Wednesday, June 30, 2010

Momis rejects BRDC model

AUTONOMOUS Region of Bougainville President John Momis will order a full investigation into the deal with foreign firm Invincible that led to the establishment of the Bougainville Investment Corporation (formerly Bougainville Resource Development Corporation), The National reports.

Momis said yesterday that the deal was not only illegal but not practical for any government to attempt to make a contract that purports to tie the government’s hands as to future policy.

The president said he was concerned about these matters which strike at the core of Bougainville’s efforts to revitalise and grow the economy.

He said he would seek his cabinet’s approval to launch a full-scale review of this deal and related matters.

Momis said in his inaugural speech that corruption would find zero tolerance in his government.

He warned that corrupt ministers, elected members, officials and investors could expect to face criminal prosecutions.

He said there were many unanswered questions and issues relating to the BRDC and Invincible deal, and the review or investigations would put these questions to rest.

After taking office two weeks ago, and studying documents presented to him concerning the development agreement between the ABG and the BRDC, Momis said he was not satisfied that the arrangement was in the best interest of the people of Bougainville.

He said the agreement contravened significant provisions of the Bougainville constitution and parts of the Bougainville peace agreement and the PNG Constitution.

He said, in essence, the agreement and its corresponding legislation bind the hand of the Bougainville government when it needed to urgently grow the economy and move towards fiscal self-reliance.

Momis said based on the documents provided to him, it seemed that BRDC was a company owned by four other companies or entities, namely:

1. AROB Equities Limited;

2. Bougainville Veterans Holdings;

3. Bougainville Pioneers Corporation Ltd; and

4. Invincible.

He said the agreement, in its substantive clauses, deal with exploration for and exploitation of mineral resources covering the whole of Bougainville.

The agreement also called for investments in other areas of economic activities including a gold melt assay facility, bio-diesel, fishing, cattle production and other proposals including a tourism project.

He said the people of Bougainville would be kept informed of the progress of the review of this deal. 

No comments:

Post a Comment