Landowners Want 100 Per Cent Ownership of Porgera Mine

By Yombi Kep Posted on Post Courier 

Majority landowner representatives are calling on Prime Minister James Marape to extend his ‘Take Back PNG’ campaign by taking back the Porgera gold mine from operator Barrick Niugini Limited (BNL).

Acting through the Justice Foundation of Porgera, 18 out of 24 landowner agents who signed the MOA in 1969, are urging the PM to act on his word by taking back Porgera gold mine from Barrick.

In a recent press conference in Port Moresby, chairman of Justice Foundation for Porgera Mr Jonathan Paraia, claiming to speak for the 18 landowner agents, declared their intention to take 100 per cent ownership.

“Enga must own the land which was given to us by God and the 95 per cent that is leaving the country for Canada must stay back in the country,” said Mr Paraia.

“We own all the resources in the country, yet all the resources are leaving the country.”

He said if the profits were retained, a lot of people from Porgera, Enga and PNG as a whole will be employed and there will be surplus of money owing into the country.

“That’s why when the mining lease expires, we are putting our resolution up to government not to renew the agreement.”

He said according to the Mining Act, anything six foot underground belongs to the State and the State should have full ownership of the mine and its profits.

But he claims the ownership had somehow passed onto foreigners. “Over the last 30 years, 95 per cent is owned by Barrick and nothing is coming back to us, even the country is missing out on it,” said Paraia.

“But now as the mining lease is expiring, PNG must own this mine.”

He said that just like the government taking over OK Tedi, they want to take ownership of the Porgera mine to resettle the landowners affected, pay proper compensation, and deliver proper services.

“The government must allow us to take over the mine so that all the damages that were done to Porgera will be fixed by ourselves,” he said.

“The things that Barrick has failed to do today; we want to do ourselves.”

He stressed that the mine will continue to operate just as it is but the ownership needs to change. “All the workers will be intact and all contractors will remain but the ownership must change.”

Former Laigaip Porgera MP Nickson Mangape who is also one of the 18 landowner agents, brushed aside comments made on social media that they are incapable of owning the mine.

“You people kept asking who will take over Porgera gold mine and saying that it’s too complicated on Facebook,” explained Mr Mangape.

“You look at OK Tedi, the government of the day took over. This is the same thing that we want with Porgera.”

He said there is no difference.

“About 33 per cent went to landowners (Ok Tedi) and 67 per cent went to the government, the same will happen with Porgera.

Enough is enough,” he said.

Meantime the National Court in Waigani ruled last week Friday that BNL and Mineral Resources Enga (PJV) will continue mining after the August 16 expiry of the mine’s SML.

Following the ruling, BNL president and chief executive officer Mark Bristow said a total of K20 million in royalties for landowners are withheld as a result of ongoing legacy issues.

Mr Bristow also said the company has funded a lot of training initiatives and to date, the total value of K544 million including donations has provided schools, health services, water, power, bridges and roads in support with the local government to change the lives of the people for the better.

He said the company has also made a commitment following its recent meeting with Prime Minister James Marape that it would invest in the Paiam hospital to get it operational again.

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Please review appointment of new KPHL chairman

By Ivan Gordons Posted on YuTok, Post Courier 

Just recently I wrote a letter that was published in the local daily questioning the appointment of Andrew Baing as the chairman of KPHL on whether he was the same person who was found guilty by the leadership tribunal years back on misappropriation grounds and dismissed from holding public office.

I simply stated that this was not right for someone with such a record to be appointed to such an office that was dealing with public monies especially of such magnitude.

A reply was published also from a person saying that he was grateful for the last Prime Minister for the appointment and that he was going to prove the country proud or something along those lines.

Not much was said after that.

Fast forward to this present day and we all can see for ourselves. It is ridiculous how KPHL has addressed this saga to date.

Yes they can rant on about this law and that, this Act and that but with all that aside they are dealing with public funds.

Just provide the information to the PAC and explain yourselves to the people of this country where their money from the 500 shipment of gas has gone. There are many stories out in the public domain on the abuse and misuse of these funds benefiting the well off while the people are struggling.

I have faith and trust in our new PM honourable James Marape that he will not let his people down.

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Deputy PM Orders KPHL To Go Under PAC Scrutiny

By Isaac Nicholas Posted on Post Courier

Kumul Petroleum Holdings Limited must do the right thing and respond to the summons of the Public Accounts Committee, Minister for Justice and Attorney-General Davis Steven said on Friday.

“I want to clarify to the people of Papua New Guinea and to the KPHL Board and management that the powers of the Public Accounts Committee are quite clear under the Constitution,” he said in a statement.

Mr Steven said there had been arguments raised questioning and challenging the PAC mandate that the oil company was separate from the State-owned entities and was not subject to processes, including scrutiny of its financial affairs by the Permanent Parliamentary Public Accounts Committee.

“These arguments, in my view, are erroneous and misleading to the general public as to the intention of the law,” Mr Steven said.

“The fact that the State owns the interests in petroleum projects and the KPHL is a nominee of the State to hold its interests for and on behalf of the people of PNG, this brings the KPHL under the jurisdiction of the Public Accounts Committee.”

He said the PAC is the body that the Constitution has mandated with that responsibility by giving it a broad mandate to examine and report to the Parliament on the public accounts of Papua New Guinea, and on the control of and on transactions with or concerning, the public moneys and property of PNG.

“It is not in PNG’s national interest and has always not been the intention of establishing the KPHL that it should not be open to public scrutiny of its financial accounts, where such requests made by the Public Ac- counts Committee.

“KPHL must now do the right thing and respond to the summons of the Parliamentary Accounts Committee,” Mr Steven said.

“I am concerned that State institutions and businesses like KPHL are questioning the authority of the Parliament. KPHL including the Mineral Resources Development Authority (MRDC ) are trust companies holding the interests of the citizens of Papua New Guinea.

“I therefore urge all government departments, agencies, SOEs to answer to the demands of our people and work together with the political leadership and the relevant bodies established by the Constitution to change PNG. Our people demand that.”

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Government Not Receiving Fair Share: Study

Posted on Post Courier

A recent study based on the PNG Extractive Industry Transparency Initiative (PNGEITI) Reports have found that the PNG Government is not receiving its share of resource benefits and recommended government broaden its economic base in order to increase its bargaining power in current and future extractive projects.

The research study titled: Does the PNG government get its fair share from the resource sector? -was presented at a public seminar at the Institute of National Affairs in July to an audience representing Government, Industry and Civil Society stakeholders.

It focused on the Government’s ability to increase its bargaining power in its current and future planned resource projects.

The study was undertaken by Economists, Associate Prof Martin Davies at the university of Washington and Lee and Dr Marcel Schroder economics lecturer at Lebanese American University.

Both researchers are also guest lecturers at the University of Papua New Guinea and the Institute of National Affairs.

The researchers constructed a new database based on the PNG EITI annual reports that documents fiscal resource revenues for a large set of resource rich countries from 2006 to 2017.

“Using this dataset, we analysed the PNG governments’ take from the resource sector and study its determinants through a simple game-theoretic model as well as regression analysis.

This allowed us to make comparisons between Papua New Guinea and other resource rich developing countries,” said Prof Davies.

“Salary and wage tax is largest payment received. Papua New Guinea is the only country in our database of 50 countries where this is the case. Corporate income tax and royalties seem unusually low,” said Dr Marcel Schroder.

The study provided potential Fiscal Regime recommendations.

“PNG is a developing country which means funds for crucial spending such as infrastructure, health and education are needed today rather than tomorrow. Therefore, avoid deals with MNCs that lead to extreme back-load of fiscal take,”

They also recommended avoiding giving too many incentives (loss carry forward arrangements, tax concessions, treating royalties as advance income tax, etc.) and recommended that the State reconsider zero rating GST.

“Many resource rich countries derive significant revenue through GST.

It is also relatively easy to administer. Consider relying more on royalties on sales.

“They have many advantages with Revenue flows today vs tomorrow, they are more stable than income tax and other payments and they are relatively easy to administer,” said Prof Davies.

The study encouraged the audience to understand reasons behind low income tax payments. Is it only due to fall in commodity prices.

“There seems no mechanism for government to benefit from exceptionally high commodity prices (e.g. additional royalty, excess profit tax). Therefore, in future, if deal offered by MNC isn’t attractive, valid to leave resources in the ground for later,” said Dr Marcel Schroder.

The researchers further provided economy-wide policy recommendations.

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