By ZACHERY PER
THE PNG Coffee growers’ federation (PNGCGF) has secured a crucial victory in court, paving the way for it to export coffee piling up in Lae wharf.
The coffee was in danger of rotting and going to waste after the Coffee Industry Corporation (CIC) banned its export.
The federation took CIC to court and won an interim injunction barring CIC from preventing the coffee being exported.
The injunction was granted in Port Moresby last week.
The federation went to court after alleging that CIC refused to renew its coffee exporting licence without any genuine reason.
PNGCGF chairman Mr Jon Yogiyo expressed satisfaction over the court order which would allow them to do normal business and export tonnes of green beans from last year and early this year that would have gone to waste.
“CIC’s action amount to abuse of powers.
The action of CIC chief executive officer Ricky Mitio was aimed at driving PNGCGF out of business for the benefit of a few exporters,” Mr Yogiyo said.
“The court injunction is good news for 160 coffee co-oporatives in 10 provinces of the 16 coffee growing provinces in PNG, who are members of the federation,” Mr Yogiyo said.
He said CIC went ahead to close the Solop Coffee Mill in Erap Morobe province, which PNGCGF had a formal lease agreement with the owners to process coffee from parts of the Highlands, Momase and Southern regions.
However, Warner Shand Lawyer acting for CIC and responding on behalf of Mr Mitio, yesterday said an application had been made to have the injunction set aside, adding this was the situation regarding the proceeding.
The firm said the dispute between their client and PNGCGF stemmed from an objection taken out by PNGCGF relating to an investigation by CIC into its operation.
It confirmed that PNGCGF’s coffee exporting licence for 2007 expired last Dec 31.
The licence was not renewed.
The investigation arose from complaints by smallholder coffee growers who claimed to be shareholders of PNGCGF.