Inquiry begins into Special Purpose Agricultural Business Leases


By Kate Morioka, Research Project Manager

A full page spread from Acting Prime Minister appeared in today’s edition of The National, signalling the commencement of the Commission of Inquiry (COI) into the Special Purpose Agriculture and Business Lease (SPABL).

The newspaper advert follows the announcement made by Acting Prime Minister Sam Abal back on May 20, when he called for a COI to be established to probe into the issue of SPABLs.

The use of land for commercial agricultural and business activities in PNG require companies to obtain a SPABL. This leasing scheme has resulted in the PNG Government annexing the control of customary land from its owners, often without informed consent.

From 2003 to 2011, more than 5.2 million hectares in the country have been covered under the SPABLs, equating to about 10% of customary land being alienated from landowners through the SPABL. The leasing scheme allows companies to use the land on 55 and 99 year terms, and gives them the power under the Forest Clearance Authorities to clear any forest on the area covered by the lease.

There have been reports that the SPABLs are being issued without informed consent of the customary land owners, denying them of their right to control and make decisions over their land. Not only is this practice unethical, it is also illegal and unconstitutional.

On May 21, women from Kwanga, Middle Ramu District of Madang staged a sit-in protest over the SPABL at the Ben Semri Soccer Tournament. The women, who had been stripped of their land without their consent, covered themselves in mud as a sign of loss and grief. In hearing of the protest, Mr Ben Semir, local Member of Parliament, sent police to disperse the protestors. The protest spokesperson was reported to be beaten by police.

According to sources, when Mr Semri was asked about why he allowed the SPABL, he was quick to point the finger at another local member of parliament, who also avoided questioning over the granting of various SPABLs across the Madang Province.
Just like the above case, land owner groups and NGOs have been putting pressure on the government, calling for an investigation into the issuing of SPABLs and to place a moratorium on the issuing of new leases as well as a suspension of all Forest Clearance Approvals granted under the existing leases.

Although the Acting Prime Minister responded favourably to the demands made by the landowner groups and NGOs in May, some were doubtful that the COI would ever commence its investigation and whether the moratorium will be fully enforced.

Today, after two months since Abal’s announcement, his advert in the paper reads:

“I am very happy to inform the people of this country that the COI into the SPABL is ready to commence public hearing starting today…I want to urge those who have information or are affected one way or the other by the SPABL to come forward and register their interest to make submissions on the operations of SPABL.”

The Commission has been given 3 months starting 12 July to complete the Inquiry. According to the advert, the COI will identify possible reforms and enable the government to balance development, climate change and landowner issues.

However, it is clear from Abal’s advert that the COI will not only focus on the abuse in the issuing of SPABLs but also on the “good stories” that demonstrate how SPABLs have worked to “allow people to grow the economy in a sustainable way.”

The landowners and NGOs will be keeping a watchful eye on the Inquiry, especially when its findings will be revealed in late September.

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