Cop to stand trial over Kimbe killing

A POLICEMAN will stand trial in the National Court over the killing of a man which sparked a riot in Kimbe, West New Britain, early this year, The National reports.

Acting Deputy Police Commissioner and chief of operations Fred Yakasa said in a statement yesterday that three others would be committed to stand trial in  what is known as the ex-offico indictment.

The announcement came as  the dead body of a student was found in a police cell on Saturday morning in neighbouring Kokopo in East New Britain.

Policemen are said to have fired tear gas and stormed into the dormitory on Friday night where they beat up students and dragged off four to the police cells for questioning.

Police Commissioner Tony Wagambie yesterday said any policeman found to have been involved in the death of the student would be dealt with.

Yakasa named the policeman to stand trial over the Kimbe murder as First Const Paul Karl.

Three other policemen who appeared separately for the same offence, but had their cases struck out due to insufficient evidence, were named as Chief Sgt Godfrey Kambania, Const Alex Tokavai and Gabriel Nomu.

All four policemen were charged under section 7 principal offenders of the Criminal Code Act.

Yakasa said section 7 of the Criminal Code Act covered people who were merely present when an offence was committed but did nothing to deter or prevent the offence.

“In this particular case, they are members of the constabulary who have sworn an oath to protect and serve the public.

“By allegedly not doing anything, they are just as guilty of criminal neglect.

“However, in this particular case there was overwhelming evidence proving their involvement in committing the crime.

“We are, therefore, arranging with the state prosecutor’s office to commit the other three to stand trial through the ex-officio indictment,” Yakasa said.

In the meantime, their serious disciplinary offences report had been submitted to internal affairs directorate for speedy adjudication.

Yakasa said the police hierarchy was serious in ensuring members of the constabulary were held accountable.

“Let me make it very clear again that the Wagambie administration will not tolerate undisciplined, abusive, corrupt and unprofessional policemen.

“We will hold all members accountable for their actions or inactions,” Yakasa said.

HPL, Marengo rated highly in copper scene

By SINCLAIRE SOLOMON

 

INVESTMENT broker Evans and Partners has described Highlands Pacific and Marengo Mining as among exciting “new kids on the block” in the copper sector of the Australian market, The National reports.

Looking beyond the three major pure copper producers in Australia, the broker highlighted opportunities among the junior producers, namely Highlands Pacific, Marengo, Intrepid Mines and Sandfire.

However, it said Indonesia was not as pro-mining as neighbouring Papua New Guinea where the Highlands Pacific and Marengo had large scale porphyry copper projects while Intrepid Mines had its projects in Indonesia.

Sandfire has a higher grade copper project in DeGrussa, Australia, it noted.

“As expected given the long term and capital intensive nature of development, the porphyries are trading at a greater discount to valuation,” Evans and Partners said in a report released last week.

It said that while Highlands Pacific remained its preferred copper producer among the junior sector, Intrepid Mine also featured as an interesting producer, “with a large discount to valuation and strong exploration upside, but with a higher risk profile due to location within a protected forestry region in Indonesia”.

Highlands Pacific has a 18.8% interest in Frieda copper project in Ambunti-Dreikikir electorate, East Sepik, being developed by Xstrata as well as interest in Ramu nickel and cobalt project being developed by RamuNiCo in Usino-Bundi electorate, Madang, and exploration in the Star Mountains of North Fly, Western.

Marengo Mining has a 100% stake in the Yandera copper and molybdenum project in Usino-Bundi electorate, Madang.

Evans and Partners said that a positive for the project was that a Chinese off-take partner might take a stake.

It is a three-million tonne  attributable copper resources and has a production timeline from 2015.

The broker also noted that Yandera was a very large scale project, unusual for a junior to retain a majority stake in such a large project.

Research analyst Cathy Moises said: “Looking at key supply/demand metrics, we feel over the next decade supply is likely to exceed demand for copper which may lead to price weakness in later years.”

 

Student dies in police cell

By ELIZABETH VUVU

 

POLICE officers who fired tear gas and stormed into the male dormitory at a boarding educational institution are being questioned over the death of a student, The National reports.

The incident happened last Friday at the Kokopo Business College in East New Britain.

In retaliation, the students later burnt down the administration office building and, among other things, damaged the principal’s residence.

Provincial police commander Sylvester Kalaut said he was aware of the accusation of police brutality levelled against his officers.

He said the officers involved were being questioned.

The final-year management student, who died on Saturday morning, was identified as Stanis Jiki.

Deputy principal of the college John Karis said the police officers went into the school premises last Friday night after receiving a complaint.

He said they fired tear gas, went into the male dormitory and questioned Jiki, a student from East Sepik.

Karis alleged that they also beat him up.

Karis said the officers then took Jiki and three other male students to the Kokopo police station.

Jiki died in the early hours of Saturday morning.

Karis said he broke the news to the campus and then warned the principal to vacate his house be­cause he suspected that the students were likely to retaliate.

Karis said he then fled the campus with his family.

The students later went on a rampage, damaging the principal’s house and setting fire to the administration block comprising 11 rooms.

They also destroyed the school’s internet server and broke into the computer laboratory, taking out computers and throwing them over the school fence.

Two fire trucks arrived at the scene later but could not put out the fire.

On Saturday morning, female students were seen leaving with their belongings to stay with relatives and friends outside the college premises.

Kalaut said 50 students had been taken in for questioning.

He said some would be used as witnesses while others would be charged with arson and causing a riot.

Opposition slams deferral of parliament

By JEFFREY ELAPA

 

THE adjournment of parliament for five weeks is designed to avoid issues affecting the country, Opposition parliamentarians said, The National reports.

When parliament re­sumed last Friday, leader of government business Paul Tiensten moved that it be adjourned until Aug 2.

He said that parliament should not be allowed to continue be­cause no water was supplied to the house when one of the main pipes from the main water supply at Mt Eriama was broken.

He said the air-conditioning units depended on water.

With no water, the units would not function properly, making it un­comfortable for those in the chamber.

The opposition called for a division, but Speaker Jeffery Nape, who had been absent for the past two weeks, ruled in favour of the go­vern­ment.

Led by former deputy Opposition leader and member for Lae Bart Philemon, the MPs ac­cused Nape of taking sides and “hijacking the parliamentary process”.

Nape then told Philemon not to point fingers at him and to respect the chair.

“You do not point at the chair.

“You are discrediting the chair,” Nape said.

Philemon yelled back, telling him that he was not being fair and that he (Nape) was to be blamed for hijacking the parliamentary democratic pro­cess by collaborating with the government as he was a member of the ruling National Alliance party.

Soon after parliament was adjourned, the opposition called a press conference where they accused the government of planning the adjournment “to avoid issues facing the country”.

The issues, they said, included:

*Revelation of the corruption and misuse of public funds at the National Planning office by secretary Joseph Lelang;

* Health status of Prime Minister Sir Michael Somare; and

*Protest march and petition by the public led by NGOs last Thursday.

Deputy Opposition leader Sam Basil said: “The speaker is creating divide and rule tactics.

“It is an absolute hijacking of the process when a division is called.”

Moresby Northwest MP Sir Mereke Morauta said: “This go­vernment is morally corrupt.

“There is no reason why parliament should be adjourned.

“They want to run away from issues.”

Anglimp-South Waghi MP Jamie Maxtone-Graham said: “This go­vernment is run by a mad leader.”

Nasfund contributors assured of security

By JEFFREY ELAPA

 

ACTING Prime Minister and member for Wabag Sam Abal has assured the 40,000 contributors of Nasfund that their superannuation savings will be protected, The National reports.

He said he would not allow their lifetime savings to be burnt for a second time.

Abal assured unions that his priority (as prime minister) “is to protect contributors’ funds from being unscrupulously swindled by persons and institutions entrusted to protect their superannuation savings”.

“We are talking about an issue that is significant to ordinary Papua New Guineans, many of whom are contributors to Nasfund, the hardworking people of this country,” he said.

“I want to assure the contributors that I will deal with the matter of interest to them based on advice that is consistent with the laws of our land, particularly the Superannuation Act regulating the industry.

 “To my knowledge, the same contributors who tirelessly work for their living by allowing their savings to grow in superannuation funds such as Nasfund, have been burnt before.

“They have lost a considerable amount of their hard-earned savings, which has not been recovered.

“My interest right now is to protect the contributors’ funds.

“I refuse to stand here and condone sinister activities, especially by those in-the-know and allowing this same group of contributors to be burnt twice over.

 “There are many issues arising in relation to the transaction. However, in this instance, I must make sure that their exposure is mitigated.

“I intend to make sure that contributors will not be in any worse position than they were prior to this transaction,” he said.

Abal said the controversy warranted him taking some immediate remedial measures.

He said he was aware that the Central Bank, as regulator of the superannuation industry, had made some findings with certain recommendations based on these findings.

“Additionally, I am aware of the calls by the unions concerned to have certain persons involved in the unpopular deal removed.

“I will be pooling these findings and views of the unions, as well as information available to government together to form the basis of a decision whether to call an inquiry into the matter,” Abal said.

Former treasurer Peter O’Neill had earlier revealed that the transaction was illegal and that the report would be presented to parliament by the acting prime minister.

United Resource Party sacks Agiru

THE United Resource Party caucus has sacked party founder and Southern Highlands Governor Anderson Agiru, The National reports.

The expelling of Agiru and Komo-Margarima MP Francis Potape stemmed from their alleged involvement in the sacking of URP leader William Duma as petroleum and energy minister.

URP leader and Hagen MP Duma and deputy leader and Eastern Highlands Governor Malcolm Kela-Smith announced in a short statement yesterday.

“The United Resource Party wishes to announce that on Friday, June 17, the URP parliamentary wing unanimously resolved to expel Anderson Agiru from membership of the party effective June 17.”

Duma said there were many reasons but they were “internal party matters that are best kept away from the public domain”.

Duma said there were several reasons for the expulsion of Agiru but the main reasons were his continued and persistent efforts to undermine the URP leadership, the party and its activities and his conduct and behaviour resulting in the his (Duma’s) sacking as minister for petroleum and energy.

“Despite numerous attempts to get Agiru and Potape to a meeting, they have been actively involved in my removal as minister,” Duma alleged.

“The URP parliamentary wing and party executives thank Agiru for his valuable contribution towards the development of URP as a partner in the NA-led coalition government and wish him well,” Duma added.

Kela-Smith said the URP was a disciplined party and Agiru had his own agenda and “continues to undermine the party leadership”.

With the sacking of Agiru and Potape, “the party is now solid with nine MPs siding with Duma and Kela-Smith”.

Duma said a letter outlining the reasons for the expulsion of Agiru had been given to him and signed by parliamentary wing members, including Dei MP Puri Ruing, South Bougainville MP Steven Kama, Middle Fly MP Roy Biyama and Kagua-Erave MP James Lagea.

He said the minutes of the meeting were attached to the letter of notice to Agiru.

When contacted last night, Lagea denied there was any caucus meeting last Friday and said he was not a signatory to the decision to expel Agiru.

Environment and Conservation Minister Benny Allan, who is the MP for Unggai-Bena, said he was not aware of the decision to sack Agiru from the party.

Family of victim wants Abal to pay

Caption: Theo Abal in court ... Theo Abal, the adopted son of Acting Prime Minister Sam Abal, is escorted out of the Waigani District Court by a police prosecutor. Theo, who was charged with the June 13 wilful murder of a Port Moresby waitress, made his first appearance in court yesterday. The family of Theresa Ori Taisu, a mother of four children, will petition the acting prime minister for compensation. – Nationalpic by EKAR KEAPU

 

By JUNIOR UKAHA and SAMUEL RAITANO

 

ACTING Prime Minister Sam Abal will be petitioned by the family of the woman whose body was found in his compound to pay them compensation, The National reports.

This came after his adopted son, Theo Abal, who police had arrested in connection with the woman’s death, appeared in court yesterday charged with wilful murder.

The family said Theresa Ori Taisu, who was allegedly killed on June 13, was the mother of four children who had been struggling to pay for their school fees.

A family spokesman Kakaito Kasi said the family had prepared a petition to give to the acting prime minister.

“We want him to compensate us for the death of Theresa. Her death has put unnecessary financial strain on us,” he said.

Kasi said the family had to dig deep into their pockets to meet obligations at the haus krai since last Friday.

He said the family wanted Abal to:

*Compensate the deceased’s children for the death of their mother;

*Compensate the family for the killing of their daughter and sister;

*Meet all haus krai costs and the costs of repatriating her body back to Karaeta village; and

*Reimburse the family for money spent on haus krai expenses.

Kasi said the family wanted to meet Abal to give him their petition.

He said they did not know why she was killed.

“We only learned of her killing through the media and went to the morgue last Friday to identify her,” he said.

He said at the time of her death, she had been living with a friend at Gerehu and worked as a waitress at the Sunset Lodge at Ela Beach.

He said Taisu’s children were in the village with Yeare Ori Taisu, seven, and Atu Ori Taisu, six; doing elementary at the Ila Karaeta Primary School in Kerema town.

Kasi said Theresa was a divorcee and the second child in a family of five sisters.

Theo made his first appearance at the Waigani District Court yesterday.

Theo, 21, from Pawas village in Enga, was charged by police last Friday.

Magistrate Cosmas Bidar told Theo in court that the maximum sentence for the offence was the death penalty.

Theo was read the charges against him before being escorted out of the courtroom.

The court ordered that Theo be remanded in custody at the Bomana prison and will appear in court again on July 21.

Reshuffle in cabinet

Leader of major coalition partner, O’Neill, dumped

 

A MAJOR cabinet reshuffle, announced by Acting Prime Minister Sam Abal last night, was done with election 2012 firmly in mind, The National reports.

It places the ruling National Alliance party in charge of the three most important positions – that of the prime minister, deputy prime minister and finance and treasury with the general election 12 months away.

With Prime Minister Sir Michael Somare on extended sick leave and was unlikely to return to the job, Abal had used the reshuffle to place the ruling National Alliance firmly in charge leading into next year’s general election.

The reshuffle saw the leader of major coalition partner, the People’s National Congress’ Peter O’Neill dumped from finance and treasury and the re-entry of Momase NA deputy leader Patrick Pruaitch to his old job.

O’Neill had been consoled with Abal’s ministry of works and transport.

O’Neill is the second coalition leader to be so treated.

Two weeks ago, the leader of the second biggest party in government, United Resources Party’s William Duma, was dumped from the petroleum and energy ministry.

The ministry was yesterday given to Francis Potape, who was purportedly sacked from URP last week.

Foreign affairs, trade and immigration, vacated by the decommissioning of NA highlands deputy Don Polye, goes to former agriculture and livestock minister Ano Pala (NA southern).

Pala’s old job had been given to Lagaip-Porgera MP Philip Kikala (NA highlands).

Potape’s old post as minister assisting the PM on administrative matters had gone to Alotau MP Charles Abel (NA southern), who voluntarily left the culture and tourism ministry to support Sir Puka Temu’s failed bid to oust Sir Michael last year.

Abal expressed full confidence in his new ministers, saying he believed that with his new team, stability and cohesion within government would be sustained including consistency in policy implementation.

“I have full confidence in the new ministerial line-up,” he said in a statement last night.

“I congratulate all of them and expect their full cooperation and dedication to the service of our people,” he said.

The URP is a divided house with a Duma faction and another faction supporting Southern Highlands Governor Anderson Agiru.

The Duma faction yesterday also announced the sacking of Agiru but, in the reshuffle, it would appear Abal is siding with the Agiru faction in recognising Potape.

Still, the URP is one ministry short (Potape’s old job).

There was intense lobbying ever since the sacking of Duma and Polye for replacements but Abal was understood to have been consolidating his position and, particularly, strategising on how to place his party on a firm footing for the elections.

The fallout today will be noisiest from Abal’s own highlands region.

The Duma and Polye sackings had brought loud protests from Western Highlands and Enga.

Abal had added Southern Highlands with the demotion yesterday of PNC leader and Ialibu-Pangia MP O’Neill from the coveted finance and treasury ministry.

No significant changes in parliament since 2002

By REG RENAGI

Papua New Guinea will go to the polls  next year but there is no­thing for the citizens to get excited over.

Since 2002, parliament has been dysfunctional as the government has not demonstrated its political will and commitment to put in place the required wide-ranging political reforms.

The whole aim should be to improve PNG’s political and government systems and processes.

The government has no excuse for failing to deliver when it has the mandate to rule for two terms and resources at its disposal to use to make the system work.

The truth is our government is not really working for the people and country.

It is a sad state of affairs to now have a prime minister who should have called it a day a long time ago.

What has he really left behind? 

We do not even have a solid foundation of an “improved political system” for those who come after him.

As a result, these new members of parliament will now, it seems, take the country forward into an uncertain future.

Yes, our parliament and MPs certainly need more training so they know that what is required of them as elected representatives of their people.

The majority of our MPs are shirking their responsibilities as lawmakers at the expense of Papua New Guineans.

What I am going to say is not being patronising but the truth.

If they all tried hard, the 108 MPs will certainly learn something of value and substance from our only woman MP, Dame Carol Kidu, in what they should have done these past nine years.

It is a pity Dame Carol is not coming back in 2012.

The Dame has had enough of PNG politics and is taking her life back at her coastal home with her adopted Motuan people.

Thank you Dame Carol, you are a champion of the people. 

Your good deeds will not be forgotten for a very long time.

Basil asks: How is the State protected in terms of disputes arising out of resource projects?

Mr. Speaker,

 

I would like to direct my question to the Minister for Justice & Attorney General Honorable Sir ArnoldAmet,  Governor of Madang Province.

 Mr. Speaker, we are experiencing unprecedented resource sector boom and this government is signing agreements with foreign companies left-right-centre.

 Whilst we appreciate the benefits that the projects are generating, we also have to be mindful of the legal implications of the kind of agreements that the State is committed to.

Can the Justice Minister and the Chief Legal Advisor to Government tell this house how the State is protected in terms of dispute arising out of these projects?

 Mr. Speaker, the former Minister for Justice, Dr Allan Marat denied perusing through the full contents of the LNG agreement with the developers such as Exxon Mobil.

Up to this day, no one had seen the contents of the initial agreement, including myself.

This Parliament was and is led to belief that everything is okay, carried away by the promise of the unprecedented wealth.

 However, what is apparent now is that the LNG agreement was rushed through without proper consultation and meaningful involvement by the parties.

 Can the Justice Minister confirm or deny that there are 60-70 cases involving the LNG project are pending in the National and Supreme Courts and if so, does this confirm of a rushed agreement.

 Can the Justice Minister assure this Parliament and the people of Papua New Guinea that the LNG Project agreement as well all other recent agreements by this government, have in the agreement a clause for the PNG laws to apply when there are disputes between the State and the Developer?

 Mr. Speaker, we have learnt the Sandline Crisis case where the law to be applied to resolve the dispute was not the PNG laws, hence the State was ordered by an arbitration which was held in Queensland Australia where the State was ordered to pay US $18 million plus interests.

 Also, is it not true that Downer Construction Arbitration regarding the breach of contract over the Ramu-Madang road was conducted in Australia using Australian laws and that the State has to pay around AUS$35million (equivalent to K100m) of which around AUS$7million had been paid early this year.   

 Given those examples, Mr. Speaker, can the Minister for Justice assure this Parliament and the people of PNG that the contractual arrangements that this government is entering into have a clause in the choice of our national law?

 Can the Minister for Justice assure this Parliament that in his capacity as the Chairman of the Judicial & Legal Services Commission and the Minister responsible for Justice, he is ensuring that developers have confidence in our judiciary system when it comes to the preference of laws to apply?   

Helifix welcomes second Bell 407

By BOSORINA ROBBY

 

LOCALLY-owned helicopter company Helifix Operations Ltd, yesterday introduced its latest helicopter to its expanding fleet, bringing the total to 13 helicopters, The National reports.

Chief executive officer Robert Agarobe said the Bell 407 was the second of three, the first arrived in April and the third is expected before the year’s end.

He said the helicopter, which cost about K8 million, was bought in Germany, packed and shipped to Sydney, Australia, where it was assembled, and flown by Capt Sam Onno  and engineer Peter Kenos for 16 hours along the north and south coast of Australia and PNG respectively, to Port Moresby yesterday.

Agarobe said that 12 of these helicopters (Bell Long Rangers and Bell 212s) were in the country while the 13th was doing offshore work in Australia.

He said the company had grown since 2006 and with the oil and gas sector currently as a high profile industry, this challenged him to compete and operate his business especially in site work and seismic activities.

“We cannot sit back and be spectators but be a part of this,” he said. 

Helifix is a 100% nationally-owned aviation company which currently employs top-class expatriates and nationals.

Agarobe said the company also conducts trainings for staff to ensure transfer of skills take place as all employees were highly experienced and qualified.

He said the new helicopters were safe and modern and, though costs twice more than the others, it would do twice more work to take the company to the next level, getting bigger and better in time, also expanding the client base.

 

13 students held over Passam fire

THIRTEEN students from Passam National High School are being held in connection with the school’s worst arson case, The National reports.

The students were alleged to have started a fire that razed an administration building and ration store early Sunday.

Three school buildings were torched but staff and students managed to put out the fire to one of the female students’ dormitories.

School properties like computers were looted when the students went on a rampage last Saturday night.

The school remained closed yesterday and it was uncertain when classes would resume.

Wewak police said 17 students had been picked up but four were released yesterday after they were cleared of any involvement in the alleged arson.

The remaining 13 students were kept in custody overnight and were expected to be charged today, police said.

The school principal could not be reached for comments yesterday.

But provincial education adviser Joseph Auli said national high schools were a responsibility of the Department of Education and he was awaiting further instructions from Port Moresby.

He said the division of education, with the support of the provincial administration, should help because the tragedy would affect the future of mostly Sepik students.

The National was referred to Oka Lavaki and Joyce Tepu at the National Education office in Port Moresby but both were at a meeting yesterday and could not be reached for comment.

Many local students started leaving the school yesterday traumatised by what had happened.

The burning down of the two buildings brings to seven the number of buildings destroyed by arsonists since 2000.

 

 

Theo Abal charged with wilful murder

By JUNIOR UKAHA

 

Theo Abal, the 21-year-old adopted son of acting Prime Minister Sam Abal, has been charged by police with one count of wilful murder for killing a 29-year-old waitress at his father’s Konedobu home last Monday, The National reports.

He was charged last Friday.

NCD police chief Joseph Tondop said Theo Abal would make his first appeareance in court today on the murder count.

“After all evidence was considered, he was formally charged with one count of murder,” Tondop said.

Police said a 15cm kitchen knife found about 10m from the crime scene had been tendered as evidence.

The victim, identified only by her first name as Theresa, from Kaiti village, Kerema in Gulf, died from a slit throat. 

Tondop said the woman’s relatives went to the Port Moresby General Hospital morgue last Friday and identified her.

Relatives of the deceased brushed aside claims that the acting prime minister’s security had been stepped up in fear of retaliatory attacks.

 “We do not want to create another problem, another killing and bloodshed,” the family said in a statement.

“We are peace-loving people who see payback killing and bloodshed as acts of the past.”

Tondop said the suspect had been denied bail.

He said the suspect has been charged in relation to a serious crime and police would not release him.

“Theo Abal is still detained at the Boroko police cell awaiting his first court appearance today,” Tondop said.

No motive had been established.

Theo Abal was picked up by police from the Ponderosa Family Hotel last Monday, two days after the killing.

He is from Pawas village, Wabag, Enga. 

Killings rock Oro

Two die, 10 injured as villagers clash with settlers

 

By JUNIOR UKAHA

 

TWO people are dead and 10 others seriously wounded in fighting that has left business houses, public facilities and offices in the township of Popondetta closed since last Friday, The National reports.

Northern provincial police commander Micah Anaiwe said the fighting started as a result of a killing at the Bongoho River.

He said a youth from Farope village, in the Higatu LLG, 3km from Popondetta, was stabbed by four suspects from the Bongoho Compound as he was trying to cross the Bongoho River last Wednesday.

“The suspects wanted to pull his bilum but he resisted, prompting them to stab him,” Supt Anaiwe said.

He said the deceased had been identified as Hensly Ganoka, 22, from Farope village, who died as a result of knife wounds to the back of his neck.

Anaiwe said police were told of the killing and went into the area to calm the situation but, on June 17, relatives of the deceased mobilised and went into town in truck-loads to attack the settlers at Bongoho compound.

Anaiwe said during the ensuing fight, another person, Leonard Keke, 24, from Hanjin, Kokoda area, was shot dead.

“The Guba market was burnt down during the fight and we received reports that about 10 people were critically injured,” he said.

He said shops and public facilities had to close from last Friday and remained shut over the weekend out of fear of being attacked by opportunists and members of the fighting factions.

“Police have taken control of the situation but things are still tense,” he said.

He brushed aside media reports that a riot had taken place in the township saying “it is not a riot as assumed by the media but a fight” between two isolated groups.

He said the relatives of the youths, who died in the fight, had held a meeting on Sunday and had demanded the provincial government pay K50,000 as belkol money within 48 hours so they could make funeral arrangements.

He said they blamed the provincial government for being lax in allowing settlers to live near the township.

That, they claimed, had created law and order problems.

Sustainable mining in Papua New Guinea (PNG)

A potted history of a mine in Melanesia

by PAUL OATES

In the 1960’s and 1970’s, the large Copper and Gold mine at Panguna on Bougainville Island was hailed as the ‘cash cow’ of the fledgling PNG government. The mine was intended to provide a steady source of income for the PNG government coffers after Independence in 1975.

When asked well before Independence, what the mine provided for the local people, the Australian External Territories Minister Charles Barnes was accused of telling the Bougainvillean people they would "get nothing" (1.)

After many years of civil disobedience, a civil war, the deaths of thousands and a near mutiny by the PNG Defence Force (PNGDF), the Panguna mine remains closed. Investors would no doubt be wary of reopening the mine even if the local people succeed from mainland PNG and either set up their own nation or join the Solomon Islands and the people they feel ethnically part of.

So what can be learnt from what happened to try to ensure it doesn’t happen again?

‘Joanne Dateransi has stated publicly that the landowners, of who she is one, do not now or ever want the mine reopened. This interview went out live on blufm.org on the 25th of March, 2009. The reasons given were the irresponsibility of the mining company, the environmental damage they caused, and the attempted genocide of the traditional landowners, which ensued once the mine had been closed. Joanne is in fact the owner of the land which the Panguna site is located on, and any claims that landowners want the mine reopened should be treated with suspicion and caution.’(1.)

‘Citizens of Bougainville have filed a class action lawsuit in the United States against Rio Tinto arising from the environmental damage caused by the mine and war crimes occurring during the civil war years. In August 2006, the United States Court of Appeals for the Ninth Circuit rejected Rio Tinto's effort to dismiss the claim. See Sarei v Rio Tinto, 456 F.3d 1069 (9th Cir. 2006).’(1.)

The major shareholders of Bougainville Copper (1.), a subsidiary of Conzinc Rio Tinto (1.), are Rio Tinto (53.6%), Papua New Guinea (19.1%) and the European Shareholders of Bougainville Copper (ESBC) with approx. 4%. The remaining freefloat of 23% is held by private investors, many of which live on Bougainville Island. These shareholders are presumably receiving nothing on their investment.

There are moves afoot by the new autonomous Bougainvillean government to try and reopen Panguna yet the local landowners are currently holding out against this move. So is this is a classic case of NIMBY or (Not In My Back Yard)?

So what happened at Panguna? Let’s examine some of the background issues.

The Panguna mine was opened during the Australian Administration of the then External Territory of Papua New Guinea (TPNG). The Territory was a collection of disparate ethnic groupings artificially crunched together from the 19^th Century colonial carve up of the world. The original German colony of New Guinea was added to the Australian Territory of Papua and administered as a joint Territory after the Second World War. The people of the islands of Bougainville and Buka are ethnically tied to those in the old British Solomon Island Protectorate (BSIP) and were artificially separated from their cousins by a line drawn in the map of the Melanesian Pacific by previous colonial powers.

The people of Bougainville often refer to the people of the rest of PNG as ‘retskins’ (Tokpisin for ‘red skins’), since Bougainvillians are like most Solomon Islanders and noticeably darker than most of the PNG people.

The first issue was therefore a potential for resentment that the resources of Panguna and Bougainville were being used for other regions of PNG and not specifically to benefit the local area. It was clear that a large resource was being removed from traditional control without any real benefit to the local people.

Historical documents at the time also indicate other issues. There was reportedly an historical dispute over exactly who originally owned the land around the mine. The local clan’s claims were disputed by those who had previously been pushed off the land by those who were in residence when the mine was initiated.

Traditionally, PNG land ownership disputes were settled by clan warfare. Mineral rights had never been considered as no mining had ever previously taken place. Mineral rights were never considered by the Administration until the House of Assembly by majority vote in November 1966 awarded 5% of the royalties to local Bougainville landowners.

In addition, the compensation offered to landowners was negligible after considerable tracts of land were required to develop the mine. The area of land far exceeded any small scale gardens originally nominated due to access roads and overland power pylons.

The third and potentially most divisive issue was that the Special Prospecting Authority of 1,000 square miles and the exclusive Prosecting Licence of 25 square miles reportedly did not give any specific entitlement to mining rights. Under Australian legislation, these rights had to be negotiated.

Lastly, it is understood that as it was specifically the Administration’s legal responsibility to negotiate with landowners, mining companies considered themselves excluded from any requirement to discuss these issues with the local people.

The stage was clearly set for an impasse many years before it happened.

Melanesian concepts versus Western concepts of Land Ownership

The concept of land ownership in Melanesia is complex and needs to be understood during discussions over the development of any locally owned natural resource.

Melanesia                                Western nation                        Contrast

Land Ownership
Land traditionally owned collectively by the clan	Private land is owned by the individual if previously purchased and title obtained from the government	Collective ownership versus private ownership
Ownership of resources under the ground
Ownership claimed by some governments but disputed by original landowners who have never given up their traditional rights	Government ownership of minerals under the ground and this is controlled by mining leases and permits.	Traditional Melanesian owners still view that which is in their ground as being still theirs to own.
Ownership of resources on top of the ground
All timber, animals and resources within traditional land boundaries are owned by the landowners	Government legislation and regulations control the ownership and use of all resources that are situated on private land.	Government control over resources versus clan ownership
Ownership of the resources in waterways, rivers and the sea.
Traditional ownership of these resources with national government claiming some control.	All resources controlled and policed under government legislation	Traditional owners view these resources as theirs to own, control and use and not the government’s.
Protection of resources
Traditionally protected by clan members and by force if necessary. Nominal government responsibility mostly in name only.	Government legislation and a reasonably effective legal and court system available,	Strong government controls versus weak government and an acceptance of the use of traditional force to defend these resources if required.

Differences between the traditional Melanesian concept and the Western concept of Wealth and the transfer of Wealth

Melanesia                                Western nation                        Contrast

Wealth can traditionally only be obtained by giving desirable commodities away within the clan or village and so obtaining a reciprocal obligation	Modern wealth can be accumulated and stored in banks and business shares. There is no obligation to anyone except for government taxes	Clan wealth versus individual wealth
Wealth distribution is an obligation between ‘wantoks’ (Tokpisin) of the same ethnic group	Individuals are able to generate and store wealth without any obligation to their community	Traditional Melanesian wealth distribution contrasts with Western individualism
Banking facilities and long term wealth storage is not available to many in the village	Modern banking and wealth storage available to everyone	Problems with PNG wealth storage and retaining long term benefits from wealth
The transfer of wealth is traditionally within the clan and usually involves joint ownership of land and natural resources	Wealth can be passed onto to future generations via liquid and tangible assets	Recognition that individual wealth can be passed on versus mostly community owned and recognised wealth

The history of developing resources in Melanesia

The history of the development of natural resources in Melanesia has been mostly focussed on the extraction of the resources (minerals, timbers, marine), in the most expeditious manner using western concepts of wealth transfer.

Between the two World Wars, the Administration of the Trust Territory of New Guinea, as opposed to the Australian Territory of Papua, was primarily paid for from gold extracted from the Wau/Bulolo area. The traditional owners of this resource were not considered as the gold was viewed in the Western concept of being government owned.

In addition, due to the understandably somewhat belligerent nature of the local people, many workers from other areas in New Guinea were brought in and employed in the extraction of the gold. These outsiders settled in and around the towns and established families.

During the late 1930’s, enormous mechanical gold dredges were flown into Bulolo in pieces and assembled on site. The mullock heaps left by the dredges from their alluvial operations was soil previously at the bottom of the river. After the dredges ceased operations, these huge waste dumps were taken over by outsiders as ‘new land’ and therefore claimed as their own.

 The perception of the descendents of the original landowners is now underlying hostility to the ‘foreigners’ who are now ensconced within the local gold producing community. Recent riots in early 2011 where the local Watut people have demanded the repatriation of people from areas like the Sepik are an example of how the problem of how local people view those from other regions benefitting from local resources.

An example of historical necessity creating problems for today happened in the Solomon Islands. During World War 2, the American Forces there decided they needed more labour than was locally available on the island of Guadalcanal and imported workers from the neighbouring island of Malaita. Recent riots and loss of life from civil unrest between local Guadalcanal people and the descendents of the Malaita labourers have led to the requirement for foreign ‘Peace keeping troops’ from regional neighbouring countries (Regional Assistance Mission to Solomon Islands - RAMSI) to now become a long term necessity.

The development of the Nickel mine in New Caledonia is another example of large scale mining in Melanesia. While the French government claims the Island is French territory and therefore bound by French metropolitan law, the descendents of the original local Melanesian people who owned the island have no claim to the wealth being generated. Yet when the mine’s waste overflowed and reportedly poisoned the surrounding sea, local people saw their livelihood severely threatened.

Current problems in managing PNG resources

Viewed from a ‘Western perspective’ (refer to the above matrix), the concept of resource development is fairly straightforward. While there are many examples of where either a lack of forethought or subsequent operational problems have caused protests and the premature closure of an activity in Australia, developers can fall back on government protection and legislation. The issue of who owns the available natural resources can if disputed, be legally determined by a court.

This is not necessarily the case with resource development projects in PNG where government legislation is either contested or ignored and government control in rural areas weak to non existent. This has led to many confrontations between local landowners and mining companies as was the case with the Panguna mine. The local Bougainville people felt they were not consulted about the project, fully informed about the implications or sufficiently compensated when their land and natural resources were disrupted or destroyed. Recently, in other areas in PNG, there have been reports of many local landowners being forcibly removed from their land in order to allow mining projects to go ahead.

The nature of PNG customary land ownership often leads to disputes over just who is a landowner and who should be included in any benefits or compensation on offer.

‘Some argue that PNG has a classic case of the resource curse: Dutch Disease, weak accountability and corruption, which all conspire to undermine economic, social and political development. A key question is how to break with this past experience and chart a new development path?’ (3.)

Land alienation and its consequences

‘Ahi villagers in Lae have been told in no uncertain terms – so many times – not to sell any more of their land if they want to survive.’ (4.)

In a recent development, the Somare government has decided to foster initiatives to bypass any delaying tactics by local landowners that might hinder development of the nation’s natural resources.

A so called ‘Maladina Amendment’ (named after the MP who proposed it), and pushed through the PNG Parliament by the Somare government against all opposition and extensive public demonstrations, specifies that the Head of the Environment Department can singlehandedly determine if a proposed mining project meets PNG legislation. This was in answer to legal injunctions brought against the predominantly Chinese owned Ramu Nickel mine near the coast at Madang.

If a future PNG government repeals this legislation, what happens to an already operating mine that depended on this law to override original local landowner objections? What happens if current landowners resort to violence to prevent their land and sea resources from being polluted? Will the mining company resort to armed intervention from privately hired police as has reported elsewhere?

Recent concerns have also been raised about the use of Special Purpose Lease Agreements that have been allowed to be formalised by the PNG government and reportedly cover 10% of the country. These agreements permit traditionally owned land to be ‘leased’ and not sold. Once a ‘lease’ has been negotiated, say for the growing of Oil Palm or any other commercial crop, the present forest and timber resources must logically be ‘removed’ by the ‘developer’ who then can sell this resource.

Whether the commercial crop then ever gets planted and returns an investment remains problematical at this stage. How any ‘lease’ payments are disbursed also raise significant concerns due to difficulties in determining exactly who is a landowner and what their share might be?

Resource development in PNG - where to from here?

Extractive industries are by their very nature, disruptive to the existing environment. The existing natural environment is very often the only source of wealth local landowners have. It may also be the only source of income and food production available. In addition, local customs and traditions concerning the land may stretch back many generations. This involves the ability to hunt and fish and where necessary, obtain building materials and other personal requisites from the surrounding forests.

Initial payments to landowners made by developers may at first be very welcome. When the offers of money, new schools and education opportunities, health facilities and infrastructure development may first be well received, subsequent misunderstandings over who receives what share of the available remuneration can lead to subsequent disputes.

A lack of formal education may promote miscommunication between the parties concerned. This can inevitably lead to mistrust and possible conflict. Signed contracts are not a feature of traditional village life and may not be viewed in the same way as in a western country.

Having a signed contract that has been endorsed by the government has demonstrably been proven to be no guarantee that there won’t be future disruption and possible cessation of operations and loss by the developer.

What happens when the available ‘compensation’ is fully spent and no longer available or completely missing for future generations is also a divisive issue. Future benefits for a few local landowners may be disputed by others who see themselves missing out. The PNG government will also wish to assume financial benefits that will be claimed are for the whole population. If these subsequent monies are then lost through corruption, the responsibility under Melanesian custom, could be seen to include all those involved with the original contract.

Local people may well ask what long term and lasting benefits will be? Who will maintain the schools and health centres when the development activity ceases?

When mining ends and the company leaves, who will pick up the pieces? Is there any enforceable arrangement available to the local landowners if they cannot rely on their government to act for them and defend their interests?

Who will be responsible for the restoration of the local forests, rivers and marine resources if they have been irrevocably destroyed, either intentionally or unintentionally? What surety is being offered in case a natural disaster occurs and the by products of a development activity pollute the local environment?

Summary

Before any decision is made to commence any mining activity in PNG, a full ‘holistic’ background check must be made and all stakeholder views considered.

Recognition of the Melanesian concept of ownership involved with any extractive industry involving natural resources, either on land or in a marine environment, will assist any negotiations.

The lessons to be learnt from the Panguna mine on Bougainville should not be overlooked.

(1.)  http://en.wikipedia.org/wiki/Bougainville_Copper

(2.)  http://www.riotinto.com/aboutus/history.asp

(3.)  How can PNG fight the Resource Curse? Mathew Morris 27^th May 2011  http://masalai.wordpress.com/2011/05/27/how-can-png-fight-the-resource-curse/#comment-13573

(4.)  Land is no cheap commodity – PNG’s ‘The National’ Friday June 10^th 2011