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

PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

Landmark Judgment Against Logging, Cut and Run Operations Continue

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

Forest Networking a Project of Ecological Enterprises

http://forests.org/

8/11/97

OVERVIEW, SOURCE & COMMENTARY by EE

The National Court has ruled that two logging companies in East New

Britain, Papua New Guinea, Kerawara Pty Ltd and Richard Gault Pty

Ltd., pay K2.3 million in damages. Kerawara Pty Ltd is a subsidiary

of the Malaysian giant Seribu Daya, and apparently loaded their

equipment and vacated their offices prior to the judgment. The

ownership of Richard Gault Pty Ltd is unclear, although at one point

it was owned by naturalized citizens with Kerawara holding a 49%

ownership. How will the norm of cut and run multi-national loggers be

challenged and changed?

LIST NOTE

The volume on this list has decreased recently. This has partially

been because I have been busy working to conserve PNG's forests

through other venues. Currently I am working for the World Bank to

develop a large forestry and conservation project, of which I will

circulate details when appropriate. The challenge is to continue

providing news on forests in PNG while maintaining my impartiality. I

will continue to provide news with less commentary, and letting the

pieces speak for themselves. Please submit information in that this

is what the 900+ recipients of this PNG news depend upon.

Glen Barry

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

RELAYED TEXT STARTS HERE:

Title: Landmark judgment will cost State and loggers millions

Source: Post Courier

Status: Copyrighted, contact Source for reprint permissions

Date: November 4, 1997

THE National Court has ordered the State and two logging companies to

pay K2.3 million in damages and interest to 30 blockholders in

Warangoi, East New Britain.

The precedent-setting judgment, handed down in Kokopo yesterday by

Judge Robert Woods, implies that leaseholders own the timber on the

land covered by their leases, and that the State has no authority

to issue licences for logging on it.

Judgment was awarded against the State, Kerawara Pty Ltd and Richard

Gault Pty Ltd. Between them, they are ordered to pay a total of

K2,306,611.81 to the 30 plaintiffs.

The court heard that in 1992 the State through the then Forest

Minister, Tim Neville, awarded a timber licence for Richard Gault Pty

Ltd to log in the Warongoi Timber Area in partnership with Kerawara

Pty Ltd.

But some of the land within the Warongoi Timber Area had previously,

in March 1991, been granted as State leases to blockholders (the

plaintiffs) under the Warongoi Cocoa Block Scheme a project planned by

the Department of Primary Industry, the East New Britain Provincial

Government and the Agricultural Bank for the economic development of

the area into cocoa production by smallholder blocks.

The court found that the State had erred in awarding the license to

Richard Gault Pty Ltd, and that Richard Gault Pty Ltd and Kerawara Pty

Ltd had trespassed and logged unlawfully giving rise to damages which

together with interest amounted to more than K2.3 million.

Judge Woods ruled in favor of the 29 plaintiffs who held State leases

for agricultural purposes and Rowan Kilian a customary landowner

represented by Individual and Community Rights Advocacy Forum lawyer

Patrick Harricknen and Pacific Heritage Foundation lawyer Benedict

Killian.

Specifically on Mr Kilian's case, Judge Woods found that a 1952 Timber

Rights Purchase agreement did not include his customary land and that

Richard Gault and Kerawara were ``liable in trespass for any loss or

damage done'' to his land. He ordered that both firms pay Mr Kilian

K120,975.78 in damages and interest.

``The other plaintiffs held properly issued and registered State

leases,'' the judge said. ``There were the usual reservations of

minerals. But there was no reservation of trees, and of course such

reservation of trees would make nonsense of such a lease as the lease

was for the purpose of planting and cultivating certain specified

trees.''

Commenting on the disparity in stance taken by the State and the

Forestry Department, he said: ``I find it extremely disturbing that

there has been no help offered to the court in this case from the

Department of Forests or its successor, the Forest Authority, to

explain how this situation has arisen, what was the nature of this old

Timber Rights Purchase and how they say they still have rights in the

timber when there has been a further acquisition for leasing for

agricultural purposes.

``They appear to have a very naive understanding of land rights. It

appears that the relevant officers in the Forest Department or

Authority have been grossly careless or negligent in the advice they

gave to the Minister for Forests that the State owned trees on what

was in effect private land.''

The logging firms had responded initially with pleadings but failed to

continue or appear at mentions as the case proceeded. The judge said

the Forest Authority had shown no interest in attending the hearings

and had not assisted ``through their supervisory role over logging

operations in the country to corroborate or contradict the evidence''

to counter evidence presented for assessment of damages.

***

Information received by the Post-Courier indicates that equipment from

Waterfall Bay and parts of Rabaul in East New Britain where Kerawara

Pty Ltd usually operates was loaded aboard a barge, the MV Sealink

Cinta, last week, and that the barge is expected in Sabah, Indonesia

on Thursday this week.

Kerawara's parent company, Seribu Daya (PNG) Pty Ltd, appears to have

vacated its main office building and property in the Gordon industrial

area of Port Moresby two months ago.

###RELAYED TEXT ENDS###

This document is a PHOTOCOPY for educational, personal and non-

commercial use only. Recipients should seek permission from the

source for reprinting. 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.org/

Networked by Ecological Enterprises, gbarry@forests.org