It’s theft, says Sir Mekere

 THE government of Prime Minister Peter O’Neill has “stolen” an asset belonging to the people of Western, Sir Mekere Morauta says.

Sir Mekere’s statement, the strongest yet made by the PNG Sustainable Development Programme (PNGSDP) Ltd chairman,  indicates the former PM intends to directly oppose the decision by Prime Minister Peter O’Neill to expropriate Ok Tedi Mining Ltd without paying compensation.

Sir Mekere saidin his statement released yeasterday:  “Stealing an asset worth approximately K2 billion to the people of Western, plus their annual K450 million share of the Ok Tedi dividends, is not acceptable legally or morally. It is unconstitutional as well.

“I also fear that this is just the first step – I hope he does not want to get his hands on PNGSDP itself and the US$1.4 billion in the Long Term Fund.”

Sir Mekere said he was shocked by the prime minister’s announcement of the expropriation on EMTV. 

“Those shares are owned by the people of Western, not PNGSDP. 

“PNGSDP is merely the custodian of the shares.

“The prime minister is legally and morally obliged to pay a full and fair price if he is so determined to get his hands on them.”

PNGSDP chief executive officer David Sode was no less adamant.

Sode said under the Community Mine Continuation Agreement, people were entitled to their expressed views that the Government takeover of a mine without adequate compensation was unacceptable.

“Any such takeover strips away the right of the CMCA people to have the final say in whether the mine continues or not. It  threatens their involvement in decisions on the appropriate level of compensation for environmental damage,” Sode said in a statement. 

“It also puts at risk the receipt and management of their rightful share of dividends from the mine, and the social and economic development that is provided from those dividends. It also takes away their rightful share of dividend flows from the mine.”

Sir Mekere said the company would stand with the people of Western, especially the communities affected by mine operations and landowners, who have voiced their strong opposition to the Government’s plans.

“PNGSDP has a duty to protect Western people’s assets, and will do so with all necessary legal means,” Sir Mekere said.

He had spent the past six months trying to negotiate a fair deal on Western’s 63.4% shareholding held by PNGSDP with O’Neill.

He was aware that many MPs were concerned by O’Neill’s decision, which had been taken in isolation and against the recommendations of some of his most senior and respected advisors.

Sir Mekere said O’Neill’s criticism of PNGSDP’s record on sustainable social and economic development were nonsense.

PNGSDP had spent approximately K1.18 billion on more than 600 sustainable social and economic development projects since it began operations in 2002.

“Compare PNGSDP’s commitment to development of Western with the achievements of the national government,” he said.