***********************************************

PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

Giant Logging Company Criticizes PNG Government

***********************************************

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

 

*******************************

RELAYED 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.

 

###RELAYED TEXT ENDS###

You are encouraged to utilize this information for personal campaign use;

including writing letters, organizing campaigns and forwarding.  All

efforts are made to provide accurate, timely pieces; though ultimate

responsibility for verifying all information rests with the reader.  Check

out our Gaia Forest Conservation Archives at URL=   

http://forests.lic.wisc.edu/forests/gaia.html

 

Networked by:

Ecological Enterprises

Email (best way to contact)-> gbarry@forests.org