PNG Parliamentary Opposition Leader James Nomane took Finance Minister Thomas Opa to task over the Government’s K112 million allocation for the Papua LNG Development Forum in Parliament last week.
He demanded accountability for K80 million spent accommodating more than 1,200 landowners during ongoing negotiations before the project’s final investment decision.
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During Question Time, Mr. Nomane asked Finance Minister Thomas Opa to clarify the amount approved by the National Executive Council (NEC), how much had been spent to date and whether proper accountability measures were in place.
Nomane said the public had a right to know the total cost to the State, as more than 1,200 landowners had been accommodated in Port Moresby for several months while negotiations continued.
Minister Opa confirmed that the State had allocated K112 million for the Papua LNG landowner meetings, saying expenditure had remained within the approved budget.
“So far, a total of K80 million has been used in the expenditure costs for the Papua LNG meeting,” Opa said.
He clarified that the K80 million was not paid in one instalment but released in stages, comprising an initial K20 million, a second K20 million and a final K40 million, with additional funding provided about a month ago.
Mr. Nomane questioned the spending, contrasting it with the K500,000 El Niño funding he said had not reached districts with populations exceeding 100,000 people affected by dry weather conditions.
He also questioned the treatment of landowners, particularly regarding meals and accommodation, and called on the minister to explain the expenditure.
In response, Minister Opa said managing more than 1,200 landowners in Port Moresby involved substantial costs, noting that 12 motels were being used to accommodate them.
On the El Niño funding, Opa said the National Government had already transferred K304 million and remained committed to supporting the people of Papua New Guinea.
He said the funding was separate from the Papua LNG Project expenditure.
In a supplementary question, East Sepik Governor Allan Bird also enquired the K80 million expenditure, saying Parliament needed a clear explanation of how the money had been spent.
“I would hardly think 1,200 landowners are treated like animals, Minister needs to tell the Parliament how much actually spent,” Bird said.
Opa responded that the K80 million was not solely for landowners’ accommodation and meals, explaining that the expenditure covered other services, including the State negotiations team, hired venues and internal and external support services.
“I am not saying K80 million is just for the landowners, you must understand well that expenditure includes other external and internal services used like, State negotiations team, venues hired and many more,” he said.
Opa stressed the importance of completing the Papua LNG Development Forum before the project proceeded to its final investment decision (FID).
“Remember, Papua LNG Project is an essential asset of the country, we need to complete the Development Forum before we go to FID, and it becomes the project in the country for us to get benefits,” he said.
Nomane reiterated that the Opposition was not against the project but wanted accountability for public funds.
He also questioned reports that accommodation bills remained unpaid despite the K80 million expenditure.
Opa acknowledged the questions and said the National Petroleum Authority had received the K80 million to manage the process and its associated costs.
“The National Petroleum Authority needs to provide full reports to us after this forum is completed as they are forefront doing all the groundwork brought altogether from the village to Port Moresby,” he said.
Opa explained that the Development Forum was a mandatory process under the Oil and Gas Act and had to be completed before a Petroleum Development Licence (PDL) could be issued for the Papua LNG Project.
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Following the Tier 1 benefit-sharing agreement, the project will proceed to the next stage of negotiations.
Opa said the Development Forum was progressing, with landowners having agreed to and signed the relevant agreements, except for a small number of landowners from Gulf Province who were yet to sign.