Take back PNGSDP’s emperor clothes for PNG & Western Province

Community leaders sign an agreement giving up their rights to claim compensation from Ok Tedi Mining

MARTYN NAMORONG | Namorong Report

PORT MORESBY - Treasurer Sam Basil’s recent economic update has highlighted serious cash flow issues for the Papua New Guinea government as it struggles to deliver the 2019 budget.

As Basil himself highlighted, the collection of corporate income tax, goods and services tax and departmental fees are all below target.

Prime minister James Marape recognises the dire predicament his government faces and so it was unsurprising that his first overseas trip was to Singapore to meet with the Board of the PNG Sustainable Development Program (PNGSDP).

PNGSDP is an independent entity, a status clarified by a recent ruling by the courts in Singapore.

It was born out of an arrangement where Broken Hill Propriety (BHP), now BHP Billiton, was offered immunity from legal liability for environmental damage created by Ok Tedi Mining Limited (OTML).

The arrangement involved BHP shares in OTML being transferred to PNGSDPL.

The deal that led to this was essentially to make PNGSDP responsible for covering successful claims against OTML for environmental damage. PNGSDP also indemnified the PNG government and BHP from any such claims.

Being an indemnity fund it needed to be created to be independent so as to be out of reach of both culpable parties while providing them with protection from future claims.

In others words PNGSDP is primarily an insurance policy and not a development fund. Development spending came as an afterthought from the primary objective of indemnifying GoPNG and BHP.

Thus PNGSDP is bit of a misnomer; it should probably be called the GoPNG-BHP Indemnity Fund.

The fact that OTML initially compensated 156 communities is recognition of legal liability for environmental damage.

Had the 157th community of Sepe-Auti stuck to its guns and prosecuted for favourable damage claims, it may have got a better deal than it did.

Instead, in 2012, it was shoved into the so-called Mine Life Extension (MLE) deal under which it is currently accommodated by as signatories to what is known as the Community Mine Continuation Agreement (CMCA) extension agreement.

When the O’Neill government expropriated PNGSDP’s stake in OTML in 2013 and opened the door to claims against OTML for damages, PNGSDP - as the indemnity fund – was obliged to protect the funds by withdrawing from PNG jurisdiction.

Whilst the rhetoric from O’Neill was that BHP’s immunity was removed, ironically the PNG government, as a shareholder of OTML, was also exposed to claims against it.

Now the cash-strapped Marape government wants to ‘Take Back PNG’ an opportunity exists to strike a new deal that ensures that both the government and the people of Western Province benefit.

Whilst PNGSDP is an independent entity, it is still governed by its programs rules, which dictate how it operates. The rules state that one-third of PNGSDP funds are to be applied for the benefit of PNG and the other two-thirds for the benefit of Western Province.

I am aware that PNG and Western Province leaders are currently seeking to negotiate how those funds are applied.

My advice to the prime minister and the Western Province leaders is that they first need to recognise the beast for what it is and give the beast what it needs — indemnity protection.

Once immunity is awarded to OTML and by extension BHP and the PNG government, I believe one-third of the funds should be disbursed in direct budget support to the PNG government and two-thirds to the Western Province.

The Western Province funds should be further disbursed in equal 20% amounts to Fly River Provincial Government, North Fly District Development Authority, Middle Fly District Development Authority, South Fly District Development Authority and to CMCA communities.

This latter amount should be managed by a new entity genuinely owned by the communities and not the elephants at the Ok Tedi Development Foundation (OTDF) who have failed the people for over a decade.

PNGSDP should stop pretending to be a development program and be honest to the people of Papua New Guinea and Western Province as to what kind of monster it truly is.

The Singapore Courts have already removed its clothes and revealed the naked truth about its true identity.

As BHP-Billiton bosses and Australians on the PNGSDP Board would recognise, it’s time for PNGSDP to be ‘fair dinkum’ with the Papuans of New Guinea.

PNGSDP’s role should be as the funder as it was originally created as an independent insurance fund and not a development program.

Its funds should be applied to improve governance and enhance the capacity of national and sub-national government entities to do their job — which is to deliver public goods and services to the people of Papua New Guinea and Western Province in particular.

Go to this link for more: https://asopa.typepad.com/asopa_people/2019/07/take-back-pngsdps-emperor-clothes-for-png-western-province.html

No tangible development in Western despite decades of mining

Leiao Gerega  | Post Courier |

For almost 38 years Western province has seen no tangible development taking place despite helping the country generate millions in kina from the Tabubil mine.

The province remains one of the least developed in the country with low health status and lack of basic delivery of service to its people.

Prime Minister James Marape who visited the province on Friday to launch both the provincial and district five year development plans was implored by Governor Taboi Awi Yoto to look at the provinces needs which include;

• Creation of one or two electorate added to the province’s current three electorates;
• Uplift moratorium on the Province’s need to recruit new public servants;
• Fix issues with the province’s dividend trust account through former operations with Ok-Tedi;
• Find common ground on issues regarding WP’s major development program called the PNG sustainable development program;
• Building of a major port to export its resources;
• Request Ok-Tedi and Porgera to compensate middle and south Fly over mining waste pollution;
• Current 33 percent shares in Ok-Tedi be lifted to previous 64 percent and
• Stop fly-in and fly out of Ok Tedi workers to ensure money goes back to the people

Mr AwiYoto admits that the slow progress of development of the province was due to disunity amongst the leaders.

He assured Mr Marape that they are now ready to work together to ensure their people benefit from the money owed to them.

The 2018-2022 development plan under the theme “a new way forward” focuses on three key areas which are health, education agriculture and covers the province and its three districts in the Middle, South and North y.

“This is no easy task....everyone in this country have their own issues,” Mr Marape said while giving examples to how Buka and Lihir have fared poorly over the years despite the huge mining activities.

“Our agriculture and mining resources have been lost over the years while the people are suffering. Waigani is stealing from them and we are here now to turn things around,” Mr Marape said.

“These new work will take years but we want to direct and steer the country in the right path,” he said.

Mr Marape who travelled later to Tabubil to hear presentations from Ok-Tedi mining limited says everything will be discussed in Waigani after which they would strictly ensure monies owed to the people under various areas will be “unlocked.”

Mr AwiYoto says despite giving so much to the country the province has been failed by so many governments over the past years and is confident there is certainly a positive journey ahead.

Around 17,000 people gathered to welcome the prime minister at the Kiunga Township on Friday.

Mr Marape grew up as a child in Western province where his father was a Seventh Day Adventist pastor.

Go to this link for more: https://ramumine.wordpress.com/2019/06/26/no-tangible-development-in-western-despite-decades-of-mining/