By Roderick Kanama

The Commission of Inquiry (COI) into the Special-purpose Agriculture and Business Leases (SABL) concluded its preliminary hearings today in Port Moresby [pictured Commissioner Jerawai and his Associate].

The preliminary hearings, which allowed the COI to gather evidence and affidavits before the substantive hearings was delayed due to the Registrar of Companies, Mr. Alex Tongayu requiring more time to prepare his affidavit and provide supporting documents in relation to Tumu Timbers Development Limited, a Landowner Company in the Western Province.

In his affidavit, tendered and accepted by Commissioner Jerawai, Mr. Tongayu clarified the requirements and the process by which the Investment Promotion Authority considers and approves Certificates Permitting a Foreign Enterprise to Conduct Business in PNG.

In his sworn affidavit of seven (7) pages, Mr. Tongayu [pictured] stated that a foreign company, once certified by the Investment Promotion Authority (IPA) under Section 28 of the Investment Promotion Act, 1992, is required to operate only in the activities stated on the face of the IPA Certificate using the UN International Standards Industrial Classification (ISIC) and in the locations so certified. He added that where a foreign enterprise wishes to expand its operations to include additional activities and/or locations, it is required to apply for a variation under Section 33 of the Investment Promotion Act, 1992, and be granted a new Certificate bearing the additional activities and/or locations.

In his response to questions raised by counsel assisting the COI, Mr. Jimmy Bokomi, Mr. Tongayu stated that the Independent Timbers & Stevedoring Limited (ITSL), a foreign company conducting logging operations in the Western Province was never certified to operate in Portion 1C Ibolo. Portion 1C Ibolo is the location of the SABL issued to Tumu Timbers Development Limited (SABL 70). He stated that ITSL however entered into an Agreement with the State and the Fly River Provincial Government to build a road and the location it was certified by IPA to operate in was based on that Agreement. Mr. Tongayu also stated that he was not aware of a variation application being received by IPA from ITSL to vary its location to include this location (i.e. Portion 1C Ibolo, Western Province). When queried by Commissioner Jerawai, Mr. Tongayu stated that in certifying ITSL to conduct logging and related service activities, IPA considered the fact that log felling must take place to allow for the building of the road and that the Enterprise was given six (6) months to obtain the relevant permit from PNG Forest Authority (PNGFA) and submit the same to IPA. Mr. Tongayu added that the IPA file did not contain a copy of a relevant permit/license from PNGFA.

The COI now travels to the provinces to conduct substantive hearings, commencing with New Ireland Province on Monday 24/10/2011 where the following SABL Grantees are scheduled to appear before the Commission – Cassava Etagon Holdings Ltd (SABL 09), Emirau Trust Ltd (SABL 19), Rakubana Development Ltd (SABL 29), Tabut Ltd (SABL 56), Umbukul Ltd (SABL 61), and Central New Hanover Ltd (SABL 75).