The Minister for Petroleum, Hon. Jimmy Maladina, MP, has responded to concerns raised by Opposition Leader Hon. James Nomane, MP, regarding expenditure associated with the Papua LNG Development Forum. Minister Maladina reaffirmed the Government’s commitment to transparency and accountability, while emphasising the significant economic importance of Papua LNG to Papua New Guinea’s future.
“Papua LNG Project is a multibillion-dollar investment of national significance. It will expand our revenue base, generate employment, strengthen foreign exchange earnings and increase the Government’s capacity to finance larger national budgets, infrastructure and essential services across the country,” Minister Maladina said.
He stressed that the Development Forum is a statutory requirement under PNG’s Oil and Gas Act, essential to securing agreements on the distribution of project benefits among affected landowners, provincial governments and the State.
“Mobilising, transporting, accommodating and feeding nearly 1,200 landowners, many from some of the country’s most challenging geographical locations, is a major logistical undertaking involving substantial costs.”
The Minister explained that the National Executive Council had approved Kerema and Port Moresby as locations for the Forum, with Kerema designated for the final negotiations and signing of the development agreements. This also necessitated investment in supporting infrastructure and logistics.
“These expenditures must be viewed in their proper economic context. We are facilitating a statutory process essential to advancing a major national investment towards Final Investment Decision.
The long-term economic and fiscal benefits to Papua New Guinea will far outweigh the immediate costs,” he said.
Addressing concerns over accountability, Minister Maladina confirmed that the Forum had been planned and budgeted for in advance, with implementation coordinated by the National Petroleum Authority in conjunction with relevant government agencies as approved by Cabinet.
“The Government has nothing to hide. Upon completion of the Forum, a comprehensive financial and acquittal report will be prepared and subjected to established administrative and financial accountability processes, including scrutiny by the Auditor-General, before consideration by the National Executive Council and subsequent tabling in Parliament.”
He stressed that established statutory accountability processes must be respected and allowed to take their proper course.
“Accountability is not determined by political deadlines or social media commentators. It is determined by the law, established financial procedures and independent scrutiny. The Government will fulfil those obligations.”
Minister Maladina concluded by calling for bipartisan support to complete the Forum and advance Papua LNG towards Final Investment Decision.
“Our immediate priority is to secure this investment; expand our national revenue base and create the economic opportunities our people need. Papua LNG is about the long-term economic future of Papua New Guinea, and this national interest must remain paramount.”