Government Take Over of Ok Tedi Mining Ltd and PNGSDP

PNGBlogs

The Opposition is concern that the Government is tabling amendments to the Mining (Ok Tedi Continuation) (Ninth Supplemental Agreement) to give the State “maximum power” to determine the future of the Ok Tedi Mine and the PNGSDP.

We are very concern that the Government is setting a very dangerous precedence here by trying to legislate to take control of private companies.  This is a very negative signal to the investment communities and will create a lot of unnecessary anxiety.

We are becoming very concern that this Government is using its numerical street and the immunity of the amended Section 145 to slowly become dictatorial.

This is what the Opposition has been trying to warn the people of this country when it raised issues on the amendments to Section 145 on Motions of vote of no confidence.

This is a very dangerous trend for this country and the people must pressure and encourage their local members of parliament to use their conscience to scrutinize such bills.

The opposition is also concern that certain pertinent questions remain unanswered with the bill.

1.      The Prime Minister has not clearly defined what is going to be the new shareholding structure once the Ok Tedi mining is taken over.

2.      Will the current 63% shareholding by the people of Western Province increase or decrease?

3.      How much shareholding is the state planning to take? Will it remain at 37% or increase further?

4.      What happens to the US$1.4 billion held in Singapore by PNGSDP for the people of Western Province for future generations?  Who takes control of these funds when the take over takes places?

5.      What is the corporate structure that the government will use to take over the operations of the OTML?  Will there be political appointment at the Board and Management?

6.      As it consult the people about this move?

Until these pertinent questions are answered, we are very suspicious of the Government move and would like to request for more clarity from the government.

This is a very important matter especially for the people of Western Province who have suffered from the bad decisions of past governments and this government must ensure that it does not repeat the mistakes of the past.

The people of Western Province through their elected representatives must request for definitive response from the Prime Minister and not just agreeing to generalize bills that once passed will corner them again as it has been in the past.

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