Sir Michael’s $1 million pay out

PORT MORESBY – Papua New Guinea’s government has paid almost $1 million in compensation to former prime minister Sir Michael Somare for his “illegal removal from office” in 2011.

A spokesman for Sir Michael said the payment was part of an out-of-court settlement agreed to earlier this year.

“Sir Michael’s claim is relative to special damages calculated by the attorney-general’s office based on the Salaries and wages Remuneration Committee (SRC) Awards and other such parameters,” a spokesman for Sir Michael’s office said.

“The constitution allows Sir Michael to seek redress for a series of breaches committed during the 2011 impasse as determined by the Supreme Court.”

In 2011, PNG’s parliament voted to remove Sir Michael from office while he was in Singapore for extended medical treatment and current prime minister Peter O’Neill was elected.

The Supreme Court later ruled that the change of prime minister was unconstitutional but the O’Neill government drafted legislation that retrospectively authorised the decision.

For a short period, both men claimed to be the rightful prime minister, and the country faced instability with rival cabinets, police commissioners and governors-general.

The bitter political impasse ended with O’Neill as prime minister, partly on the argument that “parliamentary supremacy” should decide the matter.

Four years later, a 2,049,800 kina (A$972,570) payment has been made from the secretary’s advance — a $24 million treasury fund that “caters for unforseen and urgent expenditure”.

The payment was listed in PNG’s Mid Year Economic and Fiscal Outlook (MYEFO) report.

“Compensation to Sir Michael Somare from losses incurred during his illegal removal from office as prime minister and member for East Sepik region”, was the explanation given in the treasury report.

The compensation was not ordered by a court, but was reportedly agreed to as part of a $97 million civil lawsuit filed last year against O’Neill and the state.

The payment for special damages was less that the $2.3 million Sir Michael was originally seeking, but his office said two further claims were still pending.

One of the claims is for $72 million in general damages for mental anguish and public humiliation, and the other is for $24 million in exemplary damages, according to local media reports in November.

“Sir Michael and any other person is entitled as an aggrieved party to pursue exemplary and general damages through the courts,” his spokesman said this week.

The payment to Sir Michael was one of a wide range of expenditures from the secretary’s advance, including a $953,000 office refit for the department of treasury, as well as payments for cars and funerals.

“We are reviewing all ongoing government expenditure and identifying waste,” O’Neill said in a statement on Sunday about the nation’s economic outlook.

A supplementary budget is expected to be prepared before parliament resumes in late October.