Mekere Morauta facts for kids
Quick facts for kids
Sir Mekere Morauta
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| 7th Prime Minister of Papua New Guinea | |
| In office 14 July 1999 – 5 August 2002 |
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| Monarch | Elizabeth II |
| Governor General | Sir Silas Atopare |
| Preceded by | Bill Skate |
| Succeeded by | Sir Michael Somare |
| Personal details | |
| Born | 12 June 1946 Kukipi, Territory of Papua (now Papua New Guinea) |
| Died | 19 December 2020 (aged 74) Brisbane, Queensland, Australia |
| Nationality |  Papua New Guinean |
| Political party | People's Democratic Movement |
| Spouses | Louise Morauta Lady Roslyn Morauta |
| Alma mater | University of Papua New Guinea, Flinders University |
| Profession | Economist |
Sir Mekere Morauta (born 12 June 1946 – died 19 December 2020) was an important politician and economist from Papua New Guinea. He served as the 7th Prime Minister of Papua New Guinea from 1999 to 2002. When he became Prime Minister, the country's economy was struggling, and the government was facing many challenges. Sir Mekere worked hard to make big changes to Papua New Guinea's economy and political system.
Before he entered politics, Sir Mekere helped build the country's financial system after it gained independence. He held important roles like Secretary of Finance and Governor of the Bank of Papua New Guinea, which is the country's central bank. He was also a member of the National Parliament of Papua New Guinea, representing the Port Moresby North West area for many years. Even when he wasn't Prime Minister, he remained an active leader, especially speaking out on how the country's natural resources were managed.
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Early Life and Education
Sir Mekere Morauta was born in 1946 in Kukipi, a village near the coast in Papua New Guinea. He went to local schools and then to Sogeri National High School. Later, he studied at the University of Papua New Guinea. In 1970, he made history by becoming the first student there to earn a Bachelor of Economics degree. He also spent some time studying in Australia at Flinders University.
After finishing university, he worked as an economist in both government and private companies. In 1975, he became the first Papua New Guinean to be appointed Secretary of the Department of Finance. He held this important job until 1982. He also served as the Managing Director of the government's bank, the Papua New Guinea Banking Corporation, and later as the Governor of the Bank of Papua New Guinea.
Sir Mekere was also a successful businessman. After leaving the central bank, he managed his own investment company. When he entered politics, his wife, Lady Roslyn Morauta, took over the family businesses.
He was part of a group of influential young public servants known as the "Gang of Four". This group played a key role in guiding Papua New Guinea's government and policies after the country became independent in 1975. Another member of this group, Sir Rabbie Namaliu, also later became Prime Minister.
Sir Mekere Morauta's Political Journey
Sir Mekere Morauta became a member of the National Parliament of Papua New Guinea in July 1997. He represented the Moresby North-West area. From 1998 to 1999, he served as the Minister for Fisheries.
The government at that time faced economic and political problems. Because of these issues, the government lost a vote of no confidence. In July 1999, Sir Mekere was chosen by Parliament to be the new Prime Minister. He won with a large majority of votes. His government then worked on many reforms to fix the country's problems. He was re-elected as a Member of Parliament for Moresby North-West in 2002 and 2007.
After the 2002 elections, Sir Mekere was no longer Prime Minister. He became the leader of the opposition, which means he led the group of politicians who were not part of the government. However, there were some changes within his own party, and he later spent time supporting the government from the backbenches, rather than being in opposition.
He was part of the government again during the 2011–2012 Papua New Guinean constitutional crisis. He served as the Minister for Public Enterprises in the cabinet led by Peter O'Neill and Belden Namah.
In May 2012, after 15 years in Parliament, Sir Mekere announced he would not seek re-election. However, he remained involved in important discussions, especially regarding the government's actions. Because of strong encouragement from many people, he decided to run for Parliament again in 2017 and was successfully elected for Moresby North-West.
Political Parties and Alliances
When Sir Mekere first entered Parliament in 1997, he joined the People's Democratic Movement (PDM). The founder of PDM, Paias Wingti, lost his seat in that election, so Sir Mekere became the party leader.
While he was Prime Minister from 1999 to 2002, Sir Mekere also led the PDM. After the 2002 elections, when Michael Somare became Prime Minister, Sir Mekere was expected to lead the opposition. However, there were disagreements within his party. He later left PDM to form his own party, the Papua New Guinea Party.
Over the years, Sir Mekere's role in politics changed. He was leader of the opposition again after the 2007 election, until he joined the O'Neill/Namah government in 2011. In the 2017 election, he ran as an independent candidate. He later joined the Pangu Pati for a short time, but then became an independent again. In Papua New Guinea, political parties often form and change alliances, which makes coalition building very important.
Sir Mekere had strong support in his home region and in Port Moresby, where he was elected four times. However, forming strong alliances with other politicians was sometimes a challenge for him.
As Prime Minister: Key Reforms
The Morauta government, which was in power from July 1999 to August 2002, introduced many important changes. Their most urgent task was to stabilize the country's economy. By 2002, Sir Mekere was proud that interest rates were lower, inflation was under control, and the currency was more stable. This was achieved with help from international financial organizations and the Australian government.
Second, they reformed Papua New Guinea's financial system. The Bank of Papua New Guinea was given more independence from political influence. The government also reduced its involvement in the banking sector. For example, the government's commercial bank, the Papua New Guinea Banking Corporation (PNGBC), was privatized (sold to private owners). State-owned businesses were grouped under a new company called the Independent Public Business Corporation (IPBC). The idea was for IPBC to encourage the privatization of these businesses and manage the profits they made.
Third, there were major political reforms to make political parties stronger. Before, Members of Parliament (MPs) often changed their loyalty, which caused political instability. A new law, the Organic Law on the Integrity of Political Parties and Candidates (OLIPPAC), was created. It aimed to make MPs more loyal to the Prime Minister they supported. It also set rules for how political parties should be organized and registered. The voting system was also changed to encourage more cooperation between candidates and create more stable parties.
Fourth, the government changed how it managed the natural resources sector. Previous governments had become very involved in managing these resources directly. The Morauta government sold the government's shares in a major mining company, Orogen Minerals Ltd, to Oil Search Ltd. This meant the government would no longer directly manage these resources but would instead receive profits from Oil Search.
A different plan was made for the large Ok Tedi mine. The company BHP, which managed the mine, faced big claims for environmental damage. To settle these claims, BHP transferred its shares to a new group that represented the people of Western Province. This new group was called the Papua New Guinea Sustainable Development Fund (PNGSDP). Money from these shares was used for development projects in Western Province and across Papua New Guinea. A part of this money was also saved in a special account in Singapore for the people of Western Province, to be used after the mine closed.
The Morauta government faced strong opposition, especially when they started making economic reforms. Many people protested against the government's plans to reduce spending and privatize businesses, which were suggested by international organizations. Soldiers protested against plans to reduce the size of the army.
A large protest movement, including soldiers, workers, and students, grew against the influence of the World Bank, IMF, and the Australian government. During student protests in 2001, three students were tragically shot by police. Sir Mekere expressed deep sadness about these events, calling it "the blackest day in our nation's history."
In the 2002 elections, Sir Mekere was respected as a reformer, but his party lost many seats. Michael Somare's party, which had campaigned against privatization, won the most seats and formed a new government. Somare paused further privatizations but kept the reforms that Sir Mekere had already put in place. Sir Mekere served as the Minister of Finance from 1999 to 2000.
What His Reforms Achieved
The reforms made by the Morauta government had lasting positive effects, especially on the economy. The Bank of Papua New Guinea could operate independently, which helped manage the country's debt. Public debt significantly decreased from 72.3% in 2000 to 25.5% in 2010. External debt also dropped sharply.
From 2000 to 2010, Papua New Guinea experienced a stable currency (Kina), low inflation, and lower interest rates. Prime Minister Michael Somare, who followed Sir Mekere, continued these reforms and benefited from them. High prices for natural resources also helped the economy during this time.
The political reforms had mixed results. While the Somare government was the first to complete a full term, suggesting more stability, it's not clear if this was solely due to the reforms. Political parties still formed alliances based on opportunities rather than strict policies. A law meant to prevent MPs from switching loyalty didn't always work. The Supreme Court later ruled that some parts of this law were against the constitution.
The reforms related to privatization and managing natural resource income became a major focus for Sir Mekere when he was in opposition. His government's changes led to a stable income from the natural resources sector. However, later governments increased state involvement in this sector, which Sir Mekere opposed. In 2012, as he left politics, Sir Mekere stated that his reforms were not yet complete and that more work was needed.
Sir Mekere Morauta in Opposition
When Sir Mekere Morauta was in opposition between 2002 and 2017, he focused on two main concerns. First, he worried about too much power being concentrated in Papua New Guinea. He believed that Parliament's power was being weakened and that economic power was growing outside of parliamentary control. He supported privatization and wanted government businesses to be managed separately from politics.
His second main concern was how Papua New Guinea's natural resources were managed, especially government involvement in these projects. From 2012 onwards, he became more critical of the O'Neill government's economic management, feeling pessimistic about the country's overall economy.
Protecting Parliament's Power
After Sir Mekere's government was defeated in 2002, the new Prime Minister, Michael Somare, tried to extend the period during which no-confidence votes (votes to remove the Prime Minister) were not allowed. Sir Mekere challenged this in court. Later, when he was again leader of the opposition after the 2007 elections, he continued to speak out against the concentration of power.
He criticized the Independent Public Business Corporation (IPBC) for being allowed to borrow money without the usual checks from the Ministry of Finance and the Central Bank. He also strongly objected when one minister was given too much power by being in charge of both Finance and Public Corporations. In 2011, a vote of no confidence was finally allowed, and the government was changed. Sir Mekere became Minister of Public Enterprises in the new O'Neill/Namah government. He criticized the previous management of public enterprises, stating that a lack of parliamentary oversight led to financial problems. When he returned to politics in 2016/2017, he repeated these concerns, saying that Parliament was becoming a "rubber stamp" for decisions made by the Prime Minister and a small group of advisors.
Managing Papua New Guinea's Resources
When Sir Mekere left office in 2012, his policy was for government to keep a distance from the direct management of businesses. The IPBC was meant to oversee government-owned companies, not manage them directly. However, later governments changed this policy, creating new companies like Petromin that became more directly involved in managing natural resources. Sir Mekere believed this was a step in the wrong direction.
Concerns About National Loans
One major concern for Sir Mekere was a loan taken by the government from the International Petroleum Investment Corporation (IPIC) in Abu Dhabi. This loan was to help the government buy shares in a big gas project (LNG/PNG). Sir Mekere strongly protested this loan in 2002, saying it was risky because the government's income would depend on profits, and the loan had to be repaid before the gas project started making money. He was proven right; the government couldn't repay the loan, and it lost valuable shares.
The Ok Tedi Mine and Development Fund
Sir Mekere's decision to leave politics in 2012 was changed when Prime Minister O'Neill decided to take control of the Ok Tedi mine and its majority owner, the Papua New Guinea Sustainable Development Program (PNGSDP), without paying compensation. O'Neill argued that the mine was not benefiting local people enough. Sir Mekere believed the PNGSDP was owned by the people of Western Province and that the government should pay for taking control of it.
Sir Mekere, as chairman of PNGSDP, tried to protect the fund's assets. A large part of the fund (US$1.5 billion) was located in Singapore, outside the reach of the O'Neill government. This fund was meant to be used for projects after the mine closed. The fund became the subject of long legal battles in Singapore and Papua New Guinea. Sir Mekere argued that the mine's performance dropped significantly after the government took it over. In 2019, a Singapore court ruled against the PNG government's claims of wrongdoing by PNGSDP. The new Prime Minister, James Marape, also tried to gain control of the fund.
Another Important Loan: The UBS Case
The PNG government later took another large loan of A$1.3 billion from UBS Australia in 2013. This loan was to buy shares in Oil Search, a company involved in gas development. Sir Mekere and former Prime Minister Michael Somare raised concerns about this loan in 2015, saying it was illegal and dangerous for the economy. The PNG government struggled to repay this loan, and by 2017, it lost the Oil Search shares and a large sum of money. As an MP, Sir Mekere called for a full government investigation into the loan. Prime Minister Marape later set up a Commission of Inquiry to investigate the legality of these events.
Sir Mekere believed that money from gas projects should be put into a special fund (Sovereign Wealth Fund) managed by both government and private sector to build and maintain infrastructure. However, he felt these hopes were lost after these loan issues.
In 2019, Sir Mekere's work in opposition played a big part in the O'Neill/Abel government losing power. However, he did not become Prime Minister again, losing the leadership vote to James Marape.
Sir Mekere Morauta was a highly respected but also sometimes controversial politician. While his political opponents disagreed with him, even some who had worked with him questioned his leadership later on.
Family Life
Sir Mekere was married to Lady Roslyn Morauta, who is also an economist. He had two sons, James and Stephen, from an earlier marriage to Dr Louise Morauta. His younger son, Stephen, sadly passed away in 1999.
His Passing
Sir Mekere Morauta died from cancer in Brisbane, Australia, on 19 December 2020. Many leaders remembered him fondly. James Marape called him "the number one prime minister in the country." Julius Chan remembered him as a friend and a "visionary leader." Even Peter O'Neill, with whom Sir Mekere had disagreements, acknowledged his "commitment to public service."
Awards and Recognition
In 1990, Sir Mekere Morauta was made a Knight Bachelor. He was also appointed Knight Commander of the Order of St Michael and St George (KCMG) in 2009, which is a special honour from the Queen.
Images for kids
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Sir Mekere (standing) at the PALM 2000 summit in Japan.
