PNG PM to let traditional landowners stay

3:27 pm on 3 February 2017

Papua New Guinea Prime Minister Peter O'Neill says traditional owners of land that's part of an area earmarked for a new military base will be able to stay on their property.

Papua New Guinea Prime Minister Peter O'Neill gives a talk at the Lowy Institute in Sydney on May 14, 2015

The Papua New Guinea Prime Minister Peter O'Neill. Photo: AFP / Peter Parks

The National reports that 1,600 hectares of land at Manumanu in Central Province was purchased by the government for about $US15 million dollars to house army barracks and a naval base to be relocated from Port Moresby.

The purchase has been described as fraudulent by the opposition and the Post Courier reports opposition leaders have referred the deal to the ombudsman.

Mr O'Neill told Parliament on Thursday that he received a report of the land sale from the Central Governor and a petition from local land owners.

He told the house he would allow the people of Manumanu to continue to live on the land and would examine returning settled portions back to traditional owners.