horizon has a problem, page-6

here is part of an article from PNG Industry News

Reaching an agreement in PNG can be a difficult task. However even when such agreements are reached, they aren’t usually in the best interest of key stakeholders. The rent seeking behaviour of state and local representatives does not benefit both the developer and the people. The consequence of this is usually detrimental to doing business as a disenfranchised populace creates insecurity in project areas.
Time and time again there are disputes over project agreements both at the national and sub-national levels. Take Newcrest’s Lihir mine for instance, where a group of landowners calling themselves the Lihir Mining Area Landowners Association have condemned the Lihir Mine Memorandum of Agreement signed early this month between the New Ireland Provincial Government and the Nimamar Rural Local Level Government. The dispute relates to portions of the MOA discussing distribution of royalties from Lihir’s gold exports.
In a perfect world, when two parties have disputes over an agreement, a third party like the judiciary would be expected to maintain some semblance of order. That does not seem to be the case in PNG.
Investors can expect some strange court decisions that send their hearts to their throat. The most recent case has been the sensational court order to transfer $A100 million in Ok Tedi compensation funds into a Court Trust account.
The funds are part of the Community Mine Continuation Agreement compensation payments to communities affected by dumping of mine wastes from the Ok Tedi mine into the Fly River catchment. The Attorney General has questioned why the judge made an ex parte order when the State was competent enough to defend itself against such an order.
Who benefits from such disagreements over agreements? Perhaps someone or some people do. Underlining this is the question of adherence to good governance practices by all stakeholders. As long as there are those in power wanting to take shortcuts, quick fixes and kickbacks, agreements will fall apart. There is a recurring pattern in all the conflicts over agreements in that once those who influenced the agreements are off the scene, new players make new rules.
This is the reality of contemporary PNG where a new breed of leaders is playing by new rules. The Morauta government’s agreement with BHP has been undone and so has the Somare government’s agreement with Nautilus. An important lesson about history is it tends to repeat itself. Francis Ona and Perpetua Seroro did the same in 1989 on the island of Bougainville.