30 Apr 2014

PNG Govt says SDP Board removal of Govt representation illegal

10:49 am on 30 April 2014

The PNG Sustainable Development Programme Board under Sir Mekere Morauta has reportedly removed any representation by the PNG Government and the people of Western province on the Board of the company.

Our correspondent says the PNG government has recently learnt about the latest developments with the Chief Secretary issuing a statement claiming the actions by Sir Mekere and the Board is illegal.

The PNGSDP Board met in Australia recently and amended the Articles of Association to achieve this outcome.

They removed the article which provides for the appointment of directors by the PNG Government.

Our correspondent says the amendment to the article however is illegal as no consent on the PNG Government was obtained.

The move by the Mekere Board will be referred to the Singapore Court, and also the police to deal with to ascertain if there was any criminality involved.

The Chief Secretary to Government says he is very disappointed to learn that the Board of PNGSDP has taken it upon themselves to illegally change the articles of association of PNGSDP

Sir Manasupe Zurenuoc says that means there will no longer be any real Papua New Guinean representation on the Board of PNGSDP.

The board of the PNGSDP and the government have been at loggerheads after the government passed legislation last year enabling the state to take over 100% of the Ok Tedi copper and gold mine.

The legislation means the cancellation of the PNG Sustainable Development Programme's 63% share in the lucrative Western Province mine.