***********************************************
PAPUA
NEW GUINEA RAINFOREST CAMPAIGN NEWS
January,
1997, PNG Forest Update
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Forest
Networking a Project of Ecological Enterprises
http://forests.org/
1/19/97
OVERVIEW,
SOURCE & COMMENTARY by EE
Here is
Greenpeace Pacific's monthly update of the forestry situation in
Papua
New guinea, which was posted in econet's rainfor.general conference.
Issues
discussed include the new landowner royalty structure, small to mid-
scale
timber processing, membership in the forest board and downstream
processing. A brief update is then provided for each
province's forest
projects. Once again a fine effort by Brian
Brunton. The original
document
posting has been spell checked.
g.b.
*******************************
RELAYED
TEXT STARTS HERE:
/*
Written 10:20 AM Jan 12, 1997 by
bbrunton@pactok.peg.apc.org in
igc:rainfor.genera
*/
/*
---------- "PNG FOREST UPDATE JANUARY 1997 PT 1" ---------- */
FOREST UPDATE
PAPUA NEW GUINEA JANUARY
1997
BRIAN BRUNTON
GREENPEACE PACIFIC
12th of
January 1997
bbrunton@pactok.peg.apc.org
Introduction
The
months of December and January are Papua New Guinea's school holiday/
vacation
time. Things slow down as most people take their annual holidays.
Forest
policy, World Bank and logging
log prices , taxes and royalties
High
log prices may well be one of the best ways in the long term to keep
trees
in the ground, because high prices add to the costs of loggers
capital,
and reduce their profits. The opposing argument is that if prices
are
high, loggers will be motivated to take every tree standing.
The
experience shows that loggers resist increases in the costs of their
raw
materials, which include taxes and landholder royalties. Loggers in
Papua
New Guinea, as in many other countries have been use to getting their
logs
either free, or with huge subsidies.
As a
result of World Bank pressure tied into the Structural Adjustment
Loans
(SAP), the Minister for Finance Chris Haiveta, in his November
1995
announced the implementation of a graduated log export tax, and a
graduate
royalty. The new log tax was implemented immediately in November
1995,
and the Government of Papua New Guinea (GOPNG) reaped the benefit.
But
loggers and their politician and bureaucratic friends refused to
implement
the increased landowner royalty.
On current
prices in 1996, if the royalty had been implemented the
landholders
would have got K23 per cu metre, (m3) instead of between K2 to
K6m3.
For
various reasons. The loggers simply did not want to pay it. The
bureaucrats
do not believe that land holders are responsible enough to look
after
large amounts of money, and have manipulated the system to ensure
that
the increases have not ended up in the hands of the landholders. The
Minister
for Forests Andrew Baing who is closely connected with the logging
industry
refused to implement the new graduated royalty. The World Bank,
and its
forestry officer Jim Douglas does not believe that landholders
should
get the full royalty increase, and during the SAP negotiations made
concessions.
Even then Baing would not implement the royalty, and
eventually
the WB withheld the SAP loans, and the Prime Minister Julius
Chan
threatened to sack Baing, and Baing finally signed the statutory
notices
on the 1st of July 1996.
But the
fine print of these notices meant that the landholders only got
K10m3,
which in some cases would barely cover devaluation and inflationary
effects
on the kina. the other K13m3 was put in the form of a project
development
levy (PDL), some of which will be paid in cash, some in
infrastructural
development, through a coordinating committee of
landholders,
forest authority and loggers AFTER an assessment has been done
of each
particular project to ascertain that the landholders are not
already
receiving the equivalent of the PDL by way of premiums and
infrastructure
under existing agreements ( note : premiums are not paid to
landholders
but to so-called "landowning companies "; these generally do
not
pass on benefits to individuals landholders but represent only a small
group
of elites. Infrastructure is provided as a result of agreements
between
the National Forest Authority and the loggers, the landholders are
not
party to those agreements, but may benefit ).
Some
landholders have received K10m3. Many have not received the increases
since
July 1997. The exact position is difficult to ascertain because of
the
lack of transparency in the Forest authority.
There
have been no project assessments, and so no project development
levies
were paid in 1996. Log exports in the first six months of 1996 were
1.4
million m3. If the average royalty was K4 m3, then at an average price
of
K160m3 landholders should have got K23m3 on the budget promises. It can
be said
that they were underpaid by GOPNG/WB ineptitude and turpitude,
K19m3 (
on 1.4million m3 ) = K 26.6 million.
That was only the first half
of the
year. We will have to wait a few more months before the full 1996
log
export figures come out, but I think we can say that the World Bank
and the
GOPNG save the loggers K50 million in 1996, and deprived local
communities
at grassroots level of a similar cash flow. By and large it was
only
the NGOs who protested this rip-off. ICRAF and Greenpeace Pacific ran
a
series of full page adverts alerting the public to the problem.
The
National Forest Resource Owners, which has been funded by the World
Bank
only supported the K10m3 cash in hand to landholders , but agreed with
the
loggers that the "developers" did not have surpluses to pay for the
project
development levy.
The
royalty issue is a matter of landowners receiving a fraction of the
market
value of their logs, in the context of industrial logging. Most
NGOs,
nationally and internationally reject industrial logging as a means
of
"development". What kind of "development"? is the crucial question.
Most
NGOs in Papua New Guinea ( some fence sit on this issue) believe that
small
scale and medium scale domestic processing is the best way to give
the
people an income and to conserve the environment. The World Bank has no
position
on small scale and medium scale production. It has always
encouraged
Papua New Guinea to export raw logs.
ICRAF
and Greenpeace Pacific encourage FSC certified small scale and
medium
scale development for forest resources by local groups. The type and
quality
of forest development is most important because it is closely
linked
with conservation, environmental protection and local control. It is
on
these issues that we have the greatest difficulty with the Forest
Authority,
the World Bank, NFCAP and others who do not publicly support
small
and medium scale, but seem to still operate on a policy that the only
road to
"development" is through large scale industrial logging.
membership of the Forest Board
At the
end of 1995 it became clear that the Forest Board, which is meant to
manage
the National Forest Authority, was under the de facto political
control
of the Peoples Progress Party. The law required that the board be
multisectoral
with two public service, one industry, one NGO rep. By the
end of
1995 a clear voting pattern established, with the NGO rep being in
the
minority. The Minister for Forests in 1996 sought to get rid of the NGO
rep by
legislative amendment. The World Bank made board membership a matter
of SAP
conditionality. The Minister sneaked an amendment through Parliament
securing
his view. The World Bank then forced the Prime Minister to sponsor
legislation
to reverse the Ministers amendment. That was passed. There has
been
some minor shifts in the way the board is put together, but the bottom
line is
that it one cannot expect major reversals of existing policy. In
any
case, the fine print of the amending Act says that in order to bring it
into
effect there has to be a formal Gazettal Notice. That did not happened
as it
should immediately after the amendment was passed in October. There
was a
struggle between the Minister and the WB, that resulted in the
Gazette
Notice being done in December. The SAP loan has now been released
in
early January 1997.
Why did
the Minister need to amend the Act when he had de facto political
control Well, it was necessary for him to do
technical amendments, but he
also
tacked on measures that were unacceptable to the WB. That resulted in
very
long delays to the SAP loans. That type of hard-headed brinkmanship is
fairly
typical of adversary politics in Papua New Guinea It all points to a
political
mistake on the Ministers part. The World bank position on this
issue
has been positive. The WB is seeking to promote a professional and
independent
board.
downstream
processing
With
elections due in PNG in June 1997 political activity is rising. The
Minister
for Commerce Nakikus Konga made a recent press statement to the
effect
that loggers better get into downstream processing by the year 2000.
The
standard clause in recent project agreements (PAs) signed since 1995
allows
export logging to go on well passed 2000. So the NFA is locked into
contracts
on this issue. The standard clause in the PAs
for downstream
processing
is decidedly limp. It does not commit the loggers to building
plywood
mills etc. The World bank has generally taken the position that PNG
would
have difficulty exporting plywood in competition with Indonesia and
Malaysia.
It is difficult to assess the public expressions of loggers to
invest
in plywood mills, but the intention seems to be to export into the
Peoples
Republic of China, using links between Singaporean, Malayasian
investors
with markets they have in the PROC.
The WB
has been conservative and behind the times in seeking to promote and
industrialized
timber policy in Papua New Guinea. PNG society is far more
suited
to small scale artisan production, and their are niche markets were
villages
can earn very high value added. The problem is that these
activities
are not conducive to export taxes and so not favorable to the
GOPNG
who will loose money ( artisan industry is subject to income tax, but
that is
more difficult to collect in rural settings.
conservation
Conservation
seems to be very low of the forestry agenda. The NFA is not a
"forest"
or "Forestry" institution. It is a logging institution. Its
management
ignores the conservation goals set out in its legislation. The
World
Bank, UNDP, and GEF do not appear to have any traction at all in
Papua
New Guinea with conservation. The major efforts that have been made
with
the Hunstein Ranges, Collingwood Bay, Mount Bosavi are all associated
with
NGOs who have accessed funding outside of the major institutional
mechanisms.
Oro
Province
Collingwood
Bay
There
has been no logger activity in this area for some time. Conservation
Melanesia
keeps an on the ground presence. Assistance for
telecommunications
has come from Japan, coordinated through Sister Yasuko.
Lafcadio
Cortesi of Greenpeace Pacific will hold discussions with Maisin
leaders
this month about arrangements for two major tapa cloth exhibitions
which
will take place in the USA.
Sandaun
Province
Aitape
Oil Palm Scheme
As I
write a report has been received from an ICRAF/Greenpeace team in the
area
doing an up to date assessment of events there. The team including
Patrick
Harricknen, lawyer ICRAF, Bob Nemah Greenpeace field operative,
Lucy
Keino Catholic Commission Justice Peace and Development Aitape,
went to
Pia Block 1A to inspect the oil palm nursery with two landholders,
who
oppose the oil palm scheme. The executive of the pro Damansera pro oil
palm
landowners company held up the catholic Mission vehicle the team was
in,
robbed the team of two rolls of film, and took the vehicle keys and
kept
the team captive for over four hours. A complaint has been made to the
police
and the matter is under investigation; ICRAF will press criminal
charges.
We have not had a full report of the situation on the ground, but
a
preliminary report shows a confused situation with lots of
irregularities.
Background
to the acquisition of New Britain Oil Limited by Kulim (
Malaysia)
Berhad is a classified advert date 25 October 1996 National
"
the Management and Staff of International Monetary Brokers Pty Ltd in
anticipation
of the completion of the purchase of New Britain Oil Palm
Limited
on Friday the 25th of October 1996 wish
to congratulate their
client
Kulim ( Malasia) Berhad ( public company listed on the Kuala Lumpue
Stock
exchange ) and the Independent state of Papua New Guinea and the
"trustee
for twenty per cent (20%) share holding in New Guinea Britain
Palm
Oil Limited (sic) held on behalf of the Provincial government and the
people
of West New Britain.
"We
wish the Company its Directors, Management and Staff and the
shareholders
all the best for a successful and prosperous future. R.W.
Robinson
for Nick Violaris Managing Director International Monatary Brokers
Pty Ltd
P.O. box 4013 Boroko NCD Papua New Guinea ph +675 321 7944 Fax +675
3214302
"Investment Brokers specialising in Commercial sales and Purchases
in
Papua New Guinea"'
Nick
Voilaris was a PPP appointed member of the Air Nuigini Board, a prime
target
for "privatisation". He resigned from that board. He is know to have
PPP and
government connections.
Vanimo
Agro-forestry
proposals
A
"Canadian-based company" called SanKung Trading Limited (STL) signed
agreements
with the State ( represented by Deputy Prime Minister
Chris
Haiveta ) for large scale agro-forestry projects in the East Sepik
and
Sandaun Provinces.
The
"Canadian company" was registered in the Channel Islands UK in
early
1996.
The
"deeds" were also signed by Chrisopher Sambre MP Nuku, Bob Netin MP
telefomin,
Judak Akesim MP Ambunti Drekikir, and Peter Lus MP Mapik.
However
Govenor of Sandaun John tekwie MP has opposed the project, as have
four
Easr Sepik companies: Kombio Holdings Pty Ltd, Ambunti Holdings Pty
Ltd,
Mapsera Development Corporation Pty ltd, and April-Salumei Development
Corporation
Pty Ltd. The position of East Sepik Governor Micheal Somare is
not
clear.
STLs
directors are Chris Wong, Judah Akesim,
Nickson Sambaip, Josua Wate,
and
Sibona Douvari
STLs subsidiary is SanKung Sepik Ventures Pty Ltd
(SSV). SSV managing
director
is Chris Wong, Fisheries Manager Jacob Quan, and accounts manager
Bently
Wong. The "chief consultant" for both companies is Sibona Douveri.
The
initial proposal is for a 50 year project starting with five years of
logging,
and then to erect a "timber factory" and sawmill. Construction was
to have
started in January 1997. The company said it had spent K2.8 million
on
feasibility in the East Sepik province. There are plans to do another
feasibility
in Sandaun province to include Telefomin, Vanimo ( how can they
do that
when WTK is already there ?) and Greenriver. we also know that they
have
been active in Lumi and Nuku. The company is offering "20%" to
landholders.
STL has applied for log tax and import duty exemptions, but
has met
resistance from the NFA, because it is no a registered forest
participant.
However
these exemptions are under the authority of Chris Haiveta Minister
for
Finance, who signed the deed in the first place. Haivetas lawyers have
told
him not to grant the exemptions unless STL "brings its money in to the
country.
This
project seems to be proceeding along normal lines. An "investor"
comes
in,
signs up landholders and politicians, and then meets up with a series
of
legal obstacles which it tries to overcome. This is a similar
intervention
to that of Sino PNG in the western Province in 1994-5, the
Coconut
sap project in Collingwood Bay in 1995, Yeungs Group in the Kikori
Valley
in 1995-1996, and PNG Vision in Milne Bay in 1996. Post Courier 14
Nov.
1996 Independent 20, 27, Dec 1996, 3 Jan 1997
East
Sepik province
Hunstein
Ranges
Although
there is nothing direct to the effect it is fair to conclude that
SanKung
see above have their eyes on the Hunstein Ranges. The April Salumei
Development
Corporation ASDC (which may infact have been de registered by
IPA in
one of its corporate clean up campaigns ) protested at SanKungs
intervention
in the East Sepik, so at least ASDC see its interests at risk.
Reports
have been received that two separate
developers are pushing into
the
April Salumei area. One is headed by Phillip Ugu and the Future
Development
Corporation. The other report is an unnamed company with the
backing
of Micheal Somare the Governor of the East sepik province. The last
report
is unclear, because it does not clarify whether or not Somare is
operating
as Governor, or in a private capacity. A disturbing feature of
this
report is that it is alleged that Martin Golman, a local but also the
Divisional
Manager Planning at the Forest Authority was involved in trying
to sign
up landholders.
If
Somare and Golman is involved in a personal capacity, then they are in a
conflict
of interest situation, but that is not clear at present.
The
heat is back on in the Hunstein ranges as the loggers press for a
logging
concession. However, we have sighted, although do not have in
possession,
a map prepared by the Forest Authority, which shows that the
Hunstein
Ranges are part of a conservation area. What is not clear is the
extent
of logging in the surround area, as many of the landholders have
said
they do not want commercial logging at all.
Hawain
LFA
There
have been no reports of activity on this concession since the Forest
Authority
advised the landholders the new Logging
and Marketing Agreement
signed
by the Wongwong "landowners" company was invalid. Patrick Harricknen
is in
the area at present and will update us when he gets back to Port
Moresby.
East
New Britain Province
Open
Bay
The
preparation of litigation for this project has been delayed by the
Christmas
holidays. A recent press statement by the Minister for Commerce,
Nakikus
Konga called for logging companies to begin down stream processing.
He
specifically mentioned Open Bay Timber Company ( subsidiary of Kowa
Lumber
of Japan), which built a sawmill many years ago, that mysteriously
burnt
down. We have had no recent reports, since we last informed that
logging
was only taking place in state owned plantations, and had stopped
on
customary land.
Warongoi
Papers
were recently filed in the Kokopo Court house to have this matter
brought
to trial. The case involves allegations that loggers, without
permission,
logged on cocoa blocks and did damage to the blocks.
Southern
Highlands Province
Mount
Bosavi
The
meeting held on the 12th of December 1996 in Fogamaiyu resulted in a
lot of
upset. The Premier of the Southern Highlands Dick Mune, and the
national
Minister for Health and local MP, Philemon Embel visited a nearby
village
, Wareo, before the 12th, and told the people that they had done
their
best to bring "development", but some of the Bosavi leaders ( Otto
nad Ken
) and their lawyers ( ICRAF) were imposing unnecessary restrictions
and
blocking the signing of the Forest Management Agreement ( which
transfers
timber rights from landholders to the forestry Authority ). This
caused
a split amongst the Bosavi people, which flowed over to the meeting
on the
twelfth. There was a very tough meeting, in which the anti logging
leaders
were put under pressure. These leaders are insisting on a medium
sized
project which will allow them to sell sawn timber into the Highlands
markets.
This approach requires a road to link the Bosavi area up with the
Highland
road network. It would put an end to export logging, and has as
conditions
landholder equity in the project, [ the Forest Authority will
not
agree to having any of these conditions in the FMA because they do not
want to
set a precedent, and because they do not want to be locked into
conditions
which could cost them money if they failed to perform ],
the
conservation of Mt Bosavi above the 800 metre contour and other
conservation
areas [ the Authority appears ready to accept these
conservation
areas ]. After the meeting people went
back to their houses
for the
evening meal.
What
follows is a report of what then happened "..the opposition group went
to
Ottos house while he was having dinner. Most of the men had already
crowded
in Ottos house to ask their questions. Although they knew the
answers
to some of the questions, they did that purposely to put pressure
on Otto
and Ken so they will let them sign the FMA in January 1997. Knowing
what
was going on Ken and Otto stood firm on their decisions. Feeling
ashamed
and sorry for his half brother, Mr. Sili got onto
Otto.
Otto then frustrated gave a fist to Sili. When Sosolo and Owen (
another
of Ottos half brothere ) saw what was happening [they] joined Sili
and
fought Otto. The others watched because the fight was between three
brothers
against one. Ottos wife hit Sosolo on his face and he fell over.
Sosolo
and Owen got up and belted Ottos wife very badly. Knowing what was
happening,
Ottos half sister helped Otto and the fight became bigger. The
pastor
tried to stop the fight but somebody hit him and he went away. While
the
fight was going on others lit dry bamboo lights to run across the
airstrip
and tried to burn down two houses they have built for the VSO and
me (WWF
field worker ). Quickly Ken got up and shouted at the back of them"
they
are Tari people in there ( the WWF field workers ) and if they wanted
a war
with Tari people they must burn the houses or otherwise". So they
turned
back and the attempt to burn the houses failed". Things eventually
calmed
down. Otto and Ken are safe. The brothers have all shaken hands, and
their
cross seems to be finished. Otto rang today and said he has spoken to
the
Forestry office in Mendi and they say that nothing will happen until
the FMA
is signed. What this means is that the Forest Authority will not
accept
to landholders conditions in the FMA, but expect the landholders to
give
the Authority their trees without any contractual guarantees. Ottos
major
concern now is for some tangible benefit to flow to the people, who
are
resisting the loggers. Friends of Bosavi raised $30,000 Canadian for
small
projects in Bosavi. But most of this money has been either spent by
WWF or
committed.
The
Bosavi people have been resisting loggers for over two years now. They
have no
alternative sources of cash income apart from logging. There is
virtually
no government services in this area, and logging initiatives are
now in
the context of a general election with pro logging politicians
trying
to show how they have brought "development". The WB (Jim Douglas)
and The
Nature Conservancy ( Peter Thomas ) have plans for conservation
trust
funds, but these initiatives are painfully slow. Someone needs to put
a blow
touch under these people and get things moving.
Western
Province
Wawoi
Guavi
There
gave been a number of complaints about environmental damage and
social
disruption in this concession, the Wawoi Guavi TRP.
The
concession is controlled by Rimbunan Hijau. To date the Forest
Authority
has made no attempt to investigate these complaints. The area
is very
isolated and so it is hard for NGOs to penetrate.
Makapa
This
concession, to the south west of Wawoi Guavi, has a timber permit
allocated
to Innovision (PNG) Pty Ltd, which is a wholely owned subsidiary
of
Innoprise an arm of the Sabah Foundation. Innovision have had the
concession
since 1992 without doing anything with it.
In
October 1996, a Mrs. Henderson ( no connection with Max Henderson of the
Pacific
Heritage Foundation ) a landholder from Makapa married to an
Australian
businessman in Balimo, through her lawyers Maladinas ( Greg
Shepherd
) filed a constitutional challenge to the Timber Rights Purchase
agreement
( TRP), by which the Forest Authority acquired the timber rights
to
Makapa [under the pre 1991 Forestry Act]. The action was filed in the
Supreme
Court, but that court has indicated that the action should be held
in a
lower court, the National Court. There has been a delay in getting a
hearing
date set.
As
indicated last month, a report has been received that Rimbunan Hijau RH
purchased
the timber rights to Makapa from
Innovision (PNG) for K15
million
in late 1996. You may remember how in the November and December
updates
we reported that the New Straits Times on the 25th of August 1994
said
that Innovision PNG had sold its interests in Makapa to CASH part of
the
Barito Pacific group. When we approached the Forest Authority they said
that
Innovision had formally denied that Barito/Cash controlled Makapa.
Wawoi
Guavi extension into Strickland Fly River
There
has been no further information on RH penetration into this area,
except
that much of the pressure to the west of mount Bosavi has been
brought
about by agents who may well be employed by RH.
Gulf
Province
Turama
Two
pieces of news this month. First, there was an announcement that Turama
Forest
Industries (TFI) was to be in plywood production by the year 2000,
with
the construction of a plywood mill for is concession east of the
Kikori
River. Announcements of this sort are routine, so not a lot
of
credence should be placed in it. TFI is part of the Prime Group that
controls
the only existing operating plywood mill in Bulolo ( based on the
old
Commonwealth Timbers and Bulolo forest resource ). The product from
that
mill is heavily subsidised by 180% tariff protection, it is very
expensive
domestically, and is of poor quality. The Prime Group was given
additional
resources in the Bulolo and on the Morobe South Coast in 1995,
but the
obligation to downstream process was virtually unenforceable in the
project
agreement.
The
second piece of news is sourced from Tony Honey the General Manager of
TFI,
who is said to have told a WWF operative that Rimbunan Hijau [RH] have
agreed
to buy out TFI, and that the agreement is close to finality. This
would
mean that RH would control a huge area of forest in the Gulf and
Western
Provinces : East Kikori, the TFI concessions east of the Kikori
river,
the origanal Turama TRP, Wawoi Guavi, Makapa ( if the report of RHs
purchase
is true ), and any concession to the west of Wawoi Guavi in the
Strickland
& fly River areas that they are seeking to acquire.
Whether
or not the Prime Group, or at least those companies close to TFI in
the
Prime Group were in fact controlled by RH has always been a moot point.
At one
stage one of the Tiongs appeared on a Prime company board, but the
record
in the Singapore companies office was later altered to obliterate
the
appointment. Formal enquiries by the Forest Board were inconclusive.
However,
gossip within the Forest Authority based upon "common knowledge"
within
the industry says that RH controlled TFI. I have never seen any
evidence
to support that proposition.
Vailala
There
has been no further information on the alleged purchase of Vailala
Block 1
by RH from Sheisi.
There
was a report that Frontier Holdings had sold their concessions to RH
in
Vailala Block 2 and 3 to RH for K4 million. There has been no
confirmation
of this.
Milne
Bay
Sagarai
Gediasu TRP
A major
row occurred over this concession in December 1996 and log
production
was stopped. The history of the concession is that it was
originally
managed by Groomes of New Zealand in a joint venture with the
Provincial
Government. The project lost money, allegedly because of
excessive
political interference by an expatriate within the Provincial
Government.
It went into receivership. Just before it went into
receivership,
it is alleged that Groomes transferred a quantity of clapped-
out
machinery from New Ireland into Sagarai Gediasu and so put themselves
in a
position were they were a major creditor.
An RH
subsidiary,
Saban
operated in an adjoining TRP the Gawa Modega TRP. RHs lawyers are
Warner
Shands and next door in the same building in Boroko is an accounting
firm
called Stinton Spence. Stinton Spence was appointed the receiver for
the
failed joint venture, and produced a scheme of arrangement whereby
Saban
was called in to take over the logging and marketing in Sagarai
Gediasu,
and pay off the debt, while paying a royalty to the landowning
company.
However, with the new Provincial Government reforms, the regional
member
of parliament, Tim Neville was made Governor of Milne Bay. Mr.
Neville
caused an investigation to be made into the scheme of arrangement
organized
by Stinton Spence, and has commenced an action in the National
Court.
The basis of the complaint is that the arrangement was unfair to the
Provincial
Government.
In the
mean time logging ceased in Sagarai Gediasu. The Neville family is
itself
involved in the timber industry through a company called Pacific
Timbers.
At one time Conrad Smith, a sacked former General Manager of the
Forestry
Authority was associated with Pacific Timbers as a consultant.
There
was said to be a connection through Smith with MacMillan Bloedel.
However
it is now being alleged that Sabam have been collecting all the
rosewood
logs they can find and shipping them out. It is claimed that these
logs
have SGS export tags, which is difficult to understand, first because
rosewood
in log form is a prohibited export, and secondly SGS would know
that it
was a prohibited export. There has been no confirmation of these
allegations.
More next month on this hopefully.
The
landowners in Gawa Modega are apparently unhappy because they feel they
have
not received a sufficient share of the surplus in this concession.
They may
have only themselves to blame. In 1993 ICRAF briefed some of the
landowner
company directors on how the profits were split, and how
landowners
were cheated, They chose to ignore the advice.
A legal
action was begun in Sagarai Gediasu in 1994, but all the
male
landowners backed out of the action following logging company
pressure,
leaving Matilda Piliocapio as the sole complainant.
Saban
undertook to the National Court that it would not log on her land,
and the
action collapsed for want of plaintiffs. Matilda is running
for
Parliament in the general elections.
bbrunton@pactok.peg.apc.org
15
January 1996
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TEXT ENDS###
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