PNGBLOGS

by  MICHAEL J. PASSINGAN In a significant setback for Mineral Resources Development Corporation (MRDC), the Supreme Court of Papua New Guinea has dismissed the company's appeal to stop criminal investigations into its dealings with landowner funds held in the Pacific Balance Fund (PBF). The court ruled that MRDC's appeal was an "abuse of process" and ordered the company to pay costs of the proceedings. MRDC, a unit holder in PBF, had taken legal action against the National Court's decision to dismiss its case, arguing that the court had no jurisdiction to hear the matter. However, the Supreme Court disagreed and held that MRDC's appeal was nothing more than an attempt to interfere with the police's criminal investigative process. The court found that MRDC had no authority to conducted its own investigation into the activities of the Melanesian Trustee Services Limited (MTSL), the fund manager of PBF, and that its actions were in violation of the Trust Deed

MRDC is the Trustee of funds belonging to Landowners of major resource projects in the country. It makes "investments" on behalf of the landowners. Peter O'Neil in his capacity as PM owns the shares of MRDC and Chief Secretary Isaac Lupari is the Chairman of the Board. In 2012 CEO Augustine Mano and the MRDC board bought the fledgeling Resort in Fiji with much fanfare. The resort boasts an 18 hole golf course and numerous swimming pools. This transaction was rushed despite opposition from landowners and against the advice of experts in the hospitality industry in Fiji. MRDC not only purchased the resort but it also invested heavily in the construction of a new wing. It appears that the resort is now in serious financial strife with very low occupancy rates and dwindling income. Rooms are believed to be offered now for as low as K120 as no one is going there. The financial status of the resort and all other MRDC investments cannot be confirmed as the financial statem

by PNGI CENTRAL The Mineral Resource Development Company (MRDC) is a State owned entity that manages landowner equity interests in mining and petroleum projects on behalf of landowner companies. Augustine Mano has been the Managing Director since March 2008. In his report for 2009 , the Auditor General recorded his concern that Augustine Mano was avoiding paying tax on K600,000 a year, 80% of his total remuneration: I noted that a “Professional Services Agreement” was signed on the 15th of May, 2008 between MRDC and the Managing Director as the “Incumbent Professional” of SMA Investment Limited “the company.” SMA Investment Limited is a Papua New Guinea registered company owned by Augustine Mano as the sole shareholder. The Auditor General’s report continues: Section 4 of the contract states that MRDC will pay the Managing Director and SMA Investments Limited a monthly fee of K62,500 (K750,000 annually, GST excl.) based on an invoice pr