Government has not used landowner royalties

The Government has not used royalty payments earmarked for landowners from the PNG LNG Project.

This was the message from Minister for Petroleum and Energy, Nixson Duban, following the launching of the process to begin opening of ‘Beneficiaries Clan Accounts'.

Contrary to media publications and allegations that the royalty funds for the landowners have been used by the Government and other state agencies, Duban said the funds awaited the completion of the Ministerial Determination which has been done already.

He said the Government was committed to paying the royalties however, there remained legal cases to be sorted out before certain groups can be paid.

“The Government remains committed that all these funds that are earmarked for them, the 2% free carry equity, the royalties will be released.

Today Duban launched the process to begin the opening of ‘Beneficiary Clan Accounts’ of landowners from Portion 152 which include Papa, Lealea, Porebada, Boera, and Kido. 

The landowners from the Petroleum Processing Facility Licence (PPFL) 2 and the Pipeline Licenses (PL) 4 Segment 8, will open accounts in preparation  for the payment of royalties.

Duban said Central landowners were given an exception for the processing of royalties to be paid, as there were no conflicts or court cases, as opposed to landowners from the project sites.

“It is important that we don’t send double signal to our people. And you all understand that the important part of the project up in PDL 1 and 7, there are issues that are there,” said Duban.

Central Province Governor, Kila Haoda, told landowners that once they received their royalties they must spend or invest the money wisely for the benefit of their clans, families and village.

He called on the leaders of the landowner groups to be honest with their funds.

“It is very important that we have to work together as leaders, and to be honest with our people about the money we are about to receive,” said Haoda.

Around 90 clan accounts will be opened once the process of the opening beneficiary clan accounts is on foot.

Staff from the Department of Petroleum and Energy (DPE), Mineral Resources Development Company (MRDC) and Kumul Petroleum Holdings Limited (KPHL) and the Bank South Pacific will be visiting the villages to begin the process.

The process is expected to be completed within six months.

Author: 
Cedric Patjole