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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

 

###RELAYED TEXT ENDS###

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