MINISTER & CHINESE WOMAN EXPOSED IN ILLEGAL LAND GRAB
by BRYAN KRAMER
On 22nd December 2016 social media exposed an illegal land grab over two parcels of prime public land in Madang involving Minister of Petroleum & Energy and Member of Madang Open Nixon Duban and the Minister of Lands Benny Allan.
On 5th December 2016 Minister of Lands Benny Allan
issued a notice under Section 72(d) of the Lands Act (Powers of Minister to
Grant State Lease Directly) granting a business lease for development of
commercial complexes and residences over land described as Sir Donald Cleveland
Park and Yabong Sports Field to a paper company Dawan Investments Ltd.
Minister of Land's decision was made following the
request of Member of Madang Nixon Duban in a letter dated 16 November 2016.
Duban claimed that the Madang District Development Authority (DDA) resolved to
develop the two parcels of land for the purpose of the 2018 APEC meeting.
Duban goes on to claim that it was also the Board's
(DDA) decision that Dawan Investments Ltd be awarded the title over the two
parcels of land to commence immediate development. He requested the Minister
immediately transfer the title to Dawan Investments.
20 days later on 5 December 2016 the Minister of
Lands complied with Duban's request awarding the title over both parcels of
land to the company.
So what was the proposed development?
According to a letter purportedly authored by the
Dawan's Investment Managing Director - "it was the company's intention to
show case the economic opportunities for the summit" .. to construct a
mega mall with a recreational playground"
However after the story broke on social media
receiving much public criticism seems the scope of development has now changed
to the development of two hotels. "The hotels are to carter for hundreds
of executives and officers attending APEC meetings in town." said Madang
DDA CEO (District Administrator).
So was the granting of the title to Dawan
Investments by the Minister of Lands illegal?
The short answer is Yes and before I explain why
lets first establish some background facts surrounding this issue.
What do we know about Dawan Investments Ltd?
According to IPA records it is a locally registered
company incorporation in June 2013. The company's three directors include:
1) Mr. Stanley Kaut former IT officer with Nasfund
and family relative of Duban, who resides at McGregor Police Barracks, 9 Mile
Port Moresby;
2) Ms Pauline Galopo, admin officer and a family
relative to Duban who resides at Gerehu Stage 3B in Port Moresby
3) Mr. Felix Abegul recent UPNG graduate employed
with Madang DDA on administrative matters and to manage district projects;
Duban's wife Debbie Duban is also the Company's
Vice-chairman and Treasurer. However her appointment is yet to be registered
with the public records of IPA.
The company's Shareholders include Mr. Stanley Kaut
and Mr Lamak Kautit. Mr. Kautit's residential address is the same as Duban's in
Port Moresby Section 33 Lot 1 Sogeri Road.
Former Director and shareholder of the company
include Collin Iwap, Duban's electoral officer and current District funds
co-coordinator.
The company's registered office is also Duban's
residential address in Port Moresby.
According to the company's minutes the company was
formed "to assist and serve as mediator between Government organisations,
private sector and general public in terms of proposal preparations, security
assessments and government implemented projects"
In summary the Member of Madang wrote to Minister
of Lands insisting he transfer the title over the two parcels of prime public
land to a company made up of this own staff, family relatives and wife.
A company that is registered less than three years
ago, has no record of actually operating or track record to carrying out any
development let alone the major development of a mega mall or two hotels.
Now it is important to note Duban's letter to the
Minister was in response to a letter he received from an unnamed person signing
off as Managing Director of Dawan Investments Ltd.
Who wrote "my company has just received
approvals from the National Physical Planning Board for the re-zoning and the
proposed development which the company is planning to construct within the
site." [Sir Donald Clevland Park]
"...we would very much appreciate it if the
title of the subject parcel of land to be granted directly to you under Section
72 of Lands Act, subsection (a) or Section 102 subsections 1 and 2 where it
says the Minister of Lands and Physical Planning may grant a special business
lease to companies or individuals as he sees fit"
Now this is where it gets interesting - the letter
to Duban from the Managing Director was not authored on Dawan Investments Ltd
company letterhead but a company by the name of Loyaluck Investments Limited.
IPA records confirm this company is owned by a
Chinese company Plataus Resources Ltd, registered in Hong Kong only a year
earlier (April 2015). The company's sole director is a young Chinese woman Ms.
Wen Lei Cui.
She is also the director of the companies behind
Plataus Resources Ltd , Moneyman Investments Co Ltd and Dynamic Wealth
Resources Ltd.
The signature of the person writing under the title
of Managing Director of Dawan Investments does not match any of the signatures
of the persons named as the company directors or secretary.
Yet he clearly refers to Dawan Investments as
"his company" or was he referring to Loyaluck Investments Ltd whose
ultimate holding is a Chinese company.
Duban was recently accused of associating with an
young Chinese female by the name of Dora Lu. She is accused of acting as agent
for Chinese companies playing a key role in comforting PNG Ministers of State
and Department heads in the Petroleum and other key sectors. Is it a
coincidence the ultimate holding company behind Loyaluck Investments Ltd is
registered as a Resource Company also involving a young Chinese female.
This begs the question whether Dawan Investments is
just is a front used to acquire public land for Chinese nationals.
Back to the central question whether the granting
of the title to Dawan Investments was illegal?
According to the notice issued by Minister of Lands
he exercised his powers under Section 72(d) of the Lands Act to grant a direct
lease to the company without having to follow the usual process of referring
the application to the Lands Board.
The problem is Section 72(d) relates to granting of
State Leases under Section 99, which states the Minister may, by written
agreement grant a lease of Government land on which there is a building the
property of the State.
Now neither parcel of land has Government buildings
on it. Therefore the Minister's decision to grant the lease under Section 72(d)
was illegal.
Further even if the Minister of Lands had complied
with the request of the Managing Director of Dawan/Loyaluck Investments and
directed the land be awarded to Member of Madang Nixon Duban under Section
72(a) it would also be illegal as this provision only relates to granting of
business or agriculture leases over customary land.
So now that we have established the granting of the
lease to Dawan Investments is illegal will anything be done about it?
Well I've issued instructions to my lawyer in
Madang to file proceedings seeking an extension to file an appeal against the
Minister of Land's decision and at the same time obtain a caveat (stay) over
the land pending the outcome of proceedings.
With the National Elections around the corner I
expect the good Minister of Lands to revoke his decision to avoid being dragged
through the Court and implicated in an illegal land grab.