PNGCore debunks Gold Corporation Bill
The Papua New Guinea Chamber of Resources and Energy (PNGCore) has debunked the National Gold Corporation Bill 2022 in a detailed analysis of its impact on the country and the existing legislations. This is the first part of a two-part series of PNGCore’s response to the National Gold Corporation Bill which is expected to be debated in the next sitting of Parliament.
Q: How does the National Gold Corporation Bill override other existing legislation?
PNGCore: Once passed in the Parliament, the National Gold Corporation Bill will affect 26 existing Acts of Parliament. It will either bypass, or undermine the relevance and application of these laws, affecting certain sovereign rights of PNG that are now protected under these laws.
Q: How does the Gold Corporation affect the Central Bank?
PNGCore: The Bill introduces several provisions that could significantly impact the operations and responsibilities of the Bank of Papua News Guinea (BPNG). This changes are expected to affect BPNG’s core functions which include ensuring price stability, promoting macroeconomic growth, issuing the national currency, and fostering the overall economic development of the country. The Central Bank will no longer:
- GIVE a banking licence to persons or institutions that may conflict with the licence provided to the National Gold Bank (Section 106) under Subdivision D general conditions, which states no conflicting banking licences prior to or after the commencement date;
- AMEND a current banking licence of an authorised institution; or
- GRANT or issue a banking licence to another person.
Under the Banks and Financial Institution Act which if so amended, granted or issued, as the case may be, would conflict or otherwise be inconsistent with the term of the banking licence as provided for in this part but not yet granted , or as otherwise granted and issued pursuant to this part, as the case may be; or any function, including any exclusive functions, vested in the National Gold Bank under this Act.
The BPNG will be unable to oversee the National Gold Corporation, including the National Gold Bank in accordance with the Banks and Financial Institutions Act. This effectively places the foreign owned company Gold Bank over PNG’s banking regulations (Section 128).
Q: How does the National Gold Corporation Bill affect the Department of Justice and Attorney General?
PNGCore: The National Gold Corporation (NGC) comprises 966 sections and seeks to supersede or eliminate sovereign powers if the State outlined in over 25 distinct legislations. This includes specific powers of the Department of Justice and Attorney-General in delivering law and justice service to the people and the State.
Q: What is the use of the Gold Police?
PNGCore: The Bill will introduce a new police unit called the Gold Police with extraordinary powers and unrestricted access to firearms, thereby undermining the Police Act and the Firearms Act. The Gold Police will be vested with sweeping powers to search, seize and obtain any citizens at the request of the foreign company. These raises alarm over potential breaches and abuse of power (Section 555, Section 556, and Section 557). Gold Police officers are also allowed to arrest any suspect they believe has committed or is about to commit a crime.
Q: How does the Bill affect Customs, the IRC and ICCC?
PNGCore: Essential functions of the Papua New Guinea Customs, Internal Revenue Commission, and Independent Consumer and Competition Commission (ICCC) will be impacted by the Bill once it is implemented or passed in the Parliament. An example is it would undermine PNG Customs functions in regulating imports and exports.
Q: How would it affect services at PNG’s ports of entry?
PNGCore: PNG Ports, Civil Aviation Safety Authority (CASA) and National Airport Corporation are State agencies overseeing and managing business operations at airports and ports. The Bill undermines or duplicates PNG Ports’ function to build and regulate ports, wharves, docks, and similar infrastructures, particularly for storage and movement of gold goods.
It also will restrict CASA’s authority to oversee airport operations, facilities, and security by duplicating its responsibilities. It will introduces provisions related to security, access to premises, and private arrangements, which may overlap with CASA’s existing role (Section 940). It will also interfere with the National Airport Corporation’s ability to oversee the airport operations.
Q: How does the Bill affect the IPA and ICA?
PNGCore: It will impede key functions of the PNG Investment Promotion Authority. It will undermine IPA’s function by allowing the National Gold Corporation to skip over IPA rules for operating business in the country.
This means the Gold Corporation could operate without following the same standards as other foreign companies.
It compromises the functions of Immigration and Citizenship Authority (ICA) by permitting individuals classified as authorised or exempted persons, expecting them from the immigration and citizenship laws and practices of PNG regarding inspection, search, entry, and departure from PNG.
To conclude the first part of these two-part series, the National Gold Corporation Bill still needs proper consultation from all stakeholders and needs to be reviewed by the legal society before it is being tabled in Parliament.