Thursday, July 11, 2013

Infrastructure Development Grants (IDGs)

Infrastructure Development Grants (IDGs), Business Development Grants (BDGs) and Project Funds are monies budgeted, parked in trust accounts and paid by government of Papua New Guinea (GoPNG) to the landowners or people who are directly impacted by projects such as gold mine, petroleum developments covering oil & gas projects, timber projects, and other projects that in return bring both cash and non-cash benefits to the country.

Landowners from Hides Gas Field are a certain group of people who are naturally blessed like other landowners in the country. Unlike other projects developed and operated in Papua New Guinea, Hides Gas Field is a nature mother to prestigious petroleum resource, gas. Gas is one of the quite luxurious commodities traded throughout the world.

In compliance to Oil & Gas Act and other related laws such as Benefits Sharing Treaties and others agreements thereto, government of Papua New Guinea of the past and present days, and project developers namely British Petroleum, Chevron Niugini Limited, Oil Search Limited & Exon Mobil through its subsidiary Esso Highlands Limited have been paying hundreds of millions of Kina as IDGs, BDGs and project funds to the Hides landowners, Southern Highlands Provincial Governments and recently to Hela Provincial Government as Hides is now within the electoral boundary of Hela Province. These funds have been paid to Hides landowners through their registered through IPA companies, trusts arrangements, and authorities so that these recognized enterprises and establishments can bring sustainable infrastructural developments to the project impacted communities. There are available clear audit trails that no one will argue that no less millions funds have been paid to the Hides landowners. If someone claims otherwise, then he or she is a fresh Johnny come lately roaming the streets of Tari town.

Of course, it was a great shame to be exposed when Minister for Trade & Commerce unapologetically commented during his visit to Hides Gas Field that ‘where have all these millions of kina paid in the name of tangible development projects gone’. Obviously, all these monies as we know ended up in the filthy pockets of certain corruptively unscrupulous dodgy landowners beating their chest to the expenses very unfortunate poor village men, women and children. These dubious few ones build and hide in their dark tinted comfortable empires in Port Moresby and overseas and poke their faces out and go around with hungry tummy during project fund seasons.

It is indeed welcoming news for concerned on watchers when this fair man, Prime Minister of Papua New Guinea announced today that all these project grants will be audited for true & fair opinion before further project funds are released. A case that definitely would not be missed is all funds paid to Hides Gas Field landowners would be investigated and proved whether the funds have been truly spent on their intended purposes. There was this project funds payout situation in 2012 where monies were given to all sort of paper companies ranging from amounts tens of thousands to hundred millions. It would be interesting to know at the end of this special audit/investigation whether these project funds have been paid to legitimate companies and they have actually gone back to Hides and put up community projects.

By seeing successful initiatives that have been established and pursued by Peter O’Neill and his government, it is very likely that this plan will be implemented accordingly. Interestingly he is the chairman to the so called ‘ad hoc committee ‘that will govern and spearhead this investigation or if you like, this exercise.

It would be a fair outcome if some of these dodgy landowners, untrustworthy government officers and dubious member of parliaments are punished if they are implicated in the misuse of these project funds.

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