Gold bill agreement queried

PNG Law Society president Hubert Namani has asked for full disclosure of the shareholder’s agreement pertaining to the National Gold Corporation (NGC) and subsidiary companies.
Namani said on Friday following the rule-of-law-march by lawyers in Port Moresby that Parliament could blindly pass legislation in such form.
“We are deeply concerned to see in recent times a bill being introduced to Parliament that gives effect to an undisclosed shareholders agreement between the State and a private enterprise,” he said.
“We have serious concerns with the proposed National Gold Corporation Bill 2022.
“This lack of transparency raises serious questions about accountability, national interest, and potential conflicts of interest.
“Furthermore, we urge the Government to exercise caution and extreme restraint when contemplating any constitutional amendments.
“It is essential that policies guide legislation, with national interests taking precedence over political interests and or private commercial interests.”
The National Gold Corporation (Project and Shareholders Agreement) Bill 2022 which was tabled in Parliament in February seeks to provide for the approval and ratification of the National Gold Corporation project and Shareholders Agreement between the State and Refinery Holdings as the founding shareholders of NGC.
The National Mint which includes the National Gold Refinery, the National Gold Bank and the National Gold Marketing will be established as subsidiaries under this law on behalf of the State.
The State’s new refined gold industry regulator, the National Gold Authority, will also be established by this Act.
All gold mined or recovered in PNG will be refined by the National Gold Refinery.
This has been a particular sticking point in the debate so far and is likely to garner a tumultuous response.
International standard gold bullion bars, legal tender investment grade gold coins and other gold products will be manufactured and minted by the National Gold Refinery.
The National Mint and National Gold Notes and other gold backed instruments will be issued by the National Gold Bank.
The law is detailed in a 435-page document and many more pages of annexures.
The National Gold Bank was proposed as far back as 2013 during the Peter O’Neill-led Government but has been on and off the Cabinet’s agenda up to 2022.
The issue has raised enormous debate as to the ownership and shareholding and the powers of the proposed entities.
The powers granted under this Act to NGC are enormous including limiting the powers of the Central Bank to deal with the National Gold Bank in certain important respects.