The Minister for International Trade and Investment, Richard Maru, recently provided an update on Petroleum Park Holdings Limited (PPHL), which is a subsidiary of the Konebada Petroleum Park Authority (KPPA). He emphasized concerns regarding the improper management and operations of the company by its key officers. PPHL was incorporated under the Companies Act 1997, in accordance with Sections 5 and 8 of the Konebada Petroleum Park Authority Act 2008 (as amended). Minister Maru stated that, under normal circumstances, KPPA would be the sole owner of PPHL, and those appointed to hold shares in PPHL would do so in trust for KPPA based on a Trust Deed. However, during the tenure of Mr. Donald Valu as the Chief Executive Officer (CEO) of KPPA, both he and Mr. Joel Oli were appointed as the inaugural directors and shareholders of PPHL. Later, Mr. Samuel Pepena was appointed as a director and shareholder after Mr. Oli's removal. Currently, the directors and shareholders of PPHL are Mr. Valu and Mr. Pepena. Minister Maru highlighted that the documents obtained from the Investment Promotion Authority revealed several important points: “There is no Trust Deed in place that legally empowers Mr. Donald Valu and Mr. Samuel Pepena to hold the shares of PPHL in trust for KPPA. Mr. Valu and Mr. Pepena hold the shares of PPHL as owners, not in trust for KPPA. He also emphasized that the Constitution of PPHL was drafted in a manner that strips KPPA of its powers and control over PPHL. “According to Clause 3.3 (a) of the Constitution, KPPA does not have any power, or right automatic or otherwise to direct, control, meddle, or interfere in the conduct of the business affairs of PPHL, including the removal or appointment of directors or shareholders of PPHL, altering the Constitution, dealing with the assets and undertakings of PPHL, or otherwise exerting any control or external management of PPHL,” he said. Minister Maru added that the Companies Act 1997 allows a company to have a constitution that governs its administration and operations. PPHL has such a constitution, but it effectively insulates the current directors and shareholders from any supervision and control from its owner, KPPA. “Based on legal advice received, there are no options under the Konebada Petroleum Park Authority Act 2008 (as amended), the Companies Act 1997, and the Constitution of PPHL for KPPA to reclaim its subsidiary, PPHL. “Thus, the only recourse is to pursue legal action to recover PPHL from the hands of the current directors and shareholders. I have instructed the KPPA Board, chaired by Mr. Martin Kombri, to take immediate action in this regard,” Minister Maru concluded.