By Norm Dixon
Papua New Guinea Defence Force (PNGDF) commander Brigadier General Jerry Singirok's dramatic refusal to go along with deployment of mercenaries on Bougainville has forced the PNG government to abandon its plans and exposed deep divisions within PNG's elite. While the differences surfaced over Port Moresby's Bougainville policy, they reflect a much deeper split over the country's relationship with its former colonial master, Australia.
On March 17, Singirok announced that he had "cancelled all further activities" between the PNGDF and the mainly South African mercenaries from the Executive Outcomes/Sandline International private army. Soldiers loyal to the commander detained the 40 or so hired guns at their base at Moem Barracks in Wewak pending their deportation.
Singirok demanded that Prime Minister Sir Julius Chan, his deputy Chris Haiveta and defence minister Mathias Ijape resign and a caretaker government rule until elections.
He also demanded an official inquiry into the $46 million deal with the apartheid-linked mercenaries, suggesting that large rake-offs and secret commissions were involved.
Singirok was responding to the PNGDF's war-weariness. The troops' morale has been shattered by defeat after defeat at the hands of the highly motivated Bougainville Revolutionary Army. The engagement of the mercenaries caused resentment and fear among the troops and their families. More than 100 PNGDF soldiers have been killed in Bougainville in the past nine years.
"Our credibility has been seriously undermined, while the expected backlash as a result of any major military operations on Bougainville will remain with us for many years", Singirok said. "I couldn't stand by as the government spent millions of kina in three months while my men can hardly get enough food, supplies or uniforms."
He accused Chan of lying when he said the mercenaries would not be on the front line in Bougainville. PNGDF troops were not being trained to operate Sandline's high-tech firepower, so only the mercenaries could lead any assault.
Singirok stated bluntly that "there is no military solution to the Bougainville conflict". A settlement requires "winning the trust of the people and restoring government services". He called for negotiations.
Demonstrations in capital
The PNGDF chief on March 18 quietly accepted his dismissal by the Chan government and convinced troops loyal to him to remain in their barracks. He denied he had attempted to stage a coup. The bulk of the 3000-strong PNGDF, however, remained on strike and refused to obey orders by the new army chief to release the mercenaries.
Singirok's opposition to the mercenaries, support for an end to the Bougainville war and demand that the "corrupt" Chan government resign won immediate support from the students, workers and unemployed of Port Moresby.
A demonstration organised by the radical Melanesian Solidarity (Melsol) group on March 19 outside Murray Barracks attracted 2000 people. The protesters were cheered on by rank and file soldiers.
Another demonstration on March 20 was fired upon by police, who have remained loyal to Chan. Until the situation was defused by PNGDF officers, a shoot-out between soldiers and police seemed possible.
The spectre of a volatile alliance between disgruntled rank and file soldiers, politically aware university students and Port Moresby's workers and unemployed — combined with his growing isolation within the PNG elite — forced Chan late on March 20 to cancel the contract with the mercenaries and agree to an investigation into the deal.
While Singirok's immediate motive was defence of his troops, it is clear that he was emboldened by the opposition to the mercenary plan from a significant section of PNG's elite. His formula for ending the Bougainville crisis — abandoning the military solution, restoration of services and negotiations — echoes that of a faction of the cabinet.
Chan's government has been deeply divided over Bougainville. The dominant position of Chan, Haiveta and Ijape favours a military solution. The softer line, pushed by PNG provincial and local government affairs minister Peter Barter, supports negotiations, a lifting of the blockade and a restoration of services to rebel-held areas.
The government's mercenary adventure was condemned by Sir Michael Somare, independent PNG's first PM, influential MP Sir John Kaputin and Fr John Momis, who nominally represents Bougainville in the national parliament.
The premier in the Port Moresby-appointed Bougainville Transitional Government, Gerard Sinato, the governor of the National Capital District, Bill Skate, and former PNG ambassador to Washington Meg Taylor all opposed the move and backed Barter's plan. PNG's major daily newspapers and the country's churches also opposed Chan on the issue.
Howard's criticism
This split deepened after Canberra criticised Chan's employment of the shady characters from Sandline/Executive Outcomes. The Australian government's opposition was not based on any fundamental objection to crushing the Bougainville people or even to the use of a private army to do it. Canberra saw Chan's use of mercenaries as an attempt to weaken Australia's influence.
Australia dominates PNG's economy. Australian companies have about $4 billion directly invested there. In recent years, there has been a boom in the minerals and oil sector.
BHP owns 60% of the giant Ok Tedi gold-copper mine, which generates 20% of PNG's total exports. RTZ-CRA owns 17.5% of the rich Lihir gold mine and 54% of the idle copper mine on Bougainville. Placer Pacific is a major shareholder in the $1 billion Porgera gold mine and owns the Misima gold mine. Projects worth billions more are on the drawing board.
PNG-related stocks listed on the Australian stock exchange are worth $5 billion. Australia is the destination of more than 45% of PNG exports, mainly minerals and agricultural produce, and the source of 40% of PNG's imports, mostly manufactured goods and processed foodstuffs. More than half of all overseas profits of Australian companies are made in PNG.
PNG is the largest recipient of Australian aid. Between 1975 and 1996, Canberra provided $6 billion. Australia will give PNG $320 million in economic aid this financial year.
It has allocated over $11 million this year for the PNG Defence Force. Under the program, 55 uniformed Australian military officers are in PNG training PNGDF soldiers, and at least 41 PNG troops are undergoing training in Australia.
Because of this economic, political and military domination, Australia has an enormous influence. Australia's opposition split the PNG elite between those who saw their interests best served by PNG's remaining a neo-colony and those seeking a weakening of the link.
Chan represents a section of the elite who would like diversify the country's economic, political and military links and reduce its dependence on Australia.
Over recent years, PNG has encouraged economic links with the ASEAN countries, most notably Malaysia. Malaysian interests have made deep inroads into the forestry sector, and control one of Port Moresby's daily newspapers.
Chan's personal worth of $100 million has been achieved through business deals with Malaysian capital. The basis of many of the charges of corruption against Chan stem from the personal benefits he is said to have derived from government deals to encourage investment from south-east Asia.
Successive PNG governments have been prepared to turn to other sources for military support when Australia has been reluctant.
In 1992, Malaysia announced it would train PNGDF troops in counter-insurgency and would supply small arms. In preparation for the unsuccessful 1996 Operation High Speed II offensive on Bougainville, Chan bought $2 million worth of military equipment from Singapore. As part of the mercenary adventure, Chan was set to buy sophisticated helicopter gunships and other high-tech gear worth US$28 million through dealers in Singapore and Hong Kong.
All this amounted to an attempt "to permanently reshape the boundaries of PNG's relations with Australia", as the flagship of the Australian ruling class, the Australian Financial Review, described it on March 18. "If relations with PNG — especially military relations — become entirely dysfunctional as a result of the use of mercenaries, other powers might move in to fill the space occupied by Australia since 1946."
Contrary to reports in the Australian press, Canberra at no time threatened to withdraw military or "budgetary" aid from Port Moresby. The AFR paraphrased Howard and Downer's thinking when it editorialised on March 18: "The Howard government should not summarily cut off this flow of money, for this would give away leverage over Port Moresby at a time when the region is looking to Australia to provide leadership in resolving the crisis ..."
The Howard government, as an enticement for Chan to back down on the mercenary deal, is offering to boost military aid. Already Australian aid to PNG is geared towards protection of Australia's enormous economic interests. Some $150 million is provided to be spent as Port Moresby pleases, making it available for diversion to military or repressive purposes. The single biggest project funded with Australian aid is police training worth $105 million.
Last year, the PNG government adopted a defence policy — drafted with the help of Australian advisers — that shifts the focus of PNG's security forces towards combating "internal" enemies — disgruntled landowners seeking compensation from mining companies, striking workers, unemployed youth branded "rascals" and others. So while recent events may help bring an end to the war on Bougainville, that will not prevent similar situations developing in the future as long as Australia is available to fund them.