Australian Banks backing companies accused of land grabs in PNG

Australia’s big four banks  are backing companies accused of land grabs, Oxfam Associate Country Director in PNG, Phillippe Allen said. An Oxfam Australia report on Banking on Shaky Ground- Australia’s big four banks includes evidence that ANZ, Westpac, National Australia Bank and the Commonwealth  Bank have backed companies in developing countries that have contributed to illegal logging. In Papua New Guinea, Westpac is supporting a timber company that is logging pristine rainforest in the Turubu District of East Sepik in defiance of an explicit finding by PNG’s Commission of Inquiry into Special Agricultural Business Leases (SABL) that its lease was invalid and should be revoked. Impacts on the Turubu community stated members were forced to sign consent forms, reports of food shortages, deforestation and water pollution. According to the Government, the SABL in Turubu was granted in 2008 for oil palm development instead the Malaysian Logging Company WTK Group heavily carried out logging which is still continuing and there is no substantial progress towards oil palm development. Oxfam research revealed that Westpac Bank has a 19 year relationship with the PNG operations of Malaysia logging company WTK Group. The Commission of Inquiry into SABLs (COI) directly names WTK subsidiaries as involved in particular SABLs which the Inquiry found should be revoked along with Turubu SABL. Mr Allen said Westpac’s involvement is just the tip of the iceberg. “ the ANZ Bank Guarantee for the Australian- lead company International Timber and Stevedores  (IT&S) which has been involved in 4  SABLs, covering an immerse 2 million hectares of the Western Province in PNG.”  Says Mr Allen. Land grabs are a significant issue that have been recognized by corporations including Coca-Cola and PepsiCo , an international financial institutions such as World Bank which have all adopted tough due diligence policies  to prevent their involvement in land grabs. Australian Banks operating in PNG have a responsibility to the community to support sustainable and ethical financing which does not deprive customary landowners of their rights to land.

 

PNG Today / Post Courier