LANDOWERS from Gobe PDL 3 and 4 in Southern Highlands Province have issued a 14 days’ notice to Southern Highlands Provincial Government (SHPG) and the State last Friday (August 16).
Through the notice, the LOs want their outstanding Infrastructure Development Grants (IDG) for ten (10) years (2010-2020) be settled in full.
Despite Governor Powi’s response on their notice, Spokesman and chairman of the PDL 3 and 4, Mr Jeffery Kairi, reiterated the LOs’ call, demanding the SHPG and the State to settle their IDG payments in 14 days.
In his response, Powi clarified that the SHPG does not control or administer the annual IDGs for Kutubu, Moran or Gobe landowners (LOs) for that matter, but the Department of National Planning does under the National Government Budget Appropriations.
The Governor said the SHPG is also beneficiary of the IDG and for Gobe and Kutubu to raise alarming misconceptions is not only misinformation but an attack on wrong entity.
He reminded the LOs to express their grievances or complaints to the National Government who manage and administer the IDG funds.
Powi also stated that the IDG payments, are by law, meant for infrastructure development for project proponent areas, and they are not free entitlements for the LOs.
He challenged the landowner groups to prove to the SHPG and the national government how they manage the previous IDG payments.
“Gobe or Kutubu LOs must prove to the SHPG and the national government what you have done with previous IDG payments, and I will provide which groups got how much so people can see what these so-called landowners have done with previous payments,” said Powi.
However, Mr Kairi said the Governor must know that the Gobe LOs are expressing their concerns/demands within the boundaries of specific laws and legislations governing the benefit distribution amongst the affected parties.
“As per 2009 Kokopo Umbrella Benefits Sharing Agreement (UBSA), our IDG payments which were supposed to be paid annually like those for other PNG LNG project Landowners (LOs), were never paid for ten (10) years,” said Kairi.
He said under the 2009 Kokopo UBSA, Gobe LOs were supposed to be paid K8.2 million IDG payment per year by the Department of Petroleum and Energy as a regulatory authority.
“The NEC had made a decision in the absence of the LOs who were signatories to the LBBSA/UBSA agreement in 2009 to transfer the powers and management of IDG grant to affected Provincial Government.
“We the LOs, do feel that the LBBSA/UBSA agreement has been bulldozed and was never honoured by the NEC. An agreement can not be breached and therefore, we strongly feel that NEC had made a terrible mistake.”
Mr Kairi said in the UBSA, the National Alliance Government led by late Grand Chief Sir Michael Thomas Somare committed K1.2 billion to be paid throughout the PNG LNG project footprints over the period of 10 years (2010-2020).
“However, we have not been paid since 2010 except one payment in 2014 through the Department of Petroleum and Energy.
“Therefore, we simply demand the SHPG and the State to come clear and explain to the aggrieved LOs, what happened to these IDG payments, and if the funds were parked somewhere, it must be paid to the Gobe LOs within 14 days.
“We acknowledge Southern Highlands Governor, Hon. Governor William Powi’s blatant response on our concerns, however, our 14 days’ notice still stands and we will not deviate.”
Mr Mairi said Governor Powi and the State must provide the reports as to what and who have been paid our IDG funds with the balance of K73. 8M.
“The Governor and State have to provide this information and we are still waiting,” said Kairi.
He said the Governor must know that the IDG benefit split was agreed pursuant to clause 6.1 (d) of the UBSA, in which it states that, the benefits are to be distributed according to Section 173 of the Oil and Gas Act.
“Under Section 173 (5), it states that grants made to affected LLGs and PGs must also be made available to project area landowners (customary owners of the land where a petroleum project area is).
“The parties to this agreement (UBSA), agreed that the sharing amongst the beneficiary group will be decided by the National Executive Council (NEC).
“The NEC in its decision No. 96 of 2010 made the break-up arrangement for the IDG funds to be distributed to all licensed areas to implement infrastructure projects using License Benefit Distribution (LBD) formula for equal distribution.
“This Decision decided that K120 million be allocated annually and equally distributed to all the license areas for two five-year terms (10 years). However, no mechanism had been established to manage and monitor application of this funds.”
The Chairman said although the National Planning naturally manages PIP funds, but in view of its capacity constraints, it suggested that Special Purpose Authorities in respective license areas be established.
However, he said the creation of Special Purpose Authorities to manage funds did not eventuate well and many got abolished.
Mr Kairi said a subsequent NEC Decision No. 49 of 2012 was made giving its position on disbursement of IDG funds to benefit landowner communities within respective license areas.
“This decision endorsed and approved the distribution percentage for IDG according to ten (10) PDL areas.
“Per the decision, K240 million was approved for payment, to be made for 2011 and 2012. Since then, all payments made out under IDG were subject to NEC Decision No. 49/2012 from 2012 till now 2024.”
Clan chairman of the PDL 3, Mr Jason Padapu said, NEC Decision 346 of 2013 was made due to non-delivery of UBSA Infrastructure Project, subsequent to NEC Decision No. 49 of 2012.
He said this decision endorses the establishment of Shared Responsibility Model (SRM), to be driven by the establishment of Provincial Infrastructure Delivery Unit (PIU) to manage and deliver infrastructure project.
“The establishment of SRM model and PMU did not work and the application of NEC Decision No. 49 of 2012 still stands, which directed the IDG funds to the Provincial Governments via the Department of National Planning and Monitoring (DNPM) which administers IDG funding under its PIP functions,” said Padapu.
He said DNPM does not make decisions on the IDG funds and its drawdowns and disbursements, it just administers the IDG funds since it manages all the Public Investment Program (PIP) in the country and IDG funds is part of PIP funds, but specifically guided by UBSA, LBSAs, and the Oil and Gas Act.
“Therefore, the disbursement of IDG funds made since 2012 should have been accounted for; a list of payments had to be provided to justify payments made to which projects and to whom (the company)?”
Mr Padapu said the Landowners for Gobe PDL 3/4, the Gobe Facilities and the segment (6) pipeline cannot be held accountable for receiving IDG payments since 2012 and play blame game and pass the buck to project area landowners for receiving payments and no delivery of the project.
“Where have all the money gone? An audit of reconciliation exercise had to be sanctioned by the government to give its position on how IDG funds were being managed and used.
“The respective government departments, the Department of Finance, Treasury, National Planning and Monitoring together with the Department of Petroleum and Energy, have to do reconciliation exercise on IDG payments made to date and request an audit of how payments were made.
“The government have to respond to our demands in paying IDG to Gobe Project area landowners or we stand with the 14 days demand.
“Failure to any of these demands may results in project shutdowns effective of the 2nd of September 2024.”
