FORMER Prime Minister and Member for Ialibu-Pangia, Peter O’Neill, has called on the government to hand over the management of the Kroton Special Purpose Vehicle (SPV) to landowners and provincial governments involved in the PNG LNG project.
Speaking on the issue, O’Neill acknowledged the government’s decision to establish the vehicle for the benefit of resource owners, but questioned why the National Government continues to retain control over it.
“Whilst I commend the government for creating this special purpose vehicle, I think after almost 17 years of this project being in existence, the landowners are now well organised and the provincial governments are also well organised,” O’Neill said.
“I don’t see why the Prime Minister should create a special vehicle where the government is in control, where he himself is a trustee and his Chief of Staff is the Acting CEO.”
O’Neill urged Prime Minister James Marape to consider transferring the responsibility of managing the fund directly to landowners and provincial administrations.
He further argued that the State has no beneficial interest in the 4.27 percent equity stake allocated under the PNG LNG arrangements and therefore should not interfere in its management.
“Given the government’s record of managing and mismanaging many things, I think it is only fair that the special purpose vehicle is controlled by the landowners,” he stated.
O’Neill said the intention of the SPV under the Umbrella Benefits Sharing Agreement (UBSA) was always for the benefit of landowners and provincial governments, without political interference from the National Government.
He recalled the late Anderson Agiru strongly advocating for a non-political structure to manage the equity benefits flowing from the PNG LNG project.
“I recall Governor Anderson Agiru’s words very clearly, that he wanted non-political interference in the setting up of this vehicle and the company going forward,” O’Neill said.
Despite his concerns, O’Neill thanked the government for finally transferring the 4.27 percent equity into the SPV, saying it gives landowners and provincial governments greater visibility over their shareholding in the PNG LNG project.
“I think that is timely and credit must be given,” he said, also acknowledging the contributions of the late Grand Chief Michael Somare and others who played key roles in establishing the arrangements for landowner participation in the project.