MINISTER for State-Owned Enterprises, Hon. William Duma, has issued a scathing statement today, accusing the former Board and management of Kumul Petroleum Holdings Limited (KPHL) of failing to uphold basic governance principles and refusing to comply with the lawful directives of Prime Minister James Marape, who is the Trustee Shareholder of the state-owned oil and gas company.
Speaking in his capacity as Trustee Delegate, Duma said the crisis currently engulfing KPHL stemmed from a “deliberate and troubling refusal” by both the previous Board and senior management to implement National Executive Council (NEC) decisions and respect the leadership of the PM, who holds sole shareholder authority over the company.
“The KPHL Act is crystal clear. Directors who have served nine years or reached the age of 72 cannot be reappointed, not even as deemed Directors,” Duma emphasized.
He pointed out that former Chairman Andrew Yaru and Director Ila Temu had reached the nine-year limit, while Paul Nerau had passed the age threshold.
This effectively dissolved the Board’s quorum, requiring the Trustee Shareholder to appoint a new Chairman and Directors.
Following the PM’s appointment of a new Board, the former Chairman and certain Directors challenged the move in court. However, the National Court ruled in favor of the PM, stating that the appointments had legally expired by operation of the KPHL Act. The Supreme Court later refused a stay order, and the appeal was ultimately discontinued, solidifying the legitimacy of the new Board.
“There are currently no legal challenges pending against the new Chairman and Directors,” Duma stated.
Duma also raised serious concerns over the alleged use of KPHL funds to finance the legal challenge against the PM and Trustee Shareholder, an action he described as “unauthorized and possibly unlawful.”
“Public company funds were spent on a meritless case against the legal owner of KPHL. That’s not just bad governance, it borders on misappropriation,” he warned.
He further revealed that the Managing Director (MD) failed to respond to his formal correspondence on this issue and even filed an affidavit in support of the former Chairman, referencing private WhatsApp messages with the PM, a move Duma says raises questions about the MD’s impartiality.
While the MD has not been terminated, he has been suspended by the new Board. Duma confirmed the MD has the right to respond per his employment contract but noted his absence from duly convened Board meetings and overall uncooperative stance with the new leadership.
“In a public entity like KPHL, it’s crucial that management respects the authority of the Trustee Shareholder,” Duma said.
Duma concluded by urging all stakeholders to put internal disputes behind them and work collaboratively to restore confidence in KPHL, especially as Papua New Guinea gears up for major energy projects, including Papua LNG and the ongoing PNG LNG operations.
“Let’s ensure KPHL operates smoothly and continues to be a strong, stable partner for our international stakeholders,” he appealed.