Report Calls Out Banks

Community advocacy organization ACT Now! has released a report that puts commercial banks in PNG Under the spotlight.

The report reveals that these financial institutions have offered at least K300 million in available credit to the five largest exporters of tropical logs in PNG since 2000.

The report is titled The Money behind the Chainsaws was jointly compiled by ACT Now! and Jubilee Australia. According to ACT Now! Campaign Manager, Eddie Tanago, the money given by the banks to logging companies may be higher.

“The true amount of financing could be as much as three times as high due to gaps in the companies’ reporting and funding processes for logging activities,” Mr Tanago said.

He said the financing was given despite multiple reviews exposing illegal practices at that time.

Australian banks Westpac and ANZ, have been named among the commercial banks.

Mr Tanago said, “Westpac and ANZ have said that they have ended their financing relationships with logging companies that do not have FSC or FEFC certification.

BSP Financial Group and Kina Bank have been named in the report also.

Mr Tanago said, “BSP appears to be providing K64.8 million in financing to subsidiaries of logging giant Rimbunan Hijau, including Wawoi Guavi Timber company limited, and Gilford Limited, both of which have been implicated in reports of police violence against landowners and environmental destruction. Kina Bank says it has no current financing relationship with Rimbunan Hijau.

Loop PNG has contacted both financial institutions for comment.

In 2017, a Bank of PNG National Risk assessment concluded that illegal logging in the country possesses a significant money laundering threat.

ACT Now! is calling on all commercial banks operating in PNG to end all banking services to companies involved in large-scale tropical forest logging and to publish information on the current banking relationships with the sector.

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Press Release