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COMMISSION OF INQUIRY
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INTO THE SINKING OF THE MV RABAUL QUEEN IN PAPUA NEW GUINEA

COMMISSIONER: MR JUSTICE WARWICK ANDREW, C.B.E., C.R.H.

TRANSCRIPT OF PROCEEDINGS
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PORT MORESBY WEDNESDAY 23 MAY 2012

AT 9:36 AM
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(DAY 23 OF INQUIRY)
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(Continued from 22/5/2012_

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COMMISSIONER: Yes. MR VARITIMOS: I wish to recall Captain Hossain, to continue his evidence. If the captain could be re-sworn, please. NAFIZUL HOSSAIN, sworn: [9.37 AM]

MR VARITIMOS: Captain, yesterday you took steps to obtain photocopies from the Registry Book held by NMSA in relation to Solomon Queen and Rabaul Queen, is that right? MR HOSSAIN: That is correct, sir. MR VARITIMOS: Could you have a look, first of all, at these documents in relation to Rabaul Queen. Is it correct that theres a huge book kept by the NMSA previously kept by the Transport Department? MR HOSSAIN: That is correct, sir.

MR VARITIMOS: Guinea.

And it lists in there the official ships registered in Papua New

MR HOSSAIN: That is correct.

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MR VARITIMOS: And in this case youve photocopied the pages in relation to Rabaul Queen. Official number of ship is 812, is that right? MR HOSSAIN: That is correct, sir. MR VARITIMOS: And on the front of the document youve produced you produced a current extract for the ship in accordance with the Register, is that right? MR HOSSAIN: That is correct, sir. MR VARITIMOS: And thats printed by NMSA. MR HOSSAIN: That is correct, sir.

MR VARITIMOS: I seek to tender the page from the Registry Book for Rabaul Queen, together with the extract of information from the Register. COMMISSIONER: Rabaul Queen. That will be Exhibit 298. Registry Book and extract relating to

EXHIBIT 298 - REGISTRY BOOK AND EXTRACT RELATING TO RABAUL QUEEN MR VARITIMOS: I now wish to show you a document in relation to Solomon Queen, please. Is this a copy from the Registry Book held by NMSA in relation to MV Solomon Queen? MR HOSSAIN: That is correct, sir. MR VARITIMOS: And was the official number of the ship 829? 23/5/2012 2488 N. HOSSAIN

MR HOSSAIN: That is correct.

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MR VARITIMOS: And does it show actually a change in ownership of the vessel in June 2009 to Hamamas Lines, Limited? MR HOSSAIN: That is correct, sir. MR VARITIMOS: And there was also a change in relation to ownership of Rabaul Queen to Hamamas Lines Limited in June 2009, is that right? MR HOSSAIN: That is correct, sir. MR VARITIMOS: In relation to Solomon Queen youve also produced an extract of information from the Register, is that right? MR HOSSAIN: That is correct. MR VARITIMOS: I seek to tender the copy from the Registry Book NMSA held for MV Solomon Queen together with the extract of information from the Register. COMMISSIONER: Solomon Queen. Exhibit 299. Extract from the Register of Ships in relation to the

EXHIBIT 299 - EXTRACT FROM THE REGISTER OF SHIPS IN RELATION TO THE SOLOMON QUEEN MR VARITIMOS: Yesterday you were asked some questions in relation to MV Kimbe Queen, do you remember that? MR HOSSAIN: Yes, sir.

MR VARITIMOS: And you said that youd obtained some documents. MR HOSSAIN: That is correct, sir. MR VARITIMOS: First of all, Id like to show you this document, which is a Report by Surveyor on Completion of Survey or Inspection, dated 13 April 2012, and if you can tell me whether this is a document you produced to the Commission this morning. Is that a copy of Report by Surveyor on Completion of Survey signed by Mr Livinai 13 April 2012, consisting of eight pages? MR HOSSAIN: I do confirm. MR VARITIMOS: Beg pardon? MR HOSSAIN: I do confirm.

MR VARITIMOS: Did you organise yourself to copy this or did someone else copy the document?
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MR HOSSAIN: I did copy it myself.

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MR VARITIMOS: You copied it, personally, yourself. MR HOSSAIN: That's right.

MR VARITIMOS: And that was done this morning, was it, or last night?
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MR HOSSAIN: 20 April 2012. MR VARITIMOS: you?

The copy - the extract was retrieved when I received this report on

So youve written on the top received on 20th April 2012, have

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MR HOSSAIN: That is correct, sir.

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MR VARITIMOS: When did you write that on that document?

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MR HOSSAIN: The same day. MR VARITIMOS: The day you received it. MR HOSSAIN: The day I received it.

MR VARITIMOS: So NMSA surveyor, Mr Livinai, he sent it to you, did he?

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MR HOSSAIN: He did. MR VARITIMOS: Did he post it or fax it or how did he send it? MR HOSSAIN: He just scan it.

MR VARITIMOS: He scanned it to you.

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MR HOSSAIN: That's right, sir. MR VARITIMOS: And then you printed it from your scan, did you? MR HOSSAIN: That's right, sir.

MR VARITIMOS: And then you organised to put that on your file, have you?
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MR HOSSAIN: That is correct, sir. MR VARITIMOS: In relation to this particular vessel, is it? MR HOSSAIN: That is correct, sir. MR VARITIMOS: And then you photocopied it this morning.

MR HOSSAIN: That is correct, sir.

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MR VARITIMOS: And are you satisfied that you photocopied it correctly? MR HOSSAIN: That is correct. 23/5/2012 2490 N. HOSSAIN

MR VARITIMOS: I seek to tender a Report by Surveyor on Completion of Survey or Inspection, by Mr Livinai of 13 April 2012, consisting of page numbers 1 to 8, inclusive for Kimbe Queen. COMMISSIONER: Exhibit 300. Report of Survey of the Kimbe Queen dated 13 April 2012, pages 1 to 8. MR VARITIMOS: And it should be noted as produced by Captain Hossain. COMMISSIONER: All right. As produced by Captain Hossain. EXHIBIT 300 - REPORT OF SURVEY OF THE KIMBE QUEEN DATED 13 APRIL 2012, PAGES 1 TO 8, AS PRODUCED BY CAPTAIN HOSSAIN MR VARITIMOS: Just to explain the process. In relation to MV Kimbe Queen youre aware that there was a flag state inspection of the vessel, are you, in February this year? MR HOSSAIN: That is correct, sir. MR VARITIMOS: And there were some deficiencies noted in relation to the vessel. MR HOSSAIN: That is correct. MR VARITIMOS: And Mr Livinai went back and inspected the vessel and produced a Report by Surveyor on Completion of Survey or Inspection. MR HOSSAIN: That is correct, sir.

MR VARITIMOS: Now is it correct, that in consequence of an inspection of the vessel in February there was a stop order issued by NMSA? MR HOSSAIN: That is correct.

MR VARITIMOS: That is, stopping the vessel, Kimbe Queen, from sailing.
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MR HOSSAIN: That is correct. MR VARITIMOS: Could you have a look at this letter of 17 April 2012, please. Is that a copy of a letter from Mr Michael Livinai, surveyor, of 17 April, advising that: The vessel is in all respects deemed seaworthy to the attending surveyors satisfaction and she is allowed to trade in the interim while awaiting endorsement of the survey certificate. The NMSA advises to cancel stop order dated 22 February 2012. Is that right? MR HOSSAIN: That is what is mentioned here, sir.

MR VARITIMOS: And it was copied to you, this letter.

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MR HOSSAIN: That's right. MR VARITIMOS: And did you receive a copy on 17 April 2012?

MR HOSSAIN: Yes, I did.

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MR VARITIMOS: I seek to tender the letter from Mr Michael Livinai, surveyor, to the Managing Director Rabaul Shipping, Captain Sharp, in relation to Kimbe Queen, of 17 April 2012. COMMISSIONER: Exhibit 301. Letter dated 17 April 2012 to the Managing Director Rabaul Shipping from NMSA EXHIBIT 301 - LETTER DATED 17 APRIL 2012 TO MANAGING DIRECTOR RABAUL SHIPPING FROM NMSA MR VARITIMOS: Were you satisfied prior to this letter that it was appropriate that the stop order to stop the Kimbe Queen sailing should have been issued? MR HOSSAIN: The inspectors, once they carry out the surveys, inspections, any follow-up and to their judgment if they find that the vessel, having complied all the deficiencies and to his view that the vessel is in order, safe to proceed to sea, he may, to his satisfaction, endorse the certificate and issue the release order to the ship. MR VARITIMOS: Captain, Im not asking about the release order now Im talking about the stop order. You were satisfied that it was appropriate for NMSA to have issued an order in the first place stopping the vessel sailing, is that right? MR HOSSAIN: Yes. Looking at the things, yes.

MR VARITIMOS: Looking at the defects.

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MR HOSSAIN: That's right. MR VARITIMOS: So from the defects noted on Exhibit 300 you were satisfied that it was unsafe for the vessel to sail until those defects were rectified, is that right? MR HOSSAIN: That is correct. MR VARITIMOS: Now were you told at all or given any information to suggest that there were some problems with the Plimsoll markings on the vessel? MR HOSSAIN: No, it was reported to me that the Plimsoll markings were being painted and the plate was not engraved on the ships side, which was in the process of preparation by the ship owners. MR VARITIMOS: Well, in terms of Exhibit 300, theres no reference to the Plimsoll markings or any difficulty with the Plimsoll markings in the documents youve produced, is that right? MR HOSSAIN: Yes. There is nothing to that effect in there. MR VARITIMOS: Nothing there. 23/5/2012 2492 N. HOSSAIN

MR HOSSAIN: Thats right.

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MR VARITIMOS: Well, where did you get the information about some problems or difficulties with the Plimsoll markings? MR HOSSAIN: That was the initial survey report which he produced, there was one line there that the Plimsoll mark was not properly engraved. MR VARITIMOS: Mr Livinai told you that, did he?

MR HOSSAIN: That's right. MR VARITIMOS: Now its very important to have a Plimsoll mark correctly marked on the vessel, is that right? MR HOSSAIN: That is correct. MR VARITIMOS: And thats for obvious safety reasons, is that right? MR HOSSAIN: That is correct.

MR VARITIMOS: And the Plimsoll marking should be painted on both the port and starboard side of the vessel, is that right? MR HOSSAIN: That is correct.

MR VARITIMOS: And there should be steel stencils fabricated and welded in place, is that right? MR HOSSAIN: That is correct.

MR VARITIMOS: And a vessel should not sail until that is done, is that right? MR HOSSAIN: Yes, that is true, but it might happen that the vessel has those marks on the ships side and due to the circumstances if it is not possible to engrave or do the stencilling of this load line disc on the side, ship might sail, it depends how long is a voyage for and they must take all necessary precautions - steps in order to get it done in the first available opportunity. MR VARITIMOS: Well, are you aware that the vessel sailed without a surveyor being satisfied - or an inspector being satisfied that the steel stencils had been fabricated and welded in place? MR HOSSAIN: Sorry, could you repeat it again? MR VARITIMOS: Were you aware that this vessel was allowed to sail without steel stencils being fabricated and welded on the vessel, were you aware of that? MR HOSSAIN: I was not aware of it.

MR VARITIMOS: Now, I wish to show you a document from Exhibit 242, please, which is also a report by surveyor on completion of survey or inspection. This is part of Exhibit 23/5/2012 2493 N. HOSSAIN

242, documents produced by NMSA previously. Could I ask you to have a look at these; compare this document, Exhibit 242 to Exhibit 300 that you produced this morning and could I suggest to you that the two copies produced are materially identical except for the top of page 4 and the top of page 8. MR HOSSAIN: Yes, that is correct, there is a difference there. MR VARITIMOS: Yes. Do you see that the document previously produced by NMSA, Exhibit 242, has a deficiency noted Plimsoll markings painted on P&S of hull while waiting for the steel stencils to be fabricated and welded on in place, and then the next line, general steel work - general steel work and condition is satisfactory, you see those two lines? MR HOSSAIN: That is correct. MR VARITIMOS: Now, those matters are not noted on the copy of the report that youve produced this morning and which forms now Exhibit 300, do you agree with that? MR HOSSAIN: Yes, I do. MR VARITIMOS: Well, did the copy - how is it that the copy that you produced to the Commission today does not note the deficiency, Plimsoll markings painted on P&S of hull while waiting for the steel stencils to be fabricated and welded on in place? MR HOSSAIN: I have no idea because this is what I printed from the system on 20 April and I went through all the papers and so this is what it is. So now the other one that you have just handed over to me, those two lines is not reflected on this one and why it is not, I will not be able to answer that. MR VARITIMOS: Well, the reference to the deficiency of the Plimsoll markings, which is on Exhibit 242 but not on the copy, Exhibit 300, is a fairly material deletion, agree? MR HOSSAIN: It is not. MR VARITIMOS: It is not material? MR HOSSAIN: It could be material in relation from the system.

MR VARITIMOS: Yes.
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MR HOSSAIN: From the system, yes. MR VARITIMOS: Im saying its significant that the surveyor noted the deficiency in relation to Plimsoll markings, thats a significant deficiency, I suggest, is that right? MR HOSSAIN: Yes, we might at time find that the system generated copies do not reflect every single item; this might be one of the case when it was not highlighted these two items. MR VARITIMOS: With respect, you said that this was scanned and sent to you.

MR HOSSAIN: That is correct.

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MR VARITIMOS: Now, its purporting to be exactly the same document, is that right? MR HOSSAIN: Yes.

MR VARITIMOS: In fact, so much so that the signatures on the front page and at the end are the same. MR HOSSAIN: That is correct.

MR VARITIMOS: So what were seeking to do is trying to compare identical - what should be identical documents, is that right? MR HOSSAIN: That is correct.

MR VARITIMOS: With identical signatures in places for signature.

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MR HOSSAIN: That is correct. MR VARITIMOS: Well, the document you produced deletes the deficiency noted on the first version of the document, namely, Plimsoll markings. MR HOSSAIN: As a matter of fact, I didnt go through these documents when I printed the - when I copied this morning and I didnt have any information that some of the lines were not reflected in the - in these copies. MR VARITIMOS: Well - - -

MR HOSSAIN: But Ive got the copy of the whole survey report with me where I have seen these deficiencies. MR VARITIMOS: If youve got a full copy, you would have seen the deficiency, thats what youre saying. MR HOSSAIN: Yes, Ive seen this one. Yes, of course, I have seen this one, but I didnt realise that it has not been reflected here because I didnt go through these - all the documents this morning. MR VARITIMOS: Well, did you see the deficiency that was noted on Exhibit 242 when you received the document or you did not? Was this deficiency - when you received a copy of this report by surveyor did it have the deficiency in relation to Plimsoll markings on it or did it not? MR HOSSAIN: I did receive the whole survey report, the original in hand after this one and I have noticed these deficiencies on that report. So this supersede - that whole original report supersedes these pages that I have copied from the system. MR VARITIMOS: Well, why didnt you produce a copy of the one that noted the Plimsoll markings deficiency? MR HOSSAIN: Thats what Im saying, sir, because I didnt go through these documents this morning when I printed, I didnt realise that something is missing from the - from the copy. 23/5/2012 2495 N. HOSSAIN

MR VARITIMOS: So do you have an original on your file of this document with an original signature? MR HOSSAIN: I have, yes. MR VARITIMOS: So you can produce that. MR HOSSAIN: I can.

MR VARITIMOS: Okay, thank you. Now, just coming back to the point then, do you agree that if the Plimsoll marking or the steel stencils hadnt been fabricated and welded in place that the Kimbe Queen should not have sailed? MR HOSSAIN: That is correct. MR VARITIMOS: Now, what do you say about this suggestion by Mr Livinai in his evidence. He said in his evidence in effect that he had carried out a Flag State Inspection in February 2012, youre aware of that, is that right/ MR HOSSAIN: That is correct. MR VARITIMOS: And that he subsequently inspected the vessel in April 2012, is that right? MR HOSSAIN: That is correct. MR VARITIMOS: And he said that there were a number of deficiencies he originally noted and that he was told that - told by Captain Sharp in effect that they were in the process of being worked on. MR HOSSAIN: That is correct.

MR VARITIMOS: You aware that that was said? MR HOSSAIN: That was said, yes. MR VARITIMOS: And Mr Livinai gave evidence that there were no visible load line markings when he re-inspected the vessel. MR HOSSAIN: No, Im not aware of that. MR VARITIMOS: He - I asked him on page 2011 of the transcript, Well, there were no visible load line marks when you saw it in February and when you saw it again, is that right? Answer, They were not there when I re-inspected the vessel, but they told me they were working on the stencils. Then the question was asked, So did you issue some document to authorise the sailing of it after that, after you inspected it? Answer, Yes, sir. Question, Well, how did you know, though, that the load line marks were placed on the ship. You dont know that the load line marks were put on the ship, do you? Answer, No. But you were allowing it to sail, is that right? Yes, sir. So you accept that the load line mark is a critical mark relating to safety of vessels, is that right? Yes, sir. Now, you would agree that load line marks are critical marks relating to vessels, do you agree with that? 23/5/2012 2496 N. HOSSAIN

MR HOSSAIN: Yes, I do. MR VARITIMOS: Then it was put to him, But you nevertheless gave permission for the Kimbe Queen to sail without seeing visible load line marks on the vessel, is that what youre saying, Mr Livinai? It was after discussing the issue with headquarters; they said its okay. Question, Well, which headquarters? Who did you speak to? Answer, The NMSA headquarters, my immediate boss, Captain Nafizul. MR VARITIMOS: Yes, what is his name? And he announced your name. So what did you tell him? What did you tell him? Answer, I said Mr Sharp is requesting if he can sail the vessel after my inspection and I told him that it is normally after I have submitted the survey report to NMSA headquarters to say yes, she can sail, or no. But he came back to me saying, You have just checked the vessel and we have complied with nearly all of it. You said that, did you? Mr Sharp said that. Now, do you recall having a conversation then with Mr Livinai where he - where you gave the okay for the vessel to sail notwithstanding that visible load line marks were not on the vessel? MR HOSSAIN: I was not aware the load line markings that it was not done and the only thing he called me about this whether the vessel can sail or not, and I said to him that in your judgment if everything has been complied with, so we dont see any reason for the vessel to stop. So thats the thing I said and I was not aware of this Plimsoll marking that it was not complied with. MR VARITIMOS: So did you have a conversation to the effect with Mr Livinai that it was okay for the vessel to sail, Kimbe Queen, in April? MR HOSSAIN: Yes, thats what I said that it is okay for the vessel to sail provided that this inspection had been carried out by him is to his satisfaction that all the deficiencies had been rectified. MR VARITIMOS: So he did not tell you then when you gave the okay for the Kimbe Queen to sail in April that he did not see visible load line marks, he didnt tell you that. MR HOSSAIN: He didnt. MR VARITIMOS: If he had told you that would you have given permission for the vessel to sail and for the stop order to be uplifted? MR HOSSAIN: Yes, sir. MR VARITIMOS: You would have given permission? MR HOSSAIN: I would have stopped.

MR VARITIMOS: You would have stopped the vessel.

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MR HOSSAIN: That is correct. MR VARITIMOS: And you would not have given permission for the letter to be written to allow the vessel to sail, is that right? MR HOSSAIN: I will not.

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MR VARITIMOS: So does it concern you that one of your surveyors - your only surveyor, inspector based in Kimbe - would give permission for a passenger vessel such as Kimbe Queen to sail in circumstances where he was not satisfied that there were visible load line marks, does that concern you? MR HOSSAIN: It does concern, yes. MR VARITIMOS: And would it concern you even more that the NMSA had already made a stop order on the sailing of the vessel. MR HOSSAIN: Sir, could you please - - MR VARITIMOS: Would it concern you even more in the context that NMSA had already made a stop order on the vessel? MR HOSSAIN: Yes.

MR VARITIMOS: So do you intend to take this matter up with that surveyor?

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MR HOSSAIN: I will do, definitely, yes. MR VARITIMOS: I seek to tender as - to make it clear - that part or the report by surveyor on completion of survey or inspection, which is part of Exhibit 242 as a separate exhibit, so its easy for comparison. COMMISSIONER: Exhibit 302, report by surveyor and completion of survey in relation to MV Kimbe Queen. EXHIBIT 302 - REPORT BY SURVEYOR AND COMPLETION OF SURVEY IN RELATION TO MV KIMBE QUEEN MR VARITIMOS: This is part of Exhibit 242, for the record, produced by Mr Livinai. COMMISSIONER: Sorry?

MR VARITIMOS: This is part of Exhibit - just for the record, its part of Exhibit 242, produced by Mr Livinai previously.
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COMMISSIONER: Yes.
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MR VARITIMOS: Do you know anything about the Pacific Register of Ships? MR HOSSAIN: I heard - I heard about it, but Im not aware of their activities and other things like that. MR VARITIMOS: Do you know whether surveyors from the Pacific Register of Ships are engaged by NMSA? MR HOSSAIN: To my knowledge, no.

MR VARITIMOS: So how do you think a tragedy like this can be prevented in the future? 23/5/2012 2498 N. HOSSAIN

MR HOSSAIN: If I may have the permission to take a paper from my bag? MR VARITIMOS: Yes. Youve made some notes, have you?

MR HOSSAIN: Yes, I did. And its just a rough - rough note. First of all, the owner of a ship has a duty to care under common law to take all appropriate steps to ensure the safety of passengers and crew. Masters of the ship must be more careful in order to ascertain the safety of the ship and in these circumstances he should have taken shelters and take other precautionary actions in order to avoid - avert this disaster. There are many factors that should be taken into consideration where the Master, himself, which owners might not know and it is the Masters sole responsibility when he is on board a ship because hes in command, he can override any decisions to his best judgment in order to ensure the safety of the ship, the crew, the passengers and the property itself. The vessels must be provided with stability - up to date stability information by the owners for - be familiar with the various conditions of loading and the most important thing that they must have to abide by the laws and regulations in relation to the safe operation of the ship. So these are the few things I can think of. MR VARITIMOS: I just wish to ask you some questions about your reference to precautionary action. Youre making reference, obviously, to try and avoid a dangerous situation or unsafe situation arising, is that what you mean by that? MR HOSSAIN: That is correct.

MR VARITIMOS: Now, you made reference to taking shelter, is that right? MR HOSSAIN: That is correct. MR VARITIMOS: Now, would you agree - I understood that you agreed yesterday that if you had been aware of the weather report prior to the vessel sailing, you would not have sailed the vessel, is that right? MR HOSSAIN: That is correct. MR VARITIMOS: So the first precaution is not to sail, is that right? MR HOSSAIN: That is correct; that is correct.

MR VARITIMOS: The second precaution is that if you are caught in a dangerous situation - weather conditions - then you should try and take steps, for example, to shelter, is that right? MR HOSSAIN: Yes, that is correct. MR VARITIMOS: But obviously you only do that if youre caught in a situation, but in this case I suggest it could have been avoided in the first place by not sailing, is that right? MR HOSSAIN: That is correct. It depends on the circumstances when to have to take the actions or not. So in this situation the vessel should not have sailed in the first case when this weather forecast was in his hand. MR VARITIMOS: Do you have anything else you wish to say? 23/5/2012 2499 N. HOSSAIN

MR HOSSAIN: No, I have just said whatever I wanted to say. That the most important thing is that the NMSA, being the safety authority of the country, their responsibilities must go in line - the owners responsibility must go in line with the authoritys rules and regulations. And the ship owners must comply - must comply with the rules and regulations in order to have our safety. It is the personal safety. Nobody is telling me that I have to drive safely on the road; it is my own safety, I drive safely on the road in order to prevent an accident. So some other - somebody else is there to give me the advice, like the Authority will give all possible assistance in order to ensure that safety is maintained, but my own safety is my responsibility. So the ship owners have the responsibility to ensure that they take all precautions in order to avert such a situation in near future. MR VARITIMOS: I have no further questions, although my learned friend might have questions, I note that the witness is going to produce the original of that document later.

COMMISSIONER: Very well. Mr Mukwesipu?

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MR MUKWESIPU: No, your Honour, I don t have any questions for this witness. COMMISSIONER: Thank you. Very well, thank you, Captain. MR HOSSAIN: Thank you; thank you, sir. MR VARITIMOS: Perhaps if the witness could come back at 2 oclock and produce that document - the original document. COMMISSIONER: Yes, is that possible?

MR HOSSAIN: Not 2 oclock, sir, Ive got a meeting.

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MR VARITIMOS: How long - - MR HOSSAIN: I can - I can do it - even now I can go and bring it back. MR VARITIMOS: Well, if the witness goes and brings it back. Thank you.

COMMISSIONER: All right, yes, thank you.

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WITNESS WITHDREW

[10.09 AM]

MR VARITIMOS: I now wish to call Dr Thomas Webster. If Dr Webster could be sworn in, please. COMMISSIONER: Yes. THOMAS WEBSTER, sworn: MR VARITIMOS: Dr Webster, can you please state your full name? [10.10 AM]

DR WEBSTER: My name is Thomas Webster.

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MR VARITIMOS: T-H-O-M-A-S? DR WEBSTER: T-H-O-M-A-S.

MR VARITIMOS: Thank you, and what is your occupation, please?

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DR WEBSTER: I am the Director of the National Research Institute. MR VARITIMOS: And you have produced a curriculum vitae register, or resum, is that right? DR WEBSTER: That is correct, yes, sir. MR VARITIMOS: Have a look at this document, please. Is this a copy of your resum? DR WEBSTER: That would be correct, sir.

MR VARITIMOS: And are the matters contained in the resum true and correct?
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DR WEBSTER: They are true and correct, yes. MR VARITIMOS: I seek to tender the resum of Dr Thomas Webster. COMMISSIONER: Exhibit 303, resum of Dr Thomas Webster. EXHIBIT 303 - RESUME OF DR THOMAS WEBSTER

MR VARITIMOS: And your professional qualifications are, in recent - or initially Bachelor of Education, University of Papua New Guinea, in 1988, is that right? DR WEBSTER: That is correct.

MR VARITIMOS: Master of Education, Harvard University, United States of America, 1999. DR WEBSTER: That's correct, 91.

MR VARITIMOS: 1991, sorry. DR WEBSTER: One, yes. MR VARITIMOS: Certificate in Economics, Economics Institute, University of Colorado, USA, in 1993, is that right? DR WEBSTER: That's correct. MR VARITIMOS: That was a three months course, was it?

DR WEBSTER: That is a three months course, yes.

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MR VARITIMOS: Then a degree of Doctor of Education, University of Bristol, United Kingdom, in 1998, under a World Bank Graduate Study Scholarship, is that right? 23/5/2012 2501 T. WEBSTER

DR WEBSTER: That is correct, sir. MR VARITIMOS: In terms of affiliations, you were appointed Chair of the Independent Public Business Corporation, Papua New Guinea, in August 2011, is that right? DR WEBSTER: That is correct, sir. MR VARITIMOS: And you were appointed Chair of the National Maritime and Safety Authority of Papua New Guinea in May 2011, is that right? DR WEBSTER: That is correct, sir. That is correct. MR VARITIMOS: Do you recall what date in May you were appointed?

DR WEBSTER: Not exactly, sir. It was in the Annual Gazette. I could find that and give that to you.
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MR VARITIMOS: No, thats all right, thank you. And you are a member of the PNG Land Board. You have held that position since 2008. DR WEBSTER: That is correct, sir.

MR VARITIMOS: You were appointed Adjunct Professor of the School of International and Political Studies, Faculty of Arts and Education, at Deakin University, Australia, in January 2011, is that right? DR WEBSTER: That is correct, sir. MR VARITIMOS: As you say, from August 2004 to date you have been a Director of the National Research Institute in Papua New Guinea. DR WEBSTER: That is correct, sir. MR VARITIMOS: And as a director you are responsible to the National Research Institute for the overall management of the institute? DR WEBSTER: That is correct, sir.

MR VARITIMOS: And the institute conducts research and policy analysis on development issues in Papua New Guinea, particularly in the fields of economics, education, politics and governance, is that right? DR WEBSTER: That is correct, sir. MR VARITIMOS: Law and justice, population and demographics and the development of sustainable environmental practices. DR WEBSTER: That is correct, yes. MR VARITIMOS: So your experience, as you have just indicated and as demonstrated in your curriculum vitae, would place you in a very good position to understand the importance of good governance, is that right? 23/5/2012 2502 T. WEBSTER

DR WEBSTER: That is correct, sir. MR VARITIMOS: Including as a member of a board?

DR WEBSTER: That is correct, sir.

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MR VARITIMOS: And as the chairman of a board such as NMSA? DR WEBSTER: That is correct, sir. MR VARITIMOS: And the obligations and duties that you have as a Chairman of the Board of NMSA are extremely important, do you agree with that? DR WEBSTER: That is correct, sir. MR VARITIMOS: And do you take your duties and obligations as chairman of the board very seriously? DR WEBSTER: I do, sir. MR VARITIMOS: Have you provided a statement in response to the summons served on you? DR WEBSTER: I have done so, sir. MR VARITIMOS: Could you have a look at this document, please? Is that a copy of the statement you have prepared and dated 21 May 2012? DR WEBSTER: That is correct, sir.

MR VARITIMOS: And to the best of your knowledge and belief are the matters contained in that statement true and correct? DR WEBSTER: That is correct, sir.

MR VARITIMOS: I seek to tender the statement from Dr Webster, dated 21 May 2012.
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COMMISSIONER: All right, Exhibit 304, statement of Dr Thomas Webster, dated 21 May 2012. EXHIBIT 304 - STATEMENT OF DR THOMAS WEBSTER, DATED 21 MAY 2012 MR VARITIMOS: Prior to taking up your position on the board of NMSA what qualifications or experience did you have in the maritime industry, if any? DR WEBSTER: None at all, sir, I must admit. MR VARITIMOS: How is it that you came to be appointed as the Chairman of NMSA? DR WEBSTER: The National Research Institute under the NMSA Act has a representative on the board. Normally, it would have been a social scientist or an economics - someone researched in that area because I think the original intent was to have someone that would add to the work of the community, the lighthouse projects that 23/5/2012 2503 T. WEBSTER

were being undertaken at that time. At the time that the nomination was requested, we had two previous representatives; John Sowei(?), who was a social scientist. His appointment expired and I nominated Fiona Luke - Fiona Hukula(?). She unfortunately at the time of appointment left for overseas studies and we - at that time there wasnt any other researcher in the social sciences and also in economics. I nominated the Deputy Director and the Head of the Consultancy Research Coordination, a Mr Jim Robinson(?) and Dr Sinebare(?). I was requested to nominate a third candidate so that there would be three nominees going to NMSA and so I included my name as an additional person just to make up the numbers and it came back from NMSA that I had been appointed and therefore - and the process had taken about two years and it would take also another two years to unwind, and so I accepted the appointment as a member. I went to the first meeting on 13 April and I recognised the dynamics that had been going on. There wasnt any prominent chairman and we had a few and an acting chair at that time. And when I was invited by the Minister to consider the position of a chair, I thought it would be a good opportunity to play a safe role in terms of introducing good governance until someone was considered for appointment as the chair of NMSA. MR VARITIMOS: So at the time that you were appointed, or just prior to you being appointed, there was an acting chairman, is that right? DR WEBSTER: That is correct. I was appointed as an ordinary member in the beginning of 2011 and we - I attended the first meeting. It was on 15 April, sorry, 15 April, and we had an acting chairman and we agreed to appoint an acting chairman and it was during that meeting that I recognised the dynamics of the chairmanship and the role of the chairman. And then the industry representatives were there and so I was invited by the Minister to be an independent person to chair and so I accepted the nomination then. MR VARITIMOS: That was the Transport Minister?

DR WEBSTER: That was the Transport Minister, yes.

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MR VARITIMOS: Well, you recognised there was some serious governance problem when you went to - or were appointed to the board in 2011 did you? DR WEBSTER: I did, yes, sir.

MR VARITIMOS: And what were the governance problems that you identified? DR WEBSTER: The governance problems related to the industry - the representatives on the board that there were parochial interests that were - those interests, different interests groups were serving and it needed someone more independent to be on the board in order to make sure that the governance issues were addressed. MR VARITIMOS: Well, is it correct that from the time that you were appointed chairman of the board in May 2011 there has only been one board meeting held? DR WEBSTER: There were two board meetings. There was a meeting, if I can get my dates correctly, in 2011 there were three meetings; on 15 April, on 21 July, I chaired that meeting, and on 7 October 2011, a meeting that I chaired as well. So there were actually three board meetings in 2011.

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MR VARITIMOS: The meeting for 7 October 2011 was that a board meeting or a committee meeting? DR WEBSTER: That was a board meeting. We - the numbers could have - could not have meant the board meeting, but according to the papers that I have, it was a board meeting and then a lot of - there were some issues that we considered a report from the FARM committee and so I would consider it as a board meeting. MR VARITIMOS: Do you have a copy of the minutes of that meeting? DR WEBSTER: I don't have at the moment. MR VARITIMOS: Well, in Exhibit 274, which were documents produced by NMSA pursuant to a request from the Commission, there is no reference to any board meeting being held in October 2011. DR WEBSTER: I could be wrong there. It could have been that there wasnt a quorum and we had it, but I will need to check my - with the NMSA authorities. MR VARITIMOS: Well, you don't have any minutes of meetings for that? DR WEBSTER: I don't have any meeting - minutes for that. I haven't seen any minutes. Normally, the minutes would come before the next meeting and we haven't had another - any meetings in 2012. MR VARITIMOS: Well, would it be correct to say that you havent been given any minutes of meetings for any meeting in October, would that be correct? DR WEBSTER: That could be correct.

MR VARITIMOS: So in any event, at most there have been two meetings of the board since May last year, is that right? DR WEBSTER: Yes, that could have been correct, yes.

MR VARITIMOS: And there have been no meetings of the board since the Rabaul Queen sank.
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DR WEBSTER: No meetings as such. Its been difficult to get a quorum now. We did have a small committee meeting. I insisted on a meeting that the NMSA present a draft report of the inquiry and the progress to the board meeting and at that meeting I was there and the Secretary for Transport for there, a representative from the Department of Treasury unfortunately could not come, and those were the only board members who were current at that time. MR VARITIMOS: Could I suggest that the fact that only one or perhaps two board meetings have been held since May last year is a poor reflection of the governance of the board and the organisation would you agree? DR WEBSTER: That could be correct.

MR VARITIMOS: Ordinarily, in terms of good governance, what would your expectation be in terms of numbers of meetings of the board for regularity? 23/5/2012 2505 T. WEBSTER

DR WEBSTER: For good organising, it would be once every quarter and then that is according to my understanding of the NMSA and we would have required at least one meeting every quarter. MR VARITIMOS: Well, you are aware that the NMSA Act, in fact, requires that there be meetings - sorry, that the board shall meet as often as the business of the authority requires and at such times and place as the board determines or as the chairperson directs, but in any event, shall meet not less frequently than once in every three months. You are aware of that? DR WEBSTER: That would be correct, yes. MR VARITIMOS: And did you read the provisions of the Act at or shortly after your appointment? DR WEBSTER: I was given a copy. I must admit I haven't had a very in-depth look at it but I have had a look, a broadly sweeping view of it, yes. MR VARITIMOS: So you haven't carefully read the Act, is that right? DR WEBSTER: I don't - I havent. MR VARITIMOS: Do you consider that it would be prudent in terms of good governance for you to be familiar with the provisions of the Act? DR WEBSTER: It would be prudent. I must also say that within the organisation there are people within the organisation that can also highlight the issues as they emerge in the good running of an organisation. It is also incumbent on the board to also approve work plans and through the work plans I am sure that the organisation is doing what it needs to do. MR VARITIMOS: Well, the National Maritime Safety Act is a fairly short Act, do you agree with that? DR WEBSTER: I would agree with that, yes.

MR VARITIMOS: And could I suggest it would be incumbent on you, as chairperson, to have a fairly good degree of familiarity with the Act? DR WEBSTER: It would be. MR VARITIMOS: And obviously, if you don't read the Act or havent read the Act, you can't have that degree of familiarity, would you agree? DR WEBSTER: I would agree. I think that I have read the Corporate Plan and all the work documents and some of those are reflected in the Act itself, yes. MR VARITIMOS: Well, were you aware, when you took up the position as chairman, that the board was required by Section 12 of the Act to meet not less frequently than once every three months? DR WEBSTER: I am aware of that fact, yes. 23/5/2012 2506 T. WEBSTER

MR VARITIMOS: And you were aware of that?

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DR WEBSTER: I am aware of that, yes. MR VARITIMOS: And, in fact, were you aware that the board could meet more regularly than that? DR WEBSTER: I am aware of that and I must say that thats also incumbent on either a chair to call the meetings or the NMSA management to, plus the chair, to call a meeting also. MR VARITIMOS: And were you aware that the board should meet as often as the business of the authority requires? DR WEBSTER: That's correct.

MR VARITIMOS: You are aware of that?

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DR WEBSTER: I am aware of that. MR VARITIMOS: And were you aware of that when you took up the position? DR WEBSTER: Well, after I took up the position, yes, sir. MR VARITIMOS: You would have been aware of that in January this year?

DR WEBSTER: I would have been, yes. MR VARITIMOS: So could I suggest that when the Rabaul Queen sank it was a major tragedy? DR WEBSTER: It was indeed, sir. MR VARITIMOS: And it would have been a matter that the authority should have been deeply concerned about? DR WEBSTER: It was indeed. MR VARITIMOS: And could I therefore suggest that that would or should have provoked you considering that the business of the authority require the urgent calling of a board meeting? DR WEBSTER: It would have.

MR VARITIMOS: But the reality is that no such board meeting was ever called, is that right? DR WEBSTER: It is correct. To put the facts in order I was aware of the incident on 2 February by way of an email from Brian Ritches(?) asking the NMSA whether they were aware. I sent an email to the NMSA general manager asking for a situation report. Captain Nurur sent me an email saying, yes, they were aware of that incident and that they were in search and rescue mode and that they would keep us informed of what 23/5/2012 2507 T. WEBSTER

was happening. And so I thought at that time that it was best for them to focus and concentrate on the search and rescue, and I sent them an email and said I would appreciate for the updates when and if available. And I didn't want to put pressure on them at the time when they were in search and rescue mode and so we allowed that to happen until 8 February when the search was called off and the NMSA general manager then provided a brief update on what the situation was and that they had in fact now assumed that there were no survivors and that they were sort of committed to an inquiry and they were conducting the investigations and they would advise us of what was happening. So I was indeed asking the management all the time as to what was happening. MR VARITIMOS: Doctor, have you got copies of those emails there have you? DR WEBSTER: I have copies of those emails, yes. MR VARITIMOS: So you can produce those. Could I have a look at those, please?

DR WEBSTER: Yes.
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MR VARITIMOS: Dr Webster, you appreciate that nearly four months has elapsed, or at least three-and-a-half months has elapsed since 2 February. DR WEBSTER: That is correct.

MR VARITIMOS: So I suggest that there has been ample opportunity to call a meeting since the vessel sank. DR WEBSTER: That is correct, sir. MR VARITIMOS: Sorry? DR WEBSTER: I have got my record. I asked the NMSA general manager if we could call a meeting for the preliminary report to be presented to the board. At that time there was no quorum on the board. The representatives from the Ship Owners Association, the Chamber of Commerce, there were three vacancies and we couldn't get a quorum and we organised that meeting, as I indicated earlier, where the Secretary for Transport and I were the only members who were present when the report was presented and we went through that with the management on the report - the preliminary investigation report into the cause of the accident. MR VARITIMOS: That was the one headed by Captain Teo. DR WEBSTER: Yes. Yes, that is right. MR VARITIMOS: So these are emails that you sent shortly after the sinking, or received shortly after the sinking. Is that right? DR WEBSTER: That is correct, yes. MR VARITIMOS: I seek to tender emails from or to Dr Webster commencing 2 February 2012.

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COMMISSIONER: All right. Exhibit 305, emails to and from Dr Webster commencing 22 February 2012. EXHIBIT 305 - EMAILS TO AND FROM DR WEBSTER COMMENCING 2 FEBRUARY 2012 MR VARITIMOS: Just in relation to the composition - its - it was dated 2nd, sorry, of February. COMMISSIONER: Im sorry. 2 February.

MR VARITIMOS: In relation to the composition of the board, is there a - sorry. Ill just go through it. Section 7 of the Act says: The board shall consist of (a), the departmental head of the department responsible for transport matters. DR WEBSTER: That's correct.

MR VARITIMOS: And theres always been a secretary.

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DR WEBSTER: That is - thats right. MR VARITIMOS: Secondly, second board member is the departmental head of the department responsible for finance matters. Is that right? DR WEBSTER: That is correct. MR VARITIMOS: And so theres always been a secretary. DR WEBSTER: Secretary. That is correct.

MR VARITIMOS: Or it could be his nominee.

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DR WEBSTER: Yes. MR VARITIMOS: Is that right? And also in relation to the transport secretary, his nominee could attend. Is that right? DR WEBSTER: That's right. MR VARITIMOS: Then theres a general manager, ex officio, as a non-voting member. Is that right? DR WEBSTER: That is correct. That is correct. MR VARITIMOS: And then one member nominated by the minister to represent Momase Region, New Guinea Islands Region and Southern Region of the country. DR WEBSTER: That is correct. MR VARITIMOS: Now, since youve been a member of the board, has there been a person nominated by the minister to represent those regions? DR WEBSTER: None that have been nominated since. 23/5/2012 2509 T. WEBSTER

MR VARITIMOS: Well, was there someone when you took over the position already nominated?
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DR WEBSTER: There was someone. It was Hamish - - C

MR VARITIMOS: Hamish Sharp. DR WEBSTER: Hamish Sharp. MR VARITIMOS: So when you were chairman, was he still on the board - - DR WEBSTER: No, by - - -

MR VARITIMOS: - - - or not?
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DR WEBSTER: By that time, the NMSA board - the previous - before my appointment, the board had taken the NEC to task in terms of his appointment - the validity of his appointment - and therefore the court had made a ruling that the - this appointment was not valid and that his appointment was declared invalid. MR VARITIMOS: When was that? DR WEBSTER: That was in May or June of - June of 2011. I will need to get the correct dates for that, yes. MR VARITIMOS: And one member of the board is to be a person nominated by the National Research Institute which - - DR WEBSTER: Thats - - MR VARITIMOS: - - - was you. DR WEBSTER: Thats me, yes.

MR VARITIMOS: So that gets us to three people.

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DR WEBSTER: People. MR VARITIMOS: Another person could be a person nominated by the Papua New Guinea Shipowners Association. DR WEBSTER: Shipowners, yes. Yes. MR VARITIMOS: Now, when you commenced on the board, was there a person nominated by the Shipowners Association? DR WEBSTER: There was a nominee and the term of that person expired. MR VARITIMOS: When?

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DR WEBSTER: After the first - after the second meeting. I think that was in the July meeting. That was the last meeting she attended and then the term had expired by then. MR VARITIMOS: Who was that person?

DR WEBSTER: Whats her name? MR VARITIMOS: Was it Ann Gilmore? DR WEBSTER: Ann Gilmores the name, yes, thats right. MR VARITIMOS: So Ann Gilmore was on the board up to and including July - - -

DR WEBSTER: That is right, yes.

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MR VARITIMOS: - - - last year. Was another person nominated after that? DR WEBSTER: No, I dont think so. There were some nominations that come in and NMSA - the management had taken it to the minister through the Department of Transport but no appointments were made themselves - the vacancies that were still on the board. MR VARITIMOS: And there would be a person nominated by the Papua New Guinea Chamber of Commerce. DR WEBSTER: That is right, yes. MR VARITIMOS: And was a person nominated by the Chamber of Commerce?

DR WEBSTER: I understand that and - there would have been nominations but the NEC had not made appointments. MR VARITIMOS: Well, when you were on the board, had there been a person nominated and appointed? DR WEBSTER: None, sir. It was still vacant.

MR VARITIMOS: For the - for the whole time that youve been on the board, has there been a vacancy in relation to that nomination? DR WEBSTER: That is right, yes.

MR VARITIMOS: Is there someone thats been appointed now?

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DR WEBSTER: I - there - I understand that theres been an appointment made but that, from the general manager, I understand that that person has not been nominated - was not the nominee of the Chamber of Commerce. MR VARITIMOS: And one persons been nominated by Papua New Guinea Harbours Limited. DR WEBSTER: That is right. 23/5/2012 2511 T. WEBSTER

MR VARITIMOS: Has there been a representative?

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DR WEBSTER: There has been a representative, yes. MR VARITIMOS: And whos that person? DR WEBSTER: Brian Richards but since his departure the new general manager has not been - has not - weve not had a meeting for him to come to, yes. MR VARITIMOS: So since the whole time that youve been on the board, there had been a person nominated by Papua New Harbours Limited that could attend a meeting. DR WEBSTER: That could have attended a meeting, yes. MR VARITIMOS: So could I suggest therefore that the quorum for a board is in fact four people. Is that right? DR WEBSTER: That is correct, yes. MR VARITIMOS: Not including the general manager.

DR WEBSTER: That is correct, sir.

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MR VARITIMOS: So at all times that youve been on the board, there have been sufficient numbers or members of the board to have a quorum - - DR WEBSTER: That is correct. MR VARITIMOS: - - - and therefore to convene meetings. DR WEBSTER: At least four, yes. MR VARITIMOS: So there, I suggest, has been no excuse for not calling more regular meetings. Is that right? DR WEBSTER: There is no excuse. Its just a question of getting a quorum, even of those four when finding a time suitable for the four individuals to be on - to be at the meeting. MR VARITIMOS: Well, youre one person. DR WEBSTER: Im one person. MR VARITIMOS: And the Department of Transport could send a nominee - - DR WEBSTER: Thats correct.

MR VARITIMOS: - - - and the Secretary for the Department of Finance could send a nominee.
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DR WEBSTER: It is usually the Department of Finance that the nominee was always, you know, caught up in other meetings and could not make it into the meetings for a 23/5/2012 2512 T. WEBSTER

quorum and, therefore, we were always - we - since all those - normally had three members at those meetings and its difficult to get the quorum as a result of just four being available. MR VARITIMOS: Well, who has been the nominee from Finance?

DR WEBSTER: Its a gentleman - Ive forgotten the name. Theres a young gentleman there from Treasury who was also on a number of boards and also was not been able to make the quorum for the meetings that had been organised. MR VARITIMOS: If I show you some minutes of meetings from July last year, could you identify the person, please, from Exhibit 274? Can you identify the name? DR WEBSTER: Yes, Donald Hehona is the board member. MR VARITIMOS: So hes the representative or nominee.

DR WEBSTER: From the Department of Treasury, yes.

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MR VARITIMOS: What about from the Transport Department? DR WEBSTER: Transport. Henry Parakei was ill sometimes last - towards the end of last year and early this year and we - you know, when we tried to have the board meetings, he was also not available at times. His nominee - we tried to get his nominee and we couldnt get them through - the dates that we sought, so - - MR VARITIMOS: Well, as chairman of the board, what did you try and do to try and convene a meeting of the board at convenient times other than for the one or perhaps two meetings that were held? DR WEBSTER: Two things. One, if I tried - asked the general manager to try and identify times that were suitable for all members and in some instances we even had meetings. In October last year - was tried to have it after hours, after 4 oclock to 8 oclock in the evenings so that the time was suitable for everyone to attend. We also - I also had an appointment with the Minister for Transport and tried to get the minister to recognise the urgency of making appointments so that we would have the numbers to make a quorum and have those meetings as well and did approach the Minister for Transport and ask him to consider the nominees and thats where we got the minister to consider and make those appointments early this year. MR VARITIMOS: Its a fairly sad indictment on the organisation, I suggest, that since April last year, theres only been one or perhaps two board meetings. Would you agree? DR WEBSTER: It is, yes. MR VARITIMOS: And it doesnt reflect particularly well on the Transport Department.

DR WEBSTER: I must say that - to qualify that, I think there are some matters that have come before the meeting and the work plans, the budgets - weve managed to approve those at the board - at the meetings and weve tried to give the management directions. I think weve dealt with those operational matters in a way that would allow the organisation to continue its work and those issues, we took them seriously. I think 23/5/2012 2513 T. WEBSTER

in terms of the incident related to the Rabaul Queen, we were aware that the COI was also in process and when the Secretary for Transport and I and the general manager we met at that presentation of the report. We agreed that once the COI is in progress, that will also set in train the process of finding further information and it will also give directions as to how the NMSA would improve its operations and so we were waiting for the COI to complete its findings. And now that the ministers - the NMSA has appointed the two minute members, we will be now organising the board meeting to consider any other business. MR VARITIMOS: So have nominations been accepted, have they?

DR WEBSTER: Two appointees were made last month so we - - MR VARITIMOS: When last month? DR WEBSTER: Ive not yet learnt the date but I can furnish that to you, sir.

MR VARITIMOS: Approximately when?

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DR WEBSTER: Approximately April. Middle of April. MR VARITIMOS: Middle of April. DR WEBSTER: Yes. MR VARITIMOS: And were they persons nominated by the Shipowners Association or --DR WEBSTER: Persons - Shipowners Associations and the regional representatives.

MR VARITIMOS: Okay. But nevertheless, there hasnt been a meeting convened since then either. DR WEBSTER: No, there hasnt.

MR VARITIMOS: Now, could I suggest - or are you aware that the board has responsibility to prepare a corporate plan and submit the plan to the minister. Is that right? DR WEBSTER: That is correct, sir. MR VARITIMOS: And are you aware that that corporate plan has to be prepared at least once a year? DR WEBSTER: It would be an old board plan, yes. MR VARITIMOS: A corporate plan.

DR WEBSTER: The corporate plan runs from 2010 to 2014 and that had been approved.
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MR VARITIMOS: I suggest to you that there has been a corporate plan 2010/2014 which you would be aware of. 23/5/2012 2514 T. WEBSTER

DR WEBSTER: Yes.
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MR VARITIMOS: Is that right? DR WEBSTER: That is correct, yes. MR VARITIMOS: But are you aware that you have an obligation, that is, the board, to prepare a corporate plan at least once a year? DR WEBSTER: That's correct. MR VARITIMOS: Youre aware of that?

DR WEBSTER: That's correct, yes.

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MR VARITIMOS: And that corporate has to be submitted to the minister. Is that right? DR WEBSTER: That is correct. MR VARITIMOS: Now, there has been no corporate plan prepared - or there was no corporate plan prepared last year. Is that right? DR WEBSTER: Last year for this year? MR VARITIMOS: There was no corporate plan prepared last year or this year. Is that right? DR WEBSTER: No. No, we have a approved board plan that went to the meeting of October. MR VARITIMOS: Well, what do you understand by corporate plan? DR WEBSTER: I understand that a corporate plan is a long-term plan over three to five years but its supplemented with an annual work plan that sets out clear operational targets for the year on a year-to-year basis where there are specific activities that - and budgets are located for that. MR VARITIMOS: Well, are you aware that the plan has to include details such as assumptions about the Authoritys operational environment? DR WEBSTER: That is correct, yes.

MR VARITIMOS: The Authoritys strategies?

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DR WEBSTER: That is correct. MR VARITIMOS: The performance indicators for the Authority. DR WEBSTER: That's correct.

MR VARITIMOS: The review of performance against previous corporate plans?

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DR WEBSTER: That's correct. MR VARITIMOS: An analysis of risk factors likely to affect maritime safety?

DR WEBSTER: That is correct.

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MR VARITIMOS: Now, there has been no corporate plan prepared since the corporate plan of 2010/2014. Is that right? DR WEBSTER: 2010/2014 is current.

MR VARITIMOS: But theres supposed to be an annual corporate plan prepared. Are you aware of that? DR WEBSTER: I just - my understanding is that that corporate plan is still valid and that there is - to go with that, theres an annual work plan.

MR VARITIMOS: Well, are you - it is the case that there has been no corporate plan submitted to the minister in the year 2011 or 2012. Is that right? DR WEBSTER: Im not aware of the 2011. I - for the 2012, I know that theres a plan that we had approved - the board at that October meeting because we had considered -MR VARITIMOS: You cant even produce a minute of meetings for the October meeting. Is that right? DR WEBSTER: That is correct. MR VARITIMOS: And NMSA were asked to produce all minutes and there are no minutes produced for October meeting. So could I suggest there was no meeting in October? DR WEBSTER: Id have to check the evidence theyve - - -

MR VARITIMOS: And are you aware that the board is required to furnish to the minister on or before 30 June in every year, a report on the progress and performance of the authority for the previous year? DR WEBSTER: Im aware of that. MR VARITIMOS: And that hasnt been done.

DR WEBSTER: I hope that its in progress - that the management have got - - R

MR VARITIMOS: Well, it was supposed to be done by 30 June last year. DR WEBSTER: For 2012. MR VARITIMOS: I suggest to you that by 30 June 2011, the board was required by section 18 of the Act to provide or furnish a report to the minister on the progress and performance of the Authority for the previous year. Were you aware of that provision? 23/5/2012 2516 T. WEBSTER

DR WEBSTER: I must say that I know that were all required to report, yes, to the minister and so I must admit I wasnt aware of that in 2011 but we will work on the 2012 - 2011 report and 2012 when its due. MR VARITIMOS: Well, youre - its your understanding that there has been no report furnished to the board for the period - or by the period 30 June last year. Is that right? DR WEBSTER: I would - Im not aware of that, yes.

MR VARITIMOS: And you were the chairman of the board in May and June last year.
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DR WEBSTER: Appointed in May and took up the first meeting in the - at the July meeting, yes. MR VARITIMOS: How - how have you assessed how well the NMSA is performing in carrying out its duties and functions? Whats your report card on NMSA?

DR WEBSTER: My impressions on the - as I said, I must admit I dont have the experience but the chairman of the FARM Committee which is a committee of the board is chaired by an external person, Mr Ken Charlton, who was a marine lawyer and also an accountant and hes been engaged and appointed by the previous board and - as the chair of the Financial Audit and Risk Management Committee. They go through meet regularly before a board meeting and we rely on that committee to generate how well the organisation is working and also to alert the board to what issues that the board needs to address. My understanding and assessment of NMSA is that its been an organisation that has still to find its feet in terms of its role and functions after moving over from Transport Department. I guess it hadnt had a good start with the parochial nature of the board members where there were self-serving interests on the board and didnt give the management and the technical people the direction and support that was needed to do their work well - to set - to set work performance areas for setting standards for maritime risk and risk areas and also to work policy and procedures to address those areas and ensure that there was a safe environment. It was until the removal of Hamish Sharp and a new board that I think that - and also under the - we have been pushing for - or we would like to see a review of the NMSA Act. I think its - it would be needed to bring some different people on board - the Institute of Directors or the Institute of Accountants and so forth rather than just having the industry representatives and also the Government representatives who are also part of the regulatory regime on the board. I - also, I dont see any role for NRI to be on that board. I think it would be a really good - I think there is a need for good governance to be put in place so that the organisation serves its purpose of ensuring that theres a safe maritime environment for everyone. MR VARITIMOS: Well, do you consider that there being serious deficiencies in the operation of the organisation? DR WEBSTER: I get the feeling. Im not an expert, as I say, but from the reports and from hearing people, I get the feeling that there is a need for that. But I must say that its - we - my view is that were hoping that the COI report and the recommendations would come forward, and then we would be able to implement that and make sure that the organisation sets its standards and move forwards. MR VARITIMOS: Well, you mentioned Mr Hamish Sharp. Were you in attendance at board meetings involving Mr Sharp, were you? 23/5/2012 2517 T. WEBSTER

DR WEBSTER: I was only at one meeting. That was the meeting of 15 April. I assumed that you may been sent the minutes. The board then moved to have an acting chairman of that meeting, and Mr Hamish Sharp said that it was improper for the board to let this representative, and only the minister can make an appointment. We appointed otherwise, and the majority of the board members endorsed the point and it was the view that the board members could elect the chair of that meeting, and we went ahead and had a meeting with Mr Brian Richards as the chair of that meeting. MR VARITIMOS: Was there a fair bit of disharmony at the meeting that you attended in April? DR WEBSTER: That is correct. And I guess thats also the reason why I felt that it was uncomfortable for me to take up the position of chair when the minister invited me to attend to try to, at least, put an independent perspective and make sure that the good governance guidelines were restored. MR VARITIMOS: Did you observe some open hostility between Mr Sharp and other members of the board? DR WEBSTER: I could sense that hostility there, yes.

MR VARITIMOS: The Act provides that the minister may appoint one of the members of the board to be chairman of the board. Youre aware of that? DR WEBSTER: Im aware of that, yes.

MR VARITIMOS: Now, bearing in mind that the NMSA Act places no restriction on who the minister may appoint to the position, do you consider that conflicts of interest may arise? DR WEBSTER: From what has happened, yes, it is. I would say I think the - it is likely to him that its a conflict of interest when the matter arise if the representative is from the shipowners association or those who are - have got key stakes in the industry. MR VARITIMOS: Have you had a look at the NMSA website at all?

DR WEBSTER: I have, yes. MR VARITIMOS: Yes. And whats your assessment of the website? DR WEBSTER: Well, I must admit we have not updated our website, yes. We would have wanted - I would have wanted that, yes. MR VARITIMOS: Would you agree that its - first of all, its out-dated. DR WEBSTER: Yes.

MR VARITIMOS: Is that right?

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DR WEBSTER: That is bad.

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MR VARITIMOS: And secondly, are you aware that legislation and other documents said to be available on the website, in fact, cannot be opened and are not accessible? Are you aware of that? DR WEBSTER: I am not aware of that. I know that theres a lot of information that should have been on it, its not on. And when you go behind, theres nothing there, yes. But not that it couldnt be opened. MR VARITIMOS: Well, have you taken any steps to have the website updated and improved? DR WEBSTER: We had raised that concern at a board meeting, and the management was going to have a look at it, try and recruit someone to have a look at that, yes. MR VARITIMOS: Given the lack of direct - sorry. In the corporate plan, theres reference to NMSAs mandate to upgrade the quality of maritime safety regulations throughout PNG maritime industry. Youre aware of that? DR WEBSTER: Thats right, yes. MR VARITIMOS: Now, are you aware of what steps NMSA has taken to upgrade the quality of the maritime safety regulations throughout PNG maritime industry? DR WEBSTER: I cant go into the details. Thats - I know that they have had some work operations in there. We also - as I point out in my statement, we were concerned about, at the board level, that there were three previous incidents, and then the inquiries, and then we wanted to know what procedures that were deficient in that, and that the - well, within the organisation. And if there were any room for improvement. The NMSA had brought in two external experts, a former - a director of the Australian Maritime Safety Authority and another person, and their report - their process audit report was presented to the organisation. And we now directed the management to go through and pick out the recommendations for improving performance. And that was at the last meeting. The meeting that we still have not - the October meeting that - but its a meeting on audit, something about that was on the agenda for the October meeting. MR VARITIMOS: Well youre not sure whether there was an October meeting or not of the board?

DR WEBSTER: My feeling is that I - we - there was a meeting. I just need to check whether only on the minutes and trying to see whether the management. But it wasnt that meeting that we considered the report and gave a direction to the management to take on board the recommendations from the process audit report and respond to that, to the report. MR VARITIMOS: Do you know anything about the Tokyo Memorandum of Understanding on Port State Control? DR WEBSTER: I have no idea of that, sir. MR VARITIMOS: Do you know anything about load lines?

DR WEBSTER: No, I dont have anything.

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MR VARITIMOS: Do you know what a port state control is? DR WEBSTER: No, I wouldnt know.

MR VARITIMOS: Do you know what a flag state inspection is?

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DR WEBSTER: No, I wouldnt know. MR VARITIMOS: Have you taken any steps to affiliate yourself with the various tasks that NMSA are required to undertake? DR WEBSTER: Could you explain that a little further? MR VARITIMOS: Yes. Youre aware that NMSA has various surveyors? DR WEBSTER: Yes.

MR VARITIMOS: Is that right?

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DR WEBSTER: Im aware of that, but - - MR VARITIMOS: Do you know how many surveyors they have? DR WEBSTER: I dont - - MR VARITIMOS: Or inspectors?

DR WEBSTER: I dont, yes. MR VARITIMOS: Do you know how many staff NMSA employ approximately? DR WEBSTER: Generally, its about 180 from the last - - MR VARITIMOS: How many?

DR WEBSTER: About 180, around 180, yes.

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MR VARITIMOS: About 180. DR WEBSTER: Yes. From the last reports. MR VARITIMOS: And whats your assessment of the performance of, for example, the general manager of the organisation? DR WEBSTER: The general manager had the very difficult time working with the previous - I mean thats my assessment - in terms of the board trying to do what the management should do. And Ive made it from reading from the previous reports and from talking to different people, Ive tried to separate that. But I think the management are technical experts, that they need to do the job that they are supposed to be doing; and the board provides overall governance, and ensures that their work plans are approved. And then that they are given support to do the work that they need to do. And I dont think its the role of - of course, there are specialists that are representatives on the board who have particular interest, and they bring insights to the board on 23/5/2012 2520 T. WEBSTER

specialist areas of maritime operations, and thats necessary. My value, I think, is in terms of governance, and I bring that expertise to the board. And I dont assume to be a specialist. And I think that the collective effort of the board members bringing from the shipowners representatives and others, they bring that, the expertise to the board in contributing to the overall work of the board. Yes. MR VARITIMOS: Do you agree, Dr Webster, that theres obviously a failing in the governance of the board if it doesnt have regular meetings? DR WEBSTER: I would say yes.

MR VARITIMOS: And you just said a moment ago that the board is there for overall governance. DR WEBSTER: That is right.

MR VARITIMOS: Is that right? DR WEBSTER: That is correct. MR VARITIMOS: So can we take it that you would agree that the overall governance of the board in recent times has been unsatisfactory? DR WEBSTER: In recent times, in terms of from July of last year, if we take it that the October meeting was not a proper meeting, but that at least we tried to get the quorum, I think its the last six months that weve not been able to get a meeting. And then I guess thats six months to nine months, yes. But not more than a year. MR VARITIMOS: That would be unsatisfactory that period, is it?

DR WEBSTER: That is the unsatisfactory - yes.

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MR VARITIMOS: And theres also a degree of unsatisfactoriness by reason of the fact that the corporate plan hasnt been prepared at least once a year. DR WEBSTER: That - I need to check that. I wouldnt want to verify that, yes.

MR VARITIMOS: Well, if a corporate plan has been prepared in the last 12 months, you should know about it. DR WEBSTER: I just say that I know that there was a corporate plan presented at the October meeting. I can produce that to you from the papers that I have later on, yes. If you want that. MR VARITIMOS: Dr Webster, in your short statement, you say that the reason why the loss of lives attained such magnitude was because the master was not operating the vessel safely; that is, overcrowding and overloading, you say. Secondly, the vessel operators not having a safety management system; and thirdly, little or no enforcement to safety management practice on passenger vessels. DR WEBSTER: Yes. MR VARITIMOS: Is that right? 23/5/2012 2521 T. WEBSTER

DR WEBSTER: That is. What I say is the possible causes of the disaster.
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MR VARITIMOS: Yes. DR WEBSTER: And that is placed on the preliminary report produced by the NMSA. MR VARITIMOS: That Captain Teos report?

DR WEBSTER: Yes. That is correct, sir.

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MR VARITIMOS: Well, what steps have you taken to satisfy yourself that the NMSA has been acting appropriately and efficiently in terms of monitoring and regulating safety of passenger vessels? DR WEBSTER: Since the incident, I just - weve been waiting to see what the Commission of Inquiry Report would be. And I guess thats been my sort of view, that the COI will produce the report that will point out what the areas of improvement within the NMSA, yes, might assist. Also the process audit report that I mentioned, yes. MR VARITIMOS: Well, Dr Webster, you talk about process audit report in your statement. You say that its proposed that the recommendations in the process audit report be adopted as measures to help prevent future occurrences of similar disasters. DR WEBSTER: Yes. MR VARITIMOS: What process audit are you referring to? DR WEBSTER: It is the processes relating to ensure that the safety standards of ships and also the NMSA procedures in terms of the legislation and so forth, that was in the process audit report. MR VARITIMOS: Do you have a copy of the process audit report? DR WEBSTER: I would have, in the - the organisation will have that, yes. And I would have it in my office, yes. MR VARITIMOS: This might be a convenient time. COMMISSIONER: All right. DR WEBSTER: Yes.

COMMISSIONER: All right. Well take a break. Well adjourn for 15 minutes.
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SHORT ADJOURNMENT UPON RESUMING THOMAS WEBSTER:

[11.02 AM] [11.20 AM]

MR VARITIMOS: Dr Webster, you referred to some process audits in your report or your statement. One related to a process audit report in relation to the sinking of 23/5/2012 2522 T. WEBSTER

MV Sealark S-E-A-L-A-R-K, the MV San Pedro and the near capsize of the MV Lihir Express, is that right? DR WEBSTER: The process audit was requested generally to see where the weaknesses and deficiencies in relation to all these three incidents and not to any particular specific person. MR VARITIMOS: Yes, in relation to the three.

DR WEBSTER: Three, yes, that's right.

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MR VARITIMOS: You werent involved in that process audit report, is that right? DR WEBSTER: I wasnt involved, no. MR VARITIMOS: And there was also a review of procedures regarding the appointment of the Pacific Register of Ships to carry out surveys and statutory certification services on behalf of NMSA, is that right? DR WEBSTER: That is part of that terms of reference that was given to that team to put that, yes. MR VARITIMOS: And you werent involved in that?

DR WEBSTER: I wasnt involved in that. I was at the board when the report was made and the recommendation was made to the board to adopt the report and to give direction to the management to implement the recommendations contained in the report, yes. MR VARITIMOS: Would Captain Rahman have better knowledge and understanding of those orders? DR WEBSTER: The management would have a better understanding of what was in the report and what was needed, yes. MR VARITIMOS: So in terms of a review of your assessment of the organisation would you agree that the organisation, to some extent, has been dysfunctional?

DR WEBSTER: Dysfunctional would be an extreme word. Its not been working as effectively as one would want it to be and I think they are also cognizant of those facts and there has been a push from the management to have the Act reviewed and also some of these processes so that they could address some of the deficiencies that are contributing to the inefficiencies. MR VARITIMOS: When you say the Act reviewed is that the NMSA Act and the Merchant Shipping Act? DR WEBSTER: Yes. Both. MR VARITIMOS: Both.

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DR WEBSTER: Both, yes. The NMSA Act and the Merchant Shipping Act and as I make the recommendations there, those two Acts need to be reviewed and be consistent. MR VARITIMOS: Is there anything else youd like to say?

DR WEBSTER: I just want to say that its been a tragic incident and I guess we all are aware of that. We are looking forward to the COI Report and it would incumbent on the management and the board to make sure that the recommendations and anything that comes from it to implement it as humanly as possible we can. Yes. MR VARITIMOS: Thank you, Dr Webster. No further questions. COMMISSIONER: Thank you. Mr Mukwesipu? MR MUKWESIPU: If I may, your Honour, just briefly.

MR MUKWESIPU: Good morning, Doctor. Could I ask you to have a look at Exhibit 304 again, which is your statement. You have it before you? DR WEBSTER: Yes, I do.

MR MUKWESIPU: Could I also ask you to turn to page 2 and I will ask you to have a look at - I think its paragraph 2. Its titled The cause of the disaster. Is it correct to say that the possible causes of the disaster that you put in there are basically what has been provided by Dr Teo in his preliminary report? DR WEBSTER: That is correct, yes. Correct that that is the basis. MR MUKWESIPU: Dr[sic] Teo in his evidence was asked if his conclusions of the possible causes of the incident would change if the findings of fact as it emergences before the Commission changes. Basically what that means is when he compiled the preliminary report there was a shortage of time - meaning insufficient time, and he was not provided with very much material, he did not have access to too much information, and then the possible causes of the accident was based on that limited information. He was asked whether that conclusion would change if some of those facts changed in the course of the hearing before the Commission, he said yes. Will you also agree with the same decision? DR WEBSTER: I would think that given the circumstances that the findings from the COII would override the findings - - MR MUKWESIPU: So depending on the findings of fact that changes, conclusions might change. DR WEBSTER: That is correct. MR MUKWESIPU: Thank you, Doctor. Thank you, your Honour.

COMMISSIONER: Yes. Thank you very much, Dr Webster and that concludes your evidence. 23/5/2012 2524 T. WEBSTER

DR WEBSTER: Thank you.

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WITNESS WITHDREW
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[11.25 AM]
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MR VARITIMOS: Mr Commissioner, I intend to call Mr Chris Rupen to give evidence. Hes the General Manager of NMSA. CHRISTOPHER CAMILLUS RUPEN, sworn: [11.26 AM]

MR VARITIMOS: Will you please state your full name? MR RUPEN: My name is Christopher Rupen. MR VARITIMOS: R-U-P-E-N?

MR RUPEN: That's correct.

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MR VARITIMOS: And could you please state your position or occupation. MR RUPEN: I am the General Manager/Chief Executive Officer of the National Maritime Safety Authority. MR VARITIMOS: And how long have you held that position for? MR RUPEN: Ive held the position since August 2004 when I was seconded from the Department of Transport as interim general manager. Held that position for one year to establish corporate structure, until 5 December 2005, when I was appointed by the board, and Ive held that position - - MR VARITIMOS: Since that time. MR RUPEN: Since that time.

MR VARITIMOS: Have you prepared a curriculum vitae relating to yourself?

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MR RUPEN: Yes. MR VARITIMOS: And could you have a look at this document, please. Is this a copy of the curriculum vitae you prepared? MR RUPEN: That's correct. MR VARITIMOS: And are the matters contained in that document, to the best of your knowledge and belief, true and correct? MR RUPEN: That's correct. MR VARITIMOS: I seek to tender the curriculum vitae of Chris Rupen.

COMMISSIONER: That will be Exhibit 306, CV of Mr Chris Rupen.

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EXHIBIT 306 - CV OF MR CHRIS RUPEN MR VARITIMOS: In terms of your tertiary qualifications you hold a Master of Science in General Maritime Administrations, is that right? MR RUPEN: That's correct. MR VARITIMOS: And that was obtained from the World Maritime University in Sweden. MR RUPEN: That's correct. MR VARITIMOS: In 1986/1987 you undertook those studies.

MR RUPEN: That's correct.

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MR VARITIMOS: And in 1973 to 1976 you obtained a Bachelor of Arts and Economics from the University of Papua New Guinea. MR RUPEN: That's correct. MR VARITIMOS: And you describe your duties, from the 5 December 2005, as: Responsible and accountable to the board for the overall management and performance of the Authority in accordance with the National Maritime Safety Authority Act and the policies and directions of the board. Is that what you have described as your duties? MR RUPEN: That's correct. MR VARITIMOS: You have a long history of association with the Department of Transport, is that right? MR RUPEN: That's correct. MR VARITIMOS: In fact, on 11 August 1997 you were appointed the First Assistant Director of Maritime Transport Division of the Department of Transport and Civil Aviation. MR RUPEN: That's correct. MR VARITIMOS: From January 2002 to August 2004 you were the Acting Deputy Secretary, Technical Services in the Department of Transport and Civil Aviation. MR RUPEN: That's correct. MR VARITIMOS: And if one goes back in time, right back to 1978 you were appointed project officer of the Maritime Division of the Department of Transport. MR RUPEN: Thats correct.

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MR VARITIMOS: And since that time you have been continuously involved in the - or up until 2004 with the Department of Transport in some capacity, is that right? MR RUPEN: Thats correct, apart from a period of six years, 91 to 96. MR VARITIMOS: Yes, thats when you were the director, Maritime Division, South Pacific, Foreign Secretariat in Suva, is that right? MR RUPEN: Thats right. MR VARITIMOS: But even in that context you were involved in the Maritime area. MR RUPEN: Thats correct.

MR VARITIMOS: So you have extensive experience in dealing with this sector.

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MR RUPEN: Thats correct. MR VARITIMOS: Particularly from an administrative point of view, is that right? MR RUPEN: Thats correct.

MR VARITIMOS: How was it that you became - or how was it that it came to be that you were appointed as general manager of NMSA? MR RUPEN: As I said earlier, in 2004, the board was appointed - well, a board was in place there was no administrative - administrative structure to operationalise, if you like, the National Maritime Safety Authority. And having been involved in the establishment phase through an Asian Development bank loan, which rehabilitated navigational aids in the country, they thought probably I was the more appropriate person to be seconded to as interim general manager to establish a management structure for the organisation. I did that with the help of a secretary and a driver between 2005 - 4 and December 2005. MR VARITIMOS: Well, the NMSA Act is dated 2003, is that right?

MR RUPEN: Yes.
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MR VARITIMOS: Passed in 2003, but it only came - became operational, in effect, on 1 January 2006, is that right? MR RUPEN: Thats correct. MR VARITIMOS: What was the reason for the delay? MR RUPEN: The Act was enacted by Parliament in 2003. Thereafter, a board was appointed by a cabinet to the board. Having the board in place, there was no administrative structure in place to actually operationalise and I worked - I worked with the board during that period in 2004 to get an approved structure from the department of personnel management and towards the end of 2005 that a corporate structure was then approved. MR VARITIMOS: But you wouldnt have had - - -

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MR RUPEN: With - - MR VARITIMOS: - - - you wouldnt have had a board until the Act came into force, is that right? MR RUPEN: The Act came into force after 2003. MR VARITIMOS: It came into force - - -

MR RUPEN: Thereafter the board was appointed in 2004, the first board, which was a full board. MR VARITIMOS: Is it correct that the Act came into force though on 1 January 2006?

MR RUPEN: Maybe, Im not - Im not aware, but that is my recollection of what transpired at that time.
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MR VARITIMOS: Well, since independence in 1975, has the maritime administration always come under the Transport portfolio? MR RUPEN: Thats right.

MR VARITIMOS: But under different ministries, including the Ministry of Transport, Works and Supply, is that right? MR RUPEN: Yes.

MR VARITIMOS: The Ministry of Transport, Works and Civil Aviation? MR RUPEN: Thats right. MR VARITIMOS: And the Ministry of Transport and Civil Aviation? MR RUPEN: Thats right.

MR VARITIMOS: As well as the Ministry of Transport and Works, which is the current arrangement, is that right?
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MR RUPEN: Current arrangement, thats right.

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MR VARITIMOS: And in the late 1990s did the government start the Public Sector Reform Programme, is that right? MR RUPEN: Thats right.

MR VARITIMOS: And did that see the creation of a number of agencies, including the establishment of the Civil Authority - Civil Aviation Authority in 2000? MR RUPEN: Thats correct.

MR VARITIMOS: The National Road Safety Council? MR RUPEN: Thats right. 23/5/2012 2528 C.C. RUPEN

MR VARITIMOS: The National Maritime Safety Authority in 2003?

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MR RUPEN: Thats right. MR VARITIMOS: And the National Roads Authority? MR RUPEN: Thats correct.

MR VARITIMOS: And were the underlying and common reasons that youre aware of identified for creating these agencies because of funding constraints? MR RUPEN: Certainly in the case of the National Maritime Safety Authority.

MR VARITIMOS: And deteriorating transport infrastructure, do you agree with that?

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MR RUPEN: Thats right, thats right. MR VARITIMOS: And poor delivery of services, is that right? MR RUPEN: Thats right.

MR VARITIMOS: And is it correct that some of the key underlying reasons for the creation of the National Maritime Safety Authority were as follows: firstly, in relation to delivery of maritime safety and marine pollution control services, stakeholders were in general not satisfied with the situation at the time, would that be right? MR RUPEN: Thats right. MR VARITIMOS: And the users of maritime services felt they were not having valid dialogue with the maritime transport division of the Department of Transport, would that be fair? MR RUPEN: Yes, thats fair.

MR VARITIMOS: And they were not getting the level of services required, particularly in relation to the levies and fees they were being charged, correct?
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MR RUPEN: Thats correct.

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MR VARITIMOS: And even the Department of Transport, I suggest, was not satisfied considering that they were not being provided with the resources and working conditions conducive to the adequate discharge of their responsibilities, would that be fair? MR RUPEN: Thats right; thats fair. MR VARITIMOS: Then secondly, a major underlying reason for the creation of the National Maritime Safety Authority is, I suggest, in relation to managerial and financial weaknesses. In particular, I suggest that the maritime transport division of the Department of Transport was experiencing low levels of activities and results due to institutional instability, do you agree with that? 23/5/2012 2529 C.C. RUPEN

MR RUPEN: Yes. MR VARITIMOS: Poor management practices, is that right?

MR RUPEN: Yes, thats right.

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MR VARITIMOS: Procedures and systems and significant and recurrent budgetary shortfalls, would that be fair? MR RUPEN: Thats fair.

MR VARITIMOS: And also revenues were well below expenditure, is that right? MR RUPEN: Thats right. MR VARITIMOS: And is it correct to say that revenue collected from the maritime industry went to consolidated revenue? MR RUPEN: Thats correct. MR VARITIMOS: And therefore there was insufficient budgetary allocation to cover the provision of maritime services, is that right? MR RUPEN: Thats right. MR VARITIMOS: Would I be correct in suggesting to you that in fact 95 per cent of the transport sector budget was being allocated for road infrastructure in about 2003? MR RUPEN: Thats right.

MR VARITIMOS: So very little money or budgetary allocation was being allocated to the maritime sector, is that right? MR RUPEN: Thats right.

MR VARITIMOS: But you agree that the maritime sector in 2003 and now is a very significant sector in the transport area.
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MR RUPEN: Thats correct.

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MR VARITIMOS: And many Papua New Guineans rely very critically on an efficient and smooth running of the maritime operations in the country, is that right? MR RUPEN: Thats right.

MR VARITIMOS: Both in terms of cargo and passenger. MR RUPEN: Thats right. MR VARITIMOS: Was a third underlying reason for the creation of the National Maritime Safety Authority human resource deficiency, is that right? MR RUPEN: Thats correct. 23/5/2012 2530 C.C. RUPEN

MR VARITIMOS: Was there a lack of qualified technical and professional staff to adequately carry out the functions of a maritime administration in 2003?
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MR RUPEN: Thats right.

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MR VARITIMOS: Is it also correct that the National Maritime Safety Authority was created as part of an ADB - Asian Development Bank loan? MR RUPEN: Thats correct.

MR VARITIMOS: And was that funded project - it was a funded project all by an ADB loan, was it? MR RUPEN: Thats correct.

MR VARITIMOS: Totally by an ADB loan. MR RUPEN: ADB and the government of Papua New Guinea. MR VARITIMOS: Had the navigational aids network in the country by 2003 deteriorated to the point where navigation safety on the coast was being compromised? MR RUPEN: Thats correct. MR VARITIMOS: Correct. And in rehabilitating the NavAids network, was it also considered necessary to strengthen the institutional capacity to operate and manage the infrastructure? MR RUPEN: Thats correct. MR VARITIMOS: So NMSA when it was formed was very badly needed, is that right? MR RUPEN: Thats fair to say, yes.

MR VARITIMOS: And it was given some fairly onerous obligations and responsibilities, is that right?
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MR RUPEN: Thats right.

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MR VARITIMOS: Because you were starting from a very low base, is that right? MR RUPEN: Yes. MR VARITIMOS: And there needed to be rapid improvement in the area. MR RUPEN: Thats correct.

MR VARITIMOS: In terms of the organisational structure, I wish to show you an exhibit, a flowchart, 291 - Exhibit 291 and ask you whether this correctly represents the organisational structure of the organisation. Have a look at 291, please. Could you have a look at 291, please. Have you seen this organisational structure or flowchart before? 23/5/2012 2531 C.C. RUPEN

MR RUPEN: Yes.
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MR VARITIMOS: And does it actually represent the organisational structure of the organisation, NMSA? MR RUPEN: This is an old - the old structure. MR VARITIMOS: An old structure. MR RUPEN: Yes. MR VARITIMOS: How old is this structure?

MR RUPEN: 2011 - or 2010 we had an approval from the Department of Personnel Management after the board endorsed a proposal to - to expand out our - our structure from 55 positions that were initially approved to develop NMSA, they have now approved a structure of 125 positions with a few new departments. Looking at this structure, we - you have navigation standards and safety department, this is an old structure. MR VARITIMOS: How old is this structure? MR RUPEN: It would be two years old. MR VARITIMOS: Two years old.

MR RUPEN: Yes. MR VARITIMOS: Can you - do you have an organisational structure that you could provide fairly readily? MR RUPEN: I can provide the latest structure - - MR VARITIMOS: Yes. MR RUPEN: - - - which combines the old hydrographic services department and our navigation aid into one navigation safety department. MR VARITIMOS: So - - MR RUPEN: So I will provide the latest structure that we have.

MR VARITIMOS: Thank you. How many staff does NMSA currently employ?
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MR RUPEN: At the moment 60. MR VARITIMOS: Sixty? MR RUPEN: Yes.

MR VARITIMOS: But there has been approval to increase it to over a hundred, has there? 23/5/2012 2532 C.C. RUPEN

MR RUPEN: A hundred and twenty-five.

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MR VARITIMOS: But the organisational structure that you provide will show 125 positions, will it? MR RUPEN: Will show 125 positions, yes. MR VARITIMOS: So in reality thats the dream structure, is that right? MR RUPEN: Yes. Its - - MR VARITIMOS: But its not - - -

MR RUPEN: - - - its an approved structure, it just needs to be filled; the positions need to be filled.
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MR VARITIMOS: Well, at the moment youve got about 60 employees - - H

MR RUPEN: Yes. MR VARITIMOS: - - - and would they fit within the category thats shown on Exhibit 291, would they, that same document? MR RUPEN: Yes. MR VARITIMOS: This Exhibit 291, does that show the current structure in terms of employed staff? MR RUPEN: Yes. MR VARITIMOS: Yes. So this is an accurate record of the current position in terms of whats happening at the moment, is that right? MR RUPEN: Yes. MR VARITIMOS: But theres a plan to expand it to a hundred and - more than a hundred employees. MR RUPEN: More than a hundred, yes. MR VARITIMOS: So - - -

MR RUPEN: In fact - in fact we had initial approved structure of 55, we have staff on strength of 60, which means we are now progressively filling positions under the 125 positions. MR VARITIMOS: - - - so back in 2003 or at least 2006, you had permission to get over 150 staff, did you? MR RUPEN: Fifty-five. MR VARITIMOS: Fifty-five, you had permission. 23/5/2012 2533 C.C. RUPEN

MR RUPEN: Initially, yes.

B

MR VARITIMOS: And when was approval given to increase that to over a hundred? MR RUPEN: 2011 - or 10, I will just have to check my - my file. MR VARITIMOS: But theres been no major increase.

MR RUPEN: No.
E

MR VARITIMOS: Im correct, so its gone from about 55 staff to about 60 staff. MR RUPEN: At the moment. MR VARITIMOS: So during the whole time of NMSAs existence - at least since 2006 the number of staff have ranged from about 55 to 60, is that right? MR RUPEN: Yes. MR VARITIMOS: And that includes secretarial staff, does it?

MR RUPEN: Thats all - all staff.

J

MR VARITIMOS: Including drivers. MR RUPEN: Drivers. MR VARITIMOS: In your assessment, do you need to double that number or more to efficiently operate? MR RUPEN: We - we need to double the number, yes, to beef up our field officers and also our technical areas, some ship inspectors, but - but filling positions that is not sufficient. We have gone back to what we call the salary conditions and monitoring committee to beef up the salary of staff due to the challenges from industry, mainly the LNG, we have lost about three or four people because we are shackled by the governments salary structure. MR VARITIMOS: Well, you have to work within the salary structure.

MR RUPEN: We have to. MR VARITIMOS: And is that causing problems in obtaining appropriate qualified staff? MR RUPEN: It does, yes. MR VARITIMOS: And have you advertised for a lot of positions, but unable to fill them?

MR RUPEN: We - we will do so hopefully next month. We are waiting for what we call an SCMC approval just to - to beef up our salary, entitlements and things so that we can be able to attract people, otherwise they will always stay with industry.

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MR VARITIMOS: So you classify yourself as both a general manager and CEO, do you? Thats effectively your role. MR RUPEN: Yes, there has been some confusion so I use both in a lot of cases. MR VARITIMOS: And you effectively carry out the duties of a general manager and CEO, do you? MR RUPEN: Thats right; also wearing the cap of a board member, non-voting. MR VARITIMOS: So youre a member of the board, but cant vote, is that right? MR RUPEN: Cant vote; I cant vote.

MR VARITIMOS: Now, what do you see really as your roles and duties as a general manager or CEO of NMSA?
G G

MR RUPEN: Its basically managing the staff of NMSA, but at the same time working with stakeholders, the board for a start and - and government, but also interacting with the shipping industry what - what - I have tried to encourage over the years that you need to interact with the shipping industry on how we move forward in a lot of things. Of course, whatever legislation that we implement impact all the industry at the moment. And what I always encourage is that industry approach to government and NMSA through one voice; maybe through the Ship Owners Association, so that it makes things easy and we are dealing with the industry as one voice instead of having to deal with individual players in the industry. MR VARITIMOS: How successful do you consider you have been as a general manager and CEO? MR RUPEN: It would be fair to say that I have been successful in the sense that NMSA has progressed in the last six years. I think weve built up a lot of systems, processes and procedures and have persevered through quite a number of distractions that we had to endure, particularly during the establishment phase. I must say I enjoyed only one year of serving under a board and that was during 2006. MR VARITIMOS: Youve only enjoyed one year.

MR RUPEN: Where I worked very well with the board of NMSA.

P

MR VARITIMOS: And who - - MR RUPEN: And that was the initial board in 2006. MR VARITIMOS: - - - and who was on that board? Or why was that so effective? MR RUPEN: We - we had a full board. The initial board was a full board chaired by the nominee from PNG Chamber of Commerce. We had a member of the PNG Harbours Board, it was called then. NRI was always there, transport, treasury, and the rotating rotational seat that was representing the three coastal regions of Papua New Guinea. Come 2000[sic] in August - 2006 August, we had our first change on the board and weve had changes every two years. The initial board was appointed in 2004. We had 23/5/2012 2535 C.C. RUPEN

changes in 2006. We had new appointments in 2008. We had new appointments in 2010 and we just had a recent appointment in 2012. MR VARITIMOS: So there has been no consistency, is that what you're saying? MR RUPEN: No consistency. A lot of terms are for three and four years. MR VARITIMOS: And has there been a lot of friction in the board?

MR RUPEN: With a particular board member, yes.

E

MR VARITIMOS: Mr Hamish Sharp? MR RUPEN: Yes. MR VARITIMOS: And did that create problems with the board running efficiently and operating efficiently? MR RUPEN: I will agree, yes. MR VARITIMOS: And what were the problems identified?

MR RUPEN: I think there was a lot of conflict of interest issues which tend to bear on the board functioning efficiently. MR VARITIMOS: And how long was Mr Hamish Sharp on the board for?

MR RUPEN: He was appointed in August 2006. By February 2007 he had become the Chairman of the Board. His term expired in August 2009. By 2010 he had been reappointed. MR VARITIMOS: He was still on the board in 2010? MR RUPEN: No, he was - his term expired in 2009, August, and then was reappointed around in 2010. Usually, the process of appointment is I prepare the NMSA submission or either the Transport Department does that. COMMISSIONER: There was an Ombudsman Report, was there not, in relation to all of that? MR RUPEN: Sorry? COMMISSIONER: There was an Ombudsman Report in relation to that? MR RUPEN: Done in between, yes, yes, on the appointment, which we have submitted. There is an Ombudsman Commission Report which covers that aspect of it. MR VARITIMOS: Well, you talked about conflicts of interest. MR RUPEN: Yes.

MR VARITIMOS: Was there a - what was the conflict of interest that you perceived in relation to the chairman of the board? 23/5/2012 2536 C.C. RUPEN

MR RUPEN: He sold ships. During the time the Sealark sank, caught fire in the Port of Lae, NMSA was probably constrained or hampered by the fact that we couldn't do much, he being the chairman sitting at the top. The San Pedro sank, of course, several containers fell overboard. The introduction of Pacific Register of Ships to survey ships above 500 gross tonnes, and that is the subject of a process audit which we have submitted together with the documents. MR VARITIMOS: Well, one or more of Captain Sharps vessels sank, is that right? MR RUPEN: That's right. MR VARITIMOS: And certain members of the board wanted an investigation into the sinking of the vessel, is that right? MR RUPEN: Yes, and removal of the wreck, in fact, from Lae.

MR VARITIMOS: And Captain Sharp - sorry, not Captain Sharp.

H

MR RUPEN: No, no. MR VARITIMOS: Mr Hamish Sharp was on the board and wished to vote in relation to issues concerning sinking of his vessel, is that right? MR RUPEN: Yes, no interest was declared at board meetings. It was proving difficult for the board members to discuss those particular issues. MR VARITIMOS: And he refused to absent himself from the meetings, is that right? MR RUPEN: That's correct. MR VARITIMOS: And this went - these problems went on for a long time, is that right? MR RUPEN: A long time, yes.

MR VARITIMOS: And it basically neutralised the effectiveness of the board, is that right?
O O

MR RUPEN: Yes. It came to a stage when I was asked to step outside for whatever reason. In the English language or in the Australian sense if you ask somebody to step outside its probably for a fight. MR VARITIMOS: Well, you could see that it was very tense at meetings. MR RUPEN: Yes. MR VARITIMOS: Now, do you consider that there can be a serious problem arising from the Minister appointing the wrong person to the board? MR RUPEN: Yes.

MR VARITIMOS: And is it your assessment that there have been people that have been appointed over recent years that should not be appointed? 23/5/2012 2537 C.C. RUPEN

MR RUPEN: That's correct, yes.

B

MR VARITIMOS: And has there been a problem with calling meetings of the board? MR RUPEN: Difficult, yes, yes. MR VARITIMOS: And what have the problems been?

MR RUPEN: Either people not available or, in a few cases, deliberately absenting themselves to render a meeting failing. MR VARITIMOS: And why would they - you are saying they would deliberately not be available because they didn't want a board meeting to take place? Is that what you're saying? MR RUPEN: Yes. MR VARITIMOS: What evidence do you have that members of the board deliberately made themselves unavailable to avoid a quorum listing? MR RUPEN: I am referring only to one particular board member here. MR VARITIMOS: Mr Sharp? MR RUPEN: Mm.

MR VARITIMOS: Have a look at this document, please. Is this a letter you wrote to the Commission in response to your summons, dated 11 April 2012? Is this a letter that you prepared to the Commission with the documents you produced? MR RUPEN: Yes, that's correct. MR VARITIMOS: To the best of your knowledge are the matters contained in this document correct? MR RUPEN: That's correct.

MR VARITIMOS: And are the opinions you have expressed there your opinions, is that right? MR RUPEN: That's correct.

MR VARITIMOS: You have made some suggestions or proposals to improve matters in the future, is that right? MR RUPEN: That's correct.

MR VARITIMOS: You note that the Merchant Shipping Act needs to be updated, is that right?
T T

MR RUPEN: That's correct.

U U

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MR VARITIMOS: What steps have been taken to update or amend or introduce new legislation from the Merchant Shipping Act 1975? MR RUPEN: Yes, two or three years ago we worked very closely with the Department of Transport, thats the Policy Department. And two or three years ago we set in place a legislative programme which was approved by the Minister, to review and introduce quite a number of legislation, including a review of the Merchant Shipping Act and the NMSA Act, to remove - to strengthen the provisions of the Merchant Shipping Act but also remove ambiguity within the NMSA Act and maybe review board membership. That has not taken place although NMSA has prepared the points that need to be looked at in the review exercise. We have put that on hold for the moment to await the outcome of this Commission of Inquiry. If anything comes out of it we will put in whatever legislative amendments that we do make. MR VARITIMOS: One of - so it hasnt advanced very far, is that right?

MR RUPEN: No. MR VARITIMOS: I'm right, am I? MR RUPEN: Yes.

MR VARITIMOS: One of the proposals that you make is the need for an independent body to investigate maritime accidents, similar to the Aviation Accidents Investigation Commission, is that right? MR RUPEN: That's correct. MR VARITIMOS: Now, there is an independent investigative body in aviation matters.

MR RUPEN: That's correct.

M

MR VARITIMOS: And when was that established approximately? MR RUPEN: Three years ago. And only I think two years ago members have been appointed to that Commission. MR VARITIMOS: And you accept that the current practice with maritime incidents and accidents creates a potential conflict, is that right? MR RUPEN: That's correct. MR VARITIMOS: Because the NMSA carry out ship inspections and surveys of vessels, is that right? MR RUPEN: That's correct. MR VARITIMOS: And to require it to carry out investigations in the event of a maritime accident can create a conflict of interest arising. MR RUPEN: That's correct.

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MR VARITIMOS: Because, amongst other things, NMSA could be considering whether their officers have properly performed their duties and obligations. MR RUPEN: That's correct. MR VARITIMOS: So one of your suggestions is there should be an independent body in relation to investigating maritime incidents, is that right? MR RUPEN: That's correct. MR VARITIMOS: And it should be set up similar to the Australian Transport Safety Bureau. MR RUPEN: That's correct. It may not be a separate body. It could be - I mean the existing Aviation Investigation - - MR VARITIMOS: Well, the - - MR RUPEN: - - - the Accident Investigation Commission could probably be expanded to include - - MR VARITIMOS: Yes, to cover maritime matters. MR RUPEN: - - - the other modes of transport. MR VARITIMOS: Yes. You are aware that in Australia there is a position where there is AMSA, Australian Maritime Safety Authority - - MR RUPEN: Yes.

MR VARITIMOS: - - - similar to your organisation, is that right?

M

MR RUPEN: That's correct. MR VARITIMOS: And then there is an independent body, Australian Transport Safety Bureau, is that right? MR RUPEN: That's correct. MR VARITIMOS: So you are suggesting some similar model should be introduced here? MR RUPEN: That's correct. MR VARITIMOS: And thats a recommendation that you consider, in your opinion, should be made by the Commission, is that right? MR RUPEN: That's correct, yes. MR VARITIMOS: But of course, if that is to be done, I suggest its critical that there be appropriate funding for the organisation, is that right? MR RUPEN: Thats recognised, yes, that's correct. 23/5/2012 2540 C.C. RUPEN

MR VARITIMOS: And that entails sufficient funding to have appropriately qualified and experienced staff.
B B

MR RUPEN: That's correct.

C

MR VARITIMOS: Now, would it be fair to say that, during all the time that you have been engaged at NMSA as general manager, there has been a serious lack of funds for your organisation to properly function is that right? MR RUPEN: Under the Department of Transport, yes, we were under - we are very much under funding constraints. With the establishment of NMSA we are self-funding, if you like, with very minimal support from government, so the revenue that we collect from industry would tend to fund our operations. MR VARITIMOS: Well, originally when you were established you had, effectively, a grant from Asian Development Bank, is that right? MR RUPEN: That's correct. MR VARITIMOS: Now, how much money was injected into the organisation at that time, approximately? MR RUPEN: At that time when the loan - its probably a bit complicated but I will try and explain. At that time when the bank loan was approved by the bank, they did the - a condition of the loan was the monies that was being collected was to be put in a trust account for the future operations of NMSA. So from 2000 onwards I think all the navigational aids levy and all the funds that were being collected from the industry was injected into a trust account for the future operations of NMSA. By the time NMSA was established and became operational, we had some funds in place to operationalise the authority and that continues until today. That trust fund or trust account was transformed into the operational account of NMSA. So all navigational aids fees, maritime regulatory funds and levy and to an extent an oil pollution levy goes into that account, the operating account of the NMSA. MR VARITIMOS: But I'm asking how much was put in the account initially when it was established in terms of the loan?

MR RUPEN: I will have to go back on the records.

P

MR VARITIMOS: Well, has that loan ever been repaid? MR RUPEN: That loan is being repaid by government, by the state. It was a state loan. MR VARITIMOS: Well, the authority is a not-for-profit public body, is that right? MR RUPEN: Yes, that's right.

MR VARITIMOS: And under the Act it shall operate on a self-sustaining financial basis, is that right?
T T

MR RUPEN: That's correct.

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MR VARITIMOS: And thats through the various fees and levies provided under the Act, is that right? MR RUPEN: Thats correct, yes. MR VARITIMOS: Well, are you obtaining sufficient fees and levies to be able to properly operate, in your opinion? MR RUPEN: We - at the moment we are just breaking even with a very small deficit at the end of each year. We have now reviewed our pricing policy to change the formula. At the moment, we base our levies on the length of a vessel and we think we should change in line with international practice, and we now base our levies on the tonnage of a vessel and work is in place to change the formula from a length of a vessel based levy to a tonnage based levy. And that, we estimate, should bring us significant revenue to fund the operations of NMSA in the long term. MR VARITIMOS: Well, if you accept that the authority is not a proper public body and it has to operate on a self-sustaining financial basis, then there would have to be a dramatic increase in levies to be able to fund the number of staff, namely double the number of staff, that you consider desirable, is that right? MR RUPEN: That's correct. MR VARITIMOS: And how feasible is that? How feasible is it to suggest that you will be able to effectively double your levies or double your revenue from levies and fees? MR RUPEN: I didn't say double. I think we will have significant increase to be able to cover our operations. MR VARITIMOS: But you are saying that basically at the moment you are breaking even, is that right? MR RUPEN: That's correct. MR VARITIMOS: And you wish to double your staff, is that right? MR RUPEN: More than double.

MR VARITIMOS: And would staff costs be a very major component of the operating costs of the organisation? MR RUPEN: It would be one of the major components. We need to compete with the industry and be able to attract and retain qualified and experienced staff to operate. MR VARITIMOS: Well, could I suggest you face two issues: firstly, you require a significant increase in the number of staff to properly function, is that right? MR RUPEN: Yes. MR VARITIMOS: Thats the first thing, is that right?

MR RUPEN: (No audible answer)

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MR VARITIMOS: Sorry, you have to say something. MR RUPEN: Yes.

MR VARITIMOS: Okay, and in your estimate that would be at least double the number of staff, is that right? MR RUPEN: More than double, yes.

MR VARITIMOS: More than double. Secondly, you have identified a problem with finding appropriately qualified staff, is that right? MR RUPEN: That's correct.

MR VARITIMOS: And in your assessment, to obtain the appropriately qualified staff you would need to pay them a lot more than NMSA is currently paying, is that right?
G G

MR RUPEN: That's correct.

H

MR VARITIMOS: Now, in a number of cases, your staff in locations operate from home, is that right - - MR RUPEN: That's correct.

MR VARITIMOS: - - - from their houses, for example in Kimbe, is that right? MR RUPEN: But in only one case, yes, Kimbe. MR VARITIMOS: So would it be fair to say that the staffing costs of the organisation currently over half the operating costs of the organisation? Do you understand what I'm saying? Would the staffing costs be more than half? MR RUPEN: The staffing and the administrative support would account for half, yes. Half goes to the maintenance of our navigational aids network. MR VARITIMOS: So if you were to increase the number of staff to over double the staff you have and increase the remuneration packages, there would need to be a very considerable increase in revenue from fees and levies, is that right? MR RUPEN: Yes. MR VARITIMOS: Now, how feasible is it for you to significantly increase the fees and levies? MR RUPEN: As I said it is something that we are currently looking at. Its a draft policy document we are looking at, taking into consideration the effect it will have on industry and the flow-on effect to the public. MR VARITIMOS: In your assessment is it, in reality, unrealistic - sorry. Is it unrealistic in your assessment to consider that your organisation can properly operate purely on a self-sustaining financial basis? MR RUPEN: It is probably unrealistic. 23/5/2012 2543 C.C. RUPEN

MR VARITIMOS: So in your assessment, you really do need an injection of funds or some financial support - - B B

MR RUPEN: Yes.
C

MR VARITIMOS: - - - outside just collecting fees and levies, is that right? MR RUPEN: Yes. We do get, as I said, minimal support through the budget from government. Since inception way back in 2005, government, through the budgetary process, has provided NMSA with 1.5 million Kina to subsidise our salary bill of about 4 million. At the same time, through the development budget, capital expenditure projects, through what we call a development budget from government, do provide us with funding to implement some projects, like some projects we are currently implementing - the extension of the navigation aids network to our rural communities. We did get some funding from government on that one. MR VARITIMOS: Whats the approximate operational cost, on a yearly basis, of your organization? MR RUPIN: About 20 million.

MR VARITIMOS: 20 million kina, about.

J

MR RUPIN: Yes. MR VARITIMOS: Are you aware that MC in Australia is self-funding? Are you aware of that? MR RUPEN: I think that - I believe they get a significant injection of - injection of capital from government. MR VARITIMOS: From the government. MR RUPEN: I think so. I am not privy to their funding arrangements but - - MR VARITIMOS: Are you aware of any government policies that are referred to or would be applicable to the provisions of section 6(3) of the Act that in section 6.3 says: The minister may ask for consultation with the Board, give the Board by notice in writing such directions consistent with government policies and programs. MR RUPEN: Yes.

MR VARITIMOS: Are you aware of government policies - - R

MR RUPEN: Yes. MR VARITIMOS: - - - being promulgated? And you are aware that a letter has been sent by you of 17 May, is that right? Have a look at this document, Exhibit 274. Is that a letter from you, in response to a letter from the Commission, requesting the provision of certain documents? MR RUPEN: Yes, yes. 23/5/2012 2544 C.C. RUPEN

MR VARITIMOS: And you were involved in checking that the documents requested, in so far as NMSA had them, were provided, is that right?
B B

MR RUPEN: Yes.
C

MR VARITIMOS: Now, could I suggest that the minutes of Board meetings were requested since January 2009, is that right? MR RUPEN: Thats correct.

MR VARITIMOS: And there is a Board meeting minutes held that says June 2011 at the top, is that right? Have a look at Tab 3. MR RUPEN: Yes, yes.

MR VARITIMOS: Is that right? At the top of the minutes it says June 2011, is that right? MR RUPEN: Yes. MR VARITIMOS: But the body seems to suggest a meeting in July 2011, do you see that? MR RUPEN: Yes. MR VARITIMOS: Was there a meeting in July or June - or are you not sure? MR RUPEN: It would have been July.

MR VARITIMOS: You can see there is an inconsistency in the document, can you?
M

MR RUPEN: Yes, what happens there is what weve always had, the problem. The Board papers may have been prepared for a June meeting, and that didnt happen and the meeting was held in July. MR VARITIMOS: Am I - - MR RUPEN: Because there was no quorum in June and I think we moved the meeting to July but I can check. MR VARITIMOS: Am I correct in saying that those minutes supplied are unsigned, is that right? MR RUPEN: Sorry? MR VARITIMOS: Are they unsigned copies of the minutes provided.

MR RUPEN: They are unsigned copies, yes.

T

MR VARITIMOS: Were there any signed copies that were done? MR RUPEN: I dont think so. 23/5/2012 2545 C.C. RUPEN

MR VARITIMOS: So the minutes are never signed, is that right?

B

MR RUPEN: They are never signed, no. MR VARITIMOS: You understand it is part of good governance that minutes of meetings should be signed and certified as correct. MR RUPEN: I do understand that. MR VARITIMOS: But that has never been the practice. MR RUPEN: Its never been the practice.

MR VARITIMOS: And is it correct that agendas were asked for, but no agendas are available, is that right?
G G

MR RUPEN: No. Agendas would be in the Board papers. Agenda items would be in the Board papers, and if you see, the minutes, it also appears in the write-ups, but they normally appear in the Board papers. MR VARITIMOS: Is it correct to say that there has been no meeting of the Board since July 2011? MR RUPEN: That would be correct. MR VARITIMOS: Did you hear some of the evidence by the Chairman of the Board? MR RUPEN: I did.

MR VARITIMOS: You were court.

M

MR RUPEN: I did. MR VARITIMOS: He is mistaken, is he, when he said that there was a Board meeting in October? MR RUPEN: Mistaken or confused there, because of the irregularity of Board meetings. What may have happened is we prepared Board papers for October, I think, October meeting. Come the day for the Board meeting, one member - Board member - did not turn up. So what happened then is we had the general discussions, management and those Board members present, and I think a decision - I believe a decision was taken at that time that October being critical, we have the budget and a lot of other important management issues, that the minutes or the agenda on the Board papers be approved through circular resolution. And we would submit that quite a number of Board resolutions are also circular resolutions. We needed to do that because we needed the management needed to take action on a number of things. So when there was no quorum the Board would decide that we get the Board members to do a circular resolution and that would be reflected in some of the resolutions that we have provided. MR VARITIMOS: But there was no formal Board meeting in October. MR RUPEN: There was no formal Board meeting. 23/5/2012 2546 C.C. RUPEN

MR VARITIMOS: I seek to tender the letter from Mr Rupen to the Commission of 11 April 2012.
B B

COMMISSIONER: Yes. That is Exhibit 307, letter of 11 April 2011 of Mr Chris Rupen.
C

MR VARITIMOS: Twelve. COMMISSIONER: Twelve, sorry. EXHIBIT 307 - LETTER OF 11 APRIL 2011 OF MR CHRIS RUPEN MR VARITIMOS: Mr Rupen, one of the documents you were requested to provide was what committees had been established. MR RUPEN: Thats correct.

MR VARITIMOS: What committees had been established pursuant to section 21(5) of the Act, is that right? MR RUPEN: Thats correct.

MR VARITIMOS: And under section 21.5 of the Act, The general manager may appoint such committees as is deemed necessary to advise him on any matter in relation to his responsibility. Is that right? MR RUPEN: Thats correct. MR VARITIMOS: And you responded in your letter, which is part of the exhibit you have in front of you, that a new committee which supersedes the Nautical Data Committee was established, namely, the Maritime Safety Committee, is that right? MR RUPEN: Thats correct. MR VARITIMOS: This committee is made up of NMSA, relevant government agencies and private sector shipping and it is a forum where issues relating to the safety of navigation are discussed, is that right? MR RUPEN: Thats correct.

MR VARITIMOS: Then you were subsequently asked to provide copies of any minutes of this committee, is that right? MR RUPEN: Thats correct.

MR VARITIMOS: And you responded by a letter of 21 May 2012, is that right? Have a look at this letter, please. MR RUPEN: Its the - 17th?

MR VARITIMOS: There is a letter on 21 May 2012 that you provided - - MR RUPEN: Yes, yes. 23/5/2012 2547 C.C. RUPEN

MR VARITIMOS: - - - in response to providing information concerning minutes of meetings of the Maritime Safety Committee - - B B

MR RUPEN: Thats correct.

C

MR VARITIMOS: - - - since 1 January 2009. MR RUPEN: Yes. MR VARITIMOS: Now, are the minutes you provided all the minutes in relation to the Safety Committee since January 2009? MR RUPEN: Thats correct. MR VARITIMOS: And the first meeting in 2009 was 13 October 2009, is that right? Thats the first document, is that correct? MR RUPEN: 13 October? MR VARITIMOS: 2009.

MR RUPEN: Thats correct.

J

MR VARITIMOS: And you have a large distribution list, is that correct? MR RUPEN: Thats correct. MR VARITIMOS: Including to Rabaul Shipping, Peter Sharp.

MR RUPEN: Thats correct.

M

MR VARITIMOS: Now, were these minutes sent to Rabaul Shipping, Mr Sharp and the other persons on the distribution list? Were these minutes sent to those people? MR RUPEN: They would have. I am not sure. I do not send those minutes out. My - -

MR VARITIMOS: Who organises the sending of the minutes?

P

MR RUPEN: Its the manager of Hydrographic Services. MR VARITIMOS: And is the second - sorry, is there a second meeting that you refer to of the committee of 27 July 2010? Is that right? MR RUPEN: Thats correct. MR VARITIMOS: And then there is a fourth meeting of 4 October 2011, is that right? MR RUPEN: Thats correct.

MR VARITIMOS: And they are the sum total of the meetings of the Maritime Safety Committee established by you, is that right? 23/5/2012 2548 C.C. RUPEN

MR RUPEN: Thats correct.

B

MR VARITIMOS: So in the whole period 2009, 2010, 2011 and 2012 to date, the Safety Committee has only met three times, is that right? MR RUPEN: Annual meetings, yes. MR VARITIMOS: I seek to tender the letter from Mr Chris Rupen to the Commission enclosing copies of minutes of meetings of the Maritime Safety Committee of NMSA dated 21 May. COMMISSIONER: All right. That will be Exhibit 308, a letter of Mr Chris Rupen to the Commission including copies of minutes of meetings dated 21 May 2012. EXHIBIT 308 - LETTER OF MR CHRIS RUPEN TO THE COMMISSION, INCLUDING COPIES OF MINUTES OF MEETINGS, DATED 21 MAY 2012 MR VARITIMOS: Would it be correct to say that the Safety Committee established by you pursuant to the Act could consider any matters relating to maritime safety? MR RUPEN: Yes. MR VARITIMOS: Including questions of having appropriate surveyors and qualified surveyors, is that right? MR RUPEN: Thats correct. MR VARITIMOS: And engaging more surveyors?

MR RUPEN: Thats correct.

M

MR VARITIMOS: And training surveyors, is that right? MR RUPEN: Thats correct. MR VARITIMOS: Establishing or appointing surveyors in different locations.

MR RUPEN: All aspects of maritime safety.

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MR VARITIMOS: Yes, any aspect in relation to maritime safety that committee could get up, is that right? MR RUPEN: Yes, yes.

MR VARITIMOS: Now, in relation to that committee there was no restriction on the number of people required in terms of a quorum, is that right? MR RUPEN: No.

MR VARITIMOS: So it could consist of five people or 15 people, is that right? MR RUPEN: Thats correct. 23/5/2012 2549 C.C. RUPEN

MR VARITIMOS: Why is it that this committee, the Maritime Safety Committee, only met three times in three plus years?
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MR RUPEN: It was meant to be an annual meeting of stakeholders and other agencies but that can be improved upon. MR VARITIMOS: That could be improved.

MR RUPEN: Yes.
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MR VARITIMOS: Do you consider that it should be more regular? MR RUPEN: Yes. MR VARITIMOS: Because I suggest to you that stakeholders could have some valuable feedback and information to provide to you, is that right? MR RUPEN: Thats correct. MR VARITIMOS: Particularly on the important area of safety.

MR RUPEN: Thats correct.

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MR VARITIMOS: So did you consider trying to call more regular meetings of this Safety Committee? MR RUPEN: We will certainly consider more meetings because we co-opt our partners from Australia to come; Australian Hydrographic Service in terms of tracking and navigation. MR VARITIMOS: Well, you are aware that under the NMSA Act, the Board is required to meet at least every three months. Are you aware of that? MR RUPEN: I am aware of it. MR VARITIMOS: And in the period from May 2011 to date, the Board has only met once, is that right? MR RUPEN: Come again? MR VARITIMOS: Since May 2011 to now, the Board of NMSA has only met once, is that right? MR RUPEN: Thats correct, yes. MR VARITIMOS: So for a period of twelve - that period of 12 months, they should have met several times but have not done so. MR RUPEN: Have not done so.

MR VARITIMOS: And you are aware that thats in contravention of the Act.
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MR RUPEN: It is, yes. MR VARITIMOS: Would you agree that thats also contrary to good governance of the Board. MR RUPEN: Thats correct. MR VARITIMOS: Why is it that the Board did not meet more regularly than once in the last 12 months? MR RUPEN: There has been no quorum. The recent appointment in March or April of two more Board members would probably facilitate a quorum. MR VARITIMOS: Well, what steps did you take to ensure that there would be a quorum? MR RUPEN: If theres not enough numbers there is nothing much I can do. But what I have done is, I did a submission which led to the appointment of two more Board members from the - from the three coastal regions of the country and from the Ship Owners Association. MR VARITIMOS: Where did you make - well, last year - at any time last year did the Board have at least four members appointed apart from yourself? MR RUPEN: From last year we had - well, the three ex-officios. MR VARITIMOS: Yes, so the three ex-officios. MR RUPEN: Plus - - -

MR VARITIMOS: There is Department of Transport, Department of Finance, yourself.

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MR RUPEN: Yes. MR VARITIMOS: So there were three there, but you have no voting rights, is that right? MR RUPEN: I do not make up the quorum.

MR VARITIMOS: There is one person nominated by the minister to represent certain regions, is that right? MR RUPEN: Thats correct.

MR VARITIMOS: And that was Mr Sharp, is that right?

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MR RUPEN: Yes, Mr Sharp. MR VARITIMOS: Initially. MR RUPEN: Yes. Mr Sharps appointment lapsed in 2009, around August. Come 2010, he was reappointed. I did not make that submission, nor did the Department of Transport. Somebody did. He was reappointed then on the Board and the Board 23/5/2012 2551 C.C. RUPEN

decided that it be challenged in court and they applied for a court stay order and that was granted. MR VARITIMOS: And - - MR RUPEN: And the recent appointment is now revoked - this appointment - and replaced by another person. MR VARITIMOS: Well, is there currently a person nominated by the minister to represent the Islands region? MR RUPEN: Yes. MR VARITIMOS: And who is that? MR RUPEN: Charles Casman(?)

MR VARITIMOS: And when was he appointed?

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MR RUPEN: Last month or March. I have submitted the NEC decision. MR VARITIMOS: March or early - - MR RUPEN: It would be March or April. MR VARITIMOS: It is in the book that you have there, is that right?

MR RUPEN: Yes. MR VARITIMOS: The exhibit. MR RUPEN: The last there? MR VARITIMOS: It should be at the front, I imagine, because it is in reference to who the Board members are, so its at Tab 1, I think you will find. I should be around Tab 1. MR RUPEN: Yes.

MR VARITIMOS: See if Tab 1 has NEC decisions.

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MR RUPEN: 2053, 2004. MR VARITIMOS: That was Mr Casman. MR RUPEN: Sorry? MR VARITIMOS: Mr Casman, 12 October 2012

MR RUPEN: Yes.
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MR VARITIMOS: And in terms of the person nominated by the National Research Institute - thats of course the Chairman in this case. 23/5/2012 2552 C.C. RUPEN

MR RUPEN: Thats the Chairman. MR VARITIMOS: And he has been appointed all the time since May last year, is that right? MR RUPEN: Thats correct. MR VARITIMOS: The person nominated by the ship owners association. Have you had a representative? MR RUPEN: Mr Andy Cummings(?) MR VARITIMOS: Andy Cummings.

MR RUPEN: The recent appointment.

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MR VARITIMOS: Yes, and what is the date of his appointment? MR RUPEN: The same as Charles, 4 April last year, I thought. MR VARITIMOS: And the person nominated by the Chamber of Commerce?

MR RUPEN: There was no appointment made although the submission which I prepared, signed by the minister, had the appointment recommended but it did not happen. MR VARITIMOS: What about the person nominated by the Papua New Guinea Harbours Limited? MR RUPEN: They have just recently appointed a new CEO and their Board have not submitted a nominee to NMSA for us to facilitate that appointment. MR VARITIMOS: Well, in relation to facilitating the appointment for the Ship Owners Association and the Chambers of Commerce - well, sorry, the Ship Owners Association, when did you put that submission in? MR RUPEN: I should have the date in my file.

MR VARITIMOS: Well, approximately when?

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MR RUPEN: Some time last year. MR VARITIMOS: Was it early or late? MR RUPEN: Late. Late last year or early this year. MR VARITIMOS: Late last year or early this year you put a petition in.

MR RUPEN: Yes. Id like to check the date on the NEC submission.

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MR VARITIMOS: So in relation to the positions that were vacant you only put a submission in late last year or early this year. 23/5/2012 2553 C.C. RUPEN

MR RUPEN: Thats correct. MR VARITIMOS: Do you agree that you should have put a submission forward before then? MR RUPEN: I did. MR VARITIMOS: You put in a submission before then also?

MR RUPEN: I have been putting in submissions since - the problem is we had - all we have is a minister and he had to go for a by-election so Sir Michael the grand chief was an acting minister or caretaker minister while he went for the by-election and when he came back on - became minister and then there was change - a change in the ministrys portfolio and we had Francis Potapei(?) and then Benjamin Poponawa, until now we have Francis Aressa(?). So the problem is the people. Its not a change of ministers in the same government. Its a change of ministers in different government and people changing just the ministers signature basically like - - MR VARITIMOS: Since May last year who have been the Ministers for Transport that you have had to deal with? MR RUPEN: All of them. MR VARITIMOS: Yes, which? What are their names? Which ones? MR RUPEN: Sir Michael Somare for a short time while Mr Don Poulier(?) went back for by-election, and we have Francis Potapei and then we had Benjamin Poponawa and we now have Francis Aressa, so five ministers. COMMISSIONER: Is that a convenient point? MR VARITIMOS: Yes. Thank you. COMMISSIONER: Yes, all right. We will adjourn for lunch. Resume at 2 oclock. Thank you. LUNCHEON ADJOURNMENT UPON RESUMING [12.31 PM] [2.03 PM]

COMMISSIONER: I just wish to say I have been considering the timetable and the time in which we have to report. The last days of evidence are the 6 and 7 June and I would hope that all parties granted leave to appear would be ready to address at that time on 6 or 7 June, and I would be greatly assisted if I had written submissions. I just thought I would put that on notice. Yes, Mr Varitimos? MR VARITIMOS: Thank you. I wish to continue with the evidence of Mr Rupen.

CHRISTOPHER CAMILLUS RUPEN:

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[2.04 PM]
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MR VARITIMOS: Mr Rupen, over the luncheon adjournment did you obtain some further documents in relation to a business plan and budget? 23/5/2012 2554 C.C. RUPEN

MR RUPEN: Thats correct. MR VARITIMOS: Right. And could I show you the first lot of documents, which are a business plan and budget for 2011? Now, is that a copy of the business plan and budget for NMSA for the year 2011? MR RUPEN: Thats correct. MR VARITIMOS: And is that for the calendar year 2011? MR RUPEN: Thats correct. MR VARITIMOS: And when would that have been prepared?

MR RUPEN: The last quarter of 2010.

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MR VARITIMOS: Who was involved in the preparation of the business plan and the budget? MR RUPEN: The NMSA management. MR VARITIMOS: And you would have been heavily involved in that, were you? MR RUPEN: Involved in it with the managers of the various departments. MR VARITIMOS: And would you have been happy with the business plan?

MR RUPEN: Thats right. MR VARITIMOS: And you also prepared a business plan for 2011, and a budget. MR RUPEN: Thats correct. MR VARITIMOS: First of all, I would like to tender the business plan for NMSA - the business plan for NMSA for 2011, with the budget for 2011. Now could I show you the next - - COMMISSIONER: I will just make that, then, Exhibit 309, business plan for 2011 and budget of NMSA. EXHIBIT 309 - BUSINESS PLAN FOR 2011 AND BUDGET OF NMSA MR VARITIMOS: Could I show you this material, the budget(business?) plan and budget 2012? Is that a copy of the business plan and budget for 2012 for NMSA? MR RUPEN: Thats correct. MR VARITIMOS: And that would have been prepared again on the last quarter of 2011, is that right? MR RUPEN: Thats correct. MR VARITIMOS: And you were heavily involved in that. 23/5/2012 2555 C.C. RUPEN

MR RUPEN: With the management team.

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MR VARITIMOS: Management of and preparation of that document. MR RUPEN: Thats correct. MR VARITIMOS: If I could have a look at that now, please. But I seek to tender the business plan and budget of NMSA for 2012. COMMISSIONER: Exhibit 310, business plan and budget for NMSA for 2012. EXHIBIT 310 - BUSINESS PLAN AND BUDGET FOR NMSA FOR 2012

MR VARITIMOS: Now, in the business plan and budget are there certain weaknesses stipulated in the document?
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MR RUPEN: We would normally look at the lighthouses, the validation that comes with the infrastructure, but also other risks in terms of marine pollutions, surveying of ships, engaging with the communities that live around the lighthouse, and then those that own the land because that is a very big issue where the lighthouses are located. MR VARITIMOS: Well, in relation to the business plans for both years they set out strengths, weaknesses, opportunities and threats, did they? MR RUPEN: Thats correct.

MR VARITIMOS: And in relation to the business plan for 2011, did it state that the weaknesses were as follows. Certain Regulations and Acts need to reviewed to proper implement the NMSA mandate, did they? Correct? MR RUPEN: Correct. MR VARITIMOS: Secondly, the shortage of suitably qualified and skilled personnel to fully implement the NMSA mandate. MR RUPEN: Thats correct.

MR VARITIMOS: Third, the continued lack of political will to fill vacant Board positions, resulting in lack of Board resolve to providing leadership and policy direction to the management. MR RUPEN: Thats correct. MR VARITIMOS: Fourthly, records of PNG flagged vessels and the number of active and qualified seafarers in the country are yet fully developed. MR RUPEN: Thats correct. MR VARITIMOS: And fifthly, implementation of internal policies, practices and procedures manual to ensure management audit compliance to legislation and other statutory requirements are dependent on time and available resources, right? 23/5/2012 2556 C.C. RUPEN

MR RUPEN: Thats correct. MR VARITIMOS: So were you recognising in that business plan that there was a shortage of appropriately qualified staff to carry out the objectives of NMSA, is that right? MR RUPEN: Thats correct. MR VARITIMOS: And that weakness was also included in the 2012 business plan, is that right? MR RUPEN: Thats correct. MR VARITIMOS: And a number of the weaknesses in the 2011 plan were also included in the 2012 plan. MR RUPEN: Thats correct. MR VARITIMOS: But one weakness that wasnt included in the 2012 plan was the reference to continued lack of political will to fill vacant Board positions, is that right? MR RUPEN: Thats correct. MR VARITIMOS: Was that not seen as a weakness? MR RUPEN: It may be an oversight but it continues to have a bearing on how we move forward in developing, progressing the organisation. MR VARITIMOS: In the threats you notice, amongst other things, ship owners operating unregistered vessels, etcetera unsafe vessels that were seen as a threat. MR RUPEN: Thats right. MR VARITIMOS: So is it the case that the practice has developed by NMSA not to have a yearly corporate plan as such but a business plan? MR RUPEN: Its a business plan. We have noted in the NMSA Act there are quite a number of them which is - which we plan which was in the Act to make amendments accordingly. That the business plan is over a five year - the corporate plan is over a five-year period, while we do have annual work plans and budget for the years. MR VARITIMOS: Do you know whether these business plans are actually submitted to the minister at all? MR RUPEN: Its submitted to the board as far as management is concerned. The only one occasion in the past where there was no board, or no quorum, and we had to go to the minister to approve that annual plan and budget. MR VARITIMOS: Well, are you classifying these business plans as, effectively, your annual corporate plan?

MR RUPEN: You could say that.

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MR VARITIMOS: Well, do you know that the board is required to prepare a corporate plan at least once a year and submit it to the minister? MR RUPEN: I know that. MR VARITIMOS: Are you aware of that? MR RUPEN: Thats what the Acts says.

MR VARITIMOS: Well, is it the case that there is not a corporate plan submitted at least once a year? MR RUPEN: No.

MR VARITIMOS: Im correct, am I? Sorry. Im correct?

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MR RUPEN: You are correct. MR VARITIMOS: So, is the actual business plan or are the business plans that youve presented actually provided to the minister, or not provided to him? MR RUPEN: We provide it to the board. MR VARITIMOS: NMSA - sorry. MR RUPEN: The board gives approval to that plan.

MR VARITIMOS: NMSA has a website, is that correct? MR RUPEN: Thats correct. MR VARITIMOS: Would you accept that its out-dated? MR RUPEN: I accept its out-dated. And weve discussed it internally before.

MR VARITIMOS: And its been out-dated for some years, is that right?
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MR RUPEN: Since inception. MR VARITIMOS: Well, what steps have been taken to try and update the business plan - sorry, the website? MR RUPEN: The website. Weve had - had discussions internally. We will move to update it soon as we can. MR VARITIMOS: Well, its been out-dated since pretty much inception, has it? For years its been out-dated, is that right? MR RUPEN: Yes.

MR VARITIMOS: Well, do you take some responsibility for the fact that its out-dated? MR RUPEN: I do take responsibility for. 23/5/2012 2558 C.C. RUPEN

MR VARITIMOS: It doesnt have important pieces of legislation on the website. Is that right?
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MR RUPEN: Thats correct.

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MR VARITIMOS: And it doesnt have, for example, any recent corporate plans on the document. Is that right? MR RUPEN: If you say so. I havent had the opportunity to look at it lately.

MR VARITIMOS: So how long is it since youve looked at the website? MR RUPEN: The last year. MR VARITIMOS: Are there any other matters that youd like to inform the Commission of, or tell the Commission? MR RUPEN: NMSA has - has progressed somewhat during the last six years of operations. What is probably lacking is an environment where the authority and the industry can work together harmoniously in addressing some of the issues. One - one observation is probably when we are dealing with industry, I find that when dealing with companies, its probably easier companies like Lutheran Shipping that are owned by a collective group of. But when youre dealing with owner operated companies, it is proving a difficult issue. You know when families own companies and they operate their own vessels, thats the difficult area. MR VARITIMOS: Whats the difficulty there that you see? MR RUPEN: People in the - in big shipping companies in Papua New Guinea, theyre employees of those companies. On one side, you have owner operated companies, family companies. And thats where the conflict of interest and the difficulties come in. I classify them as owner operated companies, and bigger companies that employ people who probably do not necessarily have a controlling interest in those companies. MR VARITIMOS: Have you ever travelled on passenger ferries in Papua New Guinea?

MR RUPEN: No. Because I wont be allowed to travel on passenger ferries. MR VARITIMOS: Why is that? MR RUPEN: Because I work for NMSA.

MR VARITIMOS: Even as a paid passenger? You havent sought to travel. Is that right? MR RUPEN: No. But Ive had experiences with my staff travelling on those Rabaul Shipping vessels. I have a surveyor in Madang or had his family travelling to Buka. They got to Rabaul, and they saw the surname. They offloaded them, and I had to foot the hotel bill and put them on aircraft to fly to Buka. MR VARITIMOS: Sorry. This was one of your staff members was - - -

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MR RUPEN: Thats right. One of our inspectors - - MR VARITIMOS: Was on - - -

MR RUPEN: - - - family.
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MR VARITIMOS: He and his family were on a vessel operated by Rabaul Shipping, is that right? MR RUPEN: His family was sent home by the - our staff to go home to Buka. When they got to Rabaul, they were offloaded. MR VARITIMOS: Which ship was that?

MR RUPEN: I dont have the details right now. But, yes, the case is quite fresh in my memory.
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MR VARITIMOS: How long ago was that?

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MR RUPEN: About two years ago. MR VARITIMOS: So one of your staff members - - MR RUPEN: Family. MR VARITIMOS: - - - family were travelling on Rabaul Shipping - - -

MR RUPEN: Vessel. MR VARITIMOS: - - - vessel. MR RUPEN: Yes. MR VARITIMOS: And they were told to get off the vessel, were they?

MR RUPEN: In Rabaul.
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MR VARITIMOS: Who told them? MR RUPEN: When they got to Rabaul. They were going all the way to Buka. When their - their surname was noticed, they were immediately offloaded. MR VARITIMOS: Yes. Who was that? MR RUPEN: Karl - - MR VARITIMOS: Kameng?

MR RUPEN: Yes. Kamal or the inspector in Alotau. One of them, theyll have the train.
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MR VARITIMOS: Yes. So then you were - were they given a reason why they were told to get off the vessel? 23/5/2012 2560 C.C. RUPEN

MR RUPEN: No. MR VARITIMOS: Right. Do you have anything else you wish to say?

MR RUPEN: No, thank you.

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MR VARITIMOS: Okay. Thank you. I have no further questions. COMMISSIONER: Thank you. Mr Mukwesipu, any questions? MR MUKWESIPU: Your Honour, just one little issue. COMMISSIONER: Yes.

MR MUKWESIPU: You mentioned something about the - your staff being refused to continue - or your staffs family.
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MR RUPEN: Yes.
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MR MUKWESIPU: Youre not able to give us the name of the staff member? MR RUPEN: I can be able to provide that. MR MUKWESIPU: In due course? MR RUPEN: In due course, yes.

MR MUKWESIPU: And the specific timings as to when that happened? MR RUPEN: Ill try my best. MR MUKWESIPU: And the vessel that was involved? MR RUPEN: Yes. Yes, yes.

MR MUKWESIPU: Did you follow it up with the Rabaul Shipping as to why they refused him, or refused the family to - - O O

MR RUPEN: No. No.

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MR MUKWESIPU: You never did follow up? MR RUPEN: It would just attract insults. MR MUKWESIPU: But you never did follow up? MR RUPEN: No.

MR MUKWESIPU: Thank you.

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MR VARITIMOS: What do you mean that it would attract insults?

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MR RUPEN: We dont have an environment to discuss some of these issues. The insults I refer to is what you read out in letters between Cyril and the owners. MR VARITIMOS: That were some letters that were read yesterday - - MR RUPEN: Yes. Yes. MR VARITIMOS: - - - that Mr Sharp had written to some of your officers.

MR RUPEN: Yes.
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MR VARITIMOS: Is that right? MR RUPEN: And thats the environment in which our relationship - - MR VARITIMOS: Well, would it be fair to say the relationship between NMSA and Captain Sharp is extremely poor? MR RUPEN: It is extremely poor. But having worked in the maritime area for - since 76, I have come to live with the nature of the person. Because when I was a junior officer in the Department of Transport, I would read those same types of emails to our surveys department who, at that time, were all UK citizens working for the Department of Transport. I was a junior officer, but the surveyors were all UK citizens at that time, and those kinds of emails existed from there - there until today. MR VARITIMOS: Well, you - - -

MR RUPEN: And I often wonder when will that relationship - or when will we change from that. MR VARITIMOS: So has the relationship between the Department of Transport and Captain Sharp been very bad for years? MR RUPEN: It has been.

MR VARITIMOS: Its not conducive to a good - - O

MR RUPEN: No. MR VARITIMOS: - - - working relationship? MR RUPEN: No.

MR VARITIMOS: And have there been any periods when, to your knowledge, its been at an acceptable level, the relationship? Or has it always been bad? MR RUPEN: I cant recall any - any positive atmosphere or - - -

MR VARITIMOS: Thank you. I have no further questions.

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COMMISSIONER: Yes. Well, thank you, Mr Rupen, for your evidence. Its finished. Thank you. 23/5/2012 2562 C.C. RUPEN

MR RUPEN: Thank you. WITNESS WITHDREW [2.20 PM]

MR VARITIMOS: Mr Brittain was just going to check the details of a letter my friend asked for, and he might be able to bring them tomorrow morning. I intend now to call Mr Siroi, Fred Siroi, to give evidence. S-I-R-O-I. FREDDY LLOYD SIROI, sworn: MR VARITIMOS: Could you please state your full name? MR SIROI: I am Freddy Lloyd Siroi. [2.21 PM]

MR VARITIMOS: S-I-O-R-I [sic]?

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MR SIROI: Thats right. MR VARITIMOS: And whats your occupation? MR SIROI: The senior coordinator, search and rescue coordinator, with the National Maritime Safety Authority. MR VARITIMOS: And have you provided a brief curriculum vitae? MR SIROI: I believe I have.

MR VARITIMOS: Yes. If you have a look at this document, please. Is this a curriculum vitae at least of the period covering 1975 to 1997 relating to yourself? MR SIROI: Yes, thats correct.

MR VARITIMOS: And are the matters contained in that document correct? MR SIROI: Yes. MR VARITIMOS: I seek to tender the curriculum vitae of Mr Siroi.

COMMISSIONER: Right. Exhibit 311, CV of Mr Fred Siroi.

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EXHIBIT 311 - CV OF MR FRED SIROI MR VARITIMOS: You were, in fact, a graduate from the PNG Defence Academy in 1975. Is that right? MR SIROI: Thats correct. MR VARITIMOS: And youre a post graduate from the Royal Australian Navy in 1976. MR SIROI: Thats correct.

MR VARITIMOS: And can you just briefly indicate your experience at sea?
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MR SIROI: I had about 11 months of sea training with the Australian Navy. And about seven months of those - my time with the Australian Navy in Cairns serving as a navigation officer on one of the patrol boats based out of Cairns. MR VARITIMOS: And whats your experience between 1997 and now? What roles have you played? MR SIROI: I have served as a sea going officer, four of these years as the commanding officer of a patrol boat out of Manus. As Ive said, continuously for 12 years at sea. And then I got posted to headquarters at Murray Barracks. I had performed in various administrative and operational duties in the headquarters of the PNG Defence Force. Two of those years as a director of maritime operations. And during the Bougainville conflict, I was acting in the position of Chief of Operations for a year approximately. And then, I performed various administrative and operational duties at the PNG headquarters until I was sent to Indonesia to attend the naval subcollege here for a period of two years, one of which was studying the language and one was attending the staff college in Jakarta. MR VARITIMOS: But from 1997, what roles have you undertaken? What positions have you held? MR SIROI: Commanding Officer of the patrol boat base in Manus. MR VARITIMOS: Yes. From what date, approximately? MR SIROI: I returned from the Indonesia Staff College in 98. I was called specifically to go and serve in the patrol boat base because of some problems the Defence Force had with the civilian police who were there. So I spent two years in Manus as the Commanding Officer. Then I got posted back to headquarters, Murray Barracks, in 2000. MR VARITIMOS: And then from there, where did you work? MR SIROI: I continued to work at headquarters as a project manager of a national surveillance project that the country was undertaking with the Government of Israel, from 2001 until I got retrenched. I applied for retrenchment in 2004. MR VARITIMOS: And in 2004, what position did you hold after that? MR SIROI: Nothing. I went on leave. MR VARITIMOS: Yes. Until when?

MR SIROI: 2000 - July 2007.

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MR VARITIMOS: And you commenced employment at that time? MR SIROI: With National Maritime Safety Authority. MR VARITIMOS: Yes. And in what position?

MR SIROI: Senior search and rescue coordinator, the position Im currently holding.
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MR VARITIMOS: Yes. So youve been holding that position continuously since that time? MR SIROI: Exactly. MR VARITIMOS: Right. Could I show you another document, please, which is a memorandum from you in relation to an introduction to search and rescue course? Have a look at this document, please. Now, in your brief CV, you say that you went to Australian Search and Rescue school 2011. Is that right? MR SIROI: I did not go to Australia. MR VARITIMOS: You undertook the course?

MR SIROI: I undertook this course - - G

MR VARITIMOS: Yes. MR SIROI: - - - on my own course. MR VARITIMOS: Yes. It was an online course.

MR SIROI: Yes.
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MR VARITIMOS: And does this memorandum relate to the online course? MR SIROI: Mm. MR VARITIMOS: And the different components of the course, is that right, and subjects? MR SIROI: Thats right. MR VARITIMOS: And it was a 10 week course, is that right?

MR SIROI: Yes, a total of 10 weeks for the course. Yes.

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MR VARITIMOS: And was it intensive for 10 weeks, or not? MR SIROI: It was not intensive. But because I was operating alone at National Maritime Safety Authority, I had to spread the course across more than 10 weeks cause of commitment as the search and rescue coordinator with NMSA. MR VARITIMOS: And how long did you spread the course over? What period?

MR SIROI: I - the final submission, I was reminded by my instructor, it was about a week after the Rabaul Queen incident, because, like I said, I had spread the course across the board because of commitment that I had work. MR VARITIMOS: Sorry. You finished the course about a week after the sinking, did you?

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MR SIROI: Yes, the final - the final - the course critique that I had to submit. I had to do that after the sinking because of my commitment with the search and rescue operation. MR VARITIMOS: Well, when did you start the course? MR SIROI: April. Sometimes in the beginning of 2011. MR VARITIMOS: Okay. So you passed that course?

MR SIROI: I think the results - - E

MR VARITIMOS: Yes, you passed the course. MR SIROI: Yes. MR VARITIMOS: Yes.

MR SIROI: Pretty well.

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MR VARITIMOS: And these show comments about your work, including excellent answers, well done, et cetera. Is that right? MR SIROI: Yes.

MR VARITIMOS: So theres actually a response to the different components of the course thats done over the internet, is that right? MR SIROI: That's right. MR VARITIMOS: And you provided the responses to the different components of the course you undertook, is that right? MR SIROI: That's right. MR VARITIMOS: I seek to tender the memorandum from Mr Freddy Siroi of 22 February 2012 in relation to the Introduction to Search and Rescue course. COMMISSIONER: Thats Exhibit 312. Memo of Fred Siroi of Introduction to Search and Rescue course. EXHIBIT 312 - MEMO OF FRED SIROI OF INTRODUCTION TO SEARCH AND RESCUE COURSE MR VARITIMOS: You have provided a report in the last few days in relation to the sinking of the Rabaul Queen, is that right? MR SIROI: That's right.

MR VARITIMOS: Could I show you this document, please. Is this a document entitled General Report on the sinking of the MV Rabaul Queen on the morning of 2 February 2012? MR SIROI: That's right. 23/5/2012 2566 F.L. SIROI

MR VARITIMOS: And it was prepared by you.

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MR SIROI: Yes. MR VARITIMOS: And to the best of your knowledge and belief the matters contained therein are correct. MR SIROI: Yes. MR VARITIMOS: And they set out in some detail the search and rescue operation involved concerning the Rabaul Queen, is that right? MR SIROI: Affirmative. MR VARITIMOS: Including a timeline of various emails and communications that you were involved in, is that right? MR SIROI: That's correct. MR VARITIMOS: I seek to tender the General Report on the sinking of the MV Rabaul Queen of Mr Siroi. COMMISSIONER: Exhibit 313. General Report on the sinking of the MV Rabaul Queen by Mr Fred Siroi. EXHIBIT 313 - GENERAL REPORT ON THE SINKING OF THE MV RABAUL QUEEN BY MR FRED SIROI MR VARITIMOS: So when you say youre the senior search and rescue coordinator for NMSA are you the only search and rescue person involved with NMSA or are there others? MR SIROI: At the moment, yes, I work under Captain Rahman. Captain Rahman is my chief executive officer. He is responsible for maritime operations and search and rescue. He is part of Maritime Operations so I work directly under Captain Rahman. He is my reporting superior. I have no one working under me. MR VARITIMOS: And youve got one superior to refer to, have you?

MR SIROI: That's correct. MR VARITIMOS: And Captain Rahman is involved in other tasks also, is that right? MR SIROI: He is the chief executive of the Maritime Operations Department of the National Maritime Safety Authority. MR VARITIMOS: Now there were enormous amounts of communications by email after the vessel sank on 2 February, is that right? MR SIROI: Exactly.

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MR VARITIMOS: Could I show you some emails. Was the first email you received on 2 February at 6.32 am - if you could have a look at this document, please. Was this the first communication you received in relation to a distress signal? MR SIROI: Yes, it was the first email - document - email that I saw but I received phone calls prior to this email. MR VARITIMOS: Well, what was the first communication you received in relation to any distress signal? MR SIROI: I received a phone call from Mr Charley Masange. Mr Charley Masange is the provincial disaster officer in Lae. I received that phone call before I left for work at about 7.40. From that phone call he informed me that he had received reports that Rabaul Queen - he particularly mentioned that - Rabaul Queen may have been in trouble, possible sinking off Lae. He did not specify a location of the sinking. MR VARITIMOS: Well, at approximately 7.40 am you received a phone call from Mr Masange M-A-S-A-N-G-E, as you say, and he was from the Provincial Disaster Office in Lae. MR SIROI: Affirmative.

MR VARITIMOS: But you in fact received an email at 6.32 am on 2 February about an unallocated alert - unlocated, sorry, - alert, is that right? MR SIROI: That's right. This email is electronically generated from Australian Mission Control Centre. Its part of the AMSA search and rescue organisation. This email is automatically generated to RCC Port Moresby - thats at Jackson Airport - through the AFD Services and a copy of this is faxed and emailed to Maritime Search and Rescue Coordinating Centre, which is in NMSA. MR VARITIMOS: So this would have been received by, effectively, your offices email at 6.32 am. MR SIROI: That's right. MR VARITIMOS: But you didnt see it at that time, is that right?

MR SIROI: No.
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MR VARITIMOS: Because you were still at home, were you? MR SIROI: That's right. MR VARITIMOS: But nevertheless the email was received at about 6.32 am. MR SIROI: It would have.

MR VARITIMOS: And what time did this email come to your attention?
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MR SIROI: Normally it would take about five to 10 minutes after this is electronically generated from Australian Mission Control Centre. 23/5/2012 2568 F.L. SIROI

MR VARITIMOS: But when did you see it though? MR SIROI: After I got to Captain Rahmans office. That would have been about a quarter past 8, half past 8 in the morning. MR VARITIMOS: I seek to tender the email from AMSA in Australia to MRCC PNG of 2 February 2012 at 6.32 am. COMMISSIONER: Thats Exhibit 314. Its the email, is it? MR VARITIMOS: Yes. Ill show your Honour a copy. Its an email from AMSA to MRCC PNG 2 February at 6.32 am. COMMISSIONER: Exhibit 314. Email AMSA to MRCC at 6.32 am on 2 February. EXHIBIT 314 - EMAIL AMSA TO MRCC AT 6.32 AM ON 2 FEBRUARY 2012

MR VARITIMOS: So that indicated that there was a distress signal, was it, in Papua New Guinea? MR SIROI: That's right. The email indicated there was a distress beacon that was activated and there is no other information that would indicate a specific vessel but on paragraph 1 there is a six-digit, 111172, which indicates the last six digits of a beacon number and because it was a 553 indicator, in paragraph 1, it indicated it was a Papua New Guinea beacon, starting off with the 553. It indicated the Papua New Guinea beacon with a serial number of the EPIRB as four 1s and 72. So when you put that together it should appear in the registry of the beacon that NMSA holds. MR VARITIMOS: So youd be able to identify which vessel it was.

MR SIROI: We are supposed to identify which vessel that holds this beacon number, with addresses and other information. MR VARITIMOS: Now could you have a look at this email of 2 February at 6.39 am, please. Is this an email again sent by AMSA to your organisation at 6.39 am on 2 February? Is that right? MR SIROI: That's right. MR VARITIMOS: And it again shows a distress signal, does it? MR SIROI: That's right.

MR VARITIMOS: Via a beacon.

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MR SIROI: That's right. MR VARITIMOS: And again it identified the beacon by registration number, which indicated it was in Papua New Guinea, is that right? MR SIROI: That's right.

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MR VARITIMOS: And it had the digit numbers so you could identify which beacon it was and which vessel it related to. MR SIROI: Yes. MR VARITIMOS: I seek to tender the email from AMSA to MRCC Papua New Guinea, 2 February at 6.39 am. COMMISSIONER: Exhibit 315. Email AMSA to MRCC PNG 6.39 am. EXHIBIT 315 - EMAIL AMSA TO MRCC PNG 6.39 AM MR VARITIMOS: I wish to show you another email, 2 February 2012 at 6.40 am from AMSA to MRCC Papua New Guinea. Is that an email again sent on 2 February at 6.40 am? Is that right? MR SIROI: That's right MR VARITIMOS: Is it correct that a beacon is only supposed to go off if theres an emergency? MR SIROI: It is supposed but you have many cases of the beacons being inadvertently activated, technical problems with them. About 70 per cent of the time the beacons go off its due to technical problems or they are inadvertently activated. So we do a lot of checks on these beacons. I - - MR VARITIMOS: If you - sorry, keep going. MR SIROI: I thoroughly check through those beacons to establish whether they are genuine distress or are not. MR VARITIMOS: .Well, you would have received these emails very shortly after, within a few minutes of the time they were sent, is that right? MR SIROI: I do that most of the time. MR VARITIMOS: You would have.

MR SIROI: Yes.
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MR VARITIMOS: You dont have access to remote emails, is that right? MR SIROI: No, not officially. MR VARITIMOS: Do you consider that it would be prudent if you were given access to - remote email access? MR SIROI: Yes. I have a private Gmail connection to allow me to receive all emails that are sent to MRCC. Thats my own arrangements, considering the job that I do, I have made that arrangement on my own. MR VARITIMOS: So do you access emails on a phone, do you?

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MR SIROI: That's right. And on my laptop. MR VARITIMOS: You didnt see these three emails until after 8 oclock in the morning, is that right? MR SIROI: No. I did not have my own connections of email over the phone prior to the sinking of the Rabaul Queen. MR VARITIMOS: So thats a new development or improvement, is it, since the sinking? MR SIROI: I took it upon myself to make that available to me in the job that I do. MR VARITIMOS: So if you had that facility available on 2 February you would have received these emails promptly. MR SIROI: I would have. MR VARITIMOS: And you probably would have seen them, is that right, earlier? MR SIROI: I would have. I work very closely with the Australian Search and Rescue Organisation and usually on beacons alert they call and they tell me that theres an alert, because they understand the routines that I run from the National Maritime Safety Authority, because Im the only staff. We have access to phones and faxes and emails during office hours. Normally, if I receive a beacon and its a 533 number, indicating that its a Papua New Guinea beacon, or any beacon that falls within the search and rescue region of Papua New Guinea, I drive down to the office from wherever I am in Port Moresby to investigate and to ensure that the distress beacon is genuine or I prove it otherwise. MR VARITIMOS: Would you have treated these or these emails with some seriousness if they had been brought to your attention? MR SIROI: When I received the call from Mr Charley Masange indicating that Rabaul Queen was in trouble, I immediately tried calling RCC Australia because I knew that they would have called, and I think they have called but they could not get through to me. But when I was on the road I received a call from RCC Australia indicating to me that the beacon was activated and it was somewhere in the Morobe Province. So I informed that I had the call earlier from Mr Masange indicating that there was Rabaul Queen in distress in Morobe - somewhere there. MR VARITIMOS: But what Id like to ask you though is, if the phone call had not been received, assuming the phone call had not been received and you had seen these emails by 6.45 am, what would you have done? MR SIROI: The normal process that I would go through. I will try and establish communication with this vessel. If I cannot establish communication with the vessel then I go through the Register and check out the phone numbers and the addresses the email addresses with the contact details that we have and I would normally call them and ask them whether they are aware that a beacon is activated that is registered to a particular vessel.

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MR VARITIMOS: How would you establish communications with the vessel? You said youd establish communication with the vessel, how would you do it? MR SIROI: By phone. By satellite phone, if I have the number. At MRCC Port Moresby the HF communication setup that we have was taken to TE for servicing so we have - MRCC does not have communication network at the moment - HF communication. We have access to telephones to emails, VHF communication - thats from within MRCC. MR VARITIMOS: Well, given what you know about Rabaul Queen, how would you communicate with Rabaul Queen even if it was sailing at the time that you received the email? MR SIROI: I hardly communicate with these vessels because do not maintain 24-hours watch on the frequencies that are allocated for maritime communication services. Sometimes the Port Moresby Coastal Radio Service also do not have communications with these vessels. It is difficult at times. MR VARITIMOS: Thats a common problem, is it, lack of communications and keeping frequencies open? MR SIROI: I think its a common problem, yes. MR VARITIMOS: In Papua New Guinea, is it? MR SIROI: For NMSA, yes.

MR VARITIMOS: So is it the case that youve also produced three volumes of other faxes and emails and other material relating to the search and rescue? MR SIROI: M'm.

MR VARITIMOS: If you have a look at this, please. For volume 1 Mr Commissioner, I just want to check. I understand I did tender as Exhibit 316, is this correct, the email from AMSA to MRCC PNG 2 February at 6.40 am? Is that correct, Exhibit 316? That should be 316. COMMISSIONER: 316 will be the next one.

MR VARITIMOS: Should be the one from AMSA to MRCC PNG of 2 February at 6.40 am. COMMISSIONER: Whats that one?

MR VARITIMOS: Thats the one that Im just saying. COMMISSIONER: Youre tendering that now. MR VARITIMOS: Ive tendered that before, I just want to check that it has been tendered correctly. Im just tendering it now then, sorry, 316. COMMISSIONER: All right. Exhibit 316. Its the? 23/5/2012 2572 F.L. SIROI

MR VARITIMOS: Email from AMSA to MRCC PNG 2 February at 6.40 am.

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COMMISSIONER: Exhibit 316, email AMSA to MRCC dated, what? MR VARITIMOS: 2 February at 6.40 am. COMMISSIONER: Thats right, 6.40 am, yes.

EXHIBIT 316 - EMAIL AMSAR TO MRCC DATED 2 FEBRUARY 2012 AT 6.40 AM

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MR VARITIMOS: I wish to show you some volumes now. Do you have in front of you volume 1 entitled All emails and faxes received through the MRCC from 2 February 2012 commencing at 8.16 local time to 4.50, 11 February 2012? MR SIROI: I have.

MR VARITIMOS: And they contain the emails as referred to on the front sheet, is that right? MR SIROI: Thats right.

MR VARITIMOS: Okay. I seek to tender volume 1 which is all emails and faxes received through the MRCC from 2 February 2012 commencing at 8.16 local time to 4.50, 11 February 2012; volume 1. COMMISSIONER: All right. Well, that will be Exhibit 317, volume 1, all emails MRCC, 2 February 2012, 8.16 - - MR VARITIMOS: To 4.50 - - COMMISSIONER: - - - to 4.50, 11 February. MR VARITIMOS: Correct.

EXHIBIT 317 - VOLUME 1, ALL EMAILS AND FAXES MRCC, 2 FEBRUARY 2012 TO 4.50, 11 FEBRUARY 2012 MR VARITIMOS: I now wish to show you volume 2, please, which is all emails and faxes received through the MRCC from 2 February at 8.16 to 4.50, again, but its volume 2. Are they volume 2, consisting of the emails youve mentioned, is that right? MR SIROI: Thats right. COMMISSIONER: All right, that will be Exhibit 318, volume 2, all emails and faxes, MRCC - received through MRCC 8.16 am to 4.50 pm 11 February - 2nd to the 11th. EXHIBIT 318 - VOLUME 2, ALL EMAILS AND FAXES RECEIVED THROUGH MRCC, 2 FEBRUARY 2012, 8.16 AM TO 4.50 PM, 11 FEBRUARY 2012 MR VARITIMOS: And then have you produced another set of emails and faxes sent to the MRCC from 2 February at 9.36 local time, is that right? 23/5/2012 2573 F.L. SIROI

MR SIROI: Thats right. MR VARITIMOS: I seek to tender emails and faxes sent to the MRCC from 2 February commencing at 9.36 local time to 9.49, 8 February 2012. COMMISSIONER: Exhibit 319, all emails and faxes sent through the MRCC from 2 February 2012 commencing at 9.36 - 0936 local time to 0949, 8 February 2012. EXHIBIT 319 - ALL EMAILS AND FAXES SENT THROUGH THE MRCC FROM 2 FEBRUARY 2012 COMMENCING AT 0936 LOCAL TIME TO 0949, 8 FEBRUARY 2012 MR VARITIMOS: In those emails and faxes, youve included photographs that were taken as part of the search and rescue, is that right? MR SIROI: Thats right.

MR VARITIMOS: Now, did you also prepare a handwritten log in relation to the incident from 2 February? MR SIROI: I have - - -

MR VARITIMOS: I could show you a copy. Is this your handwritten log of events in relation to your communications in the general search and rescue from 2 February? MR SIROI: Confirm that.

MR VARITIMOS: And its all in your handwriting, is that right? MR SIROI: Thats right. MR VARITIMOS: And it goes from 2 February up to 7 February, is that right? MR SIROI: Thats right.

MR VARITIMOS: I seek to tender the handwritten log prepared by Mr Fred Siroi of the search and rescue from 2 February to 7 February.
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COMMISSIONER: That is Exhibit 320, handwritten log from 2 February to 7 February prepared by Mr Fred Siroi. EXHIBIT 320 - HANDWRITTEN LOG FROM 2 FEBRUARY 2012 TO 7 FEBRUARY 2012 PREPARED BY MR FRED SIROI MR VARITIMOS: Would it be correct to say that the entries in the log were all not written at the actual time of the events? MR SIROI: No, because I was on my own. In a search and rescue organisation you normally would have about four to six staff that operate to coordinate any search and rescue incident. MR VARITIMOS: Well, you were seriously undermanned in terms of the search and rescue operation, is that right? 23/5/2012 2574 F.L. SIROI

MR SIROI: Thats right.

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MR VARITIMOS: So would you have contemplated the search and rescue properly from NMSAs perspective, you should have probably had about four employees, is that right? MR SIROI: Under the International Maritime Organisation, AMSAR, which is the manual that gives the guidelines for establishment of search and rescue organisation, the minimum staff I would require for such an incident at least to be from four to six personnel that would allow the normal search and rescue incident to be operated. MR VARITIMOS: I just wish to show you some other documents in relation to search and rescue. You are obviously aware of AMSAR, would that be right, you are aware of AMSAR? MR SIROI: I work with them every day. MR VARITIMOS: Yes, from Australia. MR SIROI: Thats right.

MR VARITIMOS: Okay. Now, I wish to show you this document, please, its chapter 3 of volume 2 of the AMSAR manual. You are aware that AMSAR have a manual, is that right? MR SIROI: Yes. MR VARITIMOS: And you probably studied the manual, have you, as part of your course, is that right? MR SIROI: Yes. MR VARITIMOS: And I suggest to you that this is chapter 3 of the AMSAR manual, awareness and initial actions, are you aware of that? MR SIROI: Yes.

MR VARITIMOS: And initial responses to an emergency is very important, isnt it?

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MR SIROI: Yes. MR VARITIMOS: And time is critical, is that right? MR SIROI: Thats right. MR VARITIMOS: And if you have lack of staff or lack of other resources then you cannot properly carry out your obligations in terms of search and rescue, is that right? MR SIROI: Exactly.

MR VARITIMOS: And this document sets out the various stages of search and rescue and there are effectively five stages, is that right? 23/5/2012 2575 F.L. SIROI

MR SIROI: Thats right.

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MR VARITIMOS: Starting from an awareness, get moving to initial action to planning, operations and conclusion, is that right? MR SIROI: Thats right. MR VARITIMOS: And the initial phase is emergency phase, is that right? MR SIROI: Thats right. MR VARITIMOS: And you were hindered in relation to the emergency phase and in fact in relation to all phases because you werent properly resourced, is that right? MR SIROI: I would think so, yes.

MR VARITIMOS: I seek to tender chapter 3 of volume 2 of the AMSAR - A-M-S-A-R manual. COMMISSIONER: Exhibit 321, chapter 3 of volume 2 of the AMSA[sic] manual, A-M-SA. MR VARITIMOS: A-M-S-A-R. COMMISSIONER: A-M-S-A-R, sorry.

EXHIBIT 321 - CHAPTER 3 OF VOLUME 2 OF THE AMSAR MANUAL MR VARITIMOS: It stands for Australian Maritime Search and Rescue, is that correct? MR SIROI: AMSAR? MR VARITIMOS: Yes.

MR SIROI: International Aeronautical - Maritime Aeronautical Search and Rescue manual.

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MR VARITIMOS: Thank you.

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MR SIROI: Its not an AMSAR document. MR VARITIMOS: Its not an AMSAR - - MR SIROI: No, it is an International Maritime Organisation document, comes in three volumes. MR VARITIMOS: And its contained in the AMSAR manual, is that right? MR SIROI: Thats right. AMSAR enacted this, its their law and its included in the search and rescue legislation. MR VARITIMOS: Its internationally recognised, is it? Its internationally recognised. 23/5/2012 2576 F.L. SIROI

MR SIROI: It is. Its in volume 2 of the documents.

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MR VARITIMOS: Okay. Its the internationally recognised standardised manual, is it? MR SIROI: Thats right. MR VARITIMOS: Right, thank you. The search and rescue - have you heard of Search and Rescue - SAR Training Australia? If I could show you this document, please. You are aware that there are organisations such as Search and Rescue Training Australia, which specialises in developing or tailoring individual competency based search and rescue training? MR SIROI: Im aware. MR VARITIMOS: And are there any such training facilities like that available in Papua New Guinea? MR SIROI: No, but Im aware that there were previous courses conducted by Australian search and rescue training organisation, Mr John Rice, in Papua New Guinea. There were one or two courses that were conducted locally in Port Moresby for NMSA staff and provincial disaster - selected provincial disaster offices. MR VARITIMOS: All right. MR SIROI: Im aware that there may have been two courses conducted previously, yes. MR VARITIMOS: How long ago were those courses conducted?

MR SIROI: I am not sure, I think that there was one in 2010, this is well before I got in, and maybe a year or two after that. MR VARITIMOS: I seek to tender information from Search and Rescue Training Australia. COMMISSIONER: Exhibit 322, SAR - Search and Rescue Training Australia.

EXHIBIT 322 - SAR - SEARCH AND RESCUE TRAINING AUSTRALIA

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MR VARITIMOS: I wish to show you a document from SAR in Australia. Can you have a look at this document, please. Now, SAR in Australia is involved in promoting safety and protection of environment, is that right? MR SIROI: Thats right. MR VARITIMOS: And the arrangements for search and rescue SAR in Australia have been influenced by the physical size of the island continent, the large size of the search and rescue regions and Australias relatively small population, you see that? MR SIROI: Thats right.

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MR VARITIMOS: And youre aware that this has information printed from the website of SAR in Australia. MR SIROI: Yes. MR VARITIMOS: Now, would you agree that different countries face different considerations and challenges when it comes to search and rescue, dependent upon, for example, the size of the country, the number of vessels operating, the resources available to deal with the problem, etc., do you agree with that? MR SIROI: I totally agree with it, yes. MR VARITIMOS: And what do you see as the challenges facing Papua New Guinea in relation to search and rescue when it comes to the maritime industry? MR SIROI: We have a lot of - a long coast - coastline. We have coastal provinces. We have unique situation in - in Papua New Guinea because a lot of our people commute by sea, by water, river-ways along the coast to get from point - you know, from point to point. The normal road network is not that good and a lot of our communities use boats to you know get from point A to point - point B and its increasing. Its increasing as we speak now because of the economic opportunities that people are able to buy boats and a lot more are putting to sea - are using - using sea transport as one of the common means of commuting from places to places. MR VARITIMOS: And its going to become a more challenging environment because of the expanding population of Papua New Guinea, is that right? MR SIROI: NMSA realises that, yes. Its a - its a challenging problem - issue and NMSA, as part of its commitment to the country and the population has enacted the Small Craft Act in an attempt to address the issue of our people using sea and waterways as a means of transportation, yes. MR VARITIMOS: Well, its fairly common in relation to particularly small craft for the vessels to be overloaded in Papua New Guinea, is that right? MR SIROI: Yes.

MR VARITIMOS: Banana boats, for example. MR SIROI: Yes. MR VARITIMOS: Thats a serious problem in terms of safety.

MR SIROI: It is a serious problem; it is a serious problem, yes.

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MR VARITIMOS: And its a problem exacerbated by the fact that these small ships or boats dont have beacons. MR SIROI: Thats right, yes.

MR VARITIMOS: I seek to tender the information in relation to SAR in Australia. COMMISSIONER: Exhibit 323, information from SAR Australia. 23/5/2012 2578 F.L. SIROI

EXHIBIT 323 - INFORMATION FROM SAR AUSTRALIA

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MR VARITIMOS: Now, I wish to ask you some questions about beacons now that were discussing that topic. Could you have a look first of all on - first of all at this document from the Australian government, in particular the Australian Maritime Safety Authority on distress beacons. Now, reliable distress beacons are extremely important in terms of search and rescue, is that right? MR SIROI: Exactly.

MR VARITIMOS: And they can generally make the difference between saving lives and not saving lives, is that right? MR SIROI: Thats right.

MR VARITIMOS: Now, this document provides some information, if you have a look at it, about what distress beacons are and give some information about whats called Cospas - C-O-S-P-A-S Sarsat System - S-A-R-S-A-T System, you see that? MR SIROI: Yes.

MR VARITIMOS: And it gives general information about where distress beacons should be stowed and tracking devices, do you see that? MR SIROI: Im - - -

MR VARITIMOS: And are you satisfied that the answers to the question provided by AMSAR would be accurate as demonstrated in this document? You could see on the last page, 17, that its an official document issued by Rescue Coordination Centre Australia. Are you satisfied? MR SIROI: Im satisfied. MR VARITIMOS: I seek to tender the material from Australian Maritime Safety Authority, Distress Beacons, frequently asked questions. COMMISSIONER: Exhibit 324, document from A-M-S-A-R. MR VARITIMOS: A-M-S-A, Australian Maritime Safety Authority. COMMISSIONER: A-M-S-A, sorry.

EXHIBIT 324 - MATERIAL FROM AUSTRALIAN MARITIME SAFETY AUTHORITY DISTRESS BEACONS, FREQUENTLY ASKED QUESTIONS MR VARITIMOS: I would now like to show you some material on the Cospas - C-O-SP-A-S hyphen Sarsat - S-A-R-S-A-T system. Youre aware of this system, are you? MR SIROI: Im - - -

MR VARITIMOS: Youre familiar with it.

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MR SIROI: - - - Im familiar with it. MR VARITIMOS: And is it correct that operational use of Cospas-Sarsat by SAR agencies started with the crash of light aircraft in Canada in 1982. MR SIROI: Exactly. MR VARITIMOS: And since then the system has been used for thousands of SAR events and has been instrumental in the rescue of over 20,000 lives worldwide, is that right? MR SIROI: Exactly. MR VARITIMOS: And is it a very effective system? MR SIROI: It is an effective system, yes.

MR VARITIMOS: And is that system used in Papua New Guinea?

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MR SIROI: We use the system in Papua New Guinea through NMSA and the Aeronautical Search and Rescue, RCC Port Moresby, yes. MR VARITIMOS: And it works in conjunction with satellites, is that right?

MR SIROI: That's right, the orbital and the polar satellites. MR VARITIMOS: Sorry, could you just talk up? MR SIROI: The orbital satellites that are stationary and the about six or seven satellites that orbit the earth. MR VARITIMOS: I seek to tender the documentation in relation to the COSPAS SARSAT, the document I just described to your Honour. COMMISSIONER: Yes, Exhibit 325, COSPAS SARSAT System overview, C-O-S-P-A-S S-A-R-S-A-T. EXHIBIT 325 - COSPAS SARSAT SYSTEM OVERVIEW MR VARITIMOS: Now, have you come across a problem in Papua New Guinea, in your experience, in relation to distress beacons, in particular, they are removed when a vessel is under down time, repair or in dock, and placed on another vessel? MR SIROI: Yes.

MR VARITIMOS: Is that right? Now, the distress beacon is supposed to be registered and attributable to a particular vessel, is that right? MR SIROI: That's right.

MR VARITIMOS: So if the beacon goes off you should be able to identify its particular vessel. 23/5/2012 2580 F.L. SIROI

MR SIROI: Exactly. MR VARITIMOS: So in the case of Rabaul Queen you should be able to identify that it relates to Rabaul Queen, is that right? MR SIROI: That is true, I should, yes. MR VARITIMOS: And then check your records that its a passenger vessel that can carry up to so many passengers, is that right? MR SIROI: No, the beacon - the details of the beacon does not give you that information. MR VARITIMOS: No, I'm not suggesting the beacon will tell you that. MR SIROI: No.

MR VARITIMOS: I am suggesting if you know that the beacon is attributable to Rabaul Queen you can check other records at NMSA subsequently? MR SIROI: Yes, you can. Within search and rescue I only have access to the name of the vessel, the beacon, the date it was registered, the phone numbers that I could call up and cross-check to see whether the ship is genuinely in distress or not. MR VARITIMOS: You could contact someone else at NMSA to determine what sort of vessel it is, is that right? MR SIROI: Yes, using the contact details you can do that, but it is not my - in my interests as a search and rescue officer to have access to the other information relating to the vessel. I am concerned with the safety of the vessel. What I - when the beacon goes off, I call the number and establish with the company, if I don't communicate with the vessel, to see whether the vessel is in distress or not. MR VARITIMOS: But you are interested in not only the vessel itself but also any passengers that might be on the vessel or crew as part of the search and rescue, is that right? MR SIROI: Thats the responsibility of MRCC or any search and rescue organisation to ensure that the vessel is safe, the people on the vessel are safe or not. MR VARITIMOS: So have you come across experiences where distress beacons are placed on other vessels, taken to sea without telling the Maritime Authority? MR SIROI: Exactly.

MR VARITIMOS: So if the beacon went off you would think that it was one vessel under distress but it was, in fact, some other vessel? MR SIROI: Thats the problem that I go through every day. I have to establish that the beacon is actually from the vessel that the beacon is registered. I have to establish that fact before I do anything else. MR VARITIMOS: Do you come across this problem regularly do you? 23/5/2012 2581 F.L. SIROI

MR SIROI: Yes. There was an incident of a beacon going off in Milne Bay and the vessel is actually on the dock in the Philippines. You know, these are the kind of incidents that happen. I had an incident where a beacon went off and it was registered to a particular tugboat and the tugboat had changed its name from a name to another name and the beacon was actually located somewhere in the bushes of Lae. Someone probably took it out there as a toy or something like that. So I was looking for a vessel that was a different vessel, you know, so these are the actual issues that, you know, I have to face when I prosecute - you know, checking information on the beacons, the information that I get from the beacons. MR VARITIMOS: Have you also come across situations where vessels are sold and taken off one vessel and put on another vessel and you are not advised of the change of address or the detail? MR SIROI: That happens worldwide, yes. This comes from a search and rescue course in Italy and, you know, thats the issues that the African countries have brought up in the seminar, the issue that you - we are discussing now. The beacons are going from vessels to vessels without the registry being updated. So they are actually looking for a beacon that is registered to a particular vessel, but its not the vessel. Its another vessel, so its a common issue. MR VARITIMOS: So in some cases could shipping administrators or operators, for convenience sake, move beacons around from one vessel to another without informing maritime authorities? MR SIROI: I would say that happens. That happens without the authority being advised. I have faxes come in that, you know, such a transfer has occurred and that we should change our records. So these things happen. MR VARITIMOS: Whats a distress 406 beacon?

MR SIROI: 406 beacon are PLBs, personal locator indicators, and ELTs. ELTs are for aircraft. They transmit on this particular frequency that is picked up by the SARSAT and the COSPAS satellites system. When an EPIRB is activated from activation automatically or when it is launched, it takes about two to three minutes before the signals are picked up by the satellites and they - with the new beacons, the 406 beacons that are coming out, the GPS positions of those beacons can be transmitted because those are the latest 406 beacons. Otherwise, the transmission is picked up and the satellites locate where the beacon is floating on any location throughout the world. MR VARITIMOS: Approximately how much does a beacon cost, a reliable beacon? MR SIROI: The prices vary and I have not actually checked out the price, but I would assume it will be from 1,000 Kina to 5,000 Kina. I know that I have been to a workshop three weeks ago at the fisheries, at a workshop someone from America that came with a little beacon as big as this that you could trace - - MR VARITIMOS: The size of a glass.

MR SIROI: Yes, you could trace using web-based monitoring system. But they are not on 406. They are a privately developed system that the fisheries want to equip their 23/5/2012 2582 F.L. SIROI

observers when they are on fishing boats, but there is a lot of other systems that are available. The 406 beacon is the internationally recognised system that everybody uses, and IMO uses the 406 beacon. MR VARITIMOS: This might be a convenient time, thank you.

COMMISSIONER: Yes, we will just adjourn for a short break, thank you. SHORT ADJOURNMENT UPON RESUMING FREDDY LLOYD SIROI: [3.19 PM] [3.35 PM] [3.35 PM]

COMMISSIONER: Yes.
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MR VARITIMOS: Thank you. Before the adjournment, I was asking you questions about distress beacons and you were indicating some difficulties that you faced in relation to distress beacons. How often would distress beacons go off in Papua New Guinea, in your experience, per weekday or per month approximately? MR SIROI: I have records of previous months activities. I could provide it to the court; otherwise, it varies. In a day, I could have three alerts in the SRR, the Papua New Guinea Search & Rescue Region. I could have up to four. Sometimes there is nothing, so in a week, I could have about seven distress beacons going off. Most of them are in independent alerts, meaning that there - the faults, that the technical service has some technical faults with the beacon and they go off. Some ships conduct normal tests and they fail to inform the authority. Normally they want to conduct a test to see whether the beacons are working and would advise the Search and Rescue Organisation. For PNG, they would advise us if they would be conducting tests and we would be aware of those. But generally, three, four alerts a day; sometimes one, sometimes there is nothing. MR VARITIMOS: So the average would be about three a day, would it, about three a day? MR SIROI: Yes, three, two.

MR VARITIMOS: Two or three a day. COMMISSIONER: Well, I think he said an average week is about seven. Did you say that or? MR SIROI: Yes, in a week I cannot settle on the figure because sometimes, you know, I get 14 alerts, you know, and then sometimes I get two in a week. Sometimes I dont have any at all in a week, so it really - we also receive distress beacons that are activated in the adjoining search and rescue regions from Micronesia, from Solomon Islands, Philippines, Indonesia. But because of the cross-Pacific network we are aware of our adjacent - adjoining search and rescue regions, so we get to receive their - we get alerts anyway to keep us aware that there is a beacon activated in the Australian Search and Rescue Region. MR VARITIMOS: Have you - - -

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MR SIROI: So although its not directly involving PNG, I am still alerted that there is a beacon in the Australian Search and Rescue Region. MR VARITIMOS: Have you ever come across a distress beacon apart from the instance of the Rabaul Queen in this case associated with any of Captain Sharps vessels? MR SIROI: No, but they are not directly beacons but there have been instances of two people jumping off the vessel. We have been alerted through that. There was an incident where a life raft was launched during heavy weather. We are informed of that so that we inform other vessels that there is a life raft floating out there on the sea. MR VARITIMOS: Was there a distress 406 beacon picked up by the Australian Maritime Mission Control Centre that was registered to Kavieng Queen? Are you aware of that? MR SIROI: There was. And I think - I do not have it on my records but from my recollection I think it was registered to Kavieng Queen and it was picked up somewhere near Rabaul, I think. MR VARITIMOS: Well, are you aware of a situation where a distress 406 beacon was picked up by the Australian Maritime Control Centre, registered to Kavieng Queen but actually located on Kula Queen, K-U-L-A Queen, undergoing maintenance alongside the wharf in Rabaul? Are you aware of that? MR SIROI: That is the beacon. That is the beacon I am referring to. It was picked up off - its off the mining area in Eastern Britain. As you say, it was on Kula Queen, which is alongside undergoing maintenance in Rabaul. MR VARITIMOS: And were you not notified or your organisation not notified that the vessel had been moved from the Kavieng Queen to the Kula Queen? Am I right? MR SIROI: Not the vessel, the beacon? MR VARITIMOS: The beacon, sorry. You werent notified of the beacon. MR SIROI: No, we were not notified. It was only after, when I prosecuted the incident meaning following up the incident - I spoke to Mr Sharp and he said, Let me check. And he said the beacon is on Kula Queen alongside Rabaul, undergoing maintenance. So I closed the case, as you know. MR VARITIMOS: Could you have a look at this document. It is To whom it may concern. Statement of Facts, MV Cap Scott, S-C-O-T-T, dated 1 February 2012. Is this a document that you received from the master of the MV Cap Scott, S-C-O-T-T? MR SIROI: I did not directly receive this document. MR VARITIMOS: You obtained this document, did you? MR SIROI: No, I did not receive this document.

MR VARITIMOS: Have you seen it before?

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MR SIROI: No. MR VARITIMOS: You havent seen it before.

MR SIROI: No, but I am aware that Captain Scott was one of the vessels that was involved in the search and rescue work. MR VARITIMOS: And you see this is a report in relation to search and rescue from that captain. MR SIROI: Thats right. MR VARITIMOS: And you can see that it has a handwritten deck log at the back, is that right? MR SIROI: I see it, but I have not received this information, as I only received a report from Mol Summer through RCC Australia. Mol Summer was the vessel that was co-ordinating the search and rescue on day one and Zhong He, a Chinese-registered vessel. MR VARITIMOS: Well, you see - - -

MR SIROI: They were only the two reports that I received from RCC Australia - through RCC. MR VARITIMOS: Well, you see that MV Cap Scott did provide a report eventually, is that right? MR SIROI: It provided the report to RCC Australia but I did not receive it. This is the first time I have seen this document. MR VARITIMOS: And you see that it makes reference to communications with RCC Australia? MR SIROI: Yes. MR VARITIMOS: And Mayday Relays, see that?

MR SIROI: Yes.
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MR VARITIMOS: And you do know that MV Cap Scott was one of the vessels involved in the search and rescue, is that right? MR SIROI: Thats right.

MR VARITIMOS: And this report actually makes reference to communications or reports from the MV Mol, M-O-L, Summer, is that right? MR SIROI: Thats right.

MR VARITIMOS: That was one of the other rescue vessels. MR SIROI: Thats right. 23/5/2012 2585 F.L. SIROI

MR VARITIMOS: I seek to tender the report from the captain of the MV Cap Scott, dated 1 February 2012 and its log details.
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COMMISSIONER: Thursday the what, sorry? What date?

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MR VARITIMOS: 1 February 2012. COMMISSIONER: Exhibit 326, report from MV Cap Scott dated Thursday, 1 February 2012. MR VARITIMOS: That was a Wednesday. COMMISSIONER: Yes, sorry, Wednesday. EXHIBIT 326 - REPORT FROM MV CAP SCOTT DATED WEDNESDAY, 1 FEBRUARY 2012 MR VARITIMOS: It actually covers the - this actually covers - in relation to IPER, EPIR, E-P-I-R sea signals, what happens if they go off at night, for example? How are you informed? MR SIROI: Sorry?

MR VARITIMOS: If an EPIR signal is detected, information is supposed to be passed on to MRCC in Papua New Guinea, is that right? MR SIROI: Thats right. MR VARITIMOS: And that would be by e-mail normally, is that right? MR SIROI: Fax. MR VARITIMOS: Fax or e-mail.

MR SIROI: Yes, e-mail. If it is considered to be - MRCC works closely with MC because they understand the situation with Papua New Guinea and so any time an EPIR goes off and it is within PNG, as our Search and Rescue Region, normally, I would get it though an e-mail or fax. We have a dedicated fax and this is electronically and automatically generated, so when an EPIR goes off, within about 10 minutes, I would have the information. That alert comes to MRCC and Port Moresby Search and Rescue Centre at Jacksons Airport, so we cross-check with each other to make sure that we are in receipt of the beacon, particularly with the aircraft beacons. They are called ELPs, the EPIR maritime beacon MR VARITIMOS: But Jacksons Airport doesnt get any information about EPIR signals, does it? MR SIROI: They are fed automatically through the EPIR, so I receive aircraft beacon alerts, personal beacon alerts and maritime beacon alerts.

MR VARITIMOS: And Jacksons Airport receive maritime alerts, do they?

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MR SIROI: Thats right. Its automatically fed through the EPIR. MR VARITIMOS: So if the message or detection is sent after hours, how do you know about it? MR SIROI: At the moment, I have a Smartphone that any messages sent through MRCC, which is a collective e-mail address, there are four of us that receive e-mails through that e-mail address and so at any one time a beacon alert that is sent to MRCC, any four of us would receive that and communicate by mobile phone. MR VARITIMOS: Who are the four? MR SIROI: There is myself as the Search and Rescue Co-ordinator, Mr Simon Tarak he is our oil technician for pollution concerns - Mr Ulea, he is our Safety & Education Officer, and Mr Daniel Benoma is our Shipping Information Officer. MR VARITIMOS: What time period went between RCC Australia knew that there was a resolved EPIR activation and when you were informed? MR SIROI: From my recollection, I think that 6.30 was the initial alert by the e-mail and normally they would call me. RCC Australia would get on the phone and call me to tell me that there is an alert in my SRR, because they understand that I am the only one in the National Maritime Authority so we have a good working relationship with them. They would call and inform me. And when I received the call from Mr Charley Masange, I knew that something was - RCC Australia did not contact me. I had to - you know, get in touch with them, so I called. I called RCC Australia and, you know, they were there and they gave me the information that there was an unresolved beacon alert and they would get back to me. MR VARITIMOS: Well, the Disaster Centre gentleman contacted you at about 7.40 am. MR SIROI: Thats right. MR VARITIMOS: Right?

MR SIROI: Thats right.

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MR VARITIMOS: The first e-mail came through at about 6.30 am, is that right? MR SIROI: Yes. MR VARITIMOS: Now, what I would like to know is approximately what time did you ring the Australian organisation? MR SIROI: Straight after I got the call from Mr Charley Masange informing me that there was - Rabaul Queen from a phone call from one of the family members. MR VARITIMOS: So that was about - - MR SIROI: 7.40.

MR VARITIMOS: - - - 7.45, was it, that you rang Australia?

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MR SIROI: 7.40. Thats when I received a call from Mr Charley Masange. And anticipating, you know, what was coming, I tried contacting Australia, and I did while driving down to the office. And they confirmed that there was an unresolved beacon alert and that they would get back to me as soon as possible. And they did on my way down. MR VARITIMOS: Yes. Sorry. But you - what time did you contact Australia? Thats what I want to know. What time did you - - MR SIROI: After 7.40. I was in the vehicle so - - -

MR VARITIMOS: Yes. So shortly after 7.40 - - MR SIROI: Thats right. MR VARITIMOS: - - - you contacted them?

MR SIROI: Yes. I tried to.

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MR VARITIMOS: Do you consider there was too much delay between 6.30 alert and when you were told at 7.40? In other words, do you consider that Australian authorities should have contacted you earlier by phone? MR SIROI: For a search and rescue coordinator, yes. I would - I would like to attend to a beacon as soon as I - an alert is received. But communication was such that it happened the way it did. And as soon as I got the call from Mr Masange, as a search and rescue coordinator, I started following the information. I - thats the process that I take. I have to verify all those information as I go on. And thats what I did. I rang Australia to make sure that they - there was a beacon alert, or a mayday call from the vessel. MR VARITIMOS: Well, Im just trying to work out the sequence. 6.30, theres an email sent to you. Thats right? MR SIROI: Thats right. MR VARITIMOS: But you werent - you werent contacted by RCC Australia. You had to contact them? You contacted RCC Australia at just after 7.40. MR SIROI: Exact - exactly. MR VARITIMOS: What Im suggesting to you is, number one, they knew that you were the only person effectively running search and rescue in Papua New Guinea. Is that right? MR SIROI: Thats right. MR VARITIMOS: And did you have the expectation that they would have contacted you? MR SIROI: Normally they - normally they would. They would do that knowing the difficulty that PNG faces, and the staff that I have in NMSA. But when I got the call from 23/5/2012 2588 F.L. SIROI

Mr Masange, I knew that I had to get to RCC Australia because I would get more information from them if there was a mayday or a beacon alert. MR VARITIMOS: Well, do you consider that there was an unacceptable delay in terms of being contacted by RCC Australia after 6.30? MR SIROI: I am not sure. Normally, they would try. They may have attempted to call me and failure to communication problems with the mobile phones. MR VARITIMOS: How many staff do you have?

MR SIROI: I dont have any staff. I have myself. MR VARITIMOS: Well, is that - do you agree that MRCC should be manned 24 hours a day? MR SIROI: MRCC or any search and rescue centre should be manned 24 hours a day. The National Maritime Safety - the MRCC is not manned 24 hours a day because there is nothing to watch over. There is the telephone and thats it. MR VARITIMOS: But search and rescue here should be manned 24 hours a day.

MR SIROI: It should.
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MR VARITIMOS: And why dont you have more staff? MR SIROI: I was recruited into NMSA with no staff available, and one of the conditions of my recruitment was to set up the MRCC and provide the training and grooming of the staff of MRCC. So I have played my part in terms of submissions to my management on how best we should equip MRCC to be able to do what it is supposed to do under the IMSAR manual. MR VARITIMOS: Is it a funding problem? Is that the problem? Or is a problem with --MR SIROI: I am not in a position to answer that directly. But I have done my part as a search and rescue coordinator in recommending to the management as to how the organisation should be. In fact, I should have four staff directly under me in Port Moresby. And I should have one staff at each of the field offices in Alotau, Lae, Madang, Rabaul and Madang. MR VARITIMOS: Well what equipment do you have in the MRCC?

MR SIROI: I have a mobile phone, a Dolcie mobile phone. That theres two search and rescue numbers, and that is paid for by NMSA. I have a 50 Kina worth of credits for a month from NMSA. I am supposed to have radio communication suite, HF communication suite. I dont have that. I indicated early on that this radio is in service with TE. I have access to the distress beacon data base run by COSPOS in South Head website based system. I have email access to us, particularly RCC Australia. RCC Guam, BANSAR which is the Indonesian Search and Rescue organisation, the Philippines Coast Guard organisation. So I contact them through email. And I maintain a data base of all phone numbers, email addresses of the Pacific Search and Rescue organisations that I can call up any time. 23/5/2012 2589 F.L. SIROI

MR VARITIMOS: And what - do you have a fax machine?

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MR SIROI: I have fax, yes. MR VARITIMOS: So is that sufficient? The equipment that you have, is that sufficient to properly operate MRCC? MR SIROI: No. I would rather the MRCC be equipped with the radios that I can be able to get on and call a vessel. I would like to call a satellite phone numbers that most of the vessels have these days, particularly for the yachts and the little overseas small boats that pass through a lot of our waters. A lot of them carry HF radios. Theyre on satellite phones. That, you know, Id like to get on the phone - satellite phones and call them, but I am less equipped to be able to do that. So I go - normally, I would ring RCC Australia to ask them to do that on my behalf. MR VARITIMOS: Why dont you have the equipment that you consider is necessary? MR SIROI: I have my submissions with my management as to what I should have at MRCC. MR VARITIMOS: And whos your management? MR SIROI: Captain Rahman is my immediate supervisor, and Mr Chris Rupen is as my manager. MR VARITIMOS: Is it a funding problem? Is that the problem? MR SIROI: Im not in a position to answer that. I have made my submissions to them as to how best, I think, the MRCC should be. Its all based on this document, the recommendations from IMO. MR VARITIMOS: Did the lack of staff and equipment hamper your response in any way to the Rabaul Queen search and rescue? MR SIROI: Yes.

MR VARITIMOS: In what respects? MR SIROI: I as a coordinator should be giving instructions to a number of people in incident management crisis management team to do our job. I should have somebody keeping records of all the activities. When I give instruction as a coordinator, there is someone who will hear only the parent and not taking the time. Im giving the instructions and what instruction. I should have on my staff someone who deal with the PR, the newspapers and all that. Intelligence officers. So I should have on my staff at least about four to six staff that will help me prosecute any incident. MR VARITIMOS: Do you think that the community, and including passengers on board the Rabaul Queen and other passenger vessels, would expect that the MRCC be manned 24 hours a day? MR SIROI: Yes.

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MR VARITIMOS: And they would expect that it be equipped with all the latest communication equipment, is that right? MR SIROI: Exactly. MR VARITIMOS: Apart from needing more people and equipment, are there other matters that need to be addressed in your organisation in terms of procedures or training or other matters? MR SIROI: The IMSAR, the aeronautical manual that is issued by IMO, with references to search and rescue - international search and rescue organisation is quite explicit. It spells out the requirement that search and rescue office should have. And Ive gone along the guidelines of this manual by IMO to recommend to the management that the MRCC should be equipped as such to be able to prosecute any incident at any time here. I have indicated in my report to the Commission that under the SOLAS Convention that the SAR Convention is part of the SOLAS Convention. That because PNG has rectified its convention, it is required that the country legislate the SAR Convention and come up with its own laws to make sure that the SAR Convention is executed in accordance with the IMO SOLAS Convention. At the moment, I have not seen, and the search and rescue organisation in PNG is operated under the auspices of National Disaster Act. So when I prosecute the search and rescue activity, I go to the province and I go through the provincial disaster offices to carry out the search and rescue operation. We do not have in the provincial set up or in the national arrangement dedicated search and rescue centres. Ill give, for example, in the Australian Search and Rescue organisation, they have the search and rescue legislation. From AMSAR, you have the states that the police are responsible for the search and rescue within 12 - I think 12 or 24 miles. And the Defence Force looks after all military search and rescue organisation. And then, you know, you have all the other voluntary organisation; you know, the Good Samaritan organisation that, you know, runs the yacht clubs and all. And you know, they have their own little organisation to look after search and rescue. But in PNG, its all in the mood. I communicate with the provincial disaster people, and then they try to link up with the family members to, you know, get money out of their pocket to go and look for their family members who are lost in a banana boat out there. You know, thats the dilemma that, you know, PNGs going into. I think, in my opinion, its not spelt out. Its not clearly indicated as to how search and rescue should be conducted in PNG. Now, we - we have rectified the Search and Rescue Convention, SARS Convention. But we are - you know, I think PNG has not enacted the legislation to make that law. I brought it out in two of the workshops that I have attended. I hope that management and the system will take it up and make it, you know, to legislation so that it could be funded and search and rescue could be prosecuted in a more organised manner so that the whole network is in place for search and rescue. MR VARITIMOS: So, in relation to the search and rescue associated with Rabaul Queen, from your perspective, it was somewhat disjointed, was it? MR SIROI: I would think so. I - from my experience in Defence, as far as money control is concerned, you know, Im trained to operate the commanding control centre. But in the Rabaul Queen, I was handicapped in terms of manpower. I had a lot of NMSA workers there with me, but I cannot take them on board knowing that when I give instructions to them, they would come back and ask me as to, What do you want? How should I do this? That should not be the case. In a commanding control centre, people are trained. You organise it. So I as the coordinator, Im giving instructions and 23/5/2012 2591 F.L. SIROI

people are reacting to what I give. I should not be following up and explaining to them that this is what you do. This is what, you know, happened. That shouldnt be. I should have an organisation that is - it works as a clockwork. When there is an incident, and we activate the certain plan, a contingency plan, that plan should work. And it should work automatically. MR VARITIMOS: Well, it was working automatically in this case because - - MR SIROI: No. I did not have anybody to work automatically. There was myself. MR VARITIMOS: For a population of over seven million. Is that right? MR SIROI: Yes.

MR VARITIMOS: So, really unfair to expect you to do the work that was required to be undertaken in terms of search and rescue, is that right?
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MR SIROI: Exactly.
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MR VARITIMOS: Did Rabaul Queens EPIRB, E-P-I-R-B, have a GPS fitted at all? MR SIROI: Im not sure. But from the emails that were picked up, the position was consolidated or resolved by the COSPOS in South Head. So assuming that the EPIRB is not GPS equipped, I cannot be sure, man. MR VARITIMOS: Well, if it didnt have a GPS fitted - sorry. Would it have made a difference if it did have a GPS fitted? MR SIROI: Not really. Not really. Because when the beacon goes off, it transmit and the satellite picks up the location. GPS position just makes it - well, make life a little more easier because when the - when the beacon is activated, the antennae goes off, and then it receives - it allows itself to be received by the - it gets the GPS signals in order to plot it on position. And then that position is transmitted to the satellite and it goes on to the Mission Control Centre, and it comes in an email or fax machine. MR VARITIMOS: Well, if it has a GPS, is it more efficient and/or reliable, or accurate, is it?

MR SIROI: Yes. If it - if the EPIRB or the PLBs or whatever is equipped with the GPS system, like some of the smart phones now that you have, it will make life a bit more easier for, you know, people like me. I cannot wait for an unresolved email for about 90 minutes.. So that when the satellite passes - the next pass, it, you know, try and relates the position of the satellite. If the beacon is equipped with GPS, you know, its quicker, its more accurate if it is GPS equipped. MR VARITIMOS: So, I just want to ask you again. From your perspective, how did the Rabaul Queen search and rescue go, and what have you learnt from the search and rescue? MR SIROI: I need to have the team in place. Papua New Guinea needs to have a team in place that will prosecute SAR incident like Rabaul Queen. We need - NMSA or PNG needs to come up with search and rescue plans as to what is the mass rescue. You know, what number will constitute a mass rescue. Lets say 30 people in a vessel 23/5/2012 2592 F.L. SIROI

and when I get a distress call, or somebody calls me and tells me that theres a boat with 30 people on board, that should generate a particular contingency plan; I may need to have ten people in the office to prosecute that incident, or if it is less than ten people I probably need the watch standards in the MRCC to proceed with that incident, or if it is an ELT - an aircraft - that goes down in the water, what plans would come into play. At the moment its organised under this Papua New Guineas SAR Plan. MR VARITIMOS: Whats it called, sorry?

MR SIROI: PNG Search and Rescue Plan.

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MR VARITIMOS: Can I have a look at that, please? MR SIROI: Yes, sure. MR VARITIMOS: When was the Search and Rescue Plan prepared?

MR SIROI: The version that I have is from 2003.

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MR VARITIMOS: 2003. MR SIROI: Yes. MR VARITIMOS: And is that the latest Search and Rescue Plan? MR SIROI: Thats by the Civil Aviation.

MR VARITIMOS: This is a Civil Aviation Plan. MR SIROI: That's right. MR VARITIMOS: And do you try and adopt some of these matters, do you? MR SIROI: The MRCC uses that document as well. Particularly if there is a air rescue, otherwise the MRCC is responsible for - - MR VARITIMOS: You - - -

MR SIROI: - - - we follow the IMSAR International Maritime Search and Rescue Manual. MR VARITIMOS: Are there any other matters youd like to inform the Commission of or say to the Commission? MR SIROI: As the National Maritime Search and Rescue coordinator I would like to see in place legislation that spells out responsibilities of different elements of the State. I coordinate search and rescue, I do not have funding to go and hire a plane or vessel or anything. I rely on the assistance that the international community gives in terms of vessels. The Rabaul Queen indicated that very well; when a safety call was made by RCC Australia, the merchant navy came to the rescue - they responded in international spirit, as all seafarers respond to assist one another. So the international community came to our rescue. Papua New Guinea does not have anything in place at the moment. In an incident like Rabaul Queen, when an incident like that happens, the 23/5/2012 2593 F.L. SIROI

organisation come into play, their vessels are organised; I should be able to go and ring a helicopter company and get a helicopter out there in two minutes. I cannot. I cannot do this. And when I go to a company - an aircraft company and ask them for an aircraft, they will tell me come with a cheque. MR VARITIMOS: So the problem with search and rescue is that time is critical, is that right? MR SIROI: Very, very critical. MR VARITIMOS: And in terms of saving lives in this case, time was critical. MR SIROI: Exactly.

MR VARITIMOS: And are you suggesting that valuable time was lost because your organisation didnt have timely access to appropriate resources.
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MR SIROI: Exactly. Not only in Rabaul Queen but all incidents. If a beacon goes off I should be able to prosecute or check to see whether its a genuine distress or not - I should be able to do that for all incidents. I cannot. And if I prosecute - and I need to connect up with the provincial organisation, I do not have a proper organisation in place to be able to do that. Some of the Provincial Disaster officers are not there 24 hours. So when a beacon goes off at midnight, Im trying to call somebody that is not in the office. It is difficult. MR VARITIMOS: Well, youve got the problem that youre not only one person based in Port Moresby but youre one person based in the whole country of 7 million-plus people, is that right? MR SIROI: Exactly. It means a lot - when you talk to someone who is lost in a banana boat and you talk to them at 2 oclock in the morning, it means a lot to them. I personally have sent credits to these people, to make sure that I communicate with them because I understand what theyre going through. Im a seafarer and know exactly what theyre going through, in a dark night, at sea, they are lonely and, you know, there needs to be an organisation in place so that when these people go missing we should be able to at least communicate with them and make sure that they know that we are aware that they are out there and someone is going to take some measures to rescue them. Thats not happening and it makes my job difficult. MR VARITIMOS: Is there anything else youd like to say? MR SIROI: No, sir.

MR VARITIMOS: Thank you.

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COMMISSIONER: Mr Siroi, if you were incapacitated, you were sick or something like that, is there someone else who could do your job? MR SIROI: Mr Daniel Benoma.

COMMISSIONER: Yes.

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MR SIROI: In fact, while I was away in Italy in the last two weeks he undertook the responsibility. COMMISSIONER: He takes over. MR SIROI: That's right, yes. And hes a shipping information officer that worked closely with me on the Rabaul Queen - and he has been with the National Fisheries Authority. He has some sea experience so it was easy to train and to groom so that he does the search and rescue responsibilities in accordance with the IMO Manual. COMMISSIONER: Thank you. MR VARITIMOS: Sorry. Has this gentleman undertaken any formal search and rescue training, the person that substituted for you? MR SIROI: No. He is the shipping information officer. I have coached him since coming into National Maritime Authority. He has some shipping industry experience with Swire, Swire Group of shipping, Steamships, and is quite familiar with maritime operations. MR VARITIMOS: But shipping experience and maritime operations doesnt mean that youd be good at search and rescue, particularly if you havent undertaken a course, do you agree with that? MR SIROI: Yes. But he has some information thats better than nothing. MR VARITIMOS: Yes. Well, youre doing the best you can in the circumstances. Right. Its certainly far from ideal, do you agree with that? MR SIROI: I totally agree. MR VARITIMOS: Okay. I have no further questions. Thank you. COMMISSIONER: Yes. Mr Mukwesipu.

MR MUKWESIPU: If I may, your Honour.

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Mr Siroi, its a matter of understanding your story better. Ive got a few questions. Does NMSA have a 24-hour rescue line where if somebody on a banana boat like you referred to can call if they are in distress because they dont have beacons or something? MR SIROI: We have a B-mobile number - - MR MUKWESIPU: A B-mobile number. MR SIROI: And we have a Digicel number. The phone is with me 24 hours. So I get a lot of calls from - crank callers and people who are genuinely in distress. And we have an office number. National Maritime Safety Authority has just installed a state of art system - a CISCO phone system that will automatically transfer all calls that are made to my extension. If Im not in the office it automatically transfers to my mobile - - MR MUKWESIPU: Goes straight to your mobile phone. 23/5/2012 2595 F.L. SIROI

MR SIROI: - - - phone, yes.

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MR MUKWESIPU: Do you have the instances where parts of PNG which is not covered by either of the networks, either B-Mobile or Digicel, is there any way people can call your office? MR SIROI: Yes. When youre in the black spots and you dont have access to the mobile network - - MR MUKWESIPU: Call the landline? MR SIROI: No, you just dont - because youre not covered by the - - -

MR MUKWESIPU: So really there is no - - G

MR SIROI: No. There is no - - MR MUKWESIPU: - - - no service, it is apparent. MR SIROI: But NMSA is working on a project that is currently - I think its completed. Its a VHF communication system undertaken by ADV and Community Water Transport System, that they are establishing a VHF communication network around the country so that people travelling on a boat would communicate on a walkie-talkie to a province or a network, and I think that project is completed. I just have to confirm that. MR MUKWESIPU: In relation to Rabaul Queen there was the emails - the first email from the Australian authorities was sent at around 6.32 am. Did you receive those emails? MR SIROI: No. I did not receive those emails because I didnt have access to my email then. MR MUKWESIPU: So that - - -

MR SIROI: - - - I had to get to the office to - - O

MR MUKWESIPU: So those emails were actually sent to the office. MR SIROI: Sent to MRCC. MR MUKWESIPU: And at that time you didnt have a system where you could automatically transfer the emails to your mobile phone. MR SIROI: No. Ive undertaken to do that at my own expense. MR MUKWESIPU: So that really explains why there was a time lapse period of when the Australian authorities got notice of the signal at 6.32 up until 7.40 when you got word from Mr Masange. MR SIROI: Yes.

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MR MUKWESIPU: And that was a fair bit of time, do you agree with me? And you will agree that if NMSA or the system allowed you to have access to the email which was sent from Australia at 6.32 am you would have got the rescue operations earlier than what has happened. MR SIROI: Yes. And from PNG perspective, even if I got the message at 6 oclock in the morning I still have to get the safety broadcast out. Getting signals from - - MR MUKWESIPU: But starting at 6.30 will obviously be better than starting at 7.45. MR SIROI: Exactly. Yes. MR MUKWESIPU: And that would make a lot of difference in terms of rescue.

MR SIROI: A lot of difference, yes.

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MR MUKWESIPU: And that will also make a lot of difference to the lives of people involved. MR SIROI: Exactly. MR MUKWESIPU: I just want to ask you in relation to your office capacity in terms of this incident, in particular the Rabaul Queen incident. Apart from the resources or, if you want, the logistics provided by the Australian authorities and some other people, did NMSA on its own provide any helicopter or fixed-wing or boat for that operation? MR SIROI: My job as search and rescue coordinator is that I coordinate search and rescue efforts - - MR MUKWESIPU: In particular, the Authority. Lets say, did it have the capacity to do that at that time? Lets put it generally. MR SIROI: NMSA does not carry any budget - - MR MUKWESIPU: For that kind of access. MR SIROI: - - - for search and rescue. For search and rescue operation. From time to time NMSA ploughs up money from its operational budget to buy fuel for the - - MR MUKWESIPU: But it does not have a budget for - - MR SIROI: It doesnt have a budget for search and rescue.

MR MUKWESIPU: Expect the job done by some other authorities or it should be by NMSA but we dont have a budget. MR SIROI: Thats why I indicated that there needs to be legislation to spell out all these responsibilities - - MR MUKWESIPU: As far as you understand is that part of NMSAs responsibilities or --

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MR SIROI: To coordinate search and rescue efforts, yes, not to fund search and rescue efforts. MR MUKWESIPU: Who should fund those kind of exercises do you - - MR SIROI: The State. The State should fund it. MR MUKWESIPU: The State. Should NMSA - - -

MR SIROI: We are dealing with Papua New Guinea, then the State should fund it. Thats why I indicated earlier on that there needs to be a legislation to spell out the responsibilities - who will carry those responsibilities to fund search and rescue for Papua New Guinea. MR MUKWESIPU: Would it be fair to say NMSA is the arm of the State.

MR SIROI: NMSA is the arm of the State. MR MUKWESIPU: So the State should give the money to NMSA to do that job. MR SIROI: Thats beyond my area of responsibilities - - -

MR MUKWESIPU: So lets go back to my question. NMSA you agree did not fund any of those exercises, apart from the resources provided by the Australian authorities. MR SIROI: That's right. NMSA does not carry any budget - - -

MR MUKWESIPU: So, Mr Siroi, if we have a similar accident tomorrow, and Australian authorities dont provide us, for any reason, those resources, its possible that these people would just drift and die without any - - MR SIROI: Certainly. MR MUKWESIPU: Thank you, your Honour.

COMMISSIONER: Thank you.

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MR VARITIMOS: Mr Commissioner, Mr Siroi has kindly agreed to extract tonight from his computer photographs in relation to the search and rescue. He provided some. Hes just come back from Italy, so he will do that tonight and bring them back tomorrow. Is that right, Mr Siroi?

MR SIROI: Ill do that.

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COMMISSIONER: Thank you, Mr Siroi, and thank you for your evidence. Thats finished, thank you. MR SIROI: Thank you, sir.

WITNESS WITHDREW COMMISSIONER: Adjourn for the day? 23/5/2012 2598

[4.24 PM]

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MR VARITIMOS: Yes. Thank you.

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COMMISSIONER: Well adjourn for the day. Well resume at 9.30 in the morning.
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ADJOURNED AT 4.25 PM UNTIL THURSDAY, 24 MAY 2012 AT 9.30 AM

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TRANSCRIPT INDEX COMMISSION OF INQUIRY INTO THE SINKING OF THE MV RABAUL QUEEN WITNESSES: NAFIZUL HOSSAIN .................................................................................. DR THOMAS WEBSTER .......................................................................... CHRISTOPHER CAMILLUS RUPEN ........................................................ FREDDY LLOYD SIROI ............................................................................ 2488 - 2500 2500 - 2524 2525 - 2562 2563 - 2598

EXHIBITS:
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EXHIBIT 298 Registry book and extract relating to Rabaul Queen EXHIBIT 299 Extract from the Registry of ships in relating to the Solomon Queen EXHIBIT 300 Report of survey of the Kimbe Queen dated 13 April 2012 pages 1 to 8 as produced Captain Hossain EXHIBIT 301 Letter dated 17 April 2012 to the Managing Director Rabaul Shipping from NMSA EXHIBIT 302 Report by surveyor and completion of survey in relation to MV Kimbe Queen EXHIBIT 303 Resume of Dr Thomas Webster EXHIBIT 304 Statement of Dr Thomas Webster dated 21 May 2012 EXHIBIT 305 Emails to and from Dr Webster commencing 2 February 2012 EXHIBIT 306 CV of Mr Chris Rupen EXHIBIT 307 Letter of 11 April 2012 of Mr Chris Rupen EXHIBIT 308 Letter of Mr Chris Rupen to the Commission being copies of minutes of meetings dated 21 May 2012 EXHIBIT 309 Business plan for 2011 and budget of NMSA EXHIBIT 310 Business plan and budget for NMSA for 2012 EXHIBIT 311 CV of Mr Fred Siroi EXHIBIT 312 Memo of Fred Siroi of introduction to search and rescue course EXHIBIT 313 General report of the sinking of the MV Rabaul Queen by Mr Fred Siroi EXHIBIT 314 Email AMSA to MRCC at 6:32am 2 February EXHIBIT 315 Email from AMSA to MRCC PNG 6:39am EXHIBIT 316 Email AMSA to MRCC dated 2 February 6:40am EXHIBIT 317 Volume one all emails MRCC 2 February 2012, 8:16 to 4:50 11 February EXHIBIT 318 Volume two all emails and faxes received through MRCC, 8:16am to 4:50pm 2 to 11 February EXHIBIT 319 All email and faxes sent through the MRCC from 2 February 2012 commencing 09:36 local time to 09:49, 8 February 2012 EXHIBIT 320 Handwritten log from 2 February to 7 February prepared by Mr Fred Siroi EXHIBIT 321 Chapter 3 of volume two of the AMSAR manual

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EXHIBIT 322 EXHIBIT 323 EXHIBIT 324 EXHIBIT 325 EXHIBIT 326

SAR Search and Rescue Training Australia Information from SAR Australia Document from AMSA COSPAS SARSAT system overview Report from MV Cap Scott dated Wednesday 1 February 2012

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TRANSCRIPTS:
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DAY 1 OF INQUIRY - 11 April 2012 ....................................................... DAY 2 OF INQUIRY - 12 April 2012 ...................................................... DAY 3 OF INQUIRY - 13 April 2012 ...................................................... DAY 4 OF INQUIRY - 17 April 2012 ....................................................... DAY 5 OF INQUIRY - 18 April 2012 ....................................................... DAY 6 OF INQUIRY - 19 April 2012 ....................................................... DAY 7 OF INQUIRY - 20 April 2012 ....................................................... DAY 8 OF INQUIRY - 21 April 2012 ....................................................... DAY 9 OF INQUIRY - 24 April 2012 ....................................................... DAY 10 OF INQUIRY - 25 April 2012 ....................................................... DAY 11 OF INQUIRY - 26 April 2012 ....................................................... DAY 12 OF INQUIRY - 27 April 2012 ....................................................... DAY 13 OF INQUIRY - 28 April 2012 ....................................................... DAY 14 OF INQUIRY - 1 May 2012 ....................................................... DAY 15 OF INQUIRY - 2 May 2012 ....................................................... DAY 16 OF INQUIRY - 3 May 2012 ....................................................... DAY 17 OF INQUIRY - 15 May 2012 ...................................................... DAY 18 OF INQUIRY - 16 May 2012 ...................................................... DAY 19 OF INQUIRY - 17 May 2012 ...................................................... DAY 20 OF INQUIRY - 18 May 2012 ...................................................... DAY 21 OF INQUIRY - 21 May 2012 ...................................................... DAY 22 OF INQUIRY - 22 May 2012 ....................................................... DAY 23 OF INQUIRY - 23 May 2012 .......................................................

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