Lending and land tough for business

AN international financial expert has expressed concerns that lending and freeing of land for development are  major economic constraints affecting local business, The National reports.

Outgoing country manager for International Financial Corp (IFC) Peter Cusack said two major concerns plaguing small business were its inability to borrow money from financial institutions and mobilising land for development.

Cusack said the opportunities for small business to borrow from the banks were limited, or at times non-existent, until the idea of micro-financing had emerged.

He said small business entrepreneurs could not expand or sustain operations due to limited capital and that lending institutions do not trust them.

On land mobilisation, there is a need for traditional land to be freed up for development.

Cusack said the government needs to help landowners in their land registration so they could benefit from any development that would take place on the land.

Meanwhile, the problem of financial lending will be eased when small business entrepreneurs are readily informed of the opportunities available through set of data, lenders’ profile and other necessary information provided by Credit & Data Bureau Ltd (CDBL).

CDBL is a PNG company established in 2008 by leading financial institutions. 

Managing director Bruce Mackinly said: “We supply our members with information that allows them to make informed credit and business decisions.

“We collect this information from our members and also from public records … we then make this information available to our members through a sophisticated but user-friendly software system accessed through the internet,” Mackinly said.

He said CDBL principal business was the operation of a credit bureau database where members could access the credit history and identify details about their customers. 

The credit bureau also assists members with debt collection involving defaulting debtors who are in the database.

Villagers stop work at scrapper station

By JEFFREY ELAPA

LANDOWNERS in Kikori, Gulf, have forced the contractor and French-owned company, Spiecapag Niugini Ltd, to stop construction work at the scrapper station at Omati, The National reports.

Spiecapag had been contracted by Esso Highlands Ltd to carry out work on the PNG LNG gas pipeline from Hides in the Southern Highlands to Portion 152 near Port Moresby through Kikori.

Early last week, landowners at Kaiam, also in Kikori, burnt several CCJV vehicles and machineries because they were frustrated that their landowner umbrella company, Greenfield Resources Investment Ltd, was not awarded any sub-contracts.

They also attributed their frustrations to the government’s delay in releasing the business development grants for landowners to start spin-off businesses.

Gulf provincial police commander Snr Insp Reuben Giusu yesterday confirmed the incident.

He said police had been informed and had dispatched a mobile unit from Kopi to the area.

However, they could do little because the villagers had only blocked construction work and had not done any damages to properties which were all on traditional land.

Reports said the contractor, Esso Highlands and the landowners would meet today to discuss the matter.

Landowners also warned that the blockage would continue if their demands were not met.

The villagers had also questioned the establishment of Kikori Energy Resources, allegedly set up by employees of Esso Highlands, and its interests in the project.

MCC out intimidating landowners again

Having threatened and intimidated their way out of one court action, Ramu mine owners MCC and Highlands Pacific, are following the same stratagy to try and get rid of a second court challenge, the Ramu Nickel Mine Watch website claims.

Construction of the Ramu mine's marine waste dumping system is currently on hold after MCC gave undertakings to the National court last week not to proceed with any coral blasting or pipeline work until an injunction application by local clans is heard on October 15.

But in the meantime MCC staff are out in the villages along the Rai Coast threatening and intimidating local people to sign 'Statements of Fact' (like the one illustrated below) stating they don't want to be part of the court action and know marine dumping (DSTP) is the 'safest way'.

MCC staff are particularly focusing their attention on Tugyag village which is the home of the court plaintiff Louis Medaing.

One technique being used by MCC to induce people to sign is to tell them that any relatives working with the company will be sacked if they don't cooperate.

Presumably it is the intention of MCC and Highlands Pacific to turn up at court on October 15 with as many of these signed statements as possible to try and undermine Louis Medaing in the eyes of the court and to intimidate him to withdraw his court case.

The first legal action collapsed when the original plaintiff's withdrew their case citing the conflict that it was causing in their communities and fears for their safety

Gulf leaders give 14-day ultimatum

By WALLACE KIALA

KIKORI landowners and the West Kikori local level government in Gulf have petitioned Esso Highlands Ltd to engage their umbrella company in contract work and to immediately release all business development grants earmarked under segment seven of the LNG project, The National reports.

In their petition, addressed to Esso

Highlands’ Peter Graham, the landowners stated that the company’s failure to do so would result in a stop-work of construction activities within the Kaiam ferry crossing to the Omati landfall.

They have given the company 14 days to respond to their demands.

In their two-point petition, the landowners wanted Esso Highlands to immediately:

• Engage Greenfield Resources Investment Ltd in contract works with the LNG pipeline construction; and
• Release all business development grants, earmarked under segment seven of the LNG project, to Greenfield Resources Investment Ltd.

Meanwhile, Kikori Oil Pipeline Landowners Association (KOPLA) chairman Bomsy Boviro yesterday claimed that the destruction caused to Curtain Clough Joint Venture (CCJV) heavy machineries and the attack on its workers last week was due to the government’s delay in paying landowners their business development grants.

He said although the Department of Petroleum and Energy had allocated funds, the facilitating government agency, Department of Commerce, had not release of the payments.

“With the full construction of the LNG project set to begin next month, there is a lot of uncertainty causing anxiety among the people; the people want to get their business activities off the ground,” Boviro said.

Police, in the meantime, are still looking for the suspects involved in torching CCJV’s truck and machineries.

Gulf provincial police commander Snr Insp Reuben Giusu said although no arrests had been made, the situation on the ground had been contained.