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Investigation to be conducted on East New Britain Oil Palm Limited in Kokopo

THE Investigation Team, led by the Chairman, Mr. David Mather, who arrived this morning from London, will be in Kokopo next week for the investigation into dealings of East New Britain Palm Oil Limited (ENBPOL) and its business conduct towards the local oil palm growers in the Gazelle Peninsula in East New Britain (ENB) Province.

The Members of the Investigation Team include:

  1. Mr. David Mather- Chairman
  2. Mr. David Towe- Chief Commissioner for Papua New Guinea Customs Service
  3. Mr. Daniel Koiam- Chartered Accountant/Economist
  4. Mr. Tony Waisi- Lawyer
  5. Mr. Andy Ambulu- Lawyer
  6. Ms. Michelle Auamoromoro- Secretary to the Investigation Team

The investigation team will be in Kokopo from November 24-30, 2024, where they will meet with the farmers, the Provincial Government, and all stakeholders including the company concerned.

This investigation was approved by the NEC following a petition by the local oil palm growers and landowners of Gazelle Peninsula and Wider Bay Area of ENB Province calling for an investigation into the alleged exploitation of an unfair trade practices by the ENBPOL for illegal price fixing of K10 per metric ton for Fresh Fruits Bunch (FFB) payments from November 2014 to 2022, and K15 per metric ton from 2023-2024.

The Investigation Team met with the Minister for International Trade and Investment, Hon. Richard Maru, this evening, who addressed them, and informed them of the Terms of Reference for the investigation which is mainly to investigate complaints from the farmers that they have been underpaid by 500-600% in the oil palm prices in the last 10 years, and the investigation will also be extended to the deals struck for the concerned company to grow oil palm in the land owned by the people.

Minister Maru also emphasized the importance of this important investigation which is the first of its kind in the history of Papua New Guinea.
“The complaints from the Gazelle farmers may just be the tip of an iceberg on the rot in the industry when it comes to landowner benefits from the development on their land, their sweat, and labor. The Marape-Rosso Government will have to act so we can get a far better package to encourage our people to free up land for oil palm development,” said Minister Maru.

Minister Maru further stated: “We look forward to the findings and recommendations of the investigation team which will be important to all key stakeholders, the growers and landowners, the oil palm developers, this Government, and key Government agencies who may need to take hold of the report and implement changes. The investigation will also guide the Government to reform the oil palm industry to ensure that such rip off of our farmers does not happen again. This is a very important investigation for the Government and it is the first time in the country’s history that the Government is investigating the price of oil palm upon receiving complaints from over 15,000 village oil palm farmers who have requested the Government’s intervention to help them and their families see 500-600% increase in the oil palm prices, similar to farmers in West New Britain Province.”

“I want to thank the Governor for East New Britain Province, Hon. Michael Marum, and his Provincial Administrator for fully supporting this investigation with financial assistance to meet critical on-ground expenses for this investigation,” added Minister Maru.

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