WHAT THE HELL IS LUTHER WENGE DOING?

Police in Papua New Guinea say life is returning to normal in the city of Lae, on the country's north coast, after several days of violent riots.

Over the weekend mobs of local youths looted and burned homes and businesses belonging to settlers from other parts of the country.

At least two people died in the violence, but the death toll is expected to rise as the dust settles.

One man was shot and killed by police who say he was threatening officers with a homemade gun, while the body of another man was found in the burnt ruins of a house.

Police reinforcements were flown in over the weekend and Assistant Commissioner Giossi Labi says they now have the situation under control.

"Banks, markets, all the shops are opening except the schools, but hopefully this week the schools will be back to normal," he said.

There were rumours that Lae's water supply had been contaminated, but a spokesman from Water PNG says tests have shown no sign of contamination.

Earlier, the government warned it may have to declare a state of emergency.

MOROBE GOVERNOR, LUTHER WENGE - SONGANG BLO MAUSWARA

Growing lawlessness

Ironically the rioting was sparked by youths concerned at the city's growing lawlessness.

It began last Thursday when a group of local youths gathered to present a petition to the provincial government.

They were concerned by a perceived increase in crime, particularly at Eriku, one of the city's main markets and public transport hubs.

The youths blamed people who have moved to the city from the Highlands and set up camp in Lae's many squatter settlements.

Lae has a reputation for being one of PNG's roughest cities, but even long-time residents like Meck Minnala say they have never felt so scared.

"The rioting was big. They were throwing stones at each other even in the restaurants of Lae," he said.

"A stone penetrated my window. They were wanting just about anything and everything. They went on a rampage bringing the whole city to a halt."

Mr Minnala says many residents share the rioters' concerns about crime at Eriku.

"Daylight robberies, pickpockets... and there were two rapes in which one was a 13-year-old girl," he said.

"She was going to school and raped early in the morning and there was another rape again just in broad daylight at Eriku.

"It just has been going on and nobody has been paying attention to it."