Forestry Reviews At Center Of Controversy

Preliminary findings from a review of 14 current logging projects in Papua New Guinea by an independent team of investigators have revealed serious breaches of various PNG laws by logging companies.

The findings of the Papua New Guinea Review of Current Logging Projects contradict recent statements by the PNG government, the National Forest Authority, and the PNG Forest Industries Association, that all is well in the forestry sector, which last year contributed K415.8 million to PNG's coffers and accounted for 5.3 percent of PNG's total merchandise exports. However, industry representatives have already rejected the review and their critics.

"The government's own reviews have found that the level of legal compliance in logging projects is very, very poor. We don't like to say the Prime Minister, Minister for Forests and the Chief Secretary are deceiving the people, but the evidence is there in their own review reports," says the Kenn Mondiai, Chairman of the PNG Eco-Forestry Forum, a prominent non-government organization.

But Prime Minister Sir Michael Somare's chief secretary Joshua Kalinoe hits back at Mondiai saying, "If there is anyone misleading the people on logging in PNG, it is agencies like the PNG Eco-Forestry Forum."

Landowner Sakas in one of the forest concessions under the microscope, Wawoi Guavi. Photo: Courtesy of Scheltema/Greenpeace

PNGFIA Executive Officer Bob Tate has also dismissed the review team's findings. Tate says the timber industry has evolved into a well-managed sector minus political interference since the Barnett Inquiry of 1989, which found illegality, collusion, corruption and tax evasion.

The more recent review team's findings have also been sharply criticized by Malaysian logging conglomerate Rimbunan Hijau, with its PNG operations managing director James Lau and company secretary J.K. Balasubramaniam accusing the review team of not including their comments in the final report.

"As a developer we need to comment on this report, it is requirement of natural justice because it implicates us. It is not a balanced report (as) they would have to comply with the rules of natural justice, let the man who is about to be condemned be heard," says Balasubramaniam.

Fourteen projects located throughout PNG went under the investigators' microscope. The main breaches alleged by the report include failure by logging companies to comply with their own environmental and logging plans, underpayment of landowner premiums and infrastructure benefit funds, inadequate infrastructure facilities and unsafe work practices.

Rimbunan Hijau has the timber rights purchase certificate to three of the reviewed projects, Vailala Block 1, Manus West Coast and Wawoi-Guavi. Mostly Malaysian companies, including Innovision (PNG) Ltd, Turama Forest Industries, Frontier Holdings, Kerawara Ltd, Low Impact Logging Ltd, Nangal Ltd and Bismarck Industries (PNG) Ltd, operate the other projects.

The review team led by veteran Australian forester Thomas Vigus and assisted by three consultants and representatives from the departments of Labour, Environment and Conservation, Works and National Forest Authority, are expected to present their final report to the PNG government in June. All stakeholders will then discuss its contents in public forums before the PNG government decides on a course of action.