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

PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

Sepik Land Give Away: Possible Misconduct Concerning Logging

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

Forest Networking a Project of Ecological Enterprises

http://forests.org/

1/2/97

OVERVIEW, SOURCE & COMMENTARY by EE

An MP from the Sepik region has been implicated in illegal activities

in the bid to bring a $300 million dollar Canadian industrial forestry

development project into East and West Sepik, Papua New Guinea. This

would amount to a huge industrial forestry project, covering much of

the Sepik region. Though already in advanced stages of negotiation;

the Canadian company San Kung "has not obtained a permit to carry out

logging operations", nor even applied for one. The PNG Forest

Authority has been excluded from deliberations. Senior ministers

sought log export tax and import duty exemptions, which would set a

precedent. This Canadian company plan to log the Sepik wilderness is

yet the latest major development plan in PNG with severe and major

land use implications. This one, as with others, is being rushed

through without adherence to PNG law and good land management sense.

g.b.

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

RELAYED TEXT STARTS HERE:

Headline: MP Akesim may be in leadership code breach

.proposed logger not registered with forest authority

Source: The Independent

Date: 12/27/96

Author: Joe Kanekane

AMBUNTI-DREKIKIR MP Judah Akesim is alleged to have breached the

leadership code by being a director and shareholder of a Canadian

company without declaring his interests to the Ombudsman Commission.

The Independent believes that Mr Akesim has not declared his interests

in the Canadian company, San Kung Pty Ltd, either prior to or after

him becoming a director and shareholder of the company on October 15

this year.

Mr Akesim is alleged to have breach section 8 subsections 2 of Section

8 of the Organic Law on the Duties and Responsibilities of Leadership,

which states that a person to whom this law applies who holds shares

or other investment in any foreign enterprise is guilty of misconduct

in office.

However Mr Akesim said that there was nothing sinister in his bid to

invite a reputable company into the country to develop the projects in

the East and West Sepik provinces.

He said all the activities that are to be undertaken by the company

have been declared in the trust deed, signed by himself and other

members of parliament.

He added that he was willing to defend his actions if he was asked to

and he refused to comment further preferring to release a statement.

"If the Ombudsman commission finds out that it is wrong I will go and

explain to them. For the time being we will leave things as there

are," he said.

The Canadian company, San Kung Pty Ltd, has made a K300 million

proposal to bring about infrastructural and social developments in the

East and West Sepik provinces. San Kung also intends to engage in

logging activities in the two provinces.

On November 13, two deeds were signed between company managing

director Christopher Wong and Deputy Prime Minister and Finance

Minister Chris Haiveta (on behalf of the state). Mr Akesim and Maprik

MP Sir Pit Lus signed on behalf of the East Sepik province while Nuku

MP Christopher Sambre and Telefomin MP Bob Netin signed on behalf of

the West-Sepik province.

The multi-million kina proposal is currently a subject of controversy

with at least two Sepik MPs, including West Sepik Governor John Tekwie

and four landowner companies opposing it.

However, San Kung has not obtained a permit to carry out logging

operations. It has not even applied for one or made any proposal to

the PNG National Forest Authority (PNGNFA).

In fact the first time the PNGNFA learnt of the company's intention

was through media reports.

"As far as the PNG Forest Authority is concerned we have not sighted

any proposal or application for a Timber Authority for any forestry

project under the forestry provinces.," according to a letter from the

managing director of the PNGNFA, Guao Zurenuoc, on December 16, to the

Commissioner-General of the Internal Revenue Commission and

Commissioner of Customs.

Mr Zurenuoc was pointing out the involvement of a senior government

minister seeking exemptions on log export taxes and import duty on

logging equipment for San Kung Pty Ltd. Such an exemption, The

Independent believes, is not granted to any other timber company in

PNG and Mr Zurenuouc is concerned about the implications of such

treatments.

Mr Zurenuoc said following procedures and guidelines laid down by the

National Executive Council meeting in Kundiawa in July this year there

will be no short cuts to access forest resources in any part of PNG.

"The company is not registered as a forest industry participated as

required by the Forestry Act and unless they are registered with this

Authority and Investment Promotion Authority they cannot deal with

forest resource owners and forest industry activities," Mr. Zurenouoc

said. According to Mr. Zurenuoc, San Kung is registered in the

Channel Islands, United Kingdom in early 1996 and there is no

information on their experience in the forest industry sector

overseas.

Mr. Zurenuoc said, "The Forest Industry Association has on numerous

occasions made statements to the effect that the timber industry is

heavily taxed. We are yet to make a positive response to the timber

industry take the decision that a new corner with no credentials is

being granted exemptions?"

Meanwhile, The Independent last week reported that Sandaun governor

John Tekwie was not consulted and thus will not let San Kung into his

province.

Mr Tekwie stated that the reasons for his refusal was that he was

concerned about the way in which the company was brought in, plus the

conduct of the members of parliament who were responsible for inviting

the company.

He said there were no documents made available to his office informing

him of the company and he said that the conduct in which the company

was brought in was highly sinister.

Mr. Tekwie questioned the motives behind the MPs intention in bringing

in the company to develop the areas when his province was already

engaged in major projects at their own pace.

He also asked why such a foreign company was invited on the eve of the

elections when the MPs responsible for bringing them in have been in

politics for many years and they have never brought million dollar

companies.

San Kung Pty Ltd was registered on October 15 this year. Its directors

includes Mr Wong, Mr Akesim and Nickson Sambiap, all of PO Box 5984,

Boroko, Joshua Wate of PO Box 6575, Boroko and Sibona Douveri of

Barakau village in the National Capital District.

Mr Akesim in the directors form was identified as a businessman.

Meanwhile four major landowner groups in the East Sepik have also

stated that they will oppose San Kung's bid to enter the two

provinces.

In a joint statement the chairmen of four well known and established

landowner groups, Kombio Holdings Pty Ltd, Ambunti holdings, Mapsera

Development Corporation and April Salumei Development Corporation

have stated that the company was not welcomed in their areas.

###RELAYED TEXT ENDS###

This document is a PHOTOCOPY for educational and personal 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

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