Prosecutor Sergeant Joe Pipi, who prosecuted the case, expressed satisfaction, saying the Court had realised the importance of what the CIC was doing to enforce rules and regulations, all for the good of the coffee industry in PNG. Sergeant Pipi said the maximum penalty under Section 21 (1) of the CIC Act was imposed upon the defendant.

Should Jona is in default of the K1,000.00 fine , he faces 6 months imprisonment at the Bihute prison outside Goroka. Jona’s coffee weighing scale and over 500kgs of cherry coffee that were confiscated during his arrest were forfeited to CIC under the same Court order.

Under a joint agreement signed between Police Commissioner Gary Baki and CIC Chief Executive Officer, Charles Dambui, both Police and CIC Officers are currently engaged in a bipartisan approach towards enforcing the CIC’s Cherry Trade Ban policies.

THE effort by Coffee Industry Corporation (CIC) to increase production and quality is gaining momentum with a recent announcement of seven (7) new partnership agreements in Goroka under the additional funding.

THE Coffee Industry Corporation (CIC) is the custodian of all industry rehabilitation efforts being carried out by Productive Partnerships in Agricultural Project (PPAP), explains Project Manager Potaisa Hombunaka.
He says the World Bank (WB) and the International Fund for Agricultural Development (IFAD) are financing the project which is being implemented by a Project Management Unit (PMU) operating under CIC as the regulating agency. 
“It is a World Bank and IFAD funded project through a loan facility provided to the PNG Government, therefore effectively Government of PNG is funding this project.”
“This must be understood because at the end of the day our children and grand-children will pay back this loan.”
Mr Hombunaka clarified this confusion when speaking to PPAP coffee Leader Partners and farmers during the 10th World Bank Implementation Support Mission visit to Goroka and Mt Hagen last month.
This mix-up has given a different connotation to industry partners including farmers.
Mr Hombunaka says the integration of CIC and PPAP was his first effort since taking office as project manager in September 2015 where PMU officers are now wearing CIC uniforms.
“Today there is no CIC and PPAP farmers. That nonsense has stopped. The project is here to serve our coffee farmers.”
Mr Hombunaka urged all partners in the coffee rehabilitation work to put in an honest effort to increase coffee production and quality for farmers to get a better price.
“If we do not perform well, government will get money from other sources to repay the loan and this will be a burden for our children and grandchildren.”
The PPAP is a coffee rehabilitation project of Coffee Industry Corporation (CIC) funded by a loan facility from World Bank IDA (International Development Association) and IFAD (International Fund for Agriculture Development) with counter-funding from GoPNG.

George Nomino, Coordinator of CDA Goroka, a Lead Partner of PPAP (coffee) introducing members of 10th World Bank Implementation Support Mission (L-R) Jonas Bautista (World Bank-Safeguards), Allan Oliver (World Bank) and Dan Vadnjal (IFAD) during a meeting with coffee farmers at his Miruma Village in the Upper Asaro area of Eastern Highlands Province.

Approved for release:



Potaisa H. Hombunaka (Mr)
Project Manager

A GOVERNMENT official has praised current efforts by Productive Partnerships in Agriculture Project (PPAP) to improve coffee production and quality in Papua New Guinea.
“The PPAP is a successful project for the government,” says Daniel Kopel of Department of Treasury.
Mr Kopel revealed this position on behalf of a government team he led which accompanied the 10th World Bank Implementation Support Mission to check coffee rehabilitation work being carried out by Lead Partners of PPAP coffee in the highlands region.
The project is financed by a loan facility from World Bank and International Fund for Agricultural Development (IFAD) with counter-funding from the PNG Government. 
“When government went to get the loan, we wanted the best practice model to deliver this project.
“The success of this project led to additional funding from World Bank and IFAD.”
The project has been extended from June 2016 to June 2019 following additional financing. It will include other coffee growing areas or provinces like Enga, Southern Highlands, Morobe, Madang, East Sepik and East New Britain.
Mr Kopel said the government would like to see PPAP as a model project where lessons learned can be institutionalized or integrated into other CIC programs. 
He emphasized that PPAP is a loan project and its success is the result of support by all stakeholders in the coffee industry. 
“The buck stops at you. The success of your project depends on you to improve the livelihood of your children to have a good living standard. That is the expected outcome of this project.”
On behalf of the PNG Government Mr Kopel acknowledged World Bank IDA and IFAD for financing the project.
World Bank representative Allan Oliver and IFAD official Dan Vadnjal were also impressed with the many information on rehabilitation activities shared by PPAP Lead Partners and CIC in two presentations held at Goroka and Mt Hagen.
“There is lots of information on local approaches being used and you know best how to deliver the project,” says Mr Vadnjal.
“What you doing is a great job. It is a honest statement.  We will work behind the scene to help you.”
Mr Vadnjal was struck by the remoteness of some projects particularly in Okapa, Eastern Highlands and inland Simbai, Madang Province where road and market access remains an obstacle to many rural farmers. 
The PPAP is a coffee rehabilitation project of CIC funded by a loan facility from World Bank IDA and IFAD with counter-funding from PNG Government.

Daniel Kopel of Treasury Department and PPAP consultant Abner Yalu checking some tools that have been distributed to farmers at Miruma Village in Upper Asaro Valley, Eastern Highlands Province, to improve their coffee gardens.

Approved for release:


Potaisa H. Hombunaka (Mr)
Project Manager

THE funding to rehabilitate coffee industry in Papua New Guinea is not “free money” for people to misuse, warns Ian Mopafi, chairman of Industry Coordination Committee (ICC) for Productive Partnerships in Agriculture Project (PPAP).
“Those who have run away, we will come after you. This is not a free handout.”
Mr Mopafi issued these challenging statements in a meeting with potential Lead Partners under Call 4 on Tuesday 26 April at Bird of Paradise Hotel, Goroka. The two-day meeting with 22 potential partners which has been screened from 60 applicants ended Wednesday 27.
Mr Mopafi while welcoming the interested partners also urged them to become genuine stakeholders in the coffee value chain to use the loan funding from World Bank and IFAD (International Fund for Agriculture Development) under improved stringent guidelines.
“You must have the financial manpower and capacity to become a partner to increase coffee production and quality. 
“Some have already been arrested and charged so the onus is on you.
“This is not another free money for people to get like the NADP where so far no persons had been trialled for misuse of these public money,” said Mr Mopafi.
Project Manager Potaisa Hombunaka reiterated the call for transparency and accountability in the use of funds allocated under PPAP.
The new PPAP manager who took office in September 2015 said many lessons have been learned under Call 1 and 2 and PPAP is tightening up the loose ends to ensure effective reporting to measure actual progress of coffee rehabilitation efforts.
“Many nurseries have been set up by Lead Partners but I want to know have the seedlings been actually planted.
“PPAP consultants and CIC officers will actually go out to check.
“In three years’ time our efforts must contribute to increasing export as required by the government. Otherwise I will go to the government and advise them to stop funding this project because our grandchildren will repay this loan,” said Mr Hombunaka.
“Therefore we must be genuine in our desire to help grow the coffee industry by improving farming practices to increase coffee production and quality hence livelihood of our growers.
“If you do not have this thinking and want to use this money for the coming 2017 general election, then you’re in the wrong place. We will not consider you,” said Mr Hombunaka.
A total of 60 applications were received under Call 4. The applicants have been screened to 22 who will be further screened after this meeting. 
One purpose of the meeting is for Lead Partners to become aware of the problems under call 1 and 2 and to improve in their reporting system. The other is for new potential partners to know of the process and procedures in putting together a business plan for consideration towards the final screening stages.
The PPAP is a coffee rehabilitation project of Coffee Industry Corporation (CIC) funded by a loan facility from World Bank IDA (International Development Association) and IFAD (International Fund for Agriculture Development) with counter-funding from GoPNG.


Approved for release:


Potaisa H. Hombunaka (Mr)
Project Manager


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