PNG PM Marape Responds To Hefty K105 million Fine from Indonesian Government
The Office of the Prime Minister has been tasked to seek clarification and correct information regarding the hefty penalty notice of K105 million from the Indonesian government.
Responding to the Post-Courier’s story yesterday on the six illegal shipments being seized in Singapore, Prime Minister James Marape said his department has been tasked to look into the issue.
“I am getting my office to have a look at this one and we will tidy up what is happening at the Conservation Department,”PM Marape said.
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| PNG PM Marape Responds To Hefty K105 million Fine from Indonesian Government |
“The department of Prime Minister is seeking further clarification and correct advice on how to respond to this.”
Last week the Ministry of Environment and Forestry of Indonesia flagged the PNG government that it would be issuing a penalty of US$5 million (K105 million) for each of the six shipments that had been seized in Singapore and Indonesia.
Indonesia’s Chief Compliance Officer Basel Protocol Department Siti Muhammad from the Ministry of Environment and Forestry in a letter, said Indonesia has been tolerant for far too long with PNG and will be issuing these penalties to the PNG government next week.
These shipments were with materials of fuel oil delivered as vessel slops, refined oil and fuel oil illegally shipped and labelled as fuel oil or refined oil to avoid the costly permit process from two large gold mines and a State utility company.
Meanwhile, a waste management program proposed by a Hachiko Efficiency Services is pending approval from the State.
The program was developed by the Singaporean-based company to address the issue of PNG’s 15 million litres of waste oil produced on an annual basis.
Hachiko Efficiency Services spokesperson told this paper that an initial submission was made to the government and was given the go-ahead, however, to date they had not heard from relevant authorities to give them the approval to proceed.
The spokesperson said according to their scoping, PNG imported 30 million litres of oil per annum which generates 15 million litres of waste on an annual basis and at the moment there was, at a minimum, 60 million litres of waste oil sitting around the country.
“This program will raise US$7 million (K24.6m) per annum for Papua New Guinea through the introduction of a waste oil management program in country… it offers to remove 10 million litres of demand from global lubricant markets.
“This offers a carbon credit saving of 617,000 metric tonnes,” the spokesperson said.
“There is no direct cost to the State for this program as it will remove the liability from the State and place it directly onto any illegal shippers.
“The State to provide final sign off on the contract allowing us to liaise with Indonesia and Singapore and remove the risk from PNG for the illegal activities.”
A well-documented paper trail sighted by the Post-Courier noted that approvals for the program to go ahead was given by former Minister for Environment and Conservation Wera Mori, Treasurer Ian Ling-Stuckey, an export permit granted and signed by CEPA acting managing director Gunther Joku and a National Executive Council decision approving the submission and signed off by Prime Minister James Marape.
The only hold-up for this program to follow through is approval from the State Solicitor’s Office, the paper was informed.
This program has been progressing through the public service system for three years now and State Solicitor’s approval has been sought since February 2021.
“To date, Hachiko has directly spent more than US$4.5 million in putting this program together and the lack of urgency or interest in alleviating significant risk to the PNG State is appalling,” the spokesperson said.
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