NIP sells shares in NBPOL

 By MARGARET TALINGAPUA

THE New Ireland Development Corporation (NIDC) has sold more than half of its shares in New Britain Palm Oil Ltd, reaping a total of K6.75 million, an official says.

Governor Sir Julius Chan said income from the 380,000 shares sold would be used to promote diversified agricultural activities and establish a joint venture interest in an integrated agriculture programme with the Israeli LR Group.

The provincial government’s 18.7% of equity in Poliamba was converted to just over 711,000 shares when Poliamba was sold to NBPOL.

Sir Julius said the reason for offloading the shares was because of the changing of Poliamba’s ownership without the provincial government’s notice. 

He said: “Since the provincial government acquired the equity, we have not been treated as partners, having no input in business making decisions and silenced by big businesses that seem to live in another world.

“Poliamba estates changed ownership twice without notifying the provincial government about the changes; first to Cargil/Temasek of Singapore in 2005 and then to NBPOL in 2010.”

In May 2012, the provincial executive council decided that half of the shares (380,000 shares) would be sold and that the remaining 330,000 shares would be held in a trust by NIDC for smallholder oil palm growers in Tikana and Central New Ireland local level governments.

Of the remaining 330,000 shares; PEC has instructed that about 140,000 shares be distributed directly to the two LLGs in proportion to the number of hectares of oil palm they have cultivated.