Logs May Be Seized in Makapa--Worth K3m

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

PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

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

Forest Networking a Project of Ecological Enterprises

http://forests.org/ -- Forest Conservation Archives

http://forests.org/web/ -- Discuss Forest Conservation

5/23/99

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

RELAYED TEXT STARTS HERE:

Title: NFS may seize Makapa logs worth K3m

Source: The Independent

Date: May 21, 1999

Byline: JOE KANEKANE

THE NATIONAL Forest Service (NFS) may seize a stock pile of logs

worth about K3m in the Makapa project of the Western Province.

Forest officers are already in the area putting the hammer brand on

the logs collectively about 16,000 cubic metres.

NFS's managing director Thomas Nen authorised the order on May 12

following advice from his staff that the company, Innovasion (PNG) had

not complied with requirements set by the Forestry Act.

"I advise that pursuant to regulation 226 of the forestry regulations

I hereby approve and authorise the use of hammer brand for the act of

the seizure. The round logs and other forest produce to be seized by

the described hammer brand are all for export by Innovasion (PNG) as

per formal notice of seizure," said Mr Nen.

A letter from the NFS's general manager Dike Kari to Thomas Nen

said that the company:

* Engaged another company as its logging contractor without a

license and IPA certification;

* Harvested timber and stockpiled logs of about 16,000 cubic

metres without any authority held by the contractor;

* Approval was not obtained by the permit holder to engage the

contractor; and

* The permit holder appears to have transferred all obligations

to the contractor.

"I am therefore recommending that PNG Forest Authority immediately

suspend all logging operations in Makapa project and seize logs

currently stockpiled," Mr Kari wrote.

However the company's lawyers have written to the NFS to verify the

reasons why NFS wants the logs seized.

In a letter to the Managing Director of the NFS, Fiocco, Posman and

Kua lawyers wanted the NFS to specify sections of the Forestry Act

that was violated, the suspension of timber permits, the time limit

and interim permission to export.

The letter also stressed that the company had contractual agreements

with other companies to load the logs and the NFS's action would have

ramifications its operations.

"Our client will be very happy to attend at the round table conference

in your office to discuss these matters," the letter continued.

However Mr Kari said that the questions raised by the lawyers would be

best answered by its clients because there was ample time given to the

company to show cause why the NFS should not seize the logs.

Makapa project operations suffered setbacks since the Timber Permit

No. 1-9 was signed on June 24 1992. Work did not commence until early

this year. The delay had been due to various reasons which has been

supported by previous ministers of forests. Further delay was accepted

by the previous managing director when the log prices were drastically

affected by the down turn in the economy of South East Asia.

###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