Finance Wednesday 10th August, 2005 Call to make stand on BCL...

Finance
Wednesday 10th August, 2005


Call to make stand on BCL issue clear

THE Autonomous Bougainville Government should make its stand clear on the court case between the Internal Revenue Commission and Bougainville Copper Limited over tax issues.
Panguna landowner Lawrence Daveona said the money, which stands at around K28 million, would be used to develop the island but the ABG should move fast to make its stand on the issue.
Mr Daveona wanted the ABG to come out clear and look at claiming all that money because the taxes were derived from mining operations on the island and the people of Bougainville should be the beneficiaries of that money.
He also cautioned the Government not to tax the mining company when the mine had been closed for more than 15 years but encourage other investment opportunities in the country.
“The National Government’s focus should be to attract investment from Rio Tinto and not to tax them when everyone knows that the mine is closed,” Mr Daveona said.
The Internal Revenue Commission took BCL to court for not paying taxes from dividends on its investments for the years 1999, 2000 and 2001
After a lengthy court battle, the National Court last month ordered Bougainville Copper Limited to transfer its K5 million in Treasury bills to a commercial interest bearing deposit bank account.
The court also ordered BCL not touch those monies pending determination of an appeal by BCL in the Supreme Court.
BCL is a subsidiary and majority owned by mining giant Rio Tinto while the Papua New Guinea Government owns 19 per cent of what was a successful mining company operating in the country until it was forced to closed due to a civil war over compensation claims from environmental damage caused by the mining company during its operations at Panguna.
Meanwhile, Mr Daveona called on US lawyers taking up a class law suit against Rio Tinto in the US to state their intentions of representing the people of Bougainville in the case.
He said the lawyers had now opted to settle the matter out of court but Rio Tinto would “fight tooth and nail” to defend itself.
Prime Minister Sir Michael Somare and ABG president Joseph Kabui signed documents from the lawyers to support the court case while Mining Minister Sam Akoitai and reclusive leader of Me’ekamui Government late Francis Ona decided against signing the documents.

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