4 Oct 2006

Compensation deal ends stand-off in PNG's second city, Lae

4:37 pm on 4 October 2006

Four days of tension between tribal groups in the Papua New Guinea city of Lae, have eased, after a commitment to pay compensation.

Fighting erupted after a Enga province man was killed when he failed to pay a bus fare.

Western Highlanders, who own most of the public transport services in Lae, then removed their buses from the roads stopping many hundreds from getting to work in the city.

But the chief reporter in the Lae office of the Post Courier newspaper, Abby Yadi, says activity is back to normal after both groups met yesterday.

"Their leaders brought to an area, a central area, with police supervision. And they negotiated and talked and settled the dispute with promises of compensation to paid by one of the sides."

Mr Yadi says the size of the compensation is not yet set but it will involve a cash payment and pigs.