Log programme falls short of objectives: Study

BY JEFFREY ELAPA
THE Log Export Development Levy (LEDL) has not served its purpose, according to the Auditor-General’s Report on management of the Log Export Development Levy in Papua New Guinea.
The report said the LEDL had not served its purpose.
The LEDL was established by law in 2006 to provide funds to assist in the provision of basic infrastructure and facilities for services such as health, education, law and justice, infrastructure and agriculture project in logging areas of PNG.
It is a custom duty imposed on the exporter at the rate of K8 per cubic metre of the total volume of logs exported and kept in a trust.
The report indicated that between 2012 and 2015, there were 14 million cubic metres of logs exported from Papua New Guinea. More than K105 million was paid into the trust account for future expenditure on projects in the logging districts.
The report said 84 project proposals were received and registered for levy funding between 2007 and 2015.
Only 12 proposals valued at K14.52 million had been considered by PNG Forest Authority.
“This means that less than 25 per cent of the funds raised over the last four years have been committed to projects since the programme’s inception,” the report said.
“For this reason, the Log Export Development Levy programme is falling short of its objectives.”
The report said funds deposited into a withholding trust account were then transferred into a main trust account. That step was seen to be unnecessary and time consuming.