Court refuses to lift restraining order in K52mil case

A COURT has refused to lift an interim restraining order obtained by the Hulia local level government in Hela stopping the payment of more than K52 million to landowners.
In the National Court, Judge Allen David on Thursday ruled on an application by the Southern Highlands and Hela provincial governments to lift the order.
Justice David said it was in the best interest of justice that the matter be stayed pending further evidence.
The money is for levy fees to landowners in Hela and Southern Highlands affected by the Liquefied Natural Gas project.
The order was obtained by Hulia LLG president Eric Yawas through lawyer Paul Othas who claimed that the money paid to the two provinces was in breach of the
Umbrella Benefit Sharing Agreement (UBSA) under the Oil and Gas Act.
The provinces are to receive K26 million each as development levy for all the LLGs affected by the LNG project.
Othas said outside court the UBSA was signed in 2009 in Kokopo before Hela became a province of its won.
He said the agreement needed to be ammended to take into account the fact that Hela had become a province.