***********************************************
PAPUA
NEW GUINEA RAINFOREST CAMPAIGN NEWS
Giant
Logging Company Criticizes PNG Government
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Forest
Networking a Project of Ecological Enterprises
6/18/96
OVERVIEW
& SOURCE by EE
Malaysian
logging giant Rimbunan Hijau has openly opposed the PNG
government's
policies, blaming the state "for lack of development in rural
areas." _The Independent_, while printing nearly
verbatim Rimbunan Hijau
press
releases extolling their virtues, reports on Rimbunan's Wawoi Guavi
concession,
which pays one of the lowest royalties rates (around USD2.00
per
cubic meter) of any PNG timber operation.
Simultaneoulsy, they run a
"company
store" which has few competitors; and quickly takes up the small
amounts
of royalties paid into the community.
The same story of
Eurocentric
thought running roughshod over indigenous peoples plays itself
out in
the villages of PNG (and the few other relatively intact ecological
systems
remaining). Only the perpetrators of
social and environmental
injustices
has changed. Its Rimbunan Hijau and
industrial logging that has
failed
repeatedly to bring meaningful development to rural areas.
g.b.
More
information on the Wawoi Guavi timber concessions can be found at:
http://forests.lic.wisc.edu/forests/png/papua.html
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TEXT STARTS HERE:
/*
Written 7:34 PM Jun 15, 1996 by drobie@pactok.peg.apc.org in
igc:reg.newgui
nea */
/*
---------- "078 Rimbunan Hijau slams PNG" ---------- */
Title
-- Government has failed: Rimbunan
Date
-- 15 June 1996
Byline
-- Harlyne Joku
Origin
-- Nius Network
Source
-- The Independent (PNG), 14 June 1996
Copyright
-- The Independent
Status
-- Abridged
-----------------
GOVERNMENT
HAS FAILED: RIMBUNAN
By
Harlyne Joku
The PNG
government has again copped criticism for lack of development in
rural
areas.
This
time it is from Malaysian logging conglomerate Rimbunan Hijau, the
developer
of over 70 per cent of PNG's logging concessions.
In
response to allegations made at its operations at Wawoi Guavi, general
manager
Francis Tiong said the government had failed its responsibilities
in
maintaining infrastructure, and supporting services that had been
established
by Rimbunan Hijau as part of the agreement.
Wawoi
Guavi, in Western Province, is Rimbunan Hijau's biggest and most
lucrative
logging operation in PNG.
Mr
Tiong said that in the past two years (1994 and 1995) consequently,
Wawoi
Guavi alone had contributed to the government K15 million annually
through
export duty tax.
It pays
an average K1.2 million in royalties to landowners per annum, an
annual
premium rate of K600,000, and delivers infrastructure at a cost of
K1.5
million annually.
It
began operations at Wawoi Guavi in 1987. In 1992, Rimbunan Hijau
constructed
foru classrooms, a health centre and administrative office at
Wawoi
Guavi's campsite, Kamusie in 1992.
The
school is in operation but the administrative office and the health
centre
lack government officers.
"We
have built a health centre and handed it over to the authorities four
years
ago. This centre has never been manned or used at all. We believe
because
of this the facility has fallen prey to vandals," Mr Tiong said.
Mr
Tiong said it was unfortunate that the government had not been able to
fulfil
its responsibilities while RH as developer of the largest TRP area
had
done so.
He was
responding to a series of claims made by Middle Fly MP and Vice-
Minister
for Forests Bitan Kuok. Mr Kuok made the following allegations
about
Rimbunan Hijau's operations at Wawoi Guavi last week:
*
Royalties currently being paid by Rimbunan Hijau to the resource owners
of
Wawoi Guavi are far below royalties paid to resource owners in other
timber
concessions that it operates.
*
Royalties paid to the people have indirectly been paid back to Rimbunan
Hijau
through the shop it operates at the camping site as it charges
exhorbitant
prices.
* The
board of directors is being controlled by Rimbinuan Hijau. There have
been no
meetings or changes to the board of directors for almost six to
seven
years now.
* There
are no infrastructure services such as health services .
*
Rimbunan Hijau has not paid water levies for a period of about seven
years
for using Bamu River to transport harvested logs.
Mr
Tiong said Rimbunan Hijau, through its subsidiary Wawoi Guavi Timber Co
Pty
Ltd, totally denied Mr Kuok's allegations.
He said
royalties were paid according to a set formula originating from
government
authorities.
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