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WHY THE LNG RESOURCE OWNERS SHOULD BE CONCERNED WITH TRUST FUNDS HOLDING THEIR ROYALTY MONEY

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by KARK SEMANU WHAT ARE TRUST FUNDS Outside of PNG trust funds are normally established as either medium term holding accounts whose contents at a specified date are turned over to a beneficiary, or to an account maintained in perpetuity, where the principal is never touched and only the earned interest monies are ever withdrawn. CORRUPT USAGE OF TRUST FUNDS:   1. LEAVING THE PRINCIPAL BUT STEALING THE EARNED INTEREST In PNG, the trust account concept has been corrupted in many directions. The most common reason for a politican or a government bureaucrat to want control of a trust account is to steal the interest monies accrued. That is a corruption of the traditional trust account in that they have no authorisation to do this. The interest monies earned belong to the government. The corrupt government official's actions escape the government's attention in many cases in this way: A government disbursement of a quite large amount of money is secured, let's say K2

When ExxonMobil Begins Drilling for Gas in Papua New Guinea, Will the Country Fall Victim to the Dreaded Resource Curse?

JUSTIN ROHRLICH Reports have emerged that ExxonMobil ( XOM ) will begin drilling for natural gas in Papua New Guinea. The company’s operations are expected to bring $30 billion -- more than double its current GDP -- over 30 years, but many are wondering if Papua New Guinea, named one of the world’s most corrupt countries by Transparency International, will be able to avoid the so-called “Resource Curse.” The Resource Curse is the paradox that occurs when a country finds itself sitting atop vast riches in the form of minerals, precious metals, and so forth, but finds itself pushed deeper into poverty and societal disrepair. According to the Christian Science Monitor , Juan Pablo Pérez Alfonso, one time Venezuelan oil minister, likened oil to “the devil’s excrement”. Sheikh Ahmed Yamani, his Saudi Arabian counterpart, reportedly once said, “I wish we had found water.” Case in point: According to The New York Times , the chief of Kili, a local Papua New Guinea town, received $

When ExxonMobil Begins Drilling for Gas in Papua New Guinea, Will the Country Fall Victim to the Dreaded Resource Curse?

JUSTIN ROHRLICH Reports have emerged that ExxonMobil ( XOM ) will begin drilling for natural gas in Papua New Guinea. The company’s operations are expected to bring $30 billion -- more than double its current GDP -- over 30 years, but many are wondering if Papua New Guinea, named one of the world’s most corrupt countries by Transparency International, will be able to avoid the so-called “Resource Curse.” The Resource Curse is the paradox that occurs when a country finds itself sitting atop vast riches in the form of minerals, precious metals, and so forth, but finds itself pushed deeper into poverty and societal disrepair. According to the Christian Science Monitor , Juan Pablo Pérez Alfonso, one time Venezuelan oil minister, likened oil to “the devil’s excrement”. Sheikh Ahmed Yamani, his Saudi Arabian counterpart, reportedly once said, “I wish we had found water.” Case in point: According to The New York Times , the chief of Kili, a local Papua New Guinea town,