TRANSCRIPT OF PROCEEDINGS Commission of Inquiry into SABL Department of Prime Minister & NEC P O Box 639 WAIGANI. NCD Papua New Guinea
Telephone: (675) 323 7000 Facsimile : (675) 323 6478 ______10
COMMISSION OF INQUIRY INTO SABL
20 MR NICHOLAS MIROU COMMISSIONER
30
AT KAVIENG, FISHERIES COLLEGE, FRIDAY 4 NOVEMBER 2011 AT 8.28 A.M. (Continued from Wednesday 2 November 2011)
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PEDI ANIS, Continuing:
XN: MR TUSAIS
COMMISSIONER MIROU: Yes, good morning, counsel. We could not continue with Mr Anis examination yesterday due to power failure at about half past 3 yesterday afternoon and about quarter to four, with the failure, we were unable to get our transcription machine working, and therefore, we adjourned the matter to 8.30 this morning. Thank you Mr Anis for coming this morning and we will 10 continue this morning again with your evidence.
Mr Tusais, I think I recall, I was discussing some aspects of the SABL with Mr Anis and I will have to rethink this.
MR TUSAIS: Yes.
THE COMMISSIONER: Mr Anis, as I was trying to explain the SABLs, the reason why the SABLs were legislated under sections 11 and 102 is basically to allow landowners to be involved in business ventures relating to their land. This 20 was a way in which landowners could mobilize themselves in a way to be able to engage in activities like commercial cash crops like oil palm, cocoa, things of this nature and so the SABL was done. Normally, this is initiated by the landowners themselves through the Department of Lands. They submit an application to express their interest, and when that interest is expressed through the Department of Lands, the Lands Department normally create an instruction file and out of that file the Lands Department then engages one of their officers to undertake a land investigation report. Whilst the land investigation report is conducted by that particular officer, in conjunction with the provincial administration office - there is a Provincial Lands office here - where they conduct an actual visit to the actual 30 area. In that process you see that in relation New Hanover, landowner companies were created; Umbukul Limited, Tabut Limited and Central New Hanover Limited. These were companies created by the landowners for that purpose, and also in Namatanai, the Dunfu area, Rakubana was one of the companies established by the landowners. Cassava Etagon also was a company for the Kaut area. Your company comes in as the developer. They saw your company in a way to assist them to develop certain things within that SABL. So as a result of that your company was given that sub-lease, 40 years sublease, to assist these groups of people within the area to develop certain things on the land; and this also ties into the Forestry Clearance Authority. You require a Forestry Clearance Authority to - 40 if you want to establish a road line because it is an economic corridor to allow for
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people to grow things on their land; cocoa or things and then come up and use the roads to transport it to the ports or the nearest harbor where they can export them or sell them. Then you also need to get a Forest Clearance Authority also to clear land, 50 hectares that is the allowable - so that trees can be felled so that you can grow cocoa or oil palm; commercial crops. In that regard you will also require the Forestry Department to give you clearance. But also tied to that is also the environmental concerns or issues where the Department of Environment and Conservation comes in to look at the impact. As you know there is a level 2, level 1, level 2, level 3. Level 3 is quite an impact that does affect the eco-system. 10 With agriculture there is no legislation, but agriculture is also tied to this, to SABLS. The agriculture becomes very important because you have to conduct soil suitability and this is normally conducted by the Department of Agriculture and Livestock. So put them all altogether, you will see that you need to have these authorities, these authorities entrusted with those regulatory powers to look at those things independently of what you consider as the role that your company plays in the province. So you will see that even though your company has been given that, it also does not get the green light to go out and try to do certain things where the Department of Lands is involved in or the Forestry or the Environment 20 and Conservation. You have got to go back to those departments to ensure that those regulatory processes or monitoring aspects of it are complied with. So this is just to give an overview of what I consider to be the most basic requirements. So as a developer, counsel asked you yesterday, whether you had the capacity - your company had that capacity - to be able to facilitate those interests in the SABLs that your company was now used as a developer, whether that capacity is there or not. It is not the machineries. It also involves other things, funding and things to be able to set up those infrastructures. From our site visits in the various aspects of it, we see jetties that are not done in compliance with the harbor, ports regulations. There are jetties that are done out of logs and things like that. So if you can 30 appreciate what the processes are there, then what this Inquiry is all about is to see how much has your company done in matters of developing the agricultural sectors within the various SABLs where your company is now involved in as a developer. And so that is just to place to you the SABL requirements. It is more agricultural driven type of activity. So when counsel asked you what has your company as a developer done in relation to the various SABLs now that you are given to develop those agricultural things, especially it involved our people in developing their own little plots so that they are able to get some money out of it. What has your company done insofar as these SABLs are concerned?
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A: Yes. Thank you Commissioner. For Central New Hanover, I also have the document for all the things that - in agriculture - that my company has also done; also for Umbukul. With the SABL, I do not have the FCA yet for Umbukul but I have been doing a lot of agricultural work, even for the whole island of New Hanover. Commissioner, I come from New Hanover, an island that has been one of the most neglected islands in Papua New Guinea, undeveloped. I come from an island with a history of cargo cultism with that Tutuku Walis Association that has been in the ‘60s.
10 Q: Mr Anis, it is---
A: So, let me just say this. I know that my people are always - are now living below poverty line everywhere and they are coming to me all the time - all this time I was premier coming to now - asking for help for school fees, to put the people for - find employment opportunities and so on. So I came up with the land development scheme for New Ireland which is a document I also prepared and wrote in 2001 and slowly, I am going down with the company. I needed a vehicle to help me to do that just to go down and understand all the compliances with governments, with Lands and so on. 20 The mindset of my people are, the lease - lease back does not have meaning for them, I mean the titles. They know their land. They want to have their - own the land. That is why I have made up my mind that we - okay, we have the sublease but we go with each individual land groups, understand their boundaries and they cut and then we map it and then free up a sizeable area for an economic project on rubber, in this case, in cocoa in Rakubana, working together with them to develop that economic size for them. The rest they can be free to do whatever they want to do.
Although, you said - I understood you saying that the SABL also for the 30 sublease that their rights are---
Q: Suspended.
A: Suspended. For me, I understood this, maybe wrongly, but as a leader, that they were customary like my own ILG - my customary rights - I still have to go and enter and practice and do my saksak and things like that in the area that I own, as long as it is within the boundary of my ILG. That was my understanding. Only where we bring infrastructure to those areas or ILGs that are inland, we bring infrastructure and they themselves together with 40 our company make sure we go into the FCA and abide by all the rules of the
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Forest Clearing Authority. Over the period there will be some continuing improvement as long as at the end of the day, whatever that there is going to be, the landowners themselves will have their own plantations. My people are very good in working for other people on other plantations because that is what they are - but they have to own their own plantations. In Poliamba they get K600 a fortnight - or a month - when they can earn 3,000 or 4,000 in their own plantation on their own land, working properly with all the government agencies, complying and assisting in this process of agriculture development. I have engaged agriculture people to help me put together the 10 actual down on the ground programs and activities.
I know there are a lot of improvements still to go on that is why I also welcome the Inquiry because I tried my best to try and make sure there are economic holdings on customary land belonging to the particular incorporated land group. That is why I go down with each ILG, which they sit down themselves, they work out their boundaries – I have a map there - to show that they have started and they know exactly the number of hectares. The next thing is to identify the land now for the economic size or economic development and to establish and grow an economic holdings - a mini estate 20 - on the lease - lease back customary land that they can take out and that will be the one they develop. The rest, they do whatever they want to do with it.
Q: Mr Anis, that can be taken into account. What this Inquiry is all about is to see you as a developer, the company, what is there for this Inquiry to satisfy itself that you, as the developer, the holder of that sublease on those particular SABLs, have done to develop those plots of land, seedlings and things of this nature so that we can see realistically that the company has done something so that the SABLs are working; either it is working or it is not working. These are the things that this Inquiry is given that task to 30 undertake. That is why we have to make those visits to locations to see whether you as a company, because your company is now holding virtually almost 90 percent of all - 80 or 90 percent of areas which are prime, pristine forest and a lot of eco-system and we just want to know. The Inquiry is given the task to know from you as the developer, what have you done to assist our people - as you say, your people - our people in making themselves become fully independent financially so that they can undertake business activities on their land. That is what counsel and this Inquiry is all about. Whilst we may have those blue prints for the future, the blue prints can only work if things are done realistically today, or from our past 40 experiences, they all link to the future. These are corporate sort of visions
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that we have, but we have got to see them realistically work. If they do not work, then we have got to look at ways of improving and in a way, this Inquiry might find some of those - or from things you may suggest to us - or from things that you see as a developer that is not working that may assist the Inquiry. I call on counsel to – Mr Tusais?
[8.45 am] A: For Central New Hanover, if I can tender the progress of the – because the question that I was asked in the summons is to give the progress of the agricultural development on the – for Central New Hanover and for 10 Umbukul.
Q: Is that the agreement?
A: That was my summons to give the progress on the agriculture development.
MR TUSAIS: Okay, just leave it first. We will do that toward the end of your evidence, which will be soon.
THE COMMISSIONER: You may be seated, please, counsel. 20 MR TUSAIS: Okay. Commissioner, I note that Mrs Raurere is present. I would like to make the same application that I did for Mr Maraleu yesterday. If she could perhaps wait outside of the hearing room until we finish with Mr Anis’ evidence.
THE COMMISSIONER: Mrs Raurere. Sorry, Mr Anis, we will---
A: Yes, sorry.
Q: It is okay, you remain. 30 A: Yes.
Q: No, Mr Anis, I will deal with it.
MR TUSAIS: Mr Anis, please be still.
THE COMMISSIONER: I will deal with it.
A: Thank you. 40
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Q: Mrs Rauveve, yes, come forward, please. Mrs Rauveve, if you can come forward to the table, just come forward. The evidence that you will give will be very much in line with what the company Tutuman does in your responsibilities as the secretary of the company, so---
MR TUSAIS: Director.
THE COMMISSIONER: As a director of the company. So, I have excused Mr---
10 MR TUSAIS: Maraleu.
THE COMMISSIONER: Maraleu yesterday to be excused from the proceedings while Mr Anis gives evidence and in the same way, I will ask you to leave the hearing room and wait outside until Mr Anis has completed his evidence and we will call you to come and give evidence separately. So if you can excuse yourself from the hearing room until you are called to come and give evidence. Thank you, Mrs Rauveve.
MRS RAUVEVE: Thank you. 20 THE COMMISSIONER: Thank you for attending this morning. Counsel?
MR TUSAIS: Commissioner, perhaps, I could just see what Mr Anis intends to tender in regards to Central New Hanover. He is quite correct in saying that we did ask him in our summons to give us an update, progress report of – that is it.
A: That is part of that one. It is just the beginning of the land groups’ identification of their boundaries, together, which is what I have just spoken to you about so that we can establish exactly how many hectares now will be 30 for the estate for each land group.
Q: Okay. I am not sure about the exhibit numbers but if it could be marked ---
THE COMMISSIONER: It will be PA9.
MR TUSAIS: PA9, yes.
THE COMMISSIONER: Exhibit PA9 is Central New Hanover Limited, portion 887C, milinch of Lavongai, fourmil Kavieng, New Ireland Province. This was 40 tendered through Mr Anis.
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[EXHIBIT PA 9 – CENTRAL NEW HANOVER LIMITED PORTION 887C, MILINCH OF LAVONGAI, FOURMIL KAVIENG, NEW IRELAND PROVINCE]
MR TUSAIS: Mr Anis, I note you also have other documents you wish to tender. Perhaps we will do it now and just finish off your evidence.
A: Thank you Commissioner. I will tender the Umbukul progress of the 10 developments. As you understand, Commissioner, we do not have an FCA in Umbukul but we have been doing a lot of agricultural work with our people as you mentioned and you asked; distribution of cocoa seedlings, fermentary developments and all those things and I have established a marketing company also for buying and selling cocoa in the province. I take care of the developments in these SABL areas. Thank you.
THE COMMISSIONER: The report known as Umbukul Limited, portion 886C, milinch of Lavongai, fourmil Kavieng is exhibit PA10.
20 [EXHIBIT PA10 – REPORT KNOWN AS UMBUKUL LIMITED, PORTION 886C, MILINCH OF LAVONGAI, FOURMIL, KAVIENG]
A: And Commissioner, without the concept, I would not be understood properly as a company and as a leader. And I wish to ask if I can tender my document on land development scheme for New Ireland Province for the Commission so that I am understood exactly and the Commission can help me to put in place the continuous improvement program for the developments of New Irelanders in these areas that I am responsible for.
30 MR TUSAIS: Commissioner, this Commission is about fairness. We will receive Mr Anis.
THE COMMISSIONER: Exhibit PA11 is document titled Land Development Scheme for New Ireland Province – Tutuman Development Limited as produced January 2001, revised January 2008 by Mr Pedi Anis, OBE.
[EXHIBIT PA11 – LAND DEVELOPMENT SCHEME FOR NEW IRELAND PROVINCE BY TUTUMAN DEVELOPMENT LIMITED, JANUARY 2001, REVISED JANUARY 2008 BY MR PEDI ANIS, OBE] 40
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A: Thank you. I specifically, Commissioner, on New Hanover, Tabut, Mamirum, Umbukul, Central New Hanover, I have a brief on the – it is a brief which I did on January 2010 for anybody that wants to know what the progress is, especially outlining the issues that the New Hanover people are facing and the solutions through agriculture through other things that I want to also tender so that you are completely aware and that I get help to assist and to look at all the developments using terms of the actual issues and challenges facing my people on New Hanover. I want to tender this document as well. 10 THE COMMISSIONER: Thank you.
A: Produced in 2010.
Q: Exhibit PA12 is a report titled - document titled Central New Hanover, Tabut, Mamirum and Umbukul Integrated Agriculture and Forestry Projects dated January 2010 by Mr Pedi Anis, OBE.
A: Commissioner, I also have some letters from the – of support from the 20 government which I think is very important from the local level government. The first secretary, office of the Governor and the office of the appointed chiefly representative in the economic and infrastructure in the provincial government, so I want to also tender this one. The administrator’s – it is a letter from Taskul, and the provincial government letter from the chief and also from the Office of the Governor.
MR TUSAIS: Sorry, Commissioner, I will object to this. This is tendered through Mr Anis. It is not proper for those officers to come to this Commission and tender these documents themselves. 30 THE COMMISSIONER: Yes, thank you. Mr Anis, yes, if those documents can be produced through the---
A: That is all documents I want to tender. Thanks.
Q: Thank you.
MR TUSAIS: Commissioner, if I could just have exhibit PA 10, that is the Umbukul. Look, I will just ask you this in relation to what you say that you are 40 developing agriculture on Umbukul. When did you start?
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A: This development in Umbukul started when I was the Premier for New Ireland and the Member for West Lavongai which Umbukul and Noipuas are in. I started agricultural development, then I introduced a new hybrid cocoa into that area.
Q: Mr Anis, so you say you saw pictures of mature cocoa trees on Bangung village?
10 A: Bangung.
Q: Yes, this is a bit misleading, is it not? You are saying you are putting agriculture development but it was you as a politician, not you as Chairman for Tutuman Limited?
A: If you can let me finish. After that when I went into the private sector; from the private sector within that 13 years, not as a politician anymore, but as a private sector person. I continued to supply cocoa seedlings, I continued to supply cocoa polybags and I continued to help building cocoa fermentaries 20 for the farmers who have been neglected by the government all those years, for that last 13 years after I left public office, Commissioner.
[8.55 am ] Q: Yes, okay, just another thing. On the lead lease back agreement, with Tabut, Umbukul, with Central New Hanover – they have the same agreements you signed between Tutuman Limited and those three landowner companies.
A: Yes.
30 Q: Part of the agreement is that any tree crops grown during the existence of the lease period to Tutuman remains the property of Tutuman Limited?
A: No, that is what I have tried to explain to the Commission that we free up that land in blocks and that will eventually - we spend money together with the landowners to develop it - eventually this will be their property and excise out from the base lease, they will own the title over the big piece of land and they will own the mini estates themselves; even including the forest that we planted will belong to them, not to Tutuman.
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Q: Mr Anis, could you just have a look at this agricultural sublease for Central New Hanover. Start from the front and just flip through, please. I will refer you to certain parts shortly. Do you recognize this?
A: Yes.
Q: That is the sublease that was made between your company Tutuman and Central New Hanover. Sorry, Commissioner, I do not have an extra copy. At paragraph 9 of this sublease document, the heading reads: ‘Ownership of 10 trees and compensation’. Paragraph 9(a) it says – I am reading from that: “All oil palms and cocoa trees planted by the tenant on the land shall be and remain the property of the tenant. Subject to Clause 10B, if this lease is terminated by the landlord other than in accordance with the provisions of this lease or by the tenant as a consequence of any default by the landlord under this lease, the landlord must pay to the tenant an amount as compensation for the tenant’s loss which amount has been made up of the tenant’s projected profit from the subsequent harvests of the logs for the term and the costs incurred by the tenant in constructing buildings, roads and drainage on the land”. The tenant is Tutuman and landlord is Central New 20 Hanover Limited. Is that correct?
A: On this current agreement, the provision is correct but from my development scheme arrangements, I am sure we can go to these agreements and make a review of the tenancy agreement to make sure that this direction that you are carrying on will be implemented according to my – the other company’s concept. At the moment, when we plant from my direction, all the developments, yes, will be in the hands of the company because we spend money with them; and then there is an agreement we have done, especially for the Rakubana one and going to this side. It will be going back to the 30 landowners themselves and these properties will be the creation of their own mini estates. As the laws stands now, yes, but I – that is why I am saying we really want to improve it so that it comes in line with the concept that I have developed for the company. We assist the landowners and the landowners take ownership of their own property and I become only in the marketing angle until they develop the capacity to come and have it within the marketing situation as well.
Q: Mr Anis, Let us not beat around the bush. This is the legally binding agreement. It is a lease between your company and Central New Hanover 40 and it covers all that land area. Paragraph 9 says Tutuman owns those trees;
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oil palm, if you had planted it; cocoa trees if when you get to plant it, coconut trees and all those re-aforestation trees. That belongs to Tutuman. Is that what paragraph 9 says?
A: I cannot agree with paragraph 9 but I would say that under the concept and under my direction as the Chairman of the company, we are moving to make sure that each landowning group understand their boundary, free up the area for the development of their mini estate and this mini estate will go back to them and they will own it. If there needs to be some changes in these lease 10 agreements, we will have to do it for improvement.
Q: Okay. Just one final time, Mr Anis, paragraph 9. I will read the first bit. “All oil palms and cocoa trees planted by the tenant” - that is Tutuman –“on the land shall be and remain the property of the tenant, Tutuman”. That is what this agreement says.
A: I think the keyword there is “planted by Tutuman”. If we work together and the landowners themselves involve in the planting, then they will own those properties. 20 MR TUSAIS: Okay. Commissioner, I tender these, if copies could be made.
THE COMMISSIONER: This will be Exhibit PA11 is a copy of the owner’s copy of an agricultural sublease to Tutuman Development Limited of P O Box 167, Kavieng, New Ireland Province.
MR TUSAIS: Mr Anis, I was---
THE COMMISSIONER: Which is, sorry, dated – which was executed on 29 30 September 2009. It was signed by a Louise Alick on behalf of Central New Hanover Limited and Mr Steven Hee, the Managing Director of Tutuman Development Limited. The lawyer was Miskus Maraleu. Thank you counsel.
MR TUSAIS: Mr Anis, this Mrs Hii - Regina Hii– who is no longer in PNG - look, I know you cannot speak for her - but let me put this to you. We have had people from Danfu all the way to New Hanover, they have told the Commission that Mrs Hii, every time she gets into an argument with landowners or disagreements, she tells those landowners, “All of this land is my land”. I am just saying that is what the landowners say. Have you heard any such comments? 40
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A: No.
Q: All right. When you entered into the agreement to, as it was, sell your sublease to Palma Hacienda, first, for the Umbukul SABL, did you tell the people of Umbukul that you are going to sell Tutuman sublease to Palma Hacienda?
A: There was no sale, to start with. You cannot sell – I cannot sell a sublease or cannot sell the land. It is a bit--- 10 Q: You agreed or you admitted yesterday that you signed a Sales and Purchase Agreement in June last year; that is between Tutuman and Palma Hacienda of Singapore. Did you say that?
A: Yes, I signed or witnessed, yes.
Q: Okay.
[9.07 am] So what exactly was that agreement? Was it Tutuman selling their interest 20 in plantation lands on New Hanover to Palma Hacienda?
A: No.
Q: What was it?
A: It was for Palma Hacienda to come in and bring the necessary resources for the development of the oil palm on New Hanover which they did not do in that time that we agreed to and, therefore, that arrangement was cancelled.
30 Q: Do you have a copy of that agreement that you signed?
A: No.
Q: Is it in your office? Is it in your office?
A: At the moment, I---
Q: You are under oath, Mr Anis. Is it in your office?
40 A: No.
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THE COMMISSIONER: Where is it, Mr Anis? Where is the agreement?
A: Yes, it was in my office in Port Moresby.
MR TUSAIS: Do you have a copy here?
A: I can find it.
10 Q: Okay. Commissioner, I am making an application for adjournment for 30 minutes for Mr Anis to drive back into Kavieng Town to secure a copy of that agreement and to furnish it to the Commission. Let us say at a quarter to 10.
THE COMMISSIONER: Thank you counsel. Mr Anis, the Commission will now direct you, whilst you are under oath, to go your office and retrieve a copy of that agreements - if you can make it three in triplicate and produce it to the Commission by about 10.00 o’clock this morning. If that can be done. You will step down to have the copy of the document delivered. We will adjourn and await 20 your return. Let us adjourn.
WITNESS WITHDREW
SHORT ADJOURNMENT
SITION PASINGAN, Sworn: 30 XN: MR TUSAIS
[9.12a.m] THE COMMISSIONER: Thank you Mr Passingan, you may be seated.
MR TUSAIS: Good morning. Your name is---
A: Sition Passingan.
Q: Sition Passingan. You are a private lawyer based in Kavieng? 40
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A: I am.
Q: You have been a private lawyer for the past how many years?
A: Since 2007.
Q: Since 2007, okay. Yes, you have been also in the public service for some time in the Public Prosecutor’s office for a number of years?
10 A: Yes, Commissioner.
Q: And then you went on to the Magisterial Services and served for several more years.
A: Yes.
Q: And you ended up being appointed as acting Judge?
A: Yes. 20 Q: You appeared this morning in the matter of Central New Hanover Limited, the SABL granted to it?
A: Yes.
Q: Are you the lawyer for certain landowners who are objecting or raising concerns about operations conducted on New Hanover Island?
A: Yes, Commissioner. 30 Q: Now, you have done an affidavit relating to the matter and you have made several annexures or attached several annexures. I will show you a copy of this affidavit.
A: Yes, this is my affidavit, Commissioner.
Q: There are several annexures, if you could perhaps have a look?
A: Yes, I made three annexures and I have marked them annexure “A”. 40 Annexure “A” is a copy of a Central New Hanover landowners forum No 1.
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Q: What about annexure “B”?
A: Annexure “B” is a copy of the landowners forum No 2.
Q: Okay, annexure “C”?
A: “C” is a report, it is a report of a group which we formed, a private investigation group, we formed during the time and it is entitled, “An Assessment and Investigation Report of Logging Operations by Tutuman 10 Limited”.
Q: Would you have any objections if I tendered this to the Commission of Inquiry?
A: I have no objections.
Q: Commissioner, I tender Mr Passingan’s affidavit including the three annexures.
20 COMMISSIONER MIROU: Thank you Mr Passingan.
MR TUSAIS: Commissioner, perhaps we will name the exhibits after the witness. SP.
COMMISSIONER MIROU: Okay, Mr Passingan’s affidavit sworn on 31 October 2011 at Kavieng and signed on that day. It is affidavit SP1.
MR TUSAIS: Commissioner, SP(Central New Hanover) perhaps so that you know--- 30 COMMISSIONER MIROU: SP(CNH)1 – Affidavit. Included with the affidavit under that same exhibit is annexure “A” which is the Central New Hanover Landowners’ Forum which was held on 25 June 2010 at Patipai village Ward 3. Under the same exhibit is also annexure “B” which is Central New Hanover Landowners” second forum, date of meeting 29 July 2010 at Lungatan Ward 18. And also with the same exhibit, SP(CNH)1 – Report titled, “An Assessment and Investigation Report of Logging Operations by Tutuman Limited, Central New Hanover, New Ireland Province. The report is dated October 2010. Annexure “C”. 40
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[EXHIBIT SP(CNH) 1 – AFFIDAVIT OF MR SITION PASSINGAN, INCLUDING ANNEXURES “A”, “B” & “C” AND REPORT BY TUTUMAN LIMITED DATED OCTOBER 2010]
MR TUSAIS: Mr Passingan, in keeping with the practice that has been adopted by the Commission, especially at Waigani, we would now ask you perhaps to read through your affidavit so that it goes into the record.
THE COMMISSIONER: Yes, Mr Passingan, you may proceed to read your 10 affidavit into our records.
A: Yes, thank you Commissioner. My affidavit from the top – I will just read from the top. “Papua New Guinea---
MR TUSAIS: Sorry, Mr Passingan, you do not need to do that. Just read from, “I, Sition Passingan”, thank you.
A: “I, Sition Passingan, private legal practioner of P O Box 531, Kavieng, New Ireland Province, make quote and say as follows: 20 “(1) I am the private practioner and the Principal of the firm, Sition Passingan Lawyers, based here in Kavieng.
(2) In the month of April 2010, information spread out reaching the hearing of the people and customary landowners of the area covered by the Central New Hanover Limited. It is now confirmed in the lease title as follows; all that piece of land known as allotment/portion 887C section milinch Lavongai, town fourmil Kavieng in New Ireland Province containing an area of 56,592 hectares or thereabouts. The 30 majority landowners of Patiyagaga, Kulpetau, Suapetau, Konamatalik, Atnar, Patipai and Meteai villages deny proper awareness, meetings and close consultations with them prior to this operation. Even the surrounding villages and islands of Soi, Lukus, Luslik, Unusa and Uwalik.
(3) Our disagreement and opposition was and is based on the effects of such operations, that is the environmental damages and pollution to the sea/ocean we survive on for our living. In addition, the coastal villages and islands demand charges for passages between our islands. 40
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[9.21 am] All these (islands), the people have land on the main land. They too have not been consulted.
(4) At this point I write as the Central New Hanover Landowners Forum Lawyer that at the Landowners Forum meeting on 25 June 2010, I was endorsed as the Forum Lawyer to defend or assist the landowners.
(5) Tutuman Development Limited landed suddenly on the shore of Konematalik village on or about the morning of Wednesday 12 May th 10 2010 and between 12 and 13 May 2010 all machineries landed at Konematalik proposed log pond with no proper consultation and awareness. My family and I were at Patipai village for Sunday Worship. Moved by the disturbance and widespread dissatisfaction over the lack of consultations with the customary land owners, we took action to organize Konematalik landowners to stop the landing and operations. The village magistrate at Patipai was used for this purpose.
(6) During the first few days, there were divisions within the families, 20 clan members, clans and communities. We returned to Soia Island that Sunday and organize our people and people of the neighbouring island of Nukus. We were concerned about the impacts of such operations to our environment and livelihood. We took our stand to oppose the Tutuman Development operations on our mainland which is Central New Hanover.
(7) On Monday 17th Day of May 2010, we made our first visit to the landing site at Konematalik. We witnessed the initial destruction to the mangroves, some of the sacred sites and people’s houses. Early 30 noticeable effects of the operation was the destruction to the high school, the water supply at Konematalik. Then shortly after we organized and formed a Central New Hanover Landowners Forum. The main purposes of the Forum were;
a) To oppose the logging operations by Tutuman Development Limited and its partners; and
b) To oppose, investigate and have the 99 year lease revoked.
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(8) The forum conducted its first meeting at Patipai village Ward 3, Central New Hanover. Our meeting was held on the 25 June 2010 at 9.30 am. A total of eight council wards were represented at the Forum. Participants 104. The following clans were represented that day at the Forum; the Mani clan or the Eagle, KotKot Clan or the crow, the Kanai Clan the sea eagles, Kikiu Clan, the Kingfisher, the Sui Clan and others. The 8,000 wards vigorously opposed any logging operations by Tutuman Development Corporation Limited and its foreign partners. The Forum also resolved that the 99 year 10 lease must be revoked. Annexure A is a copy of the Central New Hanover landowners Forum minutes which is before the Commission now.
(9) The second Central New Hanover landowners Forum was held at Livatan village Ward 18 on the 29 July 2010. At this meeting 220 participants attended representing seven council wards. Minutes of the first Forum was read out and noted with great support. The discussions centered on the 99 years lease granted over the Central New Hanover area. 20 (10) As the Forum Lawyer, I continue to explain and brief the participants on the Legal position and the effects on our future generation.
(11) At the end of the meeting, the following 6 resolutions were passed;
(i) The company should cease operations and address the problems faced by our people.
(ii) That all ILG areas be checked and fixed up before the company 30 commence operation.
(iii) The lawyer should get the Government to explain how they acquired this land.
(iv) That before any development on Lavongai, everyone must agree.
(v) That before any agreement is signed, there must be policy guidelines and people must be informed; and
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(vi) That Women’s views must be included when making agreements.
Annexure “B” is tendered, that is the minute, Commissioner.
(12) In October 2010, our awareness team organized for an assessment and investigation of logging operations by Tutuman Development Limited in the Central New Hanover area. The team carried out the investigations at the project site at Konematilik Village Central New 10 Hanover. Investigating Team members who are Silas Boas, who is a forester, nationally registered consultant; second member was Patrick Turan, Anthropologist, the third members was Sharon LawatuTuran, Environmentalist, fourth member was Lancy Angele, Chairman, Village Elders Division New Ireland Provincial Government. Mila Angele, the Educationalist.
The team compiled a detailed report containing all relevant information and photographs which are annexed to that report, Commissioner. And this Annexure is marked “C”, my annexure. 20 (13) The third and final landowners’ forum was held at Matemin village in the second week of December. This is the western area of the Central New Hanover Limited boundary. The purpose was to gauge the views of all people in the affected area; the same opposition to the granting of their traditional lands to the company existed. Our awareness and campaign ended in December, 2010.
(14) This evidence is submitted to this Commission in the support of the Central New Hanover landowners’ plea for revocation of the 99 year 30 lease.”
THE COMMISSIONER: Thank you Mr Passingan.
MR TUSAIS: Commissioner, I have no questions arising from this affidavit except to thank Mr Pasingan for his ---
THE COMMISSIONER: Mr Pasingan, thank you for coming forward to assist the Commission of Inquiry in reference to this SABL, Central New Hanover and we thank you for your assistance because this will definitely assist us with 40 our Inquiry into this particular SABL.
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A: Thank you Commissioner.
Q: You are excused.
THE WITNESS WITHDREW
MR TUSAIS: Commissioner, we have given Mr Anis time to return with his 10 agreement.
THE COMMISSIONER: We will adjourn.
MR TUSAIS: We will adjourn. Instead of interviewing another witness, we wait for Mr Anis just to complete his evidence.
THE COMMISSIONER: Yes, we will adjourn proceedings until Mr Anis returns.
20 SHORT ADJOURNMENT
PEDI ANIS, Continuing:
XN: MR TUSAIS
[9.43 am] THE COMMISSIONER: Thank you Mr Passingan, Anis. Counsel, you may 30 proceed.
Q: Mr Anis, do you have copies of that agreement?
A: Yes.
MR TUSAIS: Associate. Commissioner, did you say document on Sales and Purchase Agreement between Tutuman Development Limited described as the seller?
40 THE COMMISSIONER: Yes.
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MR TUSAIS: And Palma Hacienda Limited, the buyer on the 10th day of June 2009? If that could be marked as an Exhibit ---
THE COMMISSIONER: Yes. Exhibit PA12.
MR TUSAIS: Associate, can I have two of those copies back?
THE COMMISSIONER: Exhibit PA12 is the Sales and Purchase Agreement 10 between Tutuman Development Limited, the seller and Palma Hacienda Limited, the buyer on 10th Day of June, 2009.
[EXHIBIT PA12 – SALES AND PURCHASE AGREEMENT BETWEEN TUTUMAN DEVELOPMENT LIMITED, THE SELLER AND PALMA HACIENDA LIMITED, THE BUYER DATED 10TH DAY OF JUNE, 2009]
MR TUSAIS: Associate just give one copy to Mr Anis.
Q: Mr Anis, is this all there is to this agreement or there are some other pages? 20 A: There is another paper ---
Q: Perhaps if I could see that. Commissioner. This makes up the agreement, the deal that was struck between Tutuman and Palma Hacienda. If this could be marked also. I think it is the same – part of the same documents.
Q: Mr Anis, you have got copies of your own, do you?
A: Yes. 30 THE COMMISSIONER: This would be the same exhibit number.
MR TUSAIS: Okay, Mr Anis, this is basically an agreement between your company and Palma Hacienda to, as it were – I will just read from paragraph one; “Agreement to Sell and Purchase. The seller is desirous of selling and the buyer is desirous of buying the plantation land; the Nopuas lease land and any lease land in Central New Hanover subject to the terms and conditions herein after mentioned. Is that what the agreement says?
40 A: Yes.
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Q: Above that, in the recycle as they call it in contract law, that sub-paragraph or roman numeral (i) paragraph it says, “The seller represents and warrants that it is the lease holder and beneficial owner of three pieces of land held under Special Agriculture and Business Lease as follows:
(1) Volume 17 Folio 017, Allotment 885C Lavongai, location Tabut (2) Volume 17 Filio 018, Allotment 887C Lavongai, Location Central New Hanover 10 (3) Volume 17 Folio 019, Allotment 888C Lavongai, Umbukul; (4) Acreage; total land area – 93,564 hectares.
Is that what the Agreement says?
A: Yes.
Q: Now, over the page, I think page 2, sorry starting from paragraph 2 on page 1 - Just consideration, the buyer undertakes to remunerate the seller a total sum of US$600,000 being the consideration of the sales and purchase. This 20 money is to be deposited by the buyer to the seller’s designated account as follows: “Amount US$600; beneficiary – Regina Lao Hii Wong, Bank Name: City Bank Singapore Ltd; Bank Account: 0348592017.
Paragraph 2.2 - contribute a total sum of K100,000 on annual basis to a local company run and managed by the local level government being the Welfare Trust Fund.
Paragraph 2.3 – payment of the US$600,000; payment of a deposit of US$120,000 immediately upon the signing of this agreement; and 30 Paragraph 2.3.2 – payment of the balance sum of US$480,000 within six months from the date of this agreement.”
Is that what the agreement says?
A: Yes.
Q: Is it correct that these other figures represented in the receipts or bank printouts I showed you yesterday, paid to Mrs Regina Lao Hii Wong in City 40 Bank, Singapore?
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A: I do not recollect about this.
Q: I just show you this again. Just look at the first page of this. It is a payment of an amount of US$320,000 in favour of Regina Lao Hii Wong, payment detail being 20% deposit for plantation land, C/- Tutuman Development Limited, Papua New Guinea. Bank, Singapore Branch of the UBSAG. That is the document I showed you yesterday. Is this the payment in relation to this agreement signed in June 2009? 10 A: I really do not know.
Q: But it could be? It could be Regina Lao Hii Wong accepting payment without your knowledge?
A: No.
MR TUSAIS: Associate, I will have that back, or perhaps if the---
20 Q: These are Sales and Purchase Agreement. Would you now agree that effectively Tutuman was trying to sell your interest as developer of those three SABLs to Palma Hacienda Limited of Singapore?
A: No. When this agreement was designed by the Gromax Company which is the partner for Palma Hacienda, and I made a mistake by not running this through with my lawyer, Mr Maraleu, before signing this; my signature is there – I signed it. But when I ran it through with my lawyer, he advised me that this agreement is not proper, it is a default agreement. There is no way we can be able to do this under the laws of this country. And he advised 30 strongly to cancel this agreement and that the lease be cancelled and transferred back to Tutuman Development Limited. It was the lawyer who advised against this agreement although I admit I already signed the agreement but the lawyer advised – and he will be called before this commission and he will explain this area. He said you cannot sell and purchase; you can sell resources but you cannot sell land. And this agreement was not run through him. And as you can see, he did not witness this agreement. He normally witnesses agreements that we enter into by Tutuman Development Limited.
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Q: Who is your lawyer, is it Mr Maraleu? Is he the lawyer or another lawyer who was advising?
A: Mr Maraleu.
Q: Was he present when you signed it?
A: No.
10 Q: Did you think it was important enough to have you lawyer may be check this paper?
A: I was pressured by Palmas and Johnny and Nickolas Hii brought this to me early in the morning and I went ahead and signed without consulting the lawyer and then on that same day I called him and he said, wait, give me all the papers; let me look through and you should never do things like this. You are a big man, you should never sign without my going through every document that you sign, an agreement must run through me before you sign. And yes, I admit, he was not present and I did not run through this 20 agreement with him, therefore immediately he has advised for the cancellation and any deals to be cancelled and that there is no – we cannot sell this kind land to anyone, even sub-lease.
[9.55 am]Q: Mr Anis, was this - this is the reason why you are having ongoing battles with Gromax also known as Palma Hacienda on Central New Hanover for the time being?
A: Yes.
30 Q: They are standing firm on this agreement and saying you already sold your interest to us.
A: No, they are saying that if we cannot develop New Hanover, nobody else should.
Q: So this deal was done in a hurry; they pressured you to sign this deal. You did not consult your lawyer?
A: Yes. 40
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Q: And so you did not tell the people of Umbukul that you were going to sign this agreement with Palma Hacienda?
A: Yes, I did not tell the people of Umbukul, that is why I asked the lawyer and the lawyer said that – after cancellation we went and explained to the people of Umbukul.
Q: You did not tell the people of Tabut?
10 A: No, I did not tell the people of Tabut. I had no time to consult quickly with the companies, and the people.
Q: And you did not tell the people of New Hanover – Central New Hanover?
A: No.
Q: Mr Anis, may be you intended in the first place to tell them? I am just putting that to you. What do you say?
20 A: I always inform the people on anything that goes on, the development that is affecting them, on monetary developments. I think in this particular case I just woke up and this person come in and he said, you have to sign this document and that is why I – yes, I signed. But that is not my intention not to tell the people of New Hanover on what happens all the time. I have been with them for many years, I always explain things to them properly. This is the only time that I could not do it in that morning. I asked, just please leave it, I will sign later on, but John Hii who is the Gromax and Palma Hacienda person that went and cut logs without their consents, without all the licenses, pressured me and pushed me to sign the deal. 30 Q: Mr Anis, you have been a leader for – well you have been a leader for most of your life in New Ireland. You are the political head of this province as Premier. You state in our personal profile that you have negotiated major projects in the province including Lihir Gold Mine. Just based on your profile, you do not seem to be a person that is easily pushed over. You have a strong character.
A: Yes.
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Q: So how do you explain this particular signing? Why were you pushed over, bullied, forced to sign this agreement?
A: Gromax, John Hii, the Principal, actually told me that in order to quickly realize your developments for oil palm, we can get the machineries in very quickly in the next two weeks. But after this signing I went back to my old – my proper mode and I asked the lawyer and the lawyer said, this thing no good, you have to cancel. At that point, I was not in my – I cannot explain it, it is one of those moments and only one and I --- 10 Q: Yes?
A: But after that I got back to on my own senses and moved to do the right thing with the lawyer’s advice.
Q: Okay, Mr Anis, we will leave the Palma Hacienda there for the time being. Just to finish off, this Tutuman Development Limited, you agreed yesterday that it is a foreign company. A definition of a foreign company is if major shareholders are foreigners? 20 A: Yes.
Q: As Chairman, have you made or lodged an application with the IPA, Investment Promotion Authority to register Tutuman to carry on business?
A: Yes Sir, registered as Foreign Enterprise.
Q: Have you got copies of that with you?
30 A: Yes, we can get it to you in the office when Janet or Miskus comes in I will provide that through her.
Q: Perhaps you could provide the copies to the Commissioner. It is also an requirement under the IPA Act, that if you register for a project, if you do other projects, you have to apply for variation for each and every projects thereafter?
A: Yes, I am quite aware of that and all those things have been complied with, yes. 40
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Q: Excellent, okay.
MR TUSAIS: Commissioner, if Mr Anis could make copies of those available to the Commission?
THE COMMISSIONER: Yes, I think Mr Anis has made an undertaking to provide copies of the foreign enterprises and other IPA registered documents.
A: Thank you, yes. 10 MR TUSAIS: Mr Anis, we have heard evidence of the number of non nationals or non foreign workers at Danfu Extension. What about those ones at Central New Hanover at Meteai Oil Palm? How many foreigners are employed there?
A: I, really am not in the operational part of the company. They have got managers there but I can ---
Q: Just a rough estimate, Mr Anis?
20 A: About 20 I think. But I can provide the listing also with copies of all their work permits and so on – that can be provided.
Q: By today if possible?
A: Yes, we can do it by today.
Q: Yes, excellent.
MR TUSAIS: Commissioner, perhaps Mr Anis can do that by lunch time today? 30 He will be excused shortly so ---
THE COMMISSIONER: Yes, if you can provide the copies – profiles of each of the foreign workers on Meteai?
MR TUSAIS: Okay, just finally Mr Anis, I asked you yesterday and you said you would have to check but you have had yesterday and the night until today. Do you now know what the average value is of one shipment of log? Just an average for a ship to move out of Meteai to capacity and to export those logs, how much would you get? 40
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A: For that period about if you are talking about 6,000 or 7,000 cubic metres, you would be looking at 7million roughly.
Q: Okay, thank you. Commissioner, I have no other questions for Mr Anis.
THE COMMISSIONER: I have no questions to ask Mr Anis. Mr. Pedi Anis, thank you for coming forward and answering those summonses and assisting the Commission with all the materials and information and evidence in general. We thank you for your contribution to our work and the Inquiry. As we will require 10 you to produce those other information that we require, and you are now excused from the Commission. Thank you.
A: Thank you very much.
THE WITNESS WITHDREW
MR TUSAIS: Commissioner, I believe Mr Miskus Maraleu is present outside the 20 building, if he could be called.
THE COMMISSIONER: Yes, if we can call Mr Maraleu to come forward to the witness box?
[10.08 a.m] THE COMMISSIONER: Thank you, you may be seated and speak into the mic. Thank you Mr Maraleu, you may take the bible and swear on the Bible.
MISKUS MARALEU, Sworn: 30 XN: MR TUSAIS
THE COMMISSIONER. Thank you and you may be seated and speak into the mic.
MR TUSAIS: Good morning. Your name is Mr Miskus Maraleu?
A: Yes, correct. 40
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Q: You are a private lawyer, sorry, your occupation is a lawyer and you have a private practice?
A: Yes, and I am practicising under Mane Isana Lawyers.
Q: You have been in private practice since 1981?
A: That is correct.
10 Q: Prior to that you worked with the State Solicitor’s office after you graduated from 1975 to 1977?
A: That is correct, sir.
Q: Then you joined the Public Prosecutor’s office from 1978 to 1980?
A: That is correct, sir.
Q: You are a former chairman, is it chairman? 20 A: That is correct.
Q: Of the Investment Corporation?
A: That is correct.
Q: You are also the chairman of the FIC? What is the FIC?
A: I was also the chairman of the FIC, the Forest Industry Council of Papua 30 New Guinea.
Q: You are originally from Umbukul village on West New Hanover?
A: That is correct.
Q: At the present time you describe yourself as lawyer for Tutuman Limited?
A: That is correct.
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Q: You have been involved basically with Tutuman in all of the four SABLs that are of interest to Tutuman. That is one in Namatanai, Rakubana, and the three on the New Hanover Island; Umbukul, Tabut and Central New Hanover?
A: Yes, since 2007.
Q: 2007?
10 A: That is correct.
Q: Would you just describe your participation as the company lawyer for Tutuman? What was your involvement, what activities did you undertake to establish these SABLs?
A: Sir, when I joined Tutuman in 2007, I looked at all the activities they had done up to 2007. I looked at Rakubana, which is Danfu, which was the extension of the Danfu TRP. And they had a company by the name of Rakubana Limited or Rakubana Development Corporation Pty Limited. I 20 looked at land mobilization in that area and I looked at their file and I saw that a lot of mobilization has taken place because I saw a lot of 165 and 166 forms were completed. These are the consent forms and a small agreement form, 166 to allow Tutuman to go into their areas.
Q: You are not actively involved in getting these landowner groups registered, these ILGs? You are directly involved, is that true?
A: Yes, with the assistance of Thomas Tomar, and a couple of old men by the name of Francis Kakun--- 30 Q: Thomas Tomar is the secretary for Rakubana Limited?
A: That is correct.
Q: How is your relationship with Thomas Tomar as of todate? Are you still on good terms as lawyer for Tutuman and Rakubana? The landowner company and Tutuman as the developer?
A: Personally, I have no problem with Thomas. But I think they had some 40 problems at home in their landowner company.
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Q: Thomas gave evidence in Namatanai, and he says, you yourself Miskus Maraleu as lawyer for Tutuman, you are trying to replace him and put some other people into Rakubana Corporation Limited?
A: I deny that completely. I have no right also.
Q: That is what he says, I am asking you? So if you deny it, that is fine.
10 A: I deny it completely because I have nothing against him personally or with the company.
Q: He also says that he is concern to become director for the new lot of directors was forged. He did not sign that form. Do you have any or what do you say?
A: This one too I do not know because I did not see his form. But to be honest I do not have any quarrel or any problem with Thomas. Because he was the main player who took me around these various clans and introduced me to 20 them and also was instrumental in the formation of the various incorporated land groups. Because I am not from there.
Q: What Thomas also told the Commission at Namatanai when it sat there was that you, as lawyer for Tutuman, have been registering ILGs and getting people from other clan and putting them as chairman or secretaries or officials of other ILGs, thereby creating a lot of conflict down in the Danfu Sabl held by Rakubana.
A: This one too, sir, I deny because I do not know the people from there. I do 30 not know the landowner was from there. I am from Umbukul.
Q: Maybe we go to your island. You just tell the Commission. That is where you are from so you tell the Commission how, what part you played in the registration. First of all in the registration of those ILGs.
A: Thank you, sir. Again, when I joined Tutuman, I found out that a lot of work has been undertaken in the land mobilization period up to 2007. Their previous lawyer was now the Chief Council of the Environment Department, Mr Ben Passingan. When I brought him in in 2007, a lot of the consent 40 forms and the agreements for Tutuman to get into the land were in place. In
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Central, the current chairman Sirimai Lau and his team of landowners were the people who took me around to the various clans and various villages to actually see these clans and confirm that they are the clan that in these consent forms. The same thing was done also in Tabut. The person who is now also the current chairman is a Mr Peni Ruben. In this particular case, I discovered that they formed their ILGs in 2005 so I did not have to do a lot of work there. Mr Ruben Peni told me that he was personally involved in the formation of these ILGs, together with a gentleman by the name of Eledin Sakias and they also financed this incorporation of this ILG by 10 themselves.
Q: Alright, just please move on with---
A: In Umbukul also, sir, there were a lot of consent forms also signed.
[10:18 am]Q: Whilst these forms were signed, you were present?
A: No sir, they were signed before my time.
20 Q: Was some signed in your present?
A: There may be some but I cannot recall sir; there may be some, but I cannot recall.
Q: Whilst they were being signed, did you explain why this – why were they forming incorporated land groups? For what purpose?
A: These, I really do not know, but when I went around, I told them that, now you have signed these consent forms, but next step now is to verify your clan 30 and then I will help you to incorporate your clan into a incorporated land group. So this is---
Q: So for what purpose?
A: For agriculture development on the island.
Q: And what would these ILGs do? Do you know?
A: The ILGs were basically to identify--- 40
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Q: I know, the groupings – the people in the – but that group, what would they do to develop agriculture?
A: They either have to look for an investor to help them to carry out agriculture development.
Q: Mr Maraleu, may be I suggest that you were actively involved to get these guys to form ILGs so that you could have them acquire an SABL with you Tutuman as developer? Is that what happened? 10 A: Tutuman was actively involved in the initial stages up to 2007 and they probably promoted the idea of some major agriculture project.
Q: Yes, we agree on this. What those ILGs were formed for; what is the purpose of the SABLs that now exist?
A: That is correct, I think.
Q: In Namatanai? 20 A: Yes.
Q: And the three on New Hanover. But they would not waste time in – why would they waste time forming ILG unless it was for that purpose? I am just say that.
A: No, there are two reasons; first so that they can identify their own clan land, and then for their own security. So that if there is an investor comes around, my idea was so that they can have bargaining power to negotiate a 30 deal.
Q: So the next step was for the Lands Department to come in and conduct Lands Investigation Report?
A: That is correct. After the ILGs were incorporated, then I think Tutuman invited the Lands Department to do an inspection of the land all around.
Q: And Tutuman had to – Lands Department Officials from Waigani to come and conduct Land Investigation Report? 40
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A: That is correct.
Q: That is Lazarus Paul Malesa?
A: Yes.
Q: And who else?
A: I only know Lazarus. 10 Q: Okay. Did Tutuman approach the Lands Department officials in Kavieng? The Provincial Lands Office?
A: I do not recall. I think they liaised directly with Port Moresby.
Q: So you did not consult with Mr Martin Banovo, who was the Lands Director at that time and Mr Mark Waine, who appears to have been in the Lands Division of New Ireland Provincial Government?
20 A: I do not recall.
Q: So you decided instead to go directly to Lands Department in Waigani?
A: Yes, because we were advised that they have a Customary Section in the Department of Lands and that they were expert in these areas.
Q: There is also a Customary Division in the New Ireland Lands Division. Mr Mark Waine was the---
30 A: I was aware at that time.
Q: Perhaps you were aware but Mr Mark Waine probably would not have cooperated well with you? Is that one of the reasons why you did not see him?
A: Sir, to be honest with you, I did not know.
Q: Do you know this person, Mark Waine?
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A: I know him very well, but I did not know that he had a function as a Customary Lands ---
Q: He has very strong views about lands. Even though he is in the Lands Department, he has been advising people in New Ireland not to sell their land, not to take – to consider very carefully before making any deals. He has come before the Commission and said so. Do you know that that is the kind of person he is? You have known him for a number of years so I am asking you? 10 A: No, I really do not know that that his views.
Q: Mr Malesa, how long did he do the Lands Investigations Report for Umbukul?
A: I took him around and I introduced him to the Leaders of the various clans.
Q: What dates did you cover Umbukul?
20 A: I cannot recall the dates, but I think it was for a period of one week - about one week.
Q: What about Kabut? How many days or weeks?
A: May be one or two days.
Q: The bigger SABL on Central New Hanover, how long did Mr Malesa and yourself cover that area?
30 A: About 3-4 days, I think. I cannot recall now. But all the Chairmen of the ILGs came together and he himself spent the time with them. I remember a couple of time we went up the river to look for some of the leaders of the clan.
Q: Did you also talk to the people on the island that those are the islands that strung up, following, well alongside New Hanover Island, Soi Island?
A: No.
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Q: Okay. Did you know that they were also, that they had a interest and who are landowners on the mainland. They are not very far from New Hanover mainland, are they?
A: I do not – and they are members of the clan and the chairmen of the ILGs Lazarus attended to them.
Q: Yes, these people of Sohe Island, Nukus Island, Nuslik Island, Nusa Island and Ungalik Island, they said they were never spoken to or their interests, 10 concerns taken into account by any Lands Department Officer?
A: I do not recall visiting them.
Q: Yes, okay. Also some people from the interior – bush people, up towards the mountain but contained within the Central New Hanover SABL say nobody went and spoke to them.
A: This one, this question I cannot answer now because basically a lot of this work was done before my time; a lot of this work was done before my time 20 and I think the right people to talk to is the Chairman, for Central, Sirimai.
Q: I am just asking about yourself and Lazarus Malesa, your walkabout?
A We did not go up that way.
Q: You did not go up?
A: No.
30 Q: We both know, in order for a SABL to be granted and the lease granted by the State, there has to be consent. And consent after the case of Musa Valley, consent of the majority, what we have been getting a lot of people coming to the Commission from your island – I will start off with your island and say, “look we were never consulted; we did not give our consent.” There are lots, they come and they represent their clans and they say, “we were consulted or if our names are in the ILGs, we did not put our names down there.” That is what they say. Now, what will you say about those concerns?
[10.2840 am] A: From what I have done myself there are 37 ILGs in Central and as far as I
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am concerned, there is almost three quarters of the Central people there. Until now, until today, none of the members of the 37 ILGs have complained that they were not consulted. The majority of Central people that are recorded and they have allowed their land to be under these development have agreed.
Q: Those people, the majority would include people from Punamatilik Village?
A: That is correct. 10 Q: There were some incidents on Punamatilik Village, you will be aware of that. The Punamatilik people put up golgol and stopped Tutuman from landing its logging machinery.
Α: The incident happened basically after the subcontractor, Gromax was terminated and Tutuman was trying to retrieve its assets from the wharf and log pond area. When there could not be any impasse, could not be any agreement, Tutuman invited the police to assist in carrying out two Court Orders to retrieve the assets. One was a National Court Order and the other 20 was a Supreme Court Order. And when there was a strong opposition, the incident happened, sir.
Q: Okay, so they are not operating in Konamatalik anymore? Is that a statement by the people of Punamatilik that they do not want Tutuman Limited as Developer?
A: Yes and no because some members of each clan that these leaders are representing are coming to me and telling me that they want the project.
30 Q: Some, but a lot said they do not want.
A: The ILGs that are concerned, they may agree or they probably agree that Tutuman cannot go in. That is good. The policy of Tutuman is that if there is an opposition from any one landowner, they do not go in, they will leave them alone. So you may be right, sir.
Q: I am just making general observations so I started off in Danfu. Mr Tomar has given evidence saying, there was – you have problems there, Tutuman have problems there. There have been land disputes, landowner 40 disagreements so your operation has ceased in Danfu for the time being.
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A: The operations ceased in Danfu is not because of landowner problem. The problem arises out of subcontractors who are not complying with the SABL conditions and a lot of the problems in Danfu are related to the subcontractors.
Q: Who is?
A: The previous subcontractor was something Maps. They were terminated. 10 Now we are trying to negotiate another subcontractor to go in together with agriculture people to catch up on the agriculture development. Now if there was any - this project is about two years old. It is less than two years. It is going into the 8-9-10 months now for the second year but there are already massive agriculture development in Danfu.
Q: In which part of Danfu Extension?
A: In Ilolon area and if you had taken the trip up to the hinterland, you would have seen about 30 hectares development on cocoa which are now bearing. 20 22,000 cocoa trees are now bearing and there are small cocoa plants along the road right up to the hills and there is also about 10 hectares of reforestation also taking place up on the hinterland and on the grass land the trees planted there are Kamarere trees. I personally take time out and took a couple of days out to go and actually personally look at these agriculture developments toward the end of last year.
Q: We drove past the Ilolon, we never saw any massive cocoa planting, it is just bush.
30 A: On the highway or ---
Q: Yes, on the coast.
A: There is nothing on the coast but when after Ilolon, you go in and you take a drive right up to the hinterland, you will a lot of cocoa, young cocoa trees, just bearing first time.
Q: Okay Mr Maraleu, we will leave it there. May be we will go down when we return. 40
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A: I can come with you and show you the development. I am willing to come.
Q: Okay.
THE COMMISSIONER: Mr Maraleu, just one thing that concerns me is your involvement with the Lands Officer on these ILG applications. Why is the company, the developer involved with the Lands Department in this obtaining the consent forms from the villages? Why is Tutuman involved with Lands Department in the issuance or to obtain the ILG consents from the landowners? 10 A: Sir, these consent forms when I arrived in 2007 were already done. The Lands Officers were involved in investigation of the – to verify whether these landowners that are in these ILGs are the genuine landowners of these particular pieces of land in that three portions of land on New Hanover.
Q: If you look at the process for ILGs, it is not really a requirement under SABLs because it is something that is related to mining activity, oil and gas, given that in a particular area where mining activities takes place, you have people living in there; clans, tribes. But as the actual exploration becomes 20 obvious that its actually in a particularly area, it only affects a small group of people and we know that the impact may have other impacts on other landowning groups so as a result of that ILGs were brought in to curtail every clan members calling the government for things so you create an ILG so that that ILG with the consent of every individuals and they appoint a chairman and its grouping and they consolidate themselves into a grouping where they can use that as a forum for their benefits or whatever. In this case here, you have already said to this Commission that you actually went with Mr Malaisa on this trip?
30 A: That is correct.
Q: What was Tutuman’s interest in these trips to Umbukul or Tabut or Central New Hanover? You are the developer?
A: Sir, my only concern or Tutuman’s concern is basically accompanying Lazarus to go and point out the Chairmen of these ILGs and than after I pointed out and I introducee him to the leader of the community then I go away and Lazarus and the community with the Chairmen of the ILGs and the Chairman of the Umbukul company then attend to Lazarus. 40
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Q: Would not Mr Malaisa deal with the Provincial Lands Office here to get that information on who was actually living on those islands rather than Tutuman?
A: Sir, that is a very high possibility. In this case it was not done.
Q: You see it is very essential because consent is a very important ingredient in SABLs. You must have the consent of each individuals within the village on ILG to be able to consolidate as a group with one Chairman and all of 10 them voicing that and that is part of that process. Even a land investigation reports involves a number of procedures and processes that the Lands officer must satisfy before he makes that recommendation through the Provincial Administrator’s office for a recommendation that this particular land can be alienated for the purposes of Special Agriculture and Business Leases.
A: I agree with you sir. And like Tabut, a lot of the land consent and even the incorporation of the ILGs were done by themselves through their Chairman Nipal and also they paid for this thing themselves. Like Tabut, the landowners did it themselves and they paid for it themselves also. 20 Q: Yes, that is not really correct because the Lands Department does not have the funding to register ILGs so it is sort of –I think that each ILG bears the cost for registering their ILG. We have received evidence and it is that those consent forms that they say, and they call your name, that was given to the Chairmen and people were forced to sign those forms to register an ILG for the purpose of facilitating the Tutuman’s involvement as a developer.
A: Sir, I give evidence on oath, I never forced anybody, all around Tabut, right in the four areas that I am involved to sign any consent form at all. Or even 30 induced them or bribed them, I cannot.
[10.43 am]Q: I am not suggesting that, I am simply saying that that was what we heard from witnesses from within the area, affected areas that you had given them consent forms to sign in the presence of the Lands Officer.
A: Well, Lazarus can be my witness and like I said, Sir, I am giving evidence on oath, and I know the importance of this evidence and I can state clearly to you, sir, that I have never forced anybody in three areas, in New Handover or in Danfu to sign any consent form. 40
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Q: Thank you.
MR TUSAIS: Mr Maraleu, your involvement, apart from taking Lazarus around, it goes further, you are in fact the secretary – company secretary for Umbukul Limited?
A: Yes, initially when these companies were formed, I nominated to be a secretary for a temporary period and then I resigned from all three companies as secretary. 10 Q: We got IPA extracts dating to just recently, I think August, that you are still the company secretary of Umbukul Limited?
A: I may be in the record but I have already resigned from three companies.
Q: When did you resign?
A: It was sometimes last year?
20 Q: You are familiar with the company laws. You would have sent the appropriate correspondence so IPA can make changes to the information? Did you write to IPA?
A: I have resigned from the companies, I have prepared the forms and I have not sent the forms.
Q: Okay. Do you have your resignation letter with you?
A: I did not bring them but the Chairmen are here and they can testify to it. 30 Q: Okay, you resigned last year?
A: Yes.
Q: You were still secretary on record?
A: On record, yes I am but I am training the other two secretaries on the other two companies.
40 Q: You are also secretary for Tabut Limited?
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A: That is correct.
Q: You are still secretary for Tabut Limited?
A: At the moment, yes, because I have not sent in the forms to complete resignation.
Q: And you are company lawyer for Tutuman Development Limited? 10 A: That is correct.
Q: Do you see any conflict at all in any ethical issues that you can be company lawyer for Tutuman and Secretary for the landowner company?
A: At the moment I, in these initial stages, I do not see but now that I have resigned, I do not have to be in that position anymore.
Q: You tell me, are you still Secretary for Tabut Limited? Do you see any 20 ethical issues, any possible conflicts of interest situation?
A: There may be a position that may arise. At the moment it has not arose yet.
Q: You see, you are serving two masters, these are basic issues that a lawyer learns at the University or at Legal Training Institute. You cannot act, for example, in convention the sales of real estate. You cannot act for the buyer and for seller except for certain, very limited circumstances. But otherwise, you will have to act either for the buyer or the seller. You represent one or you represent the other, you can not represent both. 30 A: At this stage – this formation stage, there has not been any serious situation that has arisen to demand a conflict of interest yet. But I have resigned on records but on the records I am still there but within the next couple of months, I will not be the Secretary any more.
Q: It is because of this Inquiry into SABL?
A: No, I resigned well before this one was established.
40 Q: But you have not resigned from Tabut yet, you are still the Secretary?
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A: I have resigned also from Tabut but like I said, I have not filed in the necessary form from IPA.
Q: You resigned a few months back, but from the start when this SABL was being processed and finally leave granted, you were acting for the both developer and the landowner company?
A: Yes, that is correct. 10 Q: And you say there is no problems with that?
A: In the formation stages, I did not see any problem because they had a common interest to work together for some business project. So then in that stage I did it–
Q: Mr Maraleu, these are basic – it is just black and white, there are no gray areas. If you are representing Tabut, you are representing Tabut and arms length to Tutuman. If Tutuman does anything that is not in the interest of 20 Tabut, you would be in a position to say, can you wait a minute, let us do it another way, for the benefit of Tabut Limited. Now it seems like, you are acting as company lawyer for Tutuman which you have been a company lawyer for a long time just making sure that Tabut and Umbukul follows Tutuman’s suggestions, ideas. Is that what you are basically doing?
A: No, I was straight forward. I advised them strictly on what I believe is the right way and I am ---
Q: And what Tutuman believes is the right way forward? 30 A: If there is anything wrong with Tutuman and they want to impound on the landowner I advise the landowner, you know.
Q: There is a lot things wrong with Tutuman. I suggest to you that they have conducted basically logging operations under this SABLs and created a lot of environmental damages, there are a lot things that the landowners are complaining about. That is the current situation and then there is not enough evidence before this Commission to sustain that. Now, that is where you come in, you see. Where do you stand? You stand with the people of Tabut 40 as the Secretary for the landowner company and say, Hey, Tutuman, come
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on you are digging up our reefs, you are cutting these undersize logs, you doing this or do you say, no worries guys, it is okay, Tutuman is doing fine?
A: Couple of times, I advised Tutuman to follow the law.
Q: Can you give us an example of your advice if you put it down in writing?
A: I cannot because---
10 Q: Because you did not advice Tutuman. You are Tutuman’s boy. You are Tutuman’s lawyer. That is your first loyalty. Is that right?
A: Well, like I said; in the formation period, what they are doing now, I mean, I – my role is basically to put them together. What you are suggesting is, yes, I am their lawyer and they asked me to assist the landowners, yes I assist but where else can the landowner find help?
Q: There are lawyers in New Ireland for goodness sake. Are you saying you are the only lawyer in New Ireland or? 20 A: There are other lawyers in New Ireland also. At this stage, most of the work I did for them is basically for no payment at all.
Q: All right. May be, I will not argue with you. We will leave it there. That is just an observation. For a person standing from outside saying, look, what is this lawyer doing. What is he doing there, where is his loyalty? Who is he really acting for? Whose interest is he – so there is that question of conflict of interest. So I will just ask you this last question. If there was a conflict of interest situation, what would you do? 30 A: If there was a conflict of interest in this situation, and it is serious , I would side with the landowner and I would tell Tutuman you are not doing the right thing. That is from the bottom of my heart.
[10.53 am]Q: Okay, you are fairly well versed, you are conversant with the Forestry Act, the basic operations of the Forestry logging operations, all the permits, all the what, you are previously Chairman of the Forestry Industry Council after all so, that is under Section 19 of the revised Forestry Act, it requires the developer when applying for Forest Clearance Authority, to do a lot things. 40 For example, the developer must convince the PNGFA that it has a
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implementation schedule showing precise areas and proposed rate of harvest. The applicant must further show what he plans to do on the cleared land by submitting a successive land use development plan approved in writing by Secretary for DAL. That is Section 90(3)©. It must also convince the PNGFA, Forest Authority under Section 90(8) that says that it must give details of equipments and manpower plus proof of past experience in such agricultural developments. Based on those provisions I want to ask you, what has Tutuman Development Limited’s past experience in agriculture been? 10 A: As I came to them in 2007, I can only tell you my observation of what they did at the Kamalabun on the west coast of New Ireland.
Q: Kamalabun? What did they do there?
A: They were operating, I think TA, TO3 and a TO2. They were operating Timber Permit No 3 or and a road lining clearance. And in there they did a lot of agriculture development.
20 Q: What agriculture?
A: Cocoa development mainly.
Q: Okay. What they did was just to buy poly bags and give it to landowners to put their seedlings in?
A: And also seedlings and they helped construct a very big nursery. The nursery is still there in the west coast of Kamalabun and one of the landowners, his name is Henry Hagon, and his clan are the beneficiaries of 30 this project and they bring in almost sixty bags of cocoa every month into the ---
Q: But this is that bloke, that is him and his family planting cocoa, picking cocoa and bringing it into town. It has nothing to do with Tutuman. That is his own work.
A: Basically there was nothing until Tutuman went in, helped him and other landowners along the Kamalabun area.
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Q: What I am saying is Tutuman just provided those poly bags and seedlings and that is it. That was their participation. They cut the logs down so there is space there to plant so they gave out poly bags. I mean, anybody can go and give poly bags. Is that correct? That Tutuman did not go in as an agricultural company, sit down, manage all the things that the agriculturist do, or agricultural companies do, to run estates, to run and organize structured plantation type operations?
A: Most of what you saying is true. But at least the benefits--- 10 Q: I am suggesting that Tutuman, apart from supplying those poly bags, never did participate in any other substantial way in the agricultural part of the project?
A: This one, I cannot comment because I was not involved in it, but I am just pointing out---
Q: But you saying you - from what you are telling the Commission it appears that Tutuman went and transformed this place and created all these cocoa 20 and now the people are rich but really it has got nothing to do with Tutuman, it is those people themselves, planting, looking after the trees, harvesting the crop and bringing it in. Is that the true picture of what is happening out there?
A: No, in some other ways Tutuman helped in supply of poly bags and building of the nursery in clearing the area for planting.
Q: Okay, apart from cocoa, does Tutuman have any experience – past experience in oil palm? 30 A: No past experience in oil palm.
Q: So why did you put in this project proposals that you were going to develop oil palm on New Hanover Island?
A: The attitude the Tutuman took was that if this oil palm was to go ahead, then the expert on oil palm would be hired.
Q: No, no, Mr Maraleu, you are the forestry expert here. All right, I just read to 40 that section that says the developer or the applicant who is the developer
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must show proof of past experience in such agricultural developments. Is that a correct reading of the part of the Section 90(3)?
A: That is correct; that is correct, but---
Q: It does not say, the developer will later get somebody else to come and develop what we suggest?
A: No. But it does not stop the developer from getting expert to help him. 10 Q: No. This Section does stop the developer. The developer must have – must be shown to be capable and have capacity to go in there and do what it promises to do. That is what the Act says.
A: Okay, agreed.
Q: You agree?
A: Yes. 20 Q: So you have been misleading PNGFA when you applied for Forest Clearance Authority for those three SABLs on New Hanover Island? Is that correct?
A: One of the requirements, yes, you may be correct.
Q: Now, just in the same vein, there has been your Chairman, Mr Anis has come in and said, no, we have decided not to plant oil palm after all, and that you will plant rubber on New Hanover. 30 A: That is correct.
Q: Have you, does Tutuman have past experience in planting rubber?
A: Only in Papua New Guinea, no.
Q: So what people are saying is that Tutuman is tricking us. It says it will come to agricultural projects but it does not have capacity for agriculture. All it is interested in is coming in and cutting our logs as fast as possible and they 40 move onto other areas without really leaving any developments or
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improving the lives of people whose land the trees are on. What is your response to those views?
A: Those views are not correct because on New Hanover, Tutuman is very genuine just as in Rakubana and Danfu. I come from that area and my duty basically is to ensure that what Tutuman promised to do will be done.
Q: A short distance from where Umbukul SABL starts, it is at Noipuas village, you come down a bit, you come to Tabut village, Three Islands harbour, that 10 is where Tutuman landed in 2007 maybe ‘08 and built a 12 kilometre road all the way around close to the Mamirum Harbour. Is that correct?
A: That may be correct.
Q: No. Is that correct or not? Do not say may be. You come from there. You should know.
A: I have not actually travelled that road so.
20 Q: You have never been to Noipuas---
A: I have not travelled that road yet. I go on the boat.
Q: While as you go pass the boat, and you look into Three Islands harbour, are there any permanent houses where Tabut village used to be?
A: No, where Tabut village was, there is no permanent building.
30 Q: Okay. Do you know if Tutuman has built any permanent houses for the original inhabitants of Tabut village?
A: In that area there is none.
Q: Did Tutuman promise those Tabut villagers that they would build permanent houses because they had to move inland to make way for Tutuman’s log pond?
A: They must have promised them. 40
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Q: You must have promised them?
A: Yes.
Q: When will you keep your promise?
A: There is a long outstanding land dispute case in that area. Until that land dispute case is resolved, I understand Tutuman will build permanent houses for these people. 10 [11.06 am] THE COMMISSIONER: Mr Maraleu, despite the dispute activities taking place would be damage to the coral, to the shoreline where Tabut village is located and an actual road was actually constructed, trees cleared, villages cleared and the road line extents and even the removal of a classroom; elementary classroom, pass the village and a 12 kilometer road link around that area into Mamirum harbor. Were you aware of that activity taking place at that time?
A: I was actually not involved in the operation. I was aware that they were building roads there.
Q: You were not aware of the operation. But Tutuman actually holds a 20 sublease to Tabut Limited. That sublease is for 40 years. That means that the rights of the people in these particular areas affected by that lease; the customary rights have been suspended. Initially, it was given to Tabut Limited but Tutuman now holds that lease for 40 years. That is the reason why those activities took place because Tutuman owns and can do whatever it wants at wherever locations it wants to land its machinery to do so much damage without any cause for the people to stop them from continuing with the operations. That is exactly what is happening. Is that true or not true?
A: Sir, I think this is not true because there is no, Tutuman has not got an FCA for Tabut yet and also for Umbukul. What they ---
30 Q: So if it does not have an FCA, why did it clear that, make that ---
A: I think, sir ---
Q: That 12 kilometer road line if it did not have an FCA to clear for a road link?
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A: Sir, I think this goes down three or before the sublease, it was probably done on a TAO3 and a TAO2. There is no FCA for Tabut and there is no FCA for Umbukul as yet.
Q: But there currently exists a TPA but that is in the Mamirum area, not in Tabut – plantations?
A: That is for that ---
Q: It is in the Mamirum area not in the Tabut area.
A: But sir, I do not recall Tutuman being granted an FCA for Tabut and Umbukul yet.
10 Q: So this road clearance is illegal?
A: It was done before, I think.
Q: It has no input from the Department of Forests?
A: No, it was done under a TAO3 and a TA2, a road line clearance and a small agriculture project under TAOA3 not on an FCA.
Q: What concerns this Commission is that you, yourself and Mr Pedi Anis are from New Hanover, the very areas where these operations are taking place and yet, you turn a blind eye to what is happening. Actually, you are simply saying that whatever is happening is not happening. Would that be a correct perception that this Commission is now being told?
20 A: No, sir.
Q: When people are actually suffering. They are telling us their grievances about the manner in which their land has been used by Tutuman and the previous developers who actually destroy harbor, the corals, leave their machineries in the harbor, cut down cassava, sago trees, mangroves, all these things. That is affecting the actual livelihood of the people. Is that a concern to you and Mr Pedi Anis of Tutuman or not?
A: Well, the complaints, I ---
Q: Is that a concern or not a concern, a genuine concern on your part?
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A: If it is a concern, we are concerned. But sir, as yet there is no FCA activity at Tabut or at Umbukul. The only FCAs that I am aware of are the one at ---
Q: Central New Hanover?
A: Danfu and Central, they are the only FCAs. And if that is the concern of the Central people under this activity today, then we will improve then. And the environment people can be informed and they can go and look at it and report to your Commission.
Q: Mr Maraleu, even if the Environment and Conservation people, Agriculture people come, they should come even before the process of SABLs are 10 completed. They should be already informed, advised that such an activity will take place, an activity for forest felling; felling of trees as this is a heavy, it is actually a level 3 impact. You need to have an environmental impact study conducted even before you conduct such activities on the land.
A: Sir, there was.
Q: If these processes were not met, then definitely this SABL was completely wrong in the first place and Tutuman should never have been there at all.
A: Well, sir, the ---
Q: That is what we are struggling to get out from you or Mr Pedi Anis, is to find out in reality, have your company complied with all these provisions of 20 the law to ensure that this SABL is good and that whatever is coming out from your activities, in the development of those specific areas will benefit the people, not to destroy things that they actual depend on, but to assist them so that they can benefit from producing their own cocoa trees and sell off those things to at least to pay off their school fees for their children, things like that.
A: Well, before - sir, before FCA was given, all these requirements have to be complied with. So I can assure this Commission that most of the conditions, the major conditions have been complied with. That is why the FCA was given. And I can tender the document of the environmental impact studies. 30 And there was a study by the group of scientists from DAL to go around the
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island to again, gather the views of the people, whether they wanted oil palm or any other crops. And that study they call it the rapid appraisal of the wishes of the people on what crop they wanted to plant. The study also was undertaken by the Department of Agriculture. On the various areas also, there were forums held and the various government people, agencies attended. So most of those conditions under the section 90(a)(b) of the Forestry Act ---
Q: Were observed?
A: I submit, were complied with.
10 Q: You wish to read through Counsel?
A: This is the impact study; environment impact study I wish to tender.
MR TUSAIS: I think we already have this but just to make Mr Maraleu receive this copy.
THE COMMISSIONER: Yes, Mr Maraleu we will receive the copy. I mean, we will have to accept it as an exhibit of the Commission. Initial MM for Miskus Maraleu, number 1, is the environment impact statement for Central Hanover, Special Agriculture and Business Lease Project by Tutuman Development Limited, prepared by N Systems Management Services Limited, P O Box 1449, Port Moresby, dated November 2008.
20 [EXHIBIT 1 – ENVIRONMENT IMPACT STATEMENT FOR CENTRAL HANOVER, SABL PROJECT BY TUTUMAN DEVELOPMENT LIMITED PROVIDED BY N SYSTEMS MANAGEMENT SERVICES LIMITED]
Yes, Mr Maraleu, you have another ---
A: Yes. Out of that rapid appraisal of the crop to be planted in the three areas on the island, a proposal to develop rubber as a cash crop tree on the three island was produced. I intend to tender.
Q: Thank you.
MR TUSAIS: We already have this, Mr Maraleu. You can, if you insist we will receive it but the Commission does have a copy of this as well as the other ---
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A: Maybe, I should have them back because you ---
THE COMMISSIONER: Okay, then ---
A: Thank you very much.
Q: Thank you. I think as counsel has said we have received copies of these ---
A: Maybe, I should have this also.
Q: Thank you. Is there any other documents that ---
A: These other documents, perhaps, counsel ---
Q: That you wish to ---
A: I probably got them. But these are from the four areas that I am involved in. 10 And they are basically consent forms 165 and 166 ---
Q: Sorry, 165 and ---
A: Is the consent form.
Q: Yes.
A: And 166.
Q: You wish to tender them as a bundle?
A: Inside the bundle there are some pictures of developments in each particular areas. And certificate of incorporation for Rakubana portion 871. Inside is the Special Agriculture and Business Lease title given to the landowner company to hold on behalf of the landowners for Rakubana, certificate of 20 incorporation.
[11.19 am] MR TUSAIS: Yes. Perhaps, those can be tendered in. We might take up with – we are running out of time.
THE COMMISSIONER: Yes. Sorry, Mr Maraleu.
MR TUSAIS: We will receive those as Commissioner agrees.
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THE COMMISSIONER: We were pressed for time so you can tender them and I can number them. Counsel, perhaps shall pursue it.
A: That is for Rakubana.
Q: Exhibit – it will be a bundle, bundle of three documents is exhibit MM1 is Rakubana Development Limited Report. A set of photographs and the forms, consent forms 165 and form 166, that is Sales and Purchase Agreement.
A: That is correct now.
Q: That is in relation to Rakubana. They are all, the bundle, the three 10 documents in bundle is exhibit MM1.
[EXHIBIT MM1 – BUNDLE OF THREE DOCUMENTS, RAKUBANA DEVELOPMENT LIMITED BY MISKUS MARALEU]
A: These five documents are for Central New Hanover.
Q: Thank you.
A: The only addition to the Central is there is a project agreement signed between Tutuman and Central Development Limited.
Q: Bundle of exhibit MM2 consists of five documents in a bundle, refers bound document is Central New Hanover Limited, portion 887C, milinch of Lavongai, fourmil Kavieng, New Ireland Province. The second document is 20 Central New Hanover, Tabut, Mamirum and Umbukul Integrated Agriculture and Forest Projects, January 2010, by Pedi Anis, OBE. The third document is a project agreement, Central New Hanover Integrated Project. The fourth document is titled Central New Hanover, forms 165 (consent) and forms 166 (Sales and Purchase Agreements). And the fifth document is Book Number 2, Central New Hanover, Special Agriculture and Business Lease, landowners, consent form 165, Sales and Purchase Agreement form, 166.
A: Thank you.
Q: That will comprise exhibit MM2.
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EXHIBIT MM2 – BUNDLE OF FOUR DOCUMENTS FOR TABUT LIMITED BY MISKUS MARALEU OF TUTUMAN LIMITED]
A: Next lot of documents are four in number for Tabut Limited.
Q: For the purpose of record they are five documents which is exhibit, sorry, they are four documents. That is exhibit MM3 in relation to Tabut Limited. The first document is titled Tabut Limited, portion 885C, milinch Lavongai, fourmil, Kavieng, New Ireland Province. The second document is project agreement, Tabut Integrated Project, third document, Tabut, Mamirum, forms 165 (consent) and forms 166 (sales and purchase agreements) and the 10 fourth document is Book No.2, Tabut Mamirum Special Agriculture and Business Lease Landowners (consent) form 165(sales and purchase agreement) form 166.
[EXHIBIT MM3 – BUNDLE OF FOUR DOCUMENTS IN RELATION TO UMBUKUL LIMITED BY MISKUS MARALIU OF TUTUMAN DEVELOPMENT]
A: Last – all documents are for Umbukul Limited.
Q: Bundle of four documents, exhibit MM4 for Umbukul Limited. First document is Umbukul Limited, portion 886C, milinch of Lavongai, fourmil Kavieng, New Ireland Province. Second document is project agreement, 20 Umbukul Integrated Project. Third document Umbukul, forms 165, consent and forms 166, sales and purchase agreements and the fourth document is a registration number ILG 1150, Lands Group Incorporation Act, Chapter 147 and is a certificate of recognition of incorporated land group to Pati Rangbangat Land Group Incorporation. Thank you.
[EXHIBIT MM4 – BUNDLE OF DOCUMENTS FOR UMBUKUL LIMITED BY UMBUKUL LIMITED BY MISKUS MARALEU OF TUTUMAN LIMITED]
A: Thank you, that is all the documents I wish to tender.
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MR TUSAIS: Mr Maraleu, those documents look quite impressive. We go back to Tabut. You say you promised to build houses for these people but you have not built them yet?
A: No.
Q: Did you also promise to build them a new church?
A: Yes, I recall.
Q: But there is no church there yet?
A: There is no church yet.
Q: You promised to build them a school; an elementary school?
10 A: That is right.
Q: Sorry, speak up. You have to talk so our machine records what your response.
A: That is right.
Q: But there is no school there?
A: That is correct. Because as I stated earlier, these undertakings were not subject of the SABL, because there is no FCA yet at Tabut. These promises were taken when I think, there was a previous operation under ---
Q: Those promises were made when you had these people moved?
A: That is correct.
20 Q: Physically moved from the nice, beach front home back into the bush so that your company; Tutuman would construct this road, road leading to where, we do not know. But it finally ended up at the Mamirum harbor.
A: Like I said, I was not involved in decision, previous operation which is not the subject of SABL today.
Q: It was conducted in the area which is now covered by the SABL granted to Tabut Limited.
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A: That is correct.
Q: And it was conducted by your company Tutuman Development Limited.
A: Yes. But not under the SABL now.
Q: My questions relate to your company’s what and Commissioner has already asked you and you see, that is the thing, you did not have any proper authorization to go in and construct this road that is now covered in bush, do you agree? There are no trucks or even bicycles going on that little track that is the only remains of that road that was constructed by Tutuman Limited.
[11.29 am]10 A: All I can say is that this operation was done previously and not the subject of the SABL today. So, yes ---
Q: Pretending to go in and cut timbers under the pretext of building a road.
A: No, no, sir. It was operated under a TAO3 under Forestry Act.
Q: What is - you just say, you are using too many initials so that the public can understand. What is a TAO3?
A: It is a permit to clear an area and conduct agriculture project on a minimal scale.
Q: Could you point out the Act under the Forestry (Amended) Act where that is allowable or what the Act states that?
20 A: Must be the forestry by – forest officer will come in and he can ---
Q: No, no, before you chairman of Forestry Industry Council. You should know this off by heart. Just tell the Commission, which section?
A: I do not know the section but the Forestry gives authority to issue the TAO3 and a road lining clarity O2. I cannot recall the specific provision of the Act but it exists in the Forestry Act.
Q: All right. Now, in Danfu - we go back to Namatanai. Mr Thomas gave evidence that Tutuman’s operations caused the river there to become undrinkable, unusable. One of your bridges collapsed up there in the
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mountains, it fell into the stream and it just spoilt the river. Was there, did you receive any information, that there were complaints made about this back in Namatanai?
A: I did not receive any complains, maybe the operation people received the complaint.
Q: Well, these people were so concerned, they went to Health Department in Namatanai town and a health extension officer went, inspected and said, yes, there has been major damage to Namu villages only drinking source of water.
10 A: Okay.
Q: Do you recall now? Those are major things.
A: I cannot recall but if it happened, yes, I think it happened.
Q: Your chairman Pedi Anis came and said yes, somebody complained.
A: Oh, okay, then it happened.
Q: But you lawyer, you do not know. You are supposed to be the first fellow in the company to know about complaints, is that not right? Not the chairman, chairman, you brief him. Is that the true relationship between you and the chairman?
A: Normally, the operations in more pressing matters unless it involves the 20 company. In operation matter they go straight to the chairman.
Q: Yes, but legal matters.
A: Legal ---
Q: Complaints are legal matters, disputes, complaints are legal matters. These are matters that you or your office will deal with. Is that true?
A: In this one, it did not come to me.
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Q: Well, this Mr Thomas, who you list as your secretary for Rakubana, he says there was a – and Tutuman promised to buy a lot of things because they spoilt the river. Are you aware of that, for Namu village?
A: If they promised then they should do it.
Q: Well, are you aware of it?
A: No, I am not aware of it.
Q: Do not avoid the question. If you are not aware, you say you are not aware.
A: I am not aware, sorry, I am not aware, sir.
Q: All right, that is fine. I will get to this Sales and Purchase Agreement 10 between Tutuman and Palma Hacienda. Are you aware of that agreement?
A: Yes, I am aware of that agreement. After they, as chairman showed me that he signed a document and I looked at the document and I said, you should have come to me first for some legal advice on this document. And I told him, what you have signed is illegal, it is not binding. And my precise advice to the chairman is that you cannot sell subleases. You must terminate this agreement straight away.
Q: Is that what happened or are you fully aware of it but now, people have found out so you are saying that?
A: I am saying this was because that contract is, I did not design the contract, I 20 do not have a copy of the contract, I was only shown the contract and I did not get a copy. But I read through the contract and I said, no, this is illegal.
Q: Have there been other occasions where, chairman Pedi Anis has gone out and signed other documents without consulting you as the company lawyer?
A: No. This one ---
Q: This was the only incident?
A: This was the only one and ---
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Q: And the only one happens, turns out to be the biggest booboo, the biggest mistake Pedi Anis has done. Is that what you are saying?
A: Yes, that is true.
Q: Well, some members of the public kind of they are shrugging their shoulders and saying, come on, what kind of person is Pedi Anis, is he a careless person or his character? Is he a person that is sharp, focused, knows what he wants? How would you describe Mr Anis?
A: Okay, I describe Mr Anis, because I grew up with him and I – now, I am working for him and I find Pedi Anis to be full of wisdom, very careful 10 person and a person that cannot lie.
Q: He is also determined.
A: He is very determined.
Q: He gets what he wants?
A: He gets what he wants in the right manner.
Q: And he is not somebody that is easily bullied or pushed around.
A: That is correct but within reason. As I said, he ---
Q: So this, him signing this agreement is totally out of character?
A: Completely out of character and he did not get legal advice. He got legal advice after the document was signed.
20 Q: I have no other questions Commissioner. We are running out of time.
THE COMMISSIONER: Yes, I have no other question except to thank Mr Maraleu for – yes, you may say something.
A: Yes, I would like to explain a couple of things in regard to my understanding of the SABL. Working with the four areas for some time since 2007, I have come to really understand personally the spirit of the SABL concept. And it is like this, the landowner tell me something, Pedi Anis tell me his concept and then section 102 and section 11 come into play and then I look at the life
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of the people in the villages where I have been to. And Commissioner, I am really glad that I have gone there. A lot of times I ask myself, what am I doing here as a lawyer. I am not used to this type of life, a life beyond poverty line, a life where just a packet of salt or even a spoon of salt is not available. I ask myself a lot of serious questions, what am I doing here. I look at the lives these people are living in, it is degrading. I think the majority of people in Lavongai, New Hanover have been suffering for decades. And then when this SABL come in, I see the relationship quite clear now. What is the spirit of this concept? Pedi gives me his concept, the 10 landowner gives me their concept, I look at the law and I work out what are they talking to me about? And basically right down to Umbukul and New Hanover, they are saying the same.
MR TUSAIS: Sorry, could Mr Maraleu, maybe say what he needs to say a bit quickly. We are pressed for time. Thank you.
A: Okay, they are saying this, we want help, we want help. So the spirit of the people all around this area and the concept and the spirit of Pedi Anis are all saying the same thing. And the law must find a practical way to make sure that these things happen to satisfy the need of these people down there. Sir, I think, SABL applied correctly with the various check and balances and 20 monitoring it is the answer for the vast local majority of Papua New Guinea who are sadly missing out on the services of the government. And I feel it in my spirit and I was emotionally affected by my visit to the villages. Sir, this is my only comment now.
Q: Commissioner, sorry, could I just ask some more questions relating to that? You say people live below poverty line. But apart from not having a packet of salt or maybe, having kerosene to light their lamp, they do have food, do they not? Fish from the sea, one kaukau plant from the bush. They have basic sustenance, what you call, subsistence food. They are not hungry, they are not thirsty. They have stuff in the villages apart from that packet of salt.
30 A: No, I agree, I agree with you completely, counsel, senior counsel. I agree with you.
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Q: But what you are saying now is that, you, you know, now you are even taking that away, you are damaging the reefs, you cutting down the logs, you are destroying the little they have left to them. How do you balance that?
A: Okay, sir, I will say this. In their own way they are sustained. But in this age where a pregnant woman had to go to the hospital and has complications in a community, she dies, the baby dies.
Q: So what, Tutuman is going to build hospital?
A: We are endeavoring to do that, open up the area, get the road in; get these people to some basics services.
10 Q: I will ask you this also. As chairman of the forest industry council you are involved in the previous decision making about TRP, various permits.
A: No.
Q: Throughout the country ---
A: No.
Q: Not only New Ireland.
A: I was not involved. Our, the FIC was a regulatory body.
Q: But you had that kind of information to hand at your office?
A: It was with the forestry.
Q: But as a regulator you would have been aware of where all the various TRPs 20 and not FCAs, the LFAs, those different permits ---
A: Yes.
Q: Granted by forestry.
A: Yes. When this done by the forestry then we monitor the prices in the world market.
Q: What I am going to ask you is that, time for extension, that follows the old Danfu TRP area, does it not?
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A: Yes, that is correct.
Q: Umbukul SABL, that also follows the previous Umbukul TRP area, does it not?
A: That is correct.
Q: Tabut, likewise.
A: That is correct.
Q: That is the Mamirum TRP.
A: That is correct.
Q: And Central New Hanover, it also follows a ---
10 A: That is correct.
Q: Did you use your knowledge in that forestry industry regulatory board to go into those areas half when those TRPs expired in order to create an SABL and keep harvesting logs or remaining trees, logs on those previous TRPs.
A: I was aware of those, all of those things in existence. And yes, to a certain extent, I used my previous knowledge.
Q: So Tutuman’s interest, primary interest, main motive for these SABLs is to harvest those logs. Agriculture is kind of secondary, said, oh, we will do it maybe, if we get around to doing it.
A: Like I said, when you look at Pedi Anis’s concern and he has got a heart for 20 the people of New Hanover, he wants to elevate, rid of poverty on the island and I share those views. I want the answer for people of New Hanover is agriculture. Of course, you have to remove those logs, those trees so that you can go in and plant the crop or cash crop. But like I said, you have to do it in a controlled manner. And because these projects involves government agencies, Agriculture Department, Forestry Department, Environment Department, Lands Department, these government agencies must apply their rights to make sure these projects run on its four wheel.
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Q: Mr Maraleu, just my final question. These SABLs they are creating some tensions, some conflicts back on New Hanover Island, just generally on all three SABLs. Is that correct?
[11.47 am] A: Yes, I know they create some tensions but ---
Q: On your west Lavongai and Umbukul SABL, there is also disagreement sometimes among family members?
A: Yes, my family is involved. Nothing is – I want this Commission to know, there is never any agreement on anything in New Hanover, especially in land. Never any agreement.
10 Q: Kamsal is your brother, is he?
A: He is my younger brother, I am the father. My mother died when he was a baby. I looked after him.
Q: All right, he was punched and given a black eye after he came and gave evidence to this Commission.
A: Yes, I learnt about it later on.
Q: And you are the lawyer for the guy who punched him.
A: No, I am a lawyer to apply for bail for ---
Q: Well, you are lawyer for the defendant on record at the District Court in Kavieng.
20 A: Yes.
Q: You are defending somebody who punched your younger brother.
A: Well, yes.
Q: That is what I am saying, that is what is happening in Lavongai. It is turning you families against each other over this SABL.
A: No, this one is not land issue. I think it is more a political issue.
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Q: Yes, but you are defending somebody who punched your brother in the eye. You see? How do you explain that? He is your blood brother, do you have feelings for him or? I would get upset if somebody punched my brother.
A: Well, I think he came before your - the Commission and gave evidence and also I think he gave evidence also damaging to me and my personal family. And this is not very good in our Lavongai custom. Brothers do not give evidence or do not spoil each other in any public hearing like this. I did not deserve my family to be dragged into this Commission, I did not.
Q: All right, I have no other question, Commissioner.
10 THE COMMISSIONER: What is your relationship with him now?
A: Now, I have a heart for him but he is not coming to me. It is a political thing. It is not something to do with SABL. Apparently, he worked for Pedi Anis, he ---
Q: Unfortunately, coincidentally, it happened after he gave evidence on Friday and got assaulted on the weekend.
A: That is correct. But the background of it is that after he gave evidence he went and talked to his mates and they were laughing about what he said to you Commissioner, against me and Pedi and they were making a fun out of it. That is why, my cousin brother was just around, he heard all these things 20 also. And that is not good for my cousin. My cousin’s blood is heavier than my brother’s blood, see. And my cousin looked after me more than my brother.
Q: Well, if there is any, you can resolve your family disputes at this end.
A: Yes, sir, we can resolve it.
Q: Mr Maraleu, thank you for coming to this Inquiry and being openly frank and honest with the Commission of Inquiry with its work. And we thank you that the documents that you have submitted to us and all the materials and your evidence itself has been recorded. We will consider them and give due course to what when - we are still continuing our inquiry into these matters.
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It is not closed until March next year when we present our report. So thank you for coming forward.
A: Thank you, sir, I will be available at any time.
Q: And assisting the Commission. Yes, okay, you are excused.
A: Thank you very much.
THE WITNESS WITHDREW
MR TUSAIS: The next witness is Janet Rauveve.
10 THE COMMISSIONER: Mrs Rauveve, is it?
[11.50 am] JANET RAUVEVE, Sworn :
XN: MR PAUL TUSAIS
THE COMMISSIONER: Thank you Mrs Rauveve, you can sit down and speak loudly and speak into the mic; it will be recorded. Counsel will ask you questions.
Q: Your full name is Janet Raweve? 20 A: Yes.
Q: You come from Namatanai?
A: Yes.
Q: What village?
A: Bok. 30 Q: Bok?
A: Yes.
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Q: Is that close to Namatanai Town?
A: Yes.
Q: Are you related to any people within the Rakubana SABL?
A: My roots are from there; my grandmother comes from there.
Q: From Namu village? 10 A: No, from Hilalon.
Q: From Hilalon Village?
A: Yes.
Q: Okay, currently you are a director from Tutuman Limited?
A: Yes. 20 Q: What other jobs do you do?
A: I do the technical aspects for the company.
Q: Sorry, speak up. I am getting old, I cannot hear properly, thank you.
A: I do the technical aspects, carry out the technical aspects of the company doing, preparing all forestry plans and all that.
30 Q: Tutuman is basically, its main activity is forestry?
A: Forestry and agriculture now – reforestation.
Q: Before you joined Tutuman, you were employed by PNG Forest Service?
A: That is right, yes.
Q: Okay, you just tell the Commission from when to when?
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A: I started work with the Forestry then Department of Forest in 1981 and resigned in 1999, March 1999.
Q: You resigned when?
A: March 1999.
Q: After that what did you do, after 1999?
10 A: I worked with Tutuman.
Q: You joined Tutuman?
A: Yes.
Q: Okay. When you worked with Tutuma, what projects did Tutuman undertake in Forestry?
A: We started with the Kaut one. 20 Q: That is the Kaut TRP?
A: Yes.
Q: From when to when?
A: 2000 to 2003 July.
Q: And then where did you move to next? 30 A: Central New Ireland as a TRP and is still a TRP.
Q: How long did your operation lasted?
A: For 4 and half years – up to 2007.
Q: Okay, next you went to?
A: Next, we did the TA projects and that was the Danfu one, we operated 40 Under Licence and the Mamirum one.
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Q: TA, that is Timber Authority?
A: Yes.
Q: Authority to do what?
A: Authority to clear and to plant. To plant agriculture crops like cocoa.
10 Q: What section of the Forestry Act covers this?
A: Section 189 would it be – I am – it just slipped off my mind, I can make reference to it later. I can referred to it later. Right now it just slipped off my mind.
Q: The only Section I am aware of in the Forestry Act is Section 90.
A: Yes, that is right.
20 Q: There are two types of Forest Clearance Authorities. That is the one that the SABLs are established under and one for road clearance to construct roads.
A: Yes.
Q: They are totally different animals.
A: Under the Forestry Act, there are several TAs that are issued to undertake – there are several TA’s, you have the Timber Authority which is issued to clear and to – like for acreages under 50 hectares, that is for agriculture TAs. 30 So that was what we operated under.
Q: So that was for Danfu and for Kaut?
A: Yes, for the first area – no, not for Kaut. Kaut because that was a TRP.
Q: Sorry Danfu and Tabut.
A: Tabut, yes.
40 Q: You had TA to clear land and plant crops?
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A: Yes, agriculture TA.
Q: Okay, Tabut, did you plant crops after clearing?
A: Yes, we started planting – we started undertaking agriculture and because those areas were only for a year and then you had to renew after a year. After that the advise came back from Forestry that there was no more further TAs were to be issued and if you had to undertake large agriculture 10 developments, then you had to swing to the SABLs. That was the advise we got. That was when work began or actually continuing on to undertake or to do more work in landowner awareness and liaison with landowners for these big projects.
Q: So you started off at Kaut in 2000 under the normal TRP arrangements?
A: That is right, yes.
Q: You went to Central New Ireland also under TRP arrangements; why did 20 you leave Central New Ireland after 4 a half years?
A: We had to leave because we did not want to continue because there were a lot of problems also with landowners. My father is also from there, and for me when that is the kind of problem, you cannot continue to stay and create more problems so when my advise as a forester, consulting forester also to Tutuman was, we better not create any further problems with the landowners, it is better we move somewhere where there are no problems. So we moved out of Sector A, an area that is currently being operated on by the current company, Sector A of Central New Ireland TRP. I did not want 30 any problems with my own people too.
Q: Okay, so you went to Danfu and Tabut under the old, I think that is the old TA?
A: Yes.
Q: Before Section 90of SABL?
A: That is right, in 2007, yes. 40
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Q: They call FCAs?
A: Yes.
Q: All right. So you were moving to – well, the landowners said, they did not want you or you had problems with landowners so you moved?
A: Yes, in Central New Ireland, they were just my father’s own people plus other people and I did not want to create - being from there, I did not want to 10 have problems with my own people.
Q: So you went to Danfu, when that TA expired, your company went about getting these people to form a company and established this SABL?
A: Yes.
Q: And also at Tabut?
A: Yes, but the Tabut one, I did not do the work there. It was Mr Anis and the 20 lawyer. They carried out all the work out there to facilitate the FCA, not me.
Q: So this is the company, it is seeking new areas to cut logs?
A: Yes. Not only to cut logs but to plant because in the – we must remember that when we were – I also did some consulting work with the Dominance at that time and at that time we were helping people to distribute, helping them with cocoa seeds and cocoa poly bags.
Q: Dominance was the company, the fore runner of Tutuman?
30 A: That is right.
Q: All those guys from Dominance came away and now they are in Tutuman?
A: Not all of them.
Q: Okay, well the big ones, the important ones. Mrs Hii and them. Is that right?
A: Yes, that is right.
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Q: So Tabut and Umbukul and – Umbukul you were still trying to get FCA?
A: Yes, I have no part in handling those ones. Mr Anis and the lawyer handle those.
Q: And you have already got FCAs for Central New Hanover?
A: Yes. 10 Q: Now these operations at Danfu, what is your operations down there? Are you still continuing your operations or ---
A: In agriculture, yes.
Q: What about the---
A: Not with logging but with agriculture.
20 Q: With agriculture?
A: Yes. Cocoa planting – at the moment.
Q: We got letters written by Mr Lat, are you aware of this officer of the PNG Forest Service in Rabaul; Peter Lat?
A: Yes.
Q: He has been writing to Tutuman about your – the agriculture bit. FCAs are 30 conditional upon you meeting your agricultural progress?
A: Approvals of new blocks, yes. The FCA has a term of eight years. Now movements into new blocks are conditional – I mean they hinge on satisfactory fulfillment of agricultural projects in the approved blocks.
[12.04 pm]Q: I have a letter written by Mr Kanawi Pouru to your boss Mr Pedi Anis and he told Mr Anis that Tutuman has failed in its implementation of the agriculture and tree plantation development component of the project. The PNG – this is a letter dated 15 December 2010 - the PNGFA then 40 conditionally approved Tutuman’s 2010 to 2011 annual logging plan but
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only for three months commencing on 1January 2011. Within those three months, the forestry field officers will monitor the progress and on 31 March 2011, a final check will be made. PNGFA want Tutuman to improve on its poor performance. You are aware of that letter?
A: I am aware of that letter, yes.
Q: In the letter dated 18 April 2011, Peter Lat of the PNG Forest Service who was officer monitoring the project down in Danfu wrote to your boss, Mr 10 Anis and said, “Though the company did a number of improvements in forest clearance and cocoa planting for agriculture, it is not sufficient to necessitate a favourable consideration from PNGFA. I would advise that Tutuman Development Limited put in more effort to completely plant the 150 hectares identified in block 1 as arable land suitable for cocoa farming.” He says, “you have planted 17 hectares and cleared over 23 hectares of forest, therefore, you are to continue further or increase the rate of your work in the field because the results we have only shows that 11 percent success in your performance”. Are you aware of that letter?
20 A: Yes.
Q: Yes, well basically what the PNG Forest Service is saying that you guys are not keeping up your part of the bargain insofar as the agricultural development is concerned.
A: No, we are continuing. After that---
Q: Then why did PNG Forest Service say this?
30 A: Sir, after that letter, we have continued to progress. Without cutting any trees we continue to plant without any logging activities. We continued our agricultural projects. And some of that, all the plantations we planted were in my land – in my clan’s land.
Q: What will happen to these cocoa trees? Do they belong to Tutuman or?
A: No. There is an arrangement in place between the company and the clan owning the land that the cocoas are planted on. What happened is we have tied up agreements with the landowners – with the clan owning groups, clan 40 who own the land on which the cocoa has been planted on for that area, for
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the company to recover its cost in the first 12 years and all the cocoa – that is for 60 percent of the area planted and the 40 percent remains with the landowning groups and they carry on, they harvest that, they look after that and after 12 year, everything, if the land is surveyed, titled and property is handed back to the clan owning groups so they have a property that is now properly titled under them. And my clan’s land was the first land to be planted.
Q: How many agricultural workers are there now in Danfu? 10 A: I think I would require the people because I do most of the planning here. I am not out in the field there. There are other supervisors taking care of that. I do all the planning work here in the office. So we would have to call in our other boys or the field supervisors who work there to answer that question. Thank you.
Q: You do not know anything about agriculture?
A: I supervise, I do all the planning like I have said. I do all the planning in 20 field.
Q: So in your planning, just tell the Commission how many agricultural workers are in Namatanai?
A: Initially we plan, initially we plan for 50 workers to be in the plantation but when the logging part of it was not – is not being done at the moment, that was down sized.
Q: Down sized to how many? 30 A: Because we would have to call the ---
Q: How many?
A: To get the actual figures, we will have to call the field supervisor to come in.
Q: There is no field supervisor. Your boss Pedi Anis came and he only called Ibram Husin.
40 A: Ibram Husim, yes, he is the one.
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Q: Abraham Musin told us in Namatanai that he is not an agriculturist. These are business – he holds a Degree in Business Administration. He said I do not know about agriculture. I am just a camp manager. That is what he told us.
A: We had someone, an appropriate trained agriculture man. He was there but he left.
10 Q: Who?
A: Wales. He used to be there but he left.
Q: Where is he from?
A: He is from Namatanai. He used to manage some of the BP plantations and the one at Karu. And so when he left, we got him, but he also suddenly left also.
20 Q: So there is no agriculture worker?
A: Yes, so after he left Imbran just stood in to look after place while - and because of the current situation is going on and we are still looking to get someone properly trained – an agriculturist to go back and to take that position – his position.
Q: You know your company is not very serious about agriculture? I suggest that you are mainly concerned with logging?
30 A: I really do not think so.
Q: I have no other questions Commissioner.
THE COMMISSIONER: Thank you Mrs Rauveve. I do not have any questions to ask you but the only concern I have is that from all those SABLs, we have visited the sites. Physically this Commission has visited – we have travelled by road to Namatanai, we even travelled by dinghy to Umbukul in New Hanover and the only thing that we have seen is just log ponds and logs being – so that probably means that your company has been involved more in forestry activities which is the
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felling of logs without the proper authorization from the Forest Department. Would that be a correct assumption?
A: I would not agree to that because I think what has happened is, we also – we have put efforts into agricultural developments. With the Central New Hanover projects, excuse me - the problem is that we heard that plans are not approved yet. So we still await some other documents – working documents from Forestry and that is why we have not properly started implementing anything as yet. 10 Q: Because those plans are only plans. They are only the blue prints or some vision that Tutuman has for the people of – for those affected areas – SABL areas. They have never been fully implemented.
A: I would not really go with what you are saying because for me, I have a different perceptive and a different vision for our people and it is the field people who are supposed to be implementing what is put on paper and that is what I stand on. And for me it is not---
20 Q: Do you stand on, okay, Namatanai? Counsel has already raised this, Namatanai where there was an issue with environmental concern. One of your road bridges collapsed and as a result, people in Namu River suffered. No drinking water.
A: Which river was this, sorry?
Q: Namu River, have you heard about that?
Α: I am not aware of a bridge collapsing. I am aware of that – there was an 30 incident in the field that caused the people to bring in doctors from here. I also brought the environmental officer from the Lands Department to check things out. At that time they were of course constructing the road into the area, they were doing logging and what had happened was that some of the soil had been pushed into the creek. There was no damage – there was no bridges damaged in the bush. But I am aware that there was some soil pushed into the – was accidentally pushed into one of those streams which had to be cleared and I personally am against that and my people are aware of that. I carry out trainings and I instruct people to do the right thing according to PNGCP regulations by Forestry, with a Logging Code of
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Practice and I do regular trainings and it is just the carelessness of people who do that. Carelessness of operators who do that in the field.
Q: Tutuman is an operator.
A: Of course but I am – we do not – we do not---
Q: So who is careless here?
10 A: We are not for that. We do our part in training people to do the right thing in the field but it is their carelessness. So what happened was when ---
Q: So are you willing to take responsibility for it or not? Are you blaming it on others?
A: I am not aware of the bridge that was destroyed sir, I am aware that there was that one which is on the public road, that was some of the timber rotted so we had to assist by cutting timber which is kwila to put on as running board on that bridge to fix it. We assisted to fix it and it is a public road – it 20 is a bridge on the public road and everyone uses that bridge.
Q: Thank you Mrs Rauveve. It is just an example of what is happening on those particular SABL sites which is a concern – an environmental concern and the lack of compliance, particularly where the environmental issue is a serious concern for your company as a developer.
Counsel, we have no question to ask Mrs Rauveve?
MR TUSAIS: No. I just have one more while Mrs Rauveve is here. 30 THE COMMISSIONER: Please do.
MR TUSAIS: You being a forester of some years standing and you are also now the forest advisor to Tutuman, just roughly would a shipload of logs earn? In today’s prices?
A: Shipload, depends on the volume that is loaded on the bridge.
Q: If the ship is full, how much? 40
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A: Full shipment we will be expecting around three – between two or three hundred thousand USD.
Q: Are you sure?
A: Yes.
Q: Your boss came and told us it was 7 million. Do not under value it. Pedi Anis said 7 million. 10 A: No. Depending on the shipment and depending on the species that is on board. It entirely depends on the price at that time, the market price and the species that is loaded on the ship because if the different species you have high value species---
Q: Okay, forget the species. Just roughly - Mr Anis says 7 million. You hundred thousand. Come on ---
A: What I am saying is between 200,000 and 300,000 USD. That is what I 20 said, 100,000 USD.
Q: That is still a million PNG Kina. That is six million short of what Pedi Anis told us.
A: Like I said, it depends on the value on different species and the volume that is loaded.
Q: Okay, thank you Mrs Rauveve.
30 THE COMMISSIONER: Mrs Rauveve, unless you have any other things to say, we thank you for your attendance this morning on a Summons and your evidence has been recorded and we will consider it, in all the things we have collected so far in relation to SABLs concerned. So this Inquiry thank you for your attendance this morning. You are now excused.
THE WITNESS WITHDREW
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MR TUSAIS: That brings us to the end of these sittings in Kavieng. There are other witnesses but we do not have time left to have them give their evidence. What they have been advised that the Commission will most likely return in January just to complete its investigations into SABLs on New Ireland. There are many issues that still needs to be looked into and findings made about those issues. So perhaps if the public could be advised on these issues. Also, sorry Commissioner, there are other SABLs we are becoming aware of on New Ireland which, if there are members of the public who are affected by those other SABLs, outside of the six that are listed, they can be dealt with in January. 10 [12.19 pm]THE COMMISSIONER: Thank you Mr Tusais and thank you for your assistance this morning and for the week.
My concluding remarks for the benefit of those who are present with us today. In so doing, I will have to make - acknowledge the assistance of people from the New Ireland Province, in particular, firstly the Provincial Administrator, Mr Simeon Malai, who from the beginning, when we arrived here on 21 October ably assisted myself, Mr Tusais and the team in everything that we have coordinated throughout New Ireland Province. It was not an easy task for us because as you will note that 20 the team travelled to Namatanai, spent a day of hearing there so we also acknowledge the District Administrator and his team for the assistance that they gave us in Namatanai. We also thank you the Provincial Police Commander for making available personnel to provide security and other contingency for the team and that acknowledgment will be conveyed by the Police personnel to the Police Commander.
The Commission will wholeheartedly thank, I think the people in the SABL areas, especially in New Hanover, Umbukul, Tabut and Central New Hanover. We enjoyed the trip we took on a dinghy to your island. It is a beautiful island and we 30 acknowledge everything that was accorded to the team and your contribution, information and advice that you have provided will greatly assist us in looking what we can provide a proper package to the Government to look into the SABLs in particular. SABLs is a good thing but the way it has been processed was not done properly in the past and therefore this is the result of all the anxieties and the stress that the people have felt.
From New Hanover, I also thank the people of Kaut, from the East Coast of Kavieng up to the West Coast, I thank you for the kind assistance and also helping us on our site visits. Also to Namatanai, Danfu area, it was not an easy task but the 40 team greatly appreciated those were able to assist us there.
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I have been reminded by counsel and I have also made that clear that this Commission will come back to New Ireland in January. The date and time has not been finalized but you will definitely be informed through the Provincial Radio Station here, NBC, we have a reporter here who can report by way of Post Courier and National Newspaper. We have to visit Emirau Island, we have promised that we will visit Emirau Island in relation to Emirau Trust. We definitely have plenty of unfinished business on New Hanover including Namatanai and that will be crucial to us when we come back to complete our work here and also to finalize 10 our recommendations and findings.
And so on that note I will firstly thank Mr Tusais and Mr Bokomi and the team that came to me to New Ireland. It has been a very - experience for us especially for us to travel to the places that we have seen and there have been so much beautiful things and there is a lot of experience and wonderful memories we will take with us. But we will definitely return in January and we will complete our work on them.
And on that note I have expressed that I need to say. I do not have to name names 20 but I also thank those who have come forward as witnesses to provide evidence. Mr Pasingan, I note your presence in the room and others who have given evidence, either by way of presenting it freely and voluntarily or either under Summons, those information is useful for the work of the Inquiry. The Inquiry needs this type of information to help in its work. It is not an Inquiry based on finding guilt or otherwise. No, this Inquiry is a fact finding Inquiry and the facts that you provide to us will become a report to the government and the government will use that to reform the process in relation to the SABLs.
I forgot the Interpreter. Could you please interpret what I have just said? Just 30 briefly.
Thank you Mr Interpreter and thank you for your assistance.
On that I will formally close the SABLs circuit sittings here in Kavieng, New Ireland Province. Please adjourn.
AT 12.23 PM, THE COMMISSION OF INQUIRY WAS ADJOURNED 40 INDEFINITELY.
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INDEX PAGE NO
PEDI ANIS, Continuing…………………………………………………. 2 XN: MR TUSAIS………………………………………………… 2
THE WITNESS WITHDREW……………………………………………… 14
SITION PASINGAN, Sworn:……………………………………………. 14 10 XN: MR TUSAIS…………………………………………………. 14
THE WITNESS WITHDREW…………………………………………… 21
PEDI ANIS, Continuing………………………………………………….. XN: MR TUSAIS………………………………………………….
THE WITNESS WITHDREW…………………………………………… 29
MISKUS MARALEU, Sworn:……………………………………………… 29 20 XN: MR TUSAIS……………………………………………………. 29
THE WITNESS WITHDREW……………………………………………. 67
JANET RAUVEVE, Sworn :……………………………………………… 67 XN: MR PAUL TUSAIS…………………………………………… 67
THE WITNESS WITHDREW……………………………………………..
30
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EXHIBIT PAGE NO
EXHIBIT PA 9 – CENTRAL NEW HANOVER LIMITED ……….. 8 PORTION 887C, MILINCH OF LAVONGAI, FOURMIL KAVIENG, NEW IRELAND PROVINCE
EXHIBIT PA10 – REPORT KNOWN AS UMBUKUL LIMITED, ……. 8 PORTION 886C, MILINCH OF LAVONGAI, FOURMIL, 10 KAVIENG
EXHIBIT PA11 – LAND DEVELOPMENT SCHEME FOR………. …….9 NEW IRELAND PROVINCE BY TUTUMAN DEVELOPMENT LIMITED, JANUARY 2001, REVISED JANUARY 2008 BY MR PEDI ANIS, OBE
EXHIBIT PA12 – SALES AND PURCHASE AGREEMENT………. …….15 BETWEEN TUTUMAN DEVELOPMENT LIMITED, THE SELLER AND PALMA HACIENDA LIMITED, THE BUYER TH 20 DATED 10 DAY OF JUNE, 2009
EXHIBIT SP(CNH) 1 – AFFIDAVIT OF MR SITION PASSINGAN, ……… INCLUDING ANNEXURES “A”, “B” & “C” AND REPORT BY TUTUMAN LIMITED DATED OCTOBER 2010
EXHIBIT 1 – ENVIRONMENT IMPACT STATEMENT FOR …………. 53 CENTRAL HANOVER, SABL PROJECT BY TUTUMAN DEVELOPMENT LIMITED PROVIDED BY N SYSTEMS MANAGEMENT SERVICES LIMITED
30 EXHIBIT MM1 – BUNDLE OF THREE DOCUMENTS, RAKUBANA …….55 DEVELOPMENT LIMITED REPOR, A SET OF PHOTOGRAPHS AND THE FORMS; CONSENT FORMS 165 AND 166 SALES AND PURCHASE AGREEMENT
EXHIBIT MM2 – FIVE DOCUMENTS IN BUNDLE; CENTRAL NEW ……..56 HANOVER LTD BY MISKUS MARALEU OF TUTUMAN LIMITED
EXHIBIT MM3 – BUNDLE OF DOCUMENTS IN RELATION TO……….56
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TABUT LIMITED TENDERED BY MISKUS MARALEU OF TUTUMAN LIMITED
EXHIBIT MM4 – BUNDLE OF DOCUMENTS FOR UMBUKUL ……. LIMITED BY UMBUKUL LIMITED BY MISKUS MARALEU OF TUTUMAN LIMITED
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