Namah denies he was behind Pouru sacking

DEPUTY Prime Minister Belden Namah claimed yesterday that it was not him but the National Executive Council (NEC) which decided to award a Middle Ramu concession to Madang Timbers Ltd and to suspend PNG Forest Authority managing director Kanawi Pouru.
Namah, who is also the forestry minister, told a press conference that he did not influence the NEC on both decisions.
The Association of Foresters of PNG, however, holds the view that minister suspended Pouru and might have misinformed the NEC on the real reasons for doing so.
It noted that the suspension notice was dated Feb 12 whilst the NEC met days later.
It described the suspension as “highly irregular” and questioned the motive.
The association expressed concern over the minister’s actions which it said bordered “on issues of corruption, illegal practices and poor governance”.
“(The) association feels that the minister with vested interest has favoured a particular developer and as such has opted contrary to the (National Forest) Board’s recommended position,” it said in reference to the move to award the concession to Madang Timbers.
The board had evaluated three tenders and chosen Timbers PNG Ltd, a subsidiary of the Rimbunan Hijau (PNG) Group.
Namah called the press conference in response to a report in The National that he had pressured the board to award the project to Madang Timbers although it did not meet the guidelines.
The report also said an individual had allegedly offered financial inducements to board members to decide in favour of the company.
Yesterday, Namah said the decision (to suspend) of last Thursday was also in line with the National Court orders of 2009, particularly Order 7. (The National understands that the suspension letter was dated Feb 12.)
The minister also accused Pouru of promoting RH and Timbers PNG.
“Under the National Forest Act, the Madang Provincial Forest Management Committee should recommend before the board makes its recommendations to the minister for formal approval,” he said.
“However, the managing director went ahead to allocate the permit to Timbers PNG, which was in breach of section 71 (b) of the Act.
“The NEC saw the MD’s work contrary to the contract obligation. He played a dual role. Whose interest are you going to serve?
“It was incumbent for him to serve the government.”
Industry observers are surprised that the minister apparently did not follow the procedures as stipulated in the Forest Act and has taken the matter directly to NEC.
The Act requires the Madang Provincial Forest Management Committee (PFMC) to evaluate the tenders and forward its recommendation to the board which then submits its own recommendation to the minister for formal approval.
If the minister chooses to ignore the board’s approval, he must first secure the NEC’s approval.
Following an appeal by Madang Timbers and a Supreme Court ruling, the board referred the project back to the PFMC.
However, even though the PFMC has yet to decide, sources said the minister sought approval from the NEC to award the project to Madang Timbers.
The court found that the board was incorrect in recommending Timbers PNG for the project because the company’s name was omitted in a form 103 under the Forest Regulations.
Based on this technical finding, the permit was revoked.
Industry sources said the developers of Amanab 5 and 6 FMA and Aitape Lumi FMA applied the same process without form 103 and the allocation process was not questioned.
These projects could now become subject to legal challenges if a precedent would be set, they warned.