The final report of Investigation into the East New Britain Resource Group was presented at Parliament by Minister for International Trade and Investment Richard Maru.
The Investigation is about the East New Britain Resources Group’s (East New Britain Palm Oil Limited, Tzen Niugini Limited and Tzen Plantation Limited) and their dealings and business conduct towards the local oil palm growers in East New Britain Province.
Minister Maru said this is a very important investigation for the Government and it is the first time in the country’s history that the Government is investigating the price of oil palm upon receiving complaints from over 15,000 village oil palm farmers in East New Britain who have requested the Government’s intervention to help them and their families see 500-600% increase in the oil palm prices, similar to farmers in West New Britain Province.
“This investigation was approved by the NEC in its Decision No: 192/2024, following a petition that was presented to me by the local oil palm growers and landowners of Gazelle Peninsula and Wider Bay Area of ENB Province calling for an investigation into the exploitation of an unfair trade practices by the East New Britain Palm Oil Limited for illegal price fixing of K10 per metric ton for Fresh Fruits Bunch payments from November 2014 to 2022, and K15 per metric ton from 2023-2024.
The NEC in its decision also approved the establishment of the Investigation Team, the Terms of Reference, and the funding of it (K2 million).
The Investigation Team led by an oil palm expert, Mr. David Mather and Deputy Chairman, Mr. Tony Waisi was carried out over 8 weeks from November 19th to December the 17th 2024 and from January 16th to February the 12th 2025,” Mr. Maru said.
He added that the Investigation Team found out that East New Britain Palm Oil Limited is part of the East New Britain Resources Group which comprises of East New Britain Palm Oil Limited and Tzen Niugini Limited and Tzen Plantations Limited, and so the Investigation Team extended the investigation to cover the East New Britain Resources Group and not just East New Britain Palm Oil Limited.
“Despite some existing legislations governing the operations of the palm oil companies, there is obviously lack of a proper central coordination and oversight of the industry by a regulatory body.
Given the lack of oversight and governance of the existing legislation and/or regulatory frameworks applicable to PNG’s Palm Oil industry, and the few missing areas with no legislation like a Mandatory Smallholder Price Formula, the State of PNG may not have legal standing to undertake actions against East New Britain Resources Group at this stage.
The government of PNG needs to handle this situation with “gracefulness” to ensure a win-win situation for all stakeholders going forward. That is to keep the company operational whilst ensuring fair and equitable Benefit Sharing Agreements,” he said.
Recommendations that arose from the investigation includes,
· Develop a PNG Palm Oil Policy and Legislation.
· Establish a National Palm Oil Council / Authority.
· Refocus the Oil Palm Industry Corporation (OPIC) to better service smallholder oil palm growers.
· An immediate, independently managed, review of the WB, Special Agricultural Development Project, Smallholder Price Formula, then mandate.
· Derive Mandatory Landowner FFB Royalty Payments from the Smallholder FFB Price Formula.
· Immediately amend section 11 of the Land Act 1996.
· Assist resolve issues affecting all stakeholders associated with the East New Britain Resources Group’s development.
· Ensure that East New Britain Resources Group’s compensates for” underpayments” or “losses suffered” by the landowners.
· Ensure that East New Britain Resources Group pays the penalties to the State of PNG for any non-compliances with existing legislations (including IRC, ICCC, NMSA, DoT, DLIR, IPA, PNGFA, and CEPA).
· Establish a separate investigation into the former CEO of East New Britain Resources Group.
· Establish an immediate investigation into Gilford Ltd.
“The findings and recommendations from this investigation will guide the Government to reform the oil palm industry to ensure that such rip off of our farmers does not happen by policy and legislation.
The findings and recommendations of this investigation will be important to all key stakeholders, the growers and landowners, the oil palm developers, this Government, and key Government agencies who may need to take hold of the report and implement changes,” Mr. Maru added.