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COMMISSION OF INQUIRY INTO SABL MR ALOIS ......COMMISSION OF INQUIRY INTO SABL 20! MR ALOIS JEREWAI...

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SABL47JEREWAI 28/11/2011 1 TRANSCRIPT OF PROCEEDINGS Commission of Inquiry into SABL Department of Prime Minister & NEC P O Box 639 WAIGANI. NCD Papua New Guinea Telephone: (675) 323 7000 Facsimile : (675) 323 6478 __________________________________________________________________________________ 10 COMMISSION OF INQUIRY INTO SABL MR ALOIS JEREWAI COMMISSIONER 20 TOP FLOOR, MURUK HAUS, WAIGANI, MONDAY 28 NOVEMBER 2011 AT 9.00 A.M. (Continued from Monday 21 November 2011)
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TRANSCRIPT OF PROCEEDINGS Commission of Inquiry into SABL Department of Prime Minister & NEC P O Box 639 WAIGANI. NCD Papua New Guinea

Telephone: (675) 323 7000 Facsimile : (675) 323 6478

__________________________________________________________________________________ 10  

COMMISSION OF INQUIRY INTO SABL

MR ALOIS JEREWAI COMMISSIONER 20  

TOP FLOOR, MURUK HAUS, WAIGANI, MONDAY 28 NOVEMBER 2011 AT 9.00 A.M. (Continued from Monday 21 November 2011)

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THE COMMISSIONER: Once again, good morning. I think we will deal with the preliminaries. The preliminaries are that counsels appearing seek leave formally to appear on behalf of clients. Is that right, Mr Boi? And I notice Mr Kanu, Aloysius Kanu at the table and anyone else who maybe counsels seeking to appear this morning proceed to make your applications for leave. Mr Kanu?

MR KANU: Yes, thank you Commissioner.

THE COMMISSIONER: Can you move over to the microphone, Mr Kanu or should I address you as Major Kanu?

MR KANU: Whatever Commissioner wishes. Commissioner, for the record counsel’s name is Aloysius Kanu and I am from Warner Shand Lawyers and I 10  

am here representing Koaru Resource Owners Company Limited and Pacific International. For purposes of record, I seek leave to appear on behalf of those two companies.

THE COMMISSIONER: All right. One of the requirements, Mr Kanu, is to produce a copy of your practicing certificate for leave to be granted. Have you got it here or you will endeavour to provide one later on?

MR KANU: My apology Commissioner. I will endeavour to have that produced sometime later today. I have left it in the office at Kanudi.

THE COMMISSIONER: That is all very well, you can produce a copy later.

MR KANU: Thank you. 20  

THE COMMISSIONER: Mr Boi, any objections to Mr Kanu’s appearance?

MR BOI: No objections, Commissioner.

THE COMMISSIONER: Thank you. Mr Kanu, I hereby grant you leave to appear on behalf of your clients subject to future production of a copy of a practicing certificate.

MR KANU: Thank you Commissioner.

THE COMMISSIONER: Anyone else who wishes to make an application for leave does not – yes,MrRoddy Koaru?

MR KOARU: If it pleases Mr Commissioner, the name is MrRoddyKoaru. I am the project coordinator and also the lawyer for Gulf Provincial Government. 30  

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Currently I am employed by Warner Shand Lawyers. I know there may be some allegations me in this respect of this project or SABL. In that respect, I seek leave of the Commissioner to appear and personally defend any allegation made against me.

THE COMMISSIONER: Well, Mr Koaru, if you are appearing as an interested party there is no need for you to seek leave. You will be heard nonetheless.

MR KOARU: Thank you so much, yes, I will.

THE COMMISSIONER: Mr Boi, that would be the correct position?

MR BOI: Yes Commissioner, but Mr Koaru is appearing on a summons.

THE COMMISSIONER: In other words, he is an interested party. 10  

MR BOI: Yes.

MR KOARU: Thank you.

THE COMMISSIONER: No leave is required therefore. Very well, those being the matters, we have not got much time and we have slotted as you all know seven matters into only one week. Let us proceed.

[9.03 am] Mr Boi, yes? MR BOI: Thank you, Commissioner. This is the commencement of the actual hearing into the SABLs in the Gulf Province. This is continuation from the adjournment from Kerema last week. This morning’s SABL for Inquiry is the 20  Koaru Resources which appears as number 28 on the SABL list. THE COMMISSIONER: This involves portion? MR BOI: It involves portion 323C, Milinch Kukipi, North West and South West;Cupola, North East, Fourmil Yule, Gulf Province. The lease involves or covers 59,460 hectares of land in the Gulf Province. It is an agro-forestry lease granted to Koaru Resource Owners Limited and according to information available to the Commission, it is subleased to a company called Pacific International Resources Limited. 30   THE COMMISSIONER: Perhaps a short statement on the preliminary statement on the opening of this file.

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MR BOI: Yes. This is a direct grant SABL under section 102 of the Land Act by Mr Pepi Kimas, a delegate of the Minister for Lands for a period of 99 years over land known as Tearu Meporo. The Department of Lands, Department of Agriculture and PNG Forest Authority have unfortunately not made available to the Commission of Inquiry most of their files or records and with the Commission has been disadvantaged by--- THE COMMISSIONER: Non-production of, first of all, the Department of Lands and Physical Planning’s files, both from the department and also from the Registrar of Titles. 10   MR BOI: That is correct, Mr Commissioner, and therefore, unfortunately, we are not able to ascertain whether there is a land investigation report or a State Lease – the section 11, head lease or the State lease to the--- THE COMMISSIONER: So, essentially, we are proceeding with the Inquiry into this one in the absence of a land investigation report? MR BOI: That is correct. 20  THE COMMISSIONER: Until such time as if one comes to hand in the course of the Inquiry? MR BOI: That is correct. That is the position. THE COMMISSIONER: Fine. What about the Department of Agriculture and Livestock? Has there been any proposal for agriculture development? MR BOI: The Department of Agriculture and Livestock has unfortunately not produced to the Commission their records on this particular SABL and therefore 30  the Commission does not have any information from them directly. However, we do have an agriculture development plan which was handed to the Commission by the developers and the SABL grantees. THE COMMISSIONER: In other words, in the absence of the Department of Agriculture and Livestock?

[9.09 am] Would you see any proposal which may have been submitted to that Department, we have one that had been produced and who would that have been the entity who produced it. 40   MR BOI: The document states that it was jointly produced by the National Department of Agriculture and Livestock and the Pacific International

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Resources Limited as it says on the cover that this was jointly prepared by DAL and the developer. THE COMMISSIONER: But who submitted that to you? MR BOI: This was submitted to the Commission by the developer, Pacific International Resources Limited and the sub-lessee establisher was also the grantee, Koaru Resources Owners Limited. THE COMMISSIONER: Nonetheless that is some form of a proposal for 10  agriculture development? MR BOI: Correct. THE COMMISSIONER: Alright that is taken note of. MR BOI: Yes. THE COMMISSIONER: Anything from the Department of Environment and Conservation? 20   MR BOI: Yes. The Department of Environment has forwarded its records which indicates that the Minister’s approval in principle was granted to this project on 4 August 2011 this year, the recent August, so we do --- THE COMMISSIONER: That would be after the establishment of this Commission of Inquiry? MR BOI: That is correct. 30  THE COMMISSIONER: That is fine. MR BOI: That is correct, and which of course be formally tendered--- THE COMMISSIONER: In due course. MR BOI: In due course, yes. THE COMMISSIONER: What about forestry? Have they gone that far or forestry is not in the equation at this point? 40   MR BOI: Commissioner, at this stage there is nothing from the PNG Forest Authority but we do have on records some indication that there was an

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application made by the developers and the grantee for Forest Clearance Permits and on current indication, the application is pending the conclusion of the Inquiry. THE COMMISSIONER: Well, pending until the moratorium imposed by the National Executive Council is removed. MR BOI: That is correct. THE COMMISSIONE: And Prime Minister has not indicated if he will remove 10  that yet. MR BOI: That is the correct position. THE COMMISSIONER: So that is the position with regards to that? MR BOI: To the forestry? THE COMMISSIONER: No, with regards to the Inquiry into this matter. 20  MR BOI: Yes. THE COMMISSIONER: In brief, that is what we have and what we do not have? MR BOI: That is correct, Commissioner. THE COMMISSIONER: All right, how do you wish to proceed with morning? MR BOI: I had intended to proceed by way of calling the Provincial Lands 30  Officer in Gulf who is the primary State person, public servant responsible for preparing the – dealing with lands matters for that matter in the Gulf Province. Unfortunately, the summons people have been having difficulty in locating--- THE COMMISSIONER: I understand that he had been evasive? MR BOI: He has been evasive, that is correct Commissioner and I will at some pointmake the appropriate applications for him to be dwelt with if he cannot be located. So that been so perhaps the – and in relation to other Government agencies and that, I think there is a standing arrangement that they will all be 40  called and be made available for questioning in relation to all the SABLs at some ---

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THE COMMMISSIONER: At the conclusion of individual SABL Inquiries? MR BOI: That is correct. THE COMMISSIONER: Yes. And that will be the arrangement we will adhere to. MR BOI: That is correct and therefore in relation to all those other Government officials, we will have to wait until the – at the end of the Inquiry and therefore at this juncture, I will have to proceed with the grantee; the company has been 10  granted the SABL which the Managing Director and Chairman of the Board has been summoned. He is --- THE CHAIRMAN: All right. Now that we have granted leave to MrKanu to appear so I think it would be appropriate for me to invite him to indicate whether we should proceed that way or has he got something else in mind. Mr Kanu? MR KANU: Commissioner, I have no objections to the procedure proposed by Counsel. We are prepared to sit with MrKoaru if that is what is proposed? 20  

[9.15 am] THE COMMISSIONER: Yes, in the absence of the Lands official in the provincial administration he actually should be the first person to call because all of these SABLs go through the process of a land investigation prior to the grant being made by the Minister for Lands. So we cannot be assisted by him at this point. That would have been a starting point to at least give us a position as to the validity of that particular process of land investigation, where we usually go from to determine other issues, if there are any other issues. So in the absence of all of that, we will do the best we can and commence with the grantee. All right, Counsel, you want to call Mr Koaru? 30  

MR BOI: Yes, I will call before the Inquiry Mr Roddy Koaru.

RODDY KOARU, Sworn:

XN: MR BOI

THE COMMISSIONER: Commissioner, my full name is Mr Roddy Hilla, H-i-l-l-a, Koaru, K-o-a-r-u. I am by profession a lawyer. I am also the current

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provincial legal officer of Gulf Provincial Government with the Department of Gulf. Due to political turmoil, I have been suspended without any charges under the Public Service General Orders and consequently, I sought employment with a law firm called Warner Shand Lawyers and I am practicing under Warner Shand Lawyers at Kanudi.

I have actually sworn an affidavit for this Commission to see and if I may be assisted with that content of that affidavit. Firstly, in respect of this project, the Gulf Provincial Government and the Developer, Pacific International Resources, PNG Limited signed an MOU in 2006. That MOU was specifically to develop the area known between Kerema Town and Malalaua. This area is 10  

known as Kerema Meporo and it is a proposed FMA, forest management area. And also an area known as Tearu Meporo, which is an acquired TRP, timber rights purchase area.

[9.20 am] With TRP for Tearu Meporo was acquired in 1990 and it was acquired for 20 years. That TRP expired in 2010. By virtue of the laws, the original donors or landowners who granted the TRP have not renewed the TRP, therefore, ---

THE COMMISSIONER: If they wish.

A: If they wish, yes. Therefore, the land has reverted. And as a reversionary interest, it has reverted to the original donors.

Q: Not land but TRP. 20  

A: That is right, yes.

Q: Only the Timber rights purchase. TRP does not grant any form of land interest to the holder.

A: That is right, yes, that is correct. Okay, after the MOU was signed I was appointed as a project coordinator by the provincial administrator, Mr Miai Larelake. And I produce copy of the letter of appointment.

Q: Counsel, you got copy of that?

MR BOI: No, I do not.

THE COMMISSIONER: We can receive it from him; we can receive it from Mr Koaru? 30  

MR BOI: Yes Commissioner, I have no objections to that.

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THE COMMISSIONER: Can we have it formally tendered? Okay, Mr Koaru, I will receive it as an exhibit as tendered. Are you tendering it?

A: Yes, I tender the ---

Q: I receive it as an exhibit to be marked exhibit A, Koaru Resources Limited, portion 323C, Gulf Province. Hold on a second we will just note that. Thank you. Please proceed.

[EXHIBIT A – COPY OF LETTER OF MR KOARU’S APPOINTMENT - KOARU RESOURCES LIMITED PORTION 323C, GULF PROVINCE]

A: Commissioner, the MOU, Memorandum of Understanding which I 10  

referred to is attached to my affidavit, which earlier, I submitted to the Commission. But the letter of appointment is 10 September 2006. And the letter of appointment is very specific, letter of appointment, and my responsibilities or duties were; (1) represent Gulf Provincial Government, project area landowners in all meetings, consultations, negotiations with the developer, the State and its agencies and instrumentalities; (2), consult, negotiate and engage private project consultants to carry out specific work on contractual basis relating to the project; (3), drafting of all project documents, letters, notices and agreements except for those which are prepared by private consultants or the State and its agencies and 20  

instrumentalities and developer; (4) liaise with relevant divisions with the Gulf administration to carry out land investigations and incorporation of land groups, land leases, agriculture, aqua-culture, forestry and environmental studies; and

[9.25 am] (5) Any other duties and responsibilities as directed or delegated by the administrator, who is also a landowner from the project area. The letter in fact, also states paragraph two, “As a legal officer and landowner from the area I hereby, appoint you as the project coordinator for Kerema District Agro-forest.”

So in respect of the administrator’s letter, he also clearly identifies me as 30  

also a landowner from that area.

THE COMMISSIONER: Has your suspension from the Gulf Provincial administration affected your appointment under this letter of appointment as well? Just want clarification on that.

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A: Well, my suspension is a matter which is now on appeal to the Public Service Commission. And ---

Q: That is fine but has it affected your appointment as a representative or project coordinator, rather under this letter of appointment dated 10 September?

A: No, I have not received any letter.

Q: To that effect?

A: To that effect, no.

Q: Proceed. So pursuant to this letter of appointment ---

A: I took charge of the --- 10  

Q: Yes, if you can get to the project as to what you actually did.

A: Yes. From there, in – the project actually, after my appointment, did not – we did not do anything until 2007. In 2007, there were a number of, actually number of awareness which took place in the villages in the Kerema District. Gulf Province has two districts, that is Kerema District and Kikori District. Yes, two districts. So this project is actually in the Kerema District, which is closer to Port Moresby. So as appointed project coordinator, I then took charge of the project. First thing I did was, with other public servants which was – the person who was in charge of the awareness was the late Epsy Elaiavila, the late Epsy Elaiavila, was the 20  

district administrator for Kerema District. And we did a number of awareness in respect of this project in Moveave, Tapala, Koaru, the whole other villages including the inland Kamea villages of Banita Ipia.

Q: Sorry, late – can you repeat the name of the late district administrator?

A: Epsy is ---

Q: How do you spell Epsy?

A: Epsy, E-p-s-y. His name is Epavea.

Q: Epavea, right.

A: Epa, E-p-a-v-e-a, Epavea Elaiavila. He died about two months ago.

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Q: When did you two conduct this awareness?

A: In 2000, I think towards end of 2006 or 2007. The Minutes of such awareness is attached to my affidavit.

Q: Right. Counsel, could we have that affidavit? Could we have Mr Koaru go through his affidavit. Identify the affidavit and have it tendered so that he can address on the matters as contained in his affidavit.

[9.30 a.m.]A: Commissioner, the affidavit was sworn on 31 August and filed on the same day, 31 August. The affidavit annexed – sorry, before I, in the affidavit, I also annexed Provincial Executive Council decision.

THE COMMISSIONER: Before we go into the contents, Counsel can you have 10  

Mr Koaru formally the affidavit so that he can go through it. MR BOE: Mr Koaru, you have a look the affidavit, go to the signature page. Does that affidavit bear your signature? A: Yes. Q: Is that the affidavit that you swore and submitted to the Commission? A: That is correct, yes. 20  

Q: Thank you. A: I submitted this to the Commission sometime in August. Q: Yes. A: I tender the affidavit. THE COMMISSIONER: I accept the affidavit tendered by Mr Koaru which 30  

will be exhibit B-Koaru Resources Limited relating to Portion 323C, Gulf Province.

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[EXHIBIT B- SWORN AFFIDAVIT OF MR KOARU - KOARU RESOURCES LIMITED RELATING TO PORTION 323C, GULF PROVINCE] A: Mr Commissioner, can I refer to the copy of the affidavit?

THE COMMISSIONER: Please. A: Just for preliminary purpose, the decision of the Provincial Executive

Council, is annexed at paragraph 4 and marked “A”, in which they approve the Kerema Agro Forest Project and also the MOU is marked “B” which 10  

was signed with the Developer and the public awareness which we are about to deal with is marked “C”. The public awareness was conducted on 20 October 2006 and the Government officers were the District Administrator, Hepai Helaivila, Allanston Navai who was the Provincial Forestry officer, previous project proponents; these were officers who were involved in the same project but failed to implement the project for some reasons and myself, legal officer, and Environmental Officer, Gerald Davoa and Lands officer, Mr N Palme, District Lands Officer. So this is the initial awareness that was conducted and later there were quite a number of awareness conducted. 20  

THE COMMISSIONER: This awareness was conducted before the Land Investigation Report, rather Land investigations? A: That is correct; that is true. Q: Now, as you have heard we are proceeding without the benefit of the

Lands Investigation Report. A: Yes. 30  

Q: Is there anywhere in your affidavit which you may have alluded to that

taking place? If you could lead us to it at this point?

[9.35a.m.] A: The affidavit – although I did not mention in my affidavit, the Lands Investigation Reports was conducted by a Lands officer by the name of Mr Michael Lari. He visited Meporo, visited Ikia, the inland villages and also

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he went to Koaru village and conducted the Lands Investigation report. The Lands Investigation Report was then signed after he finished his work, the Lands Investigation Report was then brought to me and was then signed by the Provincial Administrator, Mr Miai Larelake. After it was signed, the Lands Investigation Report was brought to the Department of Lands for their Chair for further action.After the Lands Investigation Report was tendered and given in, handed into the Lands office – actually he may have done the Lands Investigation Report later. The first people who went down to the scene were the Agriculture people. The Agriculture people from the Southern division, headed by Leka Mou, who is the 10  

Director for Agriculture in the Southern Region, including Kerema, Gulf Province, Western Province and Milne Bay and Northern Province, his name is Mr Leka Mou. He sent his officers, if I can recall, one officer’s name is Mr Goru Babona. He is a young man from Rigo and the other man is by the name of Mr Mai Baiga, B-a-i-g-a, Baiga. He is from Daru, and the other officer, I cannot really recall his name, he is from Bereina, Kairuku area. The officers then travelled to Koaru and they did a very comprehensive study of agriculture crops in the Project area. They stayed more than a month in the area and after that they produced a report. And not only that, the report was done in conjunction with the Department in 20  

the Gulf Province. The officers’ names are attached or included in the report.

[9.40 am] That report, I also gave in to the Commission of Inquiry office. And if I

may be assisted with that report, I am sure it will help--- THE COMMSSIONER: Counsel, can you produce the report to the witness? MR BOI: Yes. 30  A: Yes, Mr Commissioner, this is the report jointly prepared by the National

Department of Agriculture through Southern Region directorate and Provincial Department of Agriculture and Pacific International Resources, a company, yes, and I seek to tender this report.

THE COMMISSIONER: All right. Mr Koaru, I accept as exhibit C - Koaru Resources Limited, Portion 323C Gulf Province, the Agriculture Report you referred to in your evidence.

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[EXHIBIT C – AGRICULTURE REPORT – KOARU RESOURCES LIMITED, PORTION 323C GULF PROVINCE] A: Yes, thank you. In respect of the LIR as it is referred to – Land

Investigation Report – as I have mentioned, it was given to the Lands Department.

Q: After having been signed by the provincial administrator? A: That is right. That is right. That time, we were operating an office on the 10  

third floor of Heritage Building. That is just across the street; we were operating at level 3. Pacific International, the Developer, had an office there, and that is when I tendered – I submitted the LIR report done by Mr Michael Lari. I had since done a search of – a title’s search in the Lands office in trying to ascertain a copy of the report and also the cadastral map and also the Instrument of Leases in respect of this particular lease. However, I was unable to ascertain even the file.

Q: Even, you were unable to access the file? 20  A: That is right. So we actually insisted on the Lands Department to tell us

exactly what happened to the files, and so - the cadastral map is filed with the Surveyor General which is a completely different section from the Lands office.

Q: Separate office? A: That is right. Because of my insistence, the Lands office has given us a

letter which I seek to tender. 30  

[9.46 am] Sorry, Mr Commissioner, this is a copy. I am sure the original is here. The copy – this is in respect of – the letter is actually signed by the Director, Land Acquisition, from the Department of Lands and Physical Planning. It says, “Dear, Sir, subject: Misplaced office files”. It reads, and I quote, “The Department of Lands and Physical Planning Waigani, hereby indemnify to the State of Papua New Guinea that these following documents were lost, damaged or misplaced in our office due to unseen reasons.

1. Instrument of leases; 40  2. Cadastral Maps; 3. Land Investigation Report and other associated papers.

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The Lands and Physical Planning Department take full responsibility for liabilities that may cause or arise from Pacific International or Koaru Resources Owners Company in respect of Meporo SABL Lease for the Kerema Agro-forest project. That is--- THE COMMISSIONER: That is very nice of the government official to commit liability on behalf of the State. A: Yes. 10  Q: Counsel, assist to have it tendered. Have that letter tendered. MR BOI: Yes. A: I will actually give you the original. I think I must have--- THE COMMISSIONER: We are not bound by strict rules of evidence. A copy will be fine. A: Thank you. I seek to tender that letter. 20   Q: We receive the letter. What is the date of the letter, again? MR BOI: Commissioner, the letter is dated 18 November 2011. THE COMMISSIONER: 2000 and? MR BOI: 2011. THE COMMISSIONER: 11. 30   MR BOI: 11, just this month; couple of weeks ago, last week. THE COMMISSIONER: All right, I will receive it. MR BOI: Addressed to Department of Prime Minister and NEC, attention Chief Commissioner. I think that refers to the Commissioner of Inquiry; the Chief Commissioner of Inquiry. THE COMMISSIONER: How did you receive that letter? 40   A: That letter was received through the office of the Director of Land

Acquisition.

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Q: Was it formally a courtesy copy to you? A: Not, it was given to me. Q: I would not accept that as an exhibit. That was not a letter that the witness

is privy to. MR BOI: No, Mr Commissioner, this is addressed to the Chief Commissioner here. 10   THE COMMISSIONER: I understand. MR BOI: Yes. THE COMMISSIONER: But that is a matter of our records. MR BOI: That is correct. THE COMMISSIONER: And the witness was not entitled to have access to 20  that. MR BOI: Yes, I have it. THE COMMISSIONER: I will not accept it as evidence. MR BOI: Yes. A: Yes. As, Mr Commissioner, I will seek--- 30  THE COMMISSIONER: And I also order that, that be struck from the records. MR BOI: Yes. THE COMMISSIONER: Transcripts. Make sure that is struck from the records. A: Yes, Commissioner. Q: Proceed. 40   A: Yes, Commissioner. Apart from that in 2007 after being appointed as

project coordinator, I then went to Koaru village.

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Q: Before you get to that, Mr Koaru, would it be possible that the Gulf

Provincial administration, particularly the Lands Division, would they have retained a copy of the Land Investigation Report?

A: It is possible. It is possible, yes. The correct person to be summoned

would be Mr Michael Lari. Q: Thank you, proceed. 10  MR BOI: Commissioner, because we do not have the Land Investigation Report in the custody of the Commission, we have actually summoned the Provincial Lands Officer who is Alexis Iva, a person who has been evasive. So we will, of course, in due time get him in and--- THE COMMISSIONER: Yes, that has been noted. MR BOI: Yes. THE COMMISSIONER: That has been noted, but we will hear Mr Koaru on 20  what he has to say. MR BOI: Yes.

[9.50 am]A: Around 2006, I then went to the village and discussed – had a meeting with the Koaru village people who are the landowners of Meporo customary land which is now in the SABL Inquiry. The reason for going there is, firstly, I wanted - as a landowner myself, I wanted the landowners to tell me whether they wanted to – to inform them that it is important that we should incorporate a landowner company. I then discussed the matter with 30  them, if I can recall, the meeting was held on 26 June 2007, and this meeting was attended by quite a number of people around 100 – a bit over 100, 109.At the meeting, I informed the landowners that it is the Gulf Provincial Government’s proposal and the National Government’s proposal to revive the Kerema Agro-forest project and the importance of having to incorporate a landowner company. Then I told them that I had already incorporated a company called Meporo Forest Products Limited.

Meporo Forest Products was incorporated on 26 October 2006, and that company had three directors; myself as a Director, and also the Secretary; 40  Posa Koaru, who is my brother as a Director; and my daughter Avia Roddy, as also a Director. In that Meporo Forest Products, I held 50 shares. I advised the people, firstly, whether they wanted to incorporate

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another company or whether to convert the Meporo Forest Products as a landowner company, and quite a fair bit of number of people talked. They indicated that instead of calling the company Meporo Forest Products, the name of the company should be changed and the company should be called Koaru Resource Owners Company Limited and Koaru Resource Owners Company should be the landowner company provided that the shares that are held, 50 shares that are held should be put in trust.

[9.57 am] The shares of 50 that I held should be put in trust. Because the project did

not start, it was at its infant stages, we did not have money; the village 10  

people did not have money to have new directors appointed, the village indicated that the current directors should remain until the project starts off. This was in 2007.

THE COMMISSIONER: During your conduct of awareness among the landowners, did you say earlier you recommended for them to commence the process of incorporating the individual incorporate land groups?

A: ILGs, yes.

Q: And was that completed prior to your recommending the adoption of your company; your family company to be the resource owner company; landowner company. 20  

A: The documents which, sorry, Mr Commissioner. When this Inquiry started I was bit apprehensive as to what sort of documents the Commission wanted. So certain documents which we should have submitted were not submitted, including landowner documents.

Q: But you do not require any documents to explain the question.

A: Yes.

Q: Explain to me the question I posed. Did you, look, from what you have described in terms of background, the Gulf Provincial Government is really the initiator of development taking place through the landowners and resource owners in relation to Kerema Meakoro Agro-forestry area, former 30  

TRP and now reverted back to forest FMA, forest management area. And obviously, it would have been a very conservative effort to ensure everything administratively is put in place.

A: That is correct.

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Q: And therefore, by virtue of your own landowner appointment by letter of 10 September 2006, those would have been the most rudimentary matters you would have had attended to Mr Koaru.

[10.02 am] Now, I am surprised that you proceeded in proposing a landowner company without the benefit of incorporate land groups being in place.

A: We did actually ---

Q: Well, I want to see evidence of Incorporate Land Groups.

A: Yes. Okay, the land groups were incorporated Mr Commissioner. First land group that was incorporated was, when – actually, when I mentioned to the people to incorporate land groups they were hesitant because of the 10  

fact that there was what is called or there is what is called an oil and gas filling in the place. People think that Gulf Province, in fact, Meaporo sits on oil and gas. And all ---

Q: It probably is.

A: It probably is but we are not actually sure yet. Well, Mr Commissioner, I wanted to incorporate land groups under the Trans ---

Q: Mr Koaru, it is not if you wanted.

A: It is a must, yes.

Q: The importance is if the people want to organize themselves in that format, it may well be that they do not want to and no one should force them to. 20  

A: That is correct.

Q: There is no reason why they cannot proceed with development of their resources the way they want to.

A: That is right.

Q: Whatever the organization may be that they should choose to.

A: Very well, yes.

Q: My question just revolves on a very simple process, viewing it from the position that you have explained to me in terms of background that it is the Gulf Provincial Government’s supported initiative. Now, you may well be

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a landowner among the landowners, but you are among many of the landowners.

A: That is correct.

Q: And we all know, we are Papua New Guineans, we are not foreigners and we all know that our portions of land lock into each other. And prior to general incorporation of all these land into a particular development, consents must be received from every single locked land areas.

A: That is correct.

Q: So I need all these explained to me so that I will know if Koaru Resources Limited is entitled to be grantee. 10  

A: That is right, yes. All right, Mr Commissioner, I advised the people because of the oil and gas problem, the four clans at Koaru, that is Likeipi, Lavipi, Lakoro and Meraripi Hea, all had incorporated ILGs under the banner of Inter Oil, maybe sponsored company by the name of Oakoaru or Wovilare or Oakoaru Owners Company. And they were since its incorporation, they have been waiting for the oil and gas. So when I found out that all these clans have already been ILGs, I then advised the landowners of Meporo to incorporate Koaru ILG and it was incorporated.

Q: One single ---

A: One single --- 20  

Q: ILG.

A: ILG, covering the four clans; Likeipi, Draitoia, Lavipi and Lakoro because all had already been incorporated. It will be you know, pointless to try to incorporate additional ILGs because they said no, we are for oil and gas. So that was it. And all the landowner documents - I have bounded all the landowner documents which I intend to produce.

Q: Well, this is now, you better proceed it now because I have not got more time to have it produced.

A: If I may – if it pleases.

Q: Please, have them produced. 30  

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A: This is a compilation of customary landowner project documents. If the counsel, may be ---

Q: Yes.

[10.07 am]MR BOI: Commissioner, I have no objections to the tender of this compilation of the customary landowners’ project documents into evidence.

THE COMMISSIONER: Yes. What is the title of the document?

MR BOI: The title is ---

A: Compilation of customary landowners project documents.

THE COMMISSIONER: All right, and can you just run through the contents and give me the subheadings of each of the subject matter pertaining to on the 10  

document. Very quickly, just the contents.

A: Okay, it is, the Memorandum which I have already stated, Memorandum of Understanding and Sales and Purchase Agreement which have been signed by ---

Q: That is the Sales and Purchase of what?

A: Sales and Purchase Agreement for participation in forestry activity then – which is signed by the landowners. Verification of ownership under the Forestry Act. And consent of landowners. These documents are all signed. Incorporation of ILG, in particular, this ILG is called Tati Land Group Incorporation. This particular ILG was incorporated on 9 August 2007. 20  

Sorry, and then Koaru Land Group Incorporation.

MR BOI: Mr Koaru, the Tati Land Group Incorporation, does not that –the date there says 25 June 2003.

A: Yes.

Q: So this was incorporated earlier than ---

A: That is right.

Q: Your ---

A: This is one of the ILGs that got out of this so called oil and gas thing and it came and joined. They wanted to be involved in Agro-forest project.

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THE COMMISSIONER: Agriculture thing.

A: Yes. So Tati ILG then moved out from the oil and gas project and joined with ---

Q: All right, just go through the contents I want to deal with this report.

A: And then we have Koaru Land Group Incorporation and I think the date is in 2007, which I have mentioned. And then there are others which are there. And then we have logging and marketing agreements which are also enclosed.

Q: Those are the contents of that ---

A: Yes. 10  

Q: Document.

A: But there are agreements there too. Agreements with land user right agreements between the Developer and the Koaru Resource Owners and there is one from Haimeyabo Resource Owners Pty Limited with Pacific International. Haimeyabo is for the other project area and other agreements which I do not want to refer back. It is all put together. I seek to tender.

Q: Mr Associate, can I just go through that document quickly. Hand it up to me. Thank you.

[10.13 am] All right, I will receive this document titled Compilation of Customary 20  

Landowners Project Documents from Mr Koaru as exhibit D, is it correct?

MR BOI: Yes.

THE COMMISSIONER: As exhibit D - Koaru Resource Owners’ Limited, portion 323C, Gulf Province.

[EXHIBIT D – COMPILATION OF CUSTOMARY LANDOWNERS PROJECT DOCUMENTS FROM MR KOARU - KOARU RESOURCE OWNERS’ LIMITED PORTION 323C, GULF PROVINCE]

A: Then I mentioned here Mr Commissioner, that the incorporation of ILGs - because this project is to benefit many people within the corridor of the Kerema - Malalaua Highway. I have encouraged landowners to come in 30  

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with their ILGs so that we can register them as part and parcel of the project.

Q: Yes, Counsel, go ahead.

MR BOI: Mr Koaru, the meeting you were referring to which you said was held in Koaru village on 26 June 2007, that is the meeting in which the landowners resolved not to incorporate any company and that they were going to use your company as a vehicle, you have records of that; you have any record of that meeting, any minutes or anything like that you can produce to the Commission?

A: All right, Minutes were taken by a gentleman who will be giving evidence 10  

later, by Mr James Aupika, A-u-p-i-k-a, Mr James Aupika. He is a former Defence Force officer. All right, the Minutes were taken on the happening of that date. The specific matters that were raised were for the change of name of the company to Koaru Resource Owners and give the fact as Koaru Resource Owners’ Company as a landowner company and also the shares to be held in trust. There were 50 shares that were carried over from the previous company to the – when thecompany was changed to Koaru Resources, 50 shares.

Q: The Meporo Forest Products Limited, that is the preceding company.

A: That is correct. 20  

Q: Which the landowners agreed that they were going to - for the name change and for the shares to be held in trust. Do you have any documentation or records relating to the change of name of the company?

A: That is correct.

Q: Which you may have filed with IPA?

A: I have the IPA extracts.

Q: Can you produce it to the Inquiry?

THE COMMISSIONER: Was the search conducted by the Secretariat?

MR BOI: Yes.

THE COMMISSIONER: Have you got a copy of our own extracts in? 30  

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MR BOI: We have but Commissioner, at the moment I am unable to ---

THE COMMISSIONER: Locate it. All right, Mr Koaru will assist us.

MR BOI: Locate it. So you might get other assistance.

[10.17 am] A: Yes, that is the extracts from IPA, extracts. THE COMMISSIONER: Mr Koura, the extracts shows under the subheadings ‘Shareholders’ Roddy HilaKouru, 50 ordinary shares issued on 26 October 2006 and residential address being Section 2 Allotment 6A, Kivovia Street, Kerema, Gulf Province, Postal Address: PO Box 87, Kerema, Gulf Province. Is that correct? 10   A: That is correct. THE COMMISSIONER: Does not showas being held in Trust, but would you have a trust deed of sorts in place? A: Yes. The idea was in fact mentioned when we had a meeting, and then--- THE COMMISSIONER: Just simply, do you have a trust deed in place? 20  A: Yes. THE COMMISSIONER: If this is your declaration, is there any trust deed? A: I sought legal advice from Mr Wilson who is the managing partner and he

said that is the normal trust declaration that has been made, yes. I know you may have ---

THE COMMISSIONER: Well, I am a lawyer myself and I would not accept this kind of a document as a ‘Trust Deed’, nevertheless for what it is worth, if 30  you want to have that kind of --- A: I seek to tender it, Mr Commissioner. THE COMMISSIONER: Alright. Counsel, can you arrange for the tendering of the extracts of the company – company search as well as this document that is declaration of trust by MrKoaru? Mr Associate, give them to me, give both documents to me. 40  

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MR BOI: Sorry Commissioner, I formerly tender the company extracts for KoaruResource Owners Limited and the Declaration of Trust which states that,“I, Roddy HilaKoaru, a lawyer, hereby declare, that I own 50 total shares in the company of Koura Resource Owners Company Limited and Trust for the landowners of the land containing State lease volume 21/160, being for thatpiece of land known as TearuMeporo, Portion 323C, MilinchKukipi (NW) & (SW) Cupola (NE), Fourmil in the Gulf Province covering an area of 59,460 hectares as shown on the survey plan catalogue no. 42/380 on the basis I may transfer the trust to a company which is dully owned by such persons or a section thereof dated 26 November 2011. 10   A: Mr Commissioner, I ask, what is the fact of such trust deed in respect of -

in retrospective nature of it. Mr Wilson was of the view that --- THE COMMISSIONER: You are attempting to show that indeed the 50 shares will continue to hold after the change of name of the company from Meporo to Koaru have been infact transferred into trust and it will be up to me to decide whether indeed that has taken place or not. A: Yes, thank you Your Honour, or sorry Mr Commissioner. 20   THE COMMISSIONER: Ye, so, I will accept this two documents; first of all the extracts of the Company’s Search. What date is it? Q: Yes, Koaru Resource Owners Limited dated 25 November 2011.  

[10.24 am]THE COMMISSIONER: Alright, I will accept that as E(1) Koaru Resource Owners Limited, Portion 323C, Gulf province and I also accept as Exhibit, the Declaration of Trust by MrKoaru in relation to 50 shares held in trust as he alleges in Koaru Resource Owners Limited as Exhibit E(2) - Koaru Resource 30  

Owners Limited Portion 323C, Gulf Province.

[EXHIBIT E(1) – EXTRACTS OF THE COMPANY SEARCH – KOARU RESOURCE OWNERS LIMITED, PORTION 323C, GULF PROVINCE.]

[EXHIBIT 3(2) – DECLARATION OF TRUST BY MR KOARU IN RELATION TO 50 SHARES HELD IN TRUST - KOARU RESOURCE OWNERS LIMITED, PORTION 323C, GULF PROVINCE.]

Proceed.

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A: Yes Commissioner, the main reason for such transfer was that we could

not call for the landowners to buy shares into the company because the project had not started. We were still, what is called, a regularatory process. We are to fulfill the requirements under the Forestry Act, requirements under the Agriculture Department’s ---

Q: It was a Gulf Provincial Government endorsed project. A: That is correct. 10   Q: Did it not allocate budgeted funds for assistance to effect this process? A: No. Because after the 2007 Election, the person or the persons who

initiated the project had lost their seats. The new Government came in; they were different mob. They did not – so that is where the problem was. So I was left in a moreor less like in a desert ---

Q: Ina limbo. 20  A: In limbo, that is correct. Q: Look, much of what I am changing with you may appear negative, but

these are matters that, if need to be ratified, ought to be rectified and with the full participation of all landowners; all landowners, before we reached the findings and recommendations by myself.

A: Yes. I can say with clarity and with force here that landowners

participated fully in this project, especially from Koaru and they are all here. Those who --- 30  

Q: Yes, but we need to be --- A: That is right; they will be giving evidence. Q: We need to be convinced of that. A: They will be giving evidence today and those who are objecting are not

actually from the area. And we will tell the Commission that this person, that person, him and or her are not from there. 40  

Q: Proceed. MrKoaru, the company extracts or the IPA extracts still reflect

the three directors which you say have been – are now today directors

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under Meporo Forest Products and now they continue to be directors of Koaru Resource Owners Limited. If the resolution by the landowners was that they wanted to use your company as a vehicle ---

A: Landowner company. MR BOI: Landowner company, why has it taken four years to at least reflect that on the Company records? A: All right, the meeting of the 26 June 2007 where the land name of Meporo 10  

was changed toKoaru Resource Owners, the landowners agreed that the three will remain as directors until the project starts.

Q: All right. Let us move on. The SABL – what measures have been taken up

to date to develop the SABL by your company? A: Like I mentioned before --- THE COMMISSIONER: Counsel, we will for the time being, subject to further verification on evidence, refrain from using the word ‘Your Company’ and be 20  specific about the two different companies when you are direct these questions. If he claims Koaru Resources to be the landowner company so make reference to it as landowners company for the time being until it can be shown otherwise. Q: Thank Commissioner. MrKoaru, I withdrew that. MrKoaru can you

advise the Commission as to what important steps that you have taken over the progress so far as to the development of this SABL?

A: Thank you. Okay, initially I would say that the project has not started but

for Koaru Resource Owners, we had another meeting on 9July 2007. 30  About 93 people attended the meeting. The meeting was held atKoaruVillage and the Secretary was again the same person Mr James Autika.  

[10.30 am] And the persons who attended the meeting were Mr Benjamin Cheon, C-h-

e-o-n. He is the son of the Developer DrCheon. Also present were three chiefs. Names of the Chiefs were MrIruka Kure, Iruka is spelt I-r-u-k-a, a for alpha. Kure is spelt, K-u-r-e. Number two person is LaiseSaujatu, L-a-i-s-e, Saujatu is S-a-u-j-a-t-u and MrTovaSiviri. T-o-v-a and Siviri is spelt S-i-v-i-r-i. 40  

In that meeting on 9 July 2007, the Chiefs of the village pledged Meporo land for oil palm development. Mr Benjamin Cheon who lives in Santiago in United

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States turns specifically to Kerema to hear people saying what they want to with the land. We have three Chiefs who are pledging that they want their land Meporo to be used for oil palm development and agriculture development. There were feasting and also dancing and MrCheon was very happy and also Mr – the people also voiced in that meeting that they do not want the land to be given to a Developer or a company that is 100 percent owned by foreigners. They wanted the land to remain with the landowner company. They specifically mentioned that the head list, if there has to be a list, the head list should be given to Koaru Resource Owners Company. 10   THE COMMISSIONER: Without the benefit of the Lands file, we cannot for our purposes establish that with certainty but I take it the listing occurred because it is indeed granted and issued in favour--- A: That is right, that is right. We have landowners to testify to that. Q: If I may comment at this stage, the vital point about Koaru Resources in

portion 323C is that nothing is taking place at the commencement of this Inquiry and even throughout this Inquiry and that there are room for 20  improvement, ratification if there are errors. So let us approach this Inquiry for those who are for and those who are against with an open mind. Because your resources are not yet affected as compared with some that we have inquired into in other parts of Papua New Guinea.

A: Thank you, Mr Commissioner. In fact is it my view that when I was

appointed the Project Coordinator, I infact invited those from the area to participate and the late District Administrator, Pavea Helaivila took a person from Lelefiru, his name is Gibest Kerekere. Right in front of me he said, Gibest, you work with Roddy; work with Roddy, right in front me. 30  

Q: I need to add that if there are, and that goes for objectors who may be

present in this Inquiry this morning that you feel so strongly to disassociate your land from any such proposed development, you still have the opportunity to come out very clearly and demarcate and remove your portions of land away from any such proposed developments. You still have that opportunity.

 

A: That is correct. 40  

[10.38 am]THE COMMISSIONER: Please proceed Counsel.

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MR BOI: MrKoaru, from some of the documentation available to the Commission, we have been able to establish that this SABL has been subleased. Are you able to confirm that? A: Yes, thank you counsel. That is the whole purpose of that meeting on

9July 2007 where the landowners --- THE COMMISSIONER: Yes, if you could just get away from the singing and the feasting and let us get down to the nitty gritties. 10  A: Yes, subleasedto Pacific InternationalResources for 90 years. The 90 year

period was given to Pacific International because of the amount of investment which the company intended to invest. DrCheon ---

Q: What is the term of the lease back from the State? 99 years? A: 99. Q: And how many years have you subleased out the land for? 20  A: 90 years, 90 years sublease. Q: To? A: To Pacific International Resources. Q: All right. You have the sublease there? MR BOI: Yes, I have a copy of it which is bound with the documents from the Department of Environment and Conservation. 30   THE COMMISSIONER: You are going through the documents so that you can have it tendered? MR BOI: From the DEC, yes, I have got it in bound so it is actually in almost some of those documents submitted, tendered to DEC. THE COMMISSIONER: Any particular aspect of that sublease you want to have MrKoaru explain? 40  MR BOI: Yes. MrKoaru, you confirm with – your answer to the Commissioner that or to the Inquiry that the sublease for the period of 90 years?

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A: That is correct. Q: Commencing on 7 August 2007? A: Yes, I think so, yes. Q: And the rental there is K60,000 per annum? THE COMMISSIONER: Before you get to that, Counsel - you subleased the whole of portion 323C? Was the sublease for whole of the portion 323C? 10   A: That is right. That is Meporo, yes. THE COMMISSIONER: To Pacific International? MR BOI: Resources Limited, (PNG) Limited? THE COMMISSIONER: Pacific International? A: Pacific International Resources (PNG) Limited. 20   THE COMMISSIONER: Yes? MR BOI: MrKoaru, can you confirm for the record that the rent as K60,000 per annum, annually? A: That is correct. Q: And the land is to be used – the whole of the land known as TearuMeporo,

from present the State lease listed about comprising 49,460 hectares which 30  should be planted with agriculture plantations of oil palm and other suitable agricultural goods.

A: Yes, that is correct. This is agricultural project, Counsel, Mr

Commissioner. Q: One of the other term of the sublease is as to royalty. Can you confirm that

the land lord is entitled to – land lord meaning Koaru Resource Owners Limited, will be entitled to 10 percent net profit for the first 20 years and there after increase up to 15 percent from the oil palms and any other 40  agriculture developments?

A: That is correct. That is the condition of the lease.

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THE COMMISSIONER: Twenty percent did you say? Twenty percent profits. MR BOI: 10 percent net profit for the first 20 years. THE COMMISSIONER: If they declare any profit for the next 20 years? MR BOI: First 20 years. THE COMMISSIONER: First 20 years? 10   MR BOI: Yes. Ten percent for the first 20 years and to increase to 15 percent thereafter from the oil palm development. THE COMMISSIONER: Fifteen percent for the remainder? MR BOI:Remainder of the lease. A: Mr Commissioner, that is the conditions in the lease but we have also the

project agreements which have not been signed yet. The project agreement 20  will specify the benefits that will accrue ---

THE COMMISSIONER: Well I am not here to hear what is being planned. A: That is right, because the project has not been started. Q: As a lawyer you know that what is in the document is the document, you

are bound by it. Youcannot bring in extrinsic material into our contract. Because what we are looking at is a contract named the sublease.

30  A: That is right. THE COMMISSIONER: And it is not there, it is not there. A: That is right. THE COMMISSIONER: And if the developer does not declare profit for the 99years it is operating on your land, you go without---

[10.43 am]MR BOI: MrKoaru, can you also confirm that Item 10 of the Schedule 10.3 40  allows the sub-lessee to carry out logging operations in the Tearu Meporo area? The sublease allows the sub lessee to carry out logging in the area?

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A: Sorry, can you read it to me? Loggings operations in terms of FCA, clear felling of logs so that the land will be used for oil palm plantation. Mr Commissioner we did a number of aerial surveys of the area and the area, the logs are considered to be degraded, meaning ---

THE COMMISSIONER: Because of the earlier operations of the timber rights project? A: It is possible, yes, yes. The logs are degraded to that extent and that is why

we want to use the land for agriculture purposes. 10   Q: Do you pay rental to the State as a condition of this sublease orsorry

the SABL? A: Not currently at the moment because the project has not started. Q: But most leasebacks are not subject to rental being payable to the State.

But we do not have the benefit of the lease back title. A: No. 20   Q: But as I understand from looking at the others, there is no rentals payable

to the State. We will accept that in general as all SABLs are for the purposes of enabling the customary landowners to enter the market economy and the State is merely facilitating it through Sections 11 and 1 or 2 of the Land Act to – so as not to make public revenue from the lease backs.

MR KANU: Commissioner, if I may be of assistance. 30  THE COMMISSIONER: Yes, please MrKanu. I can see you almost went to sleep there; say something. MR KANU: Commissioner, that is reflected in Land Act Section 102(5). The rent is not to be payable for SABL. THE COMMISSIONER: Thank you MrKanu. It is by law as pointed by MrKanu, rents are not payable to the State for any Special Agriculture and Business Leases. Proceed. 40  A: Yes, Mr Commissioner, the 3rd meeting in respect of this project,

specifically in terms of Koaru Resource Owners was conducted recently on

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28 September 2011. In that meeting Mr Tan, the Developer’s representative was present.

THE COMMISSIONER: What is his full name? A: Michael Tan. THE COMMISSIONER: Michael Tan. There is quite a number of Tans doing the rounds in the country that is why I wanted the full name. 10  A: Yes. Thank you, thank you Commissioner. And there were a lot of

people, about 127 people in the village attended and people from the nearby villages also attended from Kamea, Kameaare people from the inland villages, Elava, Pukari and Karema, they also attended the meeting. The main purpose of the meeting was to resolve in appointing new directors, pursuant – in the event that we obtain a Forest Clearance Authority within the next couple of months, because Commissioner, what has happened was that we paid the K50,000 for the forest clearance application sometime in 2009; we made a submission then to the Forestry Authority. However, we were told that we have to apply for 20  Environmental Permit, so that is the regulatory process that we went through ---

THE COMMISSIONER: Before you could be granted the FCAs? A: That is right. We eventually were given the Environmental Permit

sometime in October and then that necessitated--- THE COMMISSIONER: October 2011? 30  A: That is correct. THE COMMISSIONER: And then the moratorium came in July? A: My argument is – sorry, I cannot put an argument up here, anyway, yes. THE COMMISSIONER: Yes, that is all right. You go ahead and say what--- A: What I was trying to say, because we submitted the – paid for the

application and the money has already been – has changed hand, we should 40  not be considered in the moratorium because we had paid for it earlier.

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THE COMMISSIONER: I am afraid, the Prime Minister is not – it is beyond the Commission of Inquiry hands. The Prime Minister is not budging from his – well, his predecessor’s position. He is taking the same position. So do not waste your time arguing about that here. Let us go back to the sublease. A: Yes.

[10.50 am]MR BOI: MrKoaru, up to now this sublease was signed on 6 August 2007. Have you been paid any or as Koaru Resources Owners Limited, the grantee did not pay any rentals for the sublease? 10  

THE COMMISSIONER: Since the signing of the sublease?

MR BOI: Since the signing of the ---

A: No. The project had not started.

THE COMMISSIONER: When is the sublease to come into effect? Counsel, MrBoi, you may be able to assist. It should be stated in the ---

MR BOI: Yes, yes, it is ---

THE COMMISSIONER: Sublease agreement.

MR BOI: The sublease was for a 90 year period commencing on 7 August 2007. That is ---

THE COMMISSIONER: And is the rental payable subject to the 20  

commencement of any proposed project, any of the proposed projects?

MR BOI: Commissioner, the rental is – I cannot actually read. The photocopy is poor. It says something about payment of rental in item 8, maybe, if MrKoaru has got a better ---

A: No, I do nothave the – my copy is also poor.

THE COMMISSIONER: The rentals are, nonetheless, the rentals are additional to the first 10 years 10 percent net profits and later 15 percent per annum net profits.

A: Yes.

Q: The danger of entering into sharing of net profits is that profits may not be 30  

declared at all, MrKoaru, as has been experienced up in the East Sepik

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with the South Seas Tuna operating a cannery up there or rather tuna loining factory with the promise to the East Sepik Provincial Government sharing of the profits. And they have no declared any profits and the life of the project has almost expired; the 12 year term. That is the danger when you enter into such agreements.

A: Yes, Mr Commissioner, this copy of the agriculture sublease was given to us by the Lands Department. So I was of the view that this is the normal sublease documents ---

Q: But you are a lawyer and when you are entering into a sublease to give your peoples’ land away for 90 years, you have to consider very carefully 10  

what the benefits are going to be for their loss for 90 years.

A: That is correct, yes.

Q: And I have stated in Kokopo in relation to East New Britain, that loss of land temporary as it may be, 90 years is a long time and most of us do not live that long. And you will be giving away your land to so called developers for that period of time and that is a loss; 90 years of loss. Production sharing may be. You are with Warner Shand so you should speak to MrDonigi, a little bit more in detail and he will give you some idea.

A: Yes, Mr Commissioner. 20  

Q: Go on counsel. Where are we?

MR BOI: I was still on the sublease, Commissioner. MrKoaru, clause 16 of the sublease says something about default. And it says there in the rent or the royalty shall be unpaid for a period of 120 days, landlord shall serve a notice demanding over the rental payment with interest to be paid within 60 days. And the landlord shall have the right to terminate the lease agreement. You have told the Inquiry that t his company has not been paying you rentals or the grantee, the SABL holder any rentals and that seems to be in breach of this clause of the sublease.

A: In respect of that, Mr Commissioner, the purpose of granting the sublease 30  

was for agriculture purpose and the project has not actually started. So we cannot take that property, it is actually unfair.

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THE COMMISSIONER: You are talking about fairness.

A: In fairness, we cannot exercise that.

Q: In fairness, you would not – you should not demand from the so-called Developer payment of such rentals.

A: That is right.

Q: Equally, you are in a position to rectify your very, very shaky position. You could terminate the sublease because both parties cannot perform and review the terms of benefits and forget about net profits. I can tell you that.

A: Yes, thank you Commissioner. I am very mindful of what you have 10  

mentioned.

[10.57 am] Mr BOI: Mr Koaru, because you are the coordinator of the project, are you aware of whether there was a genealogy study of the landowners in the area of the SABL, was a genealogy study undertaken or done?

A: When we incorporated those ILGs each person know their genealogies but I did not ask for it. And I think now there is a condition to it, that we have to include genealogies when we incorporate ILGs now but that time no. Because everybody who lives in Koaru own Meporo.

Q: The SABL is quite large, it is about 60,000 hectares. Can you just give an indication to the Inquiry as to how many tribes or landowning groups 20  

would own land within the boundaries of the SABL other than of course, your own?

THE COMMISSIONER: Within portion 323C.

MR BOI: Portion 323C.

A: Maybe two tribes, two tribes. One is the Kaipi people ---

Q: Kaipi?

A: Kaipi, K-a-i-p-i who comes from Koaru village, Elava, Pukari, those are the villages. But specifically for Meporo, it is owned by Koaru people who are originally normally referred to as Kaipi people. Number two. People who moved from the mountains and they are called Kamea people. 30  

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And they settled along the Mepororiver and villages called Anita, Ipia, Sweto, Ipakoda and Titikaini. Apart from that, no other tribe owns Meporo. If there is a tribe that is called Miriha, no.

Q: Who are the Tati clan people? Where are they from?

A: They are from Kaipi.

Q: Part of the big tribe?

A: That is right. And their portion of land is included.

Q: In the SABL?

A: In the SABL called Kepemai.

Q: You also know of the LevemoraKeauja Incorporated Land Group, could 10  

that be one of your ---

A: Sorry, can you spell it?

Q: LevomoraKeauja.

A: How do you spell it?

Q: Well, it is spelt L-e-v-o-m-o-r-a K-e-a-u-j-a Incorporated Land Group. Is that one of the ILGs in the ---

A: No, no. It is completely outside of the ---

Q: Strangers.

A: Strangers, yes.

Q: How were the landowner consent for this project obtained? 20  

A: Landowner consents, as far as I know, Koaru people agreed to the project and because of the problem that exist between this area, a lot of people have died and there is no development whatsoever for this district. Landowner consents are basically people, as I mentioned earlier, are basically people who are associated with PPL2388.

[11.03 am] These are Inter Oil project license, prospective license.

THE COMMISSIONER: Just one, 2388.

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A: 238, 236, 237. They are also involved in this project but because of this oil thing they are really afoot, they, I really cannot explain why they ---

Q: No, do not. Do not labour about their reluctance. What is important about the counsel’s question is, again, how were the - irrespective of what kind of resources to be developed, landowner consents in participation, especially will need to be obtained. The question is in relation to portion 232C, how were these consents obtained from individual landowners. Were they obtained through family heads, were they obtained individually, were they obtained through ILGs, you know, these kinds of various ---

A: Through ILGs. 10  

Q: Actual physical processes during investigations.

A: Through ILGs.

MR BOI: Are you, Mr Koaru, I am asking this because you were the coordinator for the project on behalf of the Gulf Provincial Government. Are you aware of the existence of any documentation in which all those landowners signed their consents?

A: No.

Q: There is no document.

A: No. They never forwarded any landowner document to me. I actually received a letter which was not personally delivered to me but it was 20  

delivered to some other person and it was given to me from, I mention them as Mirihe Group. Now, I considered them as not landowners. I have written to them, I said, if you have any landowner or land dispute with us, take the matter to the nearest Land Court. The process and the systems are there. You cannot bring it to me and I stop the project. This is government approved project. It has to move on. And we have been in this process for the last six years since 2006. We have to follow the process. And we have applied for FCA, I do not know how long it will take because the moratorium is on.

THE COMMISSIONER: There is a document called a Statutory Declaration as 30  

to custom in relation to land tenure; native land tenure. Our experience with this Inquiry has been that the Department of Lands and Physical Planning

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through the provincial division of land had circulated that document as the form through which consents of landowners are obtained. So perhaps, Mr Boi is alluding to that document. If you are aware at that time you were coordinating by virtue of your letter of appointment.

A: Yes.

Q: That such a document had been forwarded to the landowners for names to be entered and individual signatures to be attached to them.

A: Commissioner, apart from other line departments, especially Agriculture Department, NFA, National Forestry and Department of Environment and Conservation, they have guidelines, set guidelines. But Department of 10  

Lands and Physical Planning, when I started doing, they did not have any guideline at all, even what you are saying about Stat Declaration or, I was not given one. I am not aware of any guideline that should be followed.

[11.08 am]Q: In the absence this process particularly, involves the Department of Lands and Physical Planning. And in the absence of a Statutory Declaration as to custom relating to native land tenure, they will not accept for direct grant to Koaru Resources, a recommendation from the provincial administrator, signed by the provincial administrator.

A: Yes, this is one of the documents that was attached to land investigation report. There was, there was one that was attached to the land 20  

investigation report. There was one called land alienation or alienability?

Q: Certificate of Alienability.

A: That is right and also there were others which were attached together with the LIR, land investigation report. I have no benefit of that document with me right now. Unless you ---

Q: Well, we all, as indicated at the opening of this Inquiry into Koaru Resources, portion 323C, we all have not the benefit of the files from the Department of Lands Physical Planning as well as the Registrar of Title. So we are absolutely helpless at the moment. That is why we are asking you, if you are aware of these things? 30  

A: I had sighted ---

Q: As Coordinator.

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A: Yes, I had sighted that document together with a land investigation report. It did not come by itself, it was attached to the land investigation report.

MR BOI: Mr Koaru, also as a Coordinator of the project on behalf of the Gulf Provincial Government, are you aware whether a lease agreement was signed between the landowners and the State leasing this particular land to the State to be made available for lease back? Are you aware whether there was a, they call it the head lease, was that lease signed between the landowners and the State?

A: Yes. All right, in respect, when the lease was created, we signed a blue paper document which is purported to be an Instrument of Lease. An Instrument of Lease that was signed, the Instrument of Lease was signed in 10  

the Department of Lands conference room. I was present and I signed. The former Secretary, Pepes ---

THE COMMISSIONER: Pepi Kimas.

A: Pepi Kimas who is the delegate of the Minister also signed. And that was signed before the Lease-leaseback was actually, head lease was signed.

MR BOI: You signed as a landowner?

A: As a landowner.

Q: As a facilitator or?

A: I signed as a landowner.

Q: Were there other landowners who signed as well or just you? 20  

A: Yes. The other landowners who signed and I do not have the benefit of the Instrument of the Lease as well here. I was only given the landowners copy, the sublease and the head lease.

Q: As far as you can recall, how many landowners were present at that time in the Lands Department conference room and signed the head lease?

A: It is possible it could be less than 10; could be seven or six, including myself.

Q: What would be the – to your knowledge, what would be roughly the total population in the SABL area?

[11.13 am] A: About 2500 to 3000, 2500 to 3000. 30  

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Q: 2500 to 3000?

A: Yes.

Q: People in the whole SABL area?

A: Yes.

Q: So out of the potential signatory or people, 3000 people who could sign - would be entitled to sign the head lease, 10 people signed or less than 10 signed?

A: That is correct. The main problem was that this is Port Moresby and it is pretty hard for everybody unless the Lands Department would have asked us to go down to the village and have it signed. I was told to come into the 10  

Conference Room with the others and have it signed. The people who actually, landowners who came to sign were people who brought their betelnuts, sold their betelnut before they could go back to the village, I had to get them to sign.

Q: Commissioner, I am done with the witness. Thank you Mr Koaru.

THE COMMISSIONER: Mr Koaru, your evidence is concluded. But before you are asked to or before you are excused, I just want to point out a number of things and in the meantime while the Inquiry on this particular SABL continues, and even afterward at the closing of all evidence, you could endeavour to assist. We will be calling Lands Department people back in to explain the absence of 20  

the Department of Lands and Physical Planning file as well as the title files. And I can see Mr Henry Wasa sitting down at the back and he will take note. He is the Registrar of Titles.

A: Yes.

Q: That this particular SABL involving portion 323C, Kukipi ---

A: Yes.

Q: Is, it involves quite a large area. And the only aspect of it which stands out against all the possible irregularities is that there is no development taking place and in light of the possible irregularities, those of you or all of you who may have an interest in this SABL should consider rectifying these 30  

irregularities. Among these possible irregularities I should point out before

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you step down is first of all the format of the consent that the Department of Lands and Physical Planning had used is inadequate. What they have been doing is they have been sending these forms out to incorporated land groups executives as well as landowner executives without the benefit of the official from the division of Lands, particularly, the investigation officer on the ground to be present to physically have each clan member walk up to the table, put his name down and sign against it. There should be no reason this process does not take place. And the distribution of Statutory Declaration as to custom in relation to native land tenure is not appropriate, especially when it is given in the form with the big letter ‘WE 10  

the undersigned’ and a whole list of names which cannot be authentically verified in terms of the field officer on hand to physically note the individual who marches up to the table, puts his name down or her name down and sign against it. And that is a very, very inappropriate process in the absence of that process.

[11.19 a.m] That is the first, very clear defect that is occurring consistently in relation to all the SABLs that we have been inquiring into. The second is the failure to ensure that if there are incorporated land groups, that they participate with full understanding and knowledge of what they are entering into in terms of agreements with developers. As a result, 20  

subleases have been entered into by the so called executives of the so called landowner companies giving away to the developers for a very long period of time and as we have seen in your case, 90 years during which they have no right after surrendering their right to the State on the lease –leaseback. Also under the provisions of the incorporated land group, they surround any right of customary claim to that land for the duration of the term of the lease. In your case which is 99 years. You have, by execution of the sublease to the Developer, Pacific International Resources Limited, given away by subleasing 90 years of this complete surrender of your people’s land with no right – customary right that is - of exercise of 30  

customary rights rather over that land for that period. And you have incorporated in terms of benefits to the landowners only two benefits; one is the rental, which you have stated as K60,000 per annum with no review after a period of time; and secondly, you have agreed to sharing of net profits, not even gross profits, net profits for the first 10 years at 10 percent and for the remainder of the sublease term of 90 years for 15 percent. In doing so, you have had your people bound by this condition, that is

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conditional upon the Developer declaring profits at all, number one. As you can see in many projects around the country, two glaring examples are Lihir Gold, which is now Newcrest - Lihir Gold Mining. Lihir Gold had not declared a profit for 15 years, going on to 16. We hope that next year they will declare for this year. Such is Tuna in Wewak is another glaring example. They have a 12 year life-span on the project, they have done 11 years, one more year to go and there is no declaration of profits, and that is a very bad deal.So that is what you have all done without the full participation and knowledge of the landowners even without all the evidence in I can tell you that now. So you need to address all those 10  

things. A: That is correct, yes. Q: As I have indicated earlier, take steps to rectify now. A: Yes. Q: And you have an opening and that opening is that that sublease is probably

non performable. And under the laws of contract, as a lawyer you know. 20  

You are entitled to --- A: Rescind, yes. Q: Rescind this contract now. A: Yes. Thank you. Q: And you go from there. But those are the defects. We will now hear

evidence from others. In the meantime you are excused but if we need 30  

you, Mr Koaru further on a number of matters that are not fully clarified, if you do not mind being nearby so that we can be able to access you as a matter of quick convenience.

A: Yes, thank you.

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THE COMMISSIONER: Thank you very much Mr Koaru, you may step down now. Counsel?

[11.25 a.m.]MR BOI: Thank you Commissioner. The next witness we propose to call is a representative of the developer company, the sublessee, Mr Michael Tan. Mr Commissioner, I might need to confer with this witness at some stage over lunch or something and then maybe recall him because he has just told me that he has just joined in July this year and he is not--- THE COMMISSIONER: Very well versed with --- 10  

MR BOI: Very well versed. THE COMMISSIONER: What is the evidence he is going to present at the Inquiry? This SABL has not got an operating project. MR BOI: That is right. I just wanted for the company to advise the Inquiry as to what steps, what they are doing with the sublease – their efforts to develop the sublease. 20  

THE COMMISSIONER: Yes, we can have him after lunch. Yes, Mr Kanu? MR KANU: Mr Commissioner, Mr Tan, Michael Tan, is an official of our client. I am not quite sure whether it is proper that Counsel should be calling him. Mr Tan represents Pacific International ResourcesPNG Limited. THE COMMISSIONER: Sorry, Mr Kanu, you are asking why Counsel, Mr Boi, should want Mr Tan to give evidence or as to whether your client, the developer should give evidence at all? Is that what you are asking me?

MR KANU: Well, Mr Tan, he represents the interest of our client. 30  

THE COMMISSIONER: Yes, the Developer, that is Pacific International Resources PNG Limited?

MR KANU: Yes, the Developer. If Counsel could – in fact, we should be calling him, not Counsel.

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THE COMMISSIONER: Mr Kanu, this is a Commission of Inquiry, we call everyone.

MR KANU: Yes.

THE COMMISSIONER: This is not a court of law. You have to remind yourself that you are in a Commission of Inquiry, not in a court of law.

MR KANU: I stand to be corrected.

THE COMMISSIONER: So we are not interested in party representation.

MR KANU: I stand to be corrected.

THE COMMISSIONER: Yes, thank you. But I can tell you Mr Kanu, we will be interested if your client had commenced any development on the particular 10  

SABL and particularly with evidential input into the focussed, the projections, and the kind of agriculture development, the kind of investment, cost of that investment and the kind of anticipated profits. And I am sure we are all educated enough now to be able to assess for ourselves if they are going to declare profits at all.

MR KANU: Yes, Commissioner, on those basis, perhaps it is proper that Mr Tan be called.

THE COMMISSIONER: And therefore we are going to be interested to compare that with the terms of the sublease.

MR KANU: Very well, Commissioner. 20  

THE COMMISSIONER: We have seen in one very unconsentable agreement, as you know in the law of contracts. I understand you teach the law of contracts to the University students.

MR KANU: Yes.

THE COMMISSIONER: And you know what unconsentable agreements are all about. It is all about unfairness and immorality involved; the immorality of contracts beyond fairness. We have seen it in Pomio.

MR KANU: Very well Commissioner. Then we have no objections to Mr Tan being called.

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MR KOARU: If I may assist. As the Project Coordinator I am aware of the figures and the magnitude of the project that should be developed there. If that is of any assistance I may be recalled. Mr Tan just came in July and he might not---

THE COMMISSIONER: I appreciate that. I have already appreciated that he will not be in any position to assist this Commission of Inquiry. I should think Mr Boi we should leave it for the time being. Mr Koaru has – I have indicated to Mr Koaru to be on nearby so that if required, we can have him recalled to address these aspects but I think now we should just focus on the preliminaries or rather not preliminaries, the primaries. 10  

MR BOI: Primaries.

THE COMMISSIONER: The primaries are consent, proper land investigation report should show us whether they were defective consents or they were regular consents; the incorporation of ILGs, their participation in the formation of the landowner companies or company, in this case, Koaru Resources Owners Limited and right up to the recommendation by the Provincial Administrator to the Department of Lands and Physical Planning. And as we have indicated, all of which will be put to these officials in totality at the conclusion of every individual SABL Inquiry.

MR BOI: Yes. 20  

THE COMMISSIONER: Perhaps Counsel if I may guide you. We should hear from the objectors at this point.

MR BOI: Yes.

THE COMMISSIONER: At least one of the objectors.

MR BOI: Commissioner, I am trying to move on to one of the objectors who has been summonsed. I do not know whether he is here; Sevese Maso.

[11.30 a.m.]MR SEVESE MASO; Sworn:

XN: Mr Boi

30  

THE COMMISSIONER: Mr Boi?

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MR KOARU: May it please the Commissioner, I object to this man giving evidence for this SABL on the basis - although I appreciate that he has been summonsed, I object on the basis that he is not a landowner and if he has any dispute, if he has any dispute over this particular land, he should take it to the Lands court. I therefore object to him giving evidence. This man has spent rest of his life in Port Moresby.

THE COMMISSIONER: Alright, you have made your objections. Mr Boi? You heard the objections.

MR BOI: Commissioner, this is a Commission of Inquiry and that any persons of interest have been invited by the Commission to provide whatever relevant 10  

evidence which are relevant to the Inquiry through consideration regarding ---

THE COMMISSIONER: Or if not relevant, the Commission of Inquiry will determine the relevancy.

MR BOI: Yes. This is an open and public Inquiry and people do not have to show sufficient interest necessary so---

THE COMMISSIONER: Yes, Counsel, you need not explain any further. Mr Koaru, this is a Commission of Inquiry. As to relevancy or as to sufficient input or as to confirm interest, that would be a matter to be determined after we hear the witness. We have for everyone’s comfort, who may be faced with such a situation, we have indicated right from the outset the commencement of this 20  

Inquiry that we will not entertain any matters that is tantamount to dispute as to customary land ownership.

MR KOARU: Thank you.

THE COMMISSIONER: But we will hear witnesses and we will determine that only after hearing them as to whether that is tantamount to dispute as to customary landownership or not.

MR KOARU: Yes, Commissioner.

THE COMMISSIONER: For this reason I will allow this witness to give evidence.

MR KOARU: Thank you Mr Commissioner. 30  

MR BOI: Commissioner, could the witness be sworn?

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THE COMMISSIONER: He has been sworn. Has he?

ASSOCIATE: Yes.

THE COMMISSIONER: Associate, have the witness sworn.

ASSOCIATE: I already did.

THE COMMISSIONER: You did?

ASSOCIATE: Yes.

THE COMMISSIONER: He just did. We were both asleep.

MR BOI: I missed that, I was distracted, sorry. Witness can you identify yourself for the record?

A: Thank you Counsel and Commissioner. My name is Sevesoa Maso. 10  

THE COMMISSIONER: Sevese?

A: No, Sevesoa.

Q: Sevesoa?

A: Yes.

Q: Maso?

A: Maso.

Q: Right.

A: I am a son of Lelefiru village.

Q: Leleku?

A: Lelefiru, L-e-le-f-i-r-u. 20  

Q: Right, Firu. Yes?

A: I am an electrical engineer by profession and I am a fellow of Institute of Engineers (PNG) Incorporated.

Q: Yes?

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A: I have had a physical presence in a little hamlet called Irira in the Meporo area since 2001. This is my traditional land through my family links. Commissioner, through your permission, I have prepared a statement and I would like to submit this as an exhibit from which I will make my statement.

COMMISSIONER: Counsel Assisting to have the statement presented, tendered.

MR BOI: Is there a copy there or is it the same one you gave us?

A: Yes. I have written letters and I basically have summarised them as part of my statement and also to bring you up to date on latest developments. 10  

Q: Yes.

A: So I am making this – tendering this as an exhibit. It is just one document but I have put brought in two copies.

[11.37 a.m.]Q: Commissioner, I tender this to be received into evidence through the witness.

THE COMMISSIONER: Have him sufficiently identify the document before you have it tendered.

MR BOI: Yes. Mr Maso, is this your statement in relation to the Inquiry?

A: Yes, Counsel.

Q: The signature at the back, is that your signature? 20  

A: Yes, that is my signature.

THE COMMISSIONER: The title of the document is, “The People’s Objection to Koaru Resource Owners Company Limited’s Application for SABL for Kerema, Meporo Agro Forestry Project.” That is the title of the document?

A: That is correct Commissioner.

Q: And it is dated 27 November 2011?

A: That is correct Commissioner.

Q: That was yesterday. Alright.

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MR BOI: I will tender this.

THE COMMISSIONER: Yes. Mr Maso, I accept your submission which will be exhibit F – Koaru Resource Owners Limited, portion 323C, Gulf Province.

[EXHIBIT F – THE PEOPLE’S OBJECTION TO KOARU RESOURCE OWNERS COMPANY LIMITED’S APPLICATION FOR SABL FOR KEREMA, MEPORO AGRO FORESTRY PROJECT - KOARU RESOURCE OWNERS LIMITED, PORTION 323C, GULF PROVINCE]

MR BOI: Commissioner, I mean for the record, for the purpose of the record, I propose to ask the witness to read his statement into the record.

THE COMMISSIONER: Just a minute. Yes, alright. Mr Maso, you can take 10  

us through your submission.

A: Thank you Commissioner. Commissioner, the objective of my statement is that the people from Melaripi, Kaipi, the inland villages of Mamaru, Wina and the Milihe ILG, comprising of Lelefiru, Hamohamo and Siapehape, the Tauri Meforo Business Group and we have not had confirmation but I believe the Meforo Kamea people through their respective leaders and the people themselves having now realised the full implications of the granting of SABLs to Koaru Resource Owners Company Limited state their total rejection to the project and the SABL to the Koaru Resource Owners Company Limited. Furthermore, the people 20  

do not agree to their land being used for the Kerema Meforo Agro Forestry Project which is pursued by the Koaru Resource OwnersCompany Limited, a company which we heard is owned by Roddy Koaru and his immediate family members. The people’s land are contained in Portion 323C, which appeared in the Government Gazette No 155 dated 3 August 2007. The period of lease was 99 years, the total area of 59,460 hectares. Most of the objections by the people against the Kerema-Meporo Agro Forestry Project and Koaru Resource Owners Company Limited are documented and these documented are – I will request your permission, Commissioner, to submit them as exhibits to the Commissioner. We 30  

advise that we have tried to email these documents over the weekend but were without successful. So I have these documents to present as exhibits. The first document is the Taipi Area Leaders Meeting minutes on Koaru Resource Owners Company Limited meeting which was held on 21 November 2011 Karama village at 11 a.m. This is the first exhibit. The

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second exhibit is the Melaripi Area Leaders Meeting Minutes on Koaru Resource Owners Company Limited meeting which was held on 21 November 2011 at Silo No 2 village or also known as Aike at 11.34 a.m. This is exhibit. The third document is Signatures by Leaders from Toare to Elava Karuma villages who by signing this document indicate their objection to the application for SABL by the Koaru Resource Owners Company Limited is another exhibit. And the last exhibit is on the Chairman, Deputy Chairman and he is the Chairman of the Nira ILG.

[11.43a.m] The meeting that was held in the villages at Hamohamo Siape Lelefiru strictly on the date which was about the 25 November 2011. So that is 10  

another exhibit. So there are four exhibits altogether.

THE COMMISSIONER: Those are exhibits you propose to tender accompanying your submissions?

A: Yes, Commissioner.

THE COMMISSIONER: Counsel?

MR BOI: Yes.

THE COMMISSIONER: Are they the only copies?

A: These are copies – Yane brought in one set of copies, sorry Commissioner.

THE COMMISSIONER: We will make copies later.

MR BOI: Yes. Witness, the documents which you propose to tender as 20  

exhibits to the records of the Inquiry, you will just confirm, I will just call out the titles and you have to confirm that. The first document is the statement on Objection to the Tauri Meporo Agro Forestry Project now taken by Koaru Resource Owners Limited, Incorporated land Group and the Investor Company, Pacific International for the Commission of Inquiry into Special Purpose Agriculture and Business Lease, and it is signed by Fevu Vitaharo, Chairman of Miri ILG. Is that the first document?

A: Yes, I confirm that Counsel.

Q: And it contains meeting minutes?

A: Correct. 30  

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Q: It also has got meeting minutes of the meeting on – Special Meeting No 3 of 2003 held on 23 November 2011 at Lelefiru Village. That is the first---

THE COMMISSIONER: Let us deal with the first one first.

MR BOI: Sorry, Mr Commissioner, it is in reverse order when it was handed to me, yes.

THE COMMISSIONER: Alright, get them in order and let us deal with them one by one.

MR BOI: The first document is meeting minutes held on 21 November 2011 at Karama village.

THE COMMISSIONER: 21st November, did you say? 10  

MR BOI: 21st November 2011.

THE COMMISSIONER: Right.

MR BOI: On Monday ---

THE COMMISSIONER: At which village?

MR BOI: At Karama village.

THE COMMISSIONER: Right.

MR BOI: Karama village.

THE COMMISSIONER: I will take that first.

MR BOI: Yes.

THE COMMISSIONER: That will be – I accept that as Exhibit F(a) – Koaru 20  

Resource Owners Limited.

MR BOI: Yes.

THE COMMISSIONER: Portion 323C, Gulf.

[EXHIBIT F(a) – Minute of Meeting held at Karama Village on 21 November 2011- Koaru Resource Owners Limited, Portion 323C, Gulf]

THE COMMISSIONER: The next one.

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MR BOI: The second document is the record of the meeting minutes held also on 21 November 2011 at Sino No 2 Village.

THE COMMISSIONER: How do you spell the village name?

MR BOI: It is spelt S-i-n-o No 2(Aike).

THE COMMISSIONER: Sorry, Ai?

MR BOI: A-i-k-e.

THE COMMISSIONER: Right.

MR BOI: And the meeting minute is signed by Mr Jim Pokara who is the Chairman. Is that correct?

MR KANU: That is correct. 10  

THE COMMISSIONER: Alright, that will be accepted as Exhibit F(b) – Koaru Resource Owners Limited, Portion 323C, Gulf.

[EXHIBIT F(b) – MEETING MINUTE SIGNED BY MR JIM POKARA, CHAIRMAN ON 21 NOVEMBER 2011 –KOARU RESOURCE OWNERS LIMITED, PORTION 323C, GULF]

THE COMMISSIONER: The third document?

MR BOI: The third document is the document which contains the names and signatures of leaders from Toare to Elaiva Tairuma villages, who by signing indicating their objection to the application for SABL by Koaru Resource Owners Company Limited. That is the list dated 22 November 2011. 20  

THE COMMISSIONER: Sorry, those villages again. People from?

MR BOI: People from Toare, T-o-a-r-e.

THE COMMISSIONER: Toare to?

MR BOI: To Elava village. Elave, Tairuma Village.

THE COMMISSIONER: Yes.

MR BOI: And it contains various names.

THE COMMISSIONER: Who objected that?

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MR BOI: Yes. 43 or so signatures.

THE COMMISSIONER: And dated?

MR BOI: Dated 22 November 2011.

THE COMMISSIONER: That will be exhibit F(c), Koaru Resource Owners Limited, Portion 323C, Gulf.

[EXHIBIT F(c) – LIST OF SIGNATURES OF LEADERS FROM TOARE TO TAIRUMA VILLAGES DATED 22 NOVEMBER 2011 - KOARU RESOURCE OWNERS LIMITED, PORTION 323C, GULF]

THE COMMISSIONER: And the fourth document?

MR BOI: Fourth document is the document entitled, “Statement and Objection 10  

to the Taure Agro Forestry Project undertaken by Koaru Resource Owners Incorporated land Group and the investor company, Pacific International for the Commission of Inquiry into the Special Purpose and Agriculture and Business Lease.

[11.50 am]And it was authored by Mr Feu’u Vitaharo ---

THE COMMISSIONER: Sorry?

MR BOI: Feu’u Vitaharo.

THE COMMISSIONER: How do you spell Feu’u?

MR BOI: Feu’u is spelt F-e-u’u Vitaharo.

THE COMMISSIONER: Mitaharo, yes. 20  

MR BOI: Vitaharo, he is chairman of Mirihe ILG.

THE COMMISSIONER: What ILG?

MR BOI: Mirihe.

THE COMMISSIONER: ILG.

MR BOI: ILG, yes. That is dated 25 November 2011.

THE COMMISSIONER: All right, that will be exhibit F(d) Koaru Resource Owners Limited, Portion 323C, Gulf Province.

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[EXHIBIT F(d) – STATEMENT AND OBJECTION TO THE TAURE AGRO-FORESTRY PROJECT DATED 25 NOVEMBER 2011 - KOARU RESOURCE OWNERS LIMITED, PORTION 323C, GULF PROVINCE]

MR BOI: Yes. Very well, we tender that as part of the evidence.

THE COMMISSIONER: All right, Mr Maso, those are tendered now. You can continue with your submissions.

A: Thank you Commissioner. First of all, I want to refer to a submission I made to the Commission on 25 August 2011. I want to say that, state that our families are landowners in the Meporo area and I have established a physical presence since 2001 in a little place called Ivira. I am also a 10  

member of the Mirihe ILG registration number ILG 16659.

Commissioner, I have been aware of interest by various people interested in developing ago forest projects as well as oil palm projects in the Malalaua/Kerema hinterlands. I have not supported these projects as it seem to me that these projects were being pursued without proper consultations. Furthermore, it was also not clear to me whether proper procedures were followed. However, at risk is the livelihood and well-being of the people in the Meporo area and its ecosystems.

Around the last quarter of 2010, I met aTheodist, a Mr Miae Larelake who told me about the oil palm project. He was at that time printing and 20  

binding certain documents regarding the oil palm project spanning from Malalaua to Murua. I mentioned to Mr Larelake that he would have to meet with our people and that I would liaise with him in this regard. I did not indicate support of the project.

Mr Larelake and I exchanged telephone numbers. We communicated via text messaging, Mr Larelake advised that he would advise about a meeting with landowners and villagers but no such meeting has taken place. Furthermore, Mr Larelake’s phone is now out of service.

Commissioner, on 3 October, I wrote another letter to the Commission advising that there were two other groups in the past who had interest in 30  

agro-forestry and or oil palm projects in the same area, presently pursued by Kerema Resource Owners Company Limited. My assessments of the two previous interests were that their main focus and interest was in the harvest of forest in the area between Meporo and Murua in the Gulf

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Province. This is the same area which is the subject of the application by the Kerema Resource Owners’ Company Limited.

Sirs, in November 2008, a public hearing was held in Koaru village about an oil palm project. It is not clear which organization arranged the public hearing but a media release in the National newspaper, issue of 2 November 2008, and I attach that to my letter to the Commission quoted the Gulf provincial administration, landowners, forestry, agriculture officers and project consultant, Samuel Toti as arranging these meetings. Nevertheless, I requested my Mirihe ILG representatives as well as village people to attend and speak against the project. Several groups made 10  

presentation at the hearing. When our group made our presentation which was essentially against the oil palm project, our people speaker Feu’u Vitaharo was shouted down and physically assaulted.

The subsequent media release however, referred to the success of the public hearing but there was no reference to the physical attack of our people.

[11.58 am]A: Furthermore, it seeing that the newspaper article also referred to Roddy Koaru as representing the Gulf Provincial administration. At the hearing, Roddy Koaru and Miae Larelake said words to the effect that “people should not take note of their suspension as that is all to do with politics. 20  

And that Larelake is the Gulf provincial administrator and Roddy Koaru was the provincial legal officer.”

At the time of the public hearing both Larelake and Koaru were reportedly suspended from the Gulf Provincial Government and administration. And therefore, both would have been relieved of their respective authorities. It is my view that at that public hearing in Koaru village, both Larelake and Koaru misrepresented the Gulf Provincial Administration and also misled and or deceived our people in pursuing the oil palm project.

Also in about mid 2009, I noted certain traditional decorations and preparations were made on the Koaru/Fose road to receive some Asian 30  

investors who were interested in developing oil palm project. I spoke to the people at the tier off the Koaru/Fose road near the Meporo Bridge that they should not entertain these investors and I advised them of the potential negative environmental impact of our land due to the oil palm project. The people having appreciated my explanations destroyed the

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helipad which was prepared for the Asian investors. It seemed that the visit did not take place.

During the last quarter of 2010, and I have referred to this already, I met Miae Larelake at Theodist. So, if it may please the Commissioner, I would pass that. In August 2011, one of my village people, namely, Haro Mera Sevese called me on the phone and reported that some project people were carrying out surveying type activities in our area. Others Feu’u Vitaharo and Jacklyn Merao Sevesoa reported similar survey assessments were carried out by project people at the river entrance to the sea between Hamuhamu and Lelefiru villages. And I just want to take a point here that 10  

the former witness said that we are not involved. Our land has been violated.

Furthermore, in July 2001 it seemed that the oil palm project proponents wrote to the PNG Forest Authority ---

THE COMMISSIONER: 2011?

A: 2011.

Q: All right.

A: In July 2011, it seems that the oil palm project proponents wrote to the PNG Forest Authority regarding what I believed to be consideration for an FCA. This approach by the oil palm project proponents is not consistent 20  

with the required process. I view this action by the oil palm project proponents as a clear attempt to gain access to the forest between Kerema and Meporo. Counsel, may I put to the Commission of Inquiry into SABLs that there appears to be serious questions on the credibility, integrity and methodology of the directors and management of Kerema Resource Owners Company Limited in their pursuit of the oil palm project. As former senior civil servants in the Gulf provincial administration, the key players, namely, Larelake and Koaru would have had access to privileged information regarding the forest resources between Kerema and Meporo and even beyond. I view this as a serious case for further 30  

investigation by proper authorities.

Commissioner, on 18 October, I sent a little e-mail with attachment to the Commission Secretariat. The subject of that e-mail was that some of our people saw a newspaper article in the Post Courier issue of Monday 17,

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October 2011 in which Roddy Koaru, under the guise of concern for landowners in LNG corridors expressed views against the continuation of the Commission of Inquiry into SABLs. I asked the Secretariat to please pass the e-mail and attachments to the Counsel Assisting the Commission of Inquiry into SABLs.

This action by Roddy Koaru is unacceptable by our people, given that the substantive matter regarding the Koaru Resource Owners Company Limited application is still before the Commission of Inquiry. Even though Roddy Koaru signed the newspaper article as chairman, Meporo landowners, Koaru Incorporated ILG or Land Group, P.O. Box 627, 10  

Boroko, we believe this person to be the same Roddy Koaru, who is the main proponent of the Koaru Resource Owners’ Company Limited application, SABL number 28.

[12.03 pm] I forward the newspaper cuttings, Roddy Koaru’s Post Courier statement as an exhibit and it is in your system already. Further to this, I also attached another exhibit, Mr Prime Minister Peter O’Neil statement in the national newspaper on Monday, 17 October 2011, regarding the government support of the Commission of Inquiry into Special Agriculture Business Lease and extending the term by five months.

Commissioner, on 26 November, I wrote again, I beg your pardon, I make 20  

a statement here. Following the Commission of Inquiry hearing in Kerema on Monday 21 November 2011, it was reported that Roddy Koaru was interviewed by Sumio Kakarere of Radio Gulf. It was further reported that Roddy Koaru blamed the current objections as being caused by a minority of Port Moresby based people and that the majority of rural people supported the project and there are a few things to be sorted out in the COI, meaning Commission of Inquiry.

Roddy Koaru also mentioned that rural electrification would be provided for three communities, namely, Lelefiru, Koaru, Elava. This is the first time I have heard about rural electrification linked to Kerema/Meporo 30  

Agroforestry project. I should know something about this. My past life, I have been working for the Electricity Commission. Nevertheless, we view this statement about rural electrification by Roddy Koaru as untrue as well as a desperate attempt to win support for the project.

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However, the main issue Commissioner, is that Roddy Koaru is again going out to the public domain while the matter is still before the Commission of Inquiry. The Radio Gulf interview by Mr Koaru seem to be an act of desperation by him in resort to misleading the landowners in the Kerema Meporo area about the outcome of the COI hearing. Furthermore, his actions seems to indicate total disrespect to the Commissioners and the independence of the Commission of Inquiry. We request the Commission of Inquiry to summons Radio Gulf for the transcript of the interview.

On 27 November 2011, Commissioner, it was reported that following the 10  

Commission of Inquiry hearing in Kerema, it seemed Roddy Koaru’s team met with their people in Koaru village and it seems that remarks of threats were made against the group objecting to the Kerema/Meporo Agro Forestry project and Koaru Resource Owners’ Company Limited.

We request the Commission to take note of this act of intimidation and threats by the proponents of the Kerema/Meporo Agro Forestry Project.

I want to now refer you to a project agreement which was alluded to by Mr Koaru earlier. We refer to the Commissioners – we refer the Commissioners to the document, Kerema District Agro-Forest Project Development Agreement. And that document is not signed but is dated 20  

2008. The parties to this document were Papua New Guinea Forest Authority ---

MR KOARU: Mr Commissioner, I think we will be wasting time to hear this man talk on this ---

A: Department of Agriculture and Livestock.

THE COMMISSIONER: Mr Koaru, you will sit down and I will hear this witness. Go on Mr Maso. You will maintain silence in this room or I will exercise my powers under section 11 and have anyone interrupting arrested. Everyone will remain silent. Proceed Mr Maso.

A: Thank you Commissioner. We refer the Commissioners to the document, 30  

Kerema District Agro-Forest Project Development Agreement dated 2008. Project’s notice stated, the parties to this document were the Papua New Guinea Forest Authority, Department of Agriculture and Livestock, Pacific International Resource (PNG) Limited, Gulf Provincial Administration. In

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recital; (a), we note the reference to a TRP for Tauri/Meporo and the intent to use this for the Kerema Agro-Forestry Development Project for a forest clearance authority. The TRP and FCA and I stand to be corrected because this is not my specialty, serve two different purposes and to suggest substituting one for the other is mischievous and inappropriate.

In recital (b), we note the reference to customary landowners’ intention to include Kakoro customary land area in the Kerema District Agro-Forestry project. Commissioner, this would greatly increase the – which of the grantee.

The signatory page among others shows Miae S Larelake as Gulf 10  

provincial administrator, Roddy Koaru as chairman of Koaru Resource Owners Company Limited, even though Roddy Koaru’s substantive position was Gulf provincial legal officer. Commissioner, and Mr Joseph Mangabi, the principal landowner from the Okorai area which is in the general direction of Kakoro became aware of this project during the Commission of Inquiry hearings. We believe Mr Mangabi has since submitted an affidavit to the Commission of Inquiry, essentially objecting to the reference to Kakoro customary land in the Kerema Agro Forestry Project.

[12.09 pm] The project agreement highlights the real intent of the project and that is to 20  

harvest the forest. The reference to agriculture activities in the project agreement in our view, are a facade.

In closing, we request the Commissioners to listen to the objections by the landowners from the Kerema/Meporo areas. We advise the Commission of Inquiry that there has been no meaningful consultation or engagement with landowners by the proponents of the Kerema/Meporo Agro Forestry Project.

Furthermore, we request the Commissioners to look into the irregular, inappropriate and deceitful roles and actions by the two people who we believe to be key project proponents, namely, Roddy Koaru and Miae 30  

Larelake. These two people had direct access to privileged information regarding the Kerema/Meporo Agro Forestry Project during their former roles as Gulf Provincial Administrator, that is Larelake and Principal Legal Officer, that is Koaru.

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Commissioners, we are deeply concerned that the Kerema/Meporo peoples’ lands and livelihood are at risk from the Kerema/Meporo Agro Forestry Project which has been pursued by the grantee, the Koaru Resource Owners Company Limited. In this regard, we appeal to the Commission of Inquiry into SABLs to revoke the SABL granted to Koaru Resource Owners Company Limited and to retain the land back to the respective landowners. Thank you.

THE COMMISSIONER: Mr Boi.

MR BOI: Yes. Thank you, Mr Maso. Just a few questions just for you to clarify certain issues. Your village Ivire hamlet, is that within this SABL; in the 10  

boundaries of this particular SABL?

A: I believe it to be.

Q: You have to confirm that whether it is in or out.

A: It is in.

Q: It is inside. Are you, as a landowner, are you aware of any land investigation report being undertaken by ---

THE Commissioner: No, not the report, just – report is compiled after.

MR BOI: I see.

THE COMMISSIONER: Are you aware of any investigation, land investigation conducted into your village area? 20  

MR BOI: Yes. Are you or were you aware of any land investigation being conducted by whatever parties, in the Lands Department or developers or the grantee or any investigation at all?

A: Counsel, I am not aware of any such activities.

THE COMMISSIONER: What would be the -Counsel, if I may, just a couple of questions. What would be the name of your, if you can just reconfirm the name of your clan?

A: Okay, Commissioner, the group that we have incorporated is called Mirihe. And Mirihe is part of the Toaripi clan of people. So we have ---

Q: Toaripi tribe? 30  

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A: The Toaripi tribe, yes. And it disintegrated many, many, many years ago because of the whole population and then people split. So some people came down to the coast, some went up river, some stayed in the original place. We are the Mirihe people, we moved to the coast. And my village is Lelefiru.

Q: If you are objecting to this particular Special Agricultural and Business Lease, how much, in terms of acreage would be the size of your land that is incorporated into this SABL?

A: Commissioner, I am not aware of the exact area of land but I can describe to you. 10  

Q: Yes.

A: The land goes at the Koaru station, near the Koaru station goes up and follow the Meporo River, crosses the Meporo Bridge, up to a lake that is up on top, crosses over east and then follows down river again to the sea.

Q: Meporo River again?

A: It follows the Meporo River.

Q: That is on both sides of Meporo River.

A: No, we are on the eastern side.

Q: Right. Just roughly how many hectares would that be, roughly?

A: I really need to sit down and work it out, Commissioner. 20  

Q: I know but ---

A: Without ---

Q: We have not got time so just rough estimate.

A: Well, it would be a very small percentage of the land that has been of interest here. I am sorry, I cannot put a number to it.

Q: Small percentage, okay, give me in terms of percentage then.

A: Yes, it will be less than 10 percent, I think, even less than that, yes. Could be less than that.

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Q: And if, now, let me just pose this question hypothetically. If you were to be able to have that 10 percent removed from the total of portion 323C, you and your group will be happy with that will you not?

A: Come again?

[12.16 pm] Commissioner, can I answer your question this way that the knock-on environmental impact we would feel, even though we did not participate, assuming we did not participate, the knock-on effect on the environment we would feel it immediately as well as anybody else in the downstream of the area that is being, if it was a clear fell situation. So you would immediately feel the --- 10  

THE COMMISSIONER: Even with buffer zones. You know trees aligned in a corridor along the river side to be maintained as buffer zones, you will still object?

A: Sir, I am not an agriculturist but I can tell you this that you know ---

Q: I am not either. But I have a fair understanding of what can be done and what cannot be done.

A: Okay, I can also say that you know, at the onset of clear felling, until it is at regrowth, immediately or you plant something to stabilize the soil, you would immediately suffer from erosion; land erosion, massive land erosion. 20  

Q: And you are worried that erosion might affect you downstream?

A: Correct. Not only that ---

Q: That is the Angabanga people. I mean the Mekeo people suffering from the Tolukuma Gold Mine effluxion. There were effluences, rather.

A: Also I am not from the oil palm growing areas but if you look at the oil palm growing areas, the specialist people advised that the mill that once you process the kernel and there is a mill, they store that in suitable areas in the plantations. This is excellent food source for rats. So you would get a massive increase in population of rats. That in itself is not a problem. It is a nuisance rather because they will also affect other food crops as well 30  

too. But the biggest threat will be snakes because snakes attract to the rats. And you will see in the oil palm working provinces, the workers wear gum

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boots, their long sleeve down here and a long trousers as well too. These are some of the negative things that would emerge. But to be fair we have never seen the pre-feasibility study or development project report on what are the pros and cons of such an investment.

Q: To be fair also, do you not consider that for 10 percent of your land you would raise such an objection that affects the remaining 90 percent of the land on by perhaps 90 percent of the population?

A: With due respect Commissioner, in the exhibits I sent to you, all the other people we would make, compromise a bigger volume of the land. So if you look at the Melaripi and the Alakaipi people, the inland people; our 10  

inland people here, that will add to my 10 percent or less than 10 percent.

Q: Well, I am not shutting out the possibility that there may be other objectors who are from other landowning groups. But all up, if your land is not or if you require that your land be removed from the SABL, do you not think these other people should be able to proceed with whatever manner they wish to enter into the market economy involving their own land?

A: Commissioner, can I answer this way, that perhaps that could be – question could be posed to those very people. I cannot speak for them.

Q: Well, you are objecting so I am posing to you.

A: I see --- 20  

Q: Do you not think it will be only fair for them to be allowed to enter the market economy using their own land?

A: I feel that you know, they should be able to make their own decision on this.

Q: Well, they have made their decision.

A: And ---

Q: And you are objecting.

A: My objection is only for our area and the other people have also indicated their objections.

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Q: That is why I pose the question. The manner I posed the question is if your land should be removed, should they not be allowed to proceed with their own land for the kind of developments they want?

A: In this, it is their decision. I mean, it is perfectly all right.

Q: Well, you are objecting.

A: Yes, I am objecting to our land.

Q: You are not answering me. Should yours be removed, would you be able to allow them to proceed?

A: I would say yes on the basis that you know, we are not involved in that, you know, oil palm area. 10  

Q: Will you have your land removed?

A: We would still have consequential damage too.

Q: There is a requirement to consult, however, by law with adjoining landowners and I think the purpose for that is to ensure that environmental damage, for instance is taken into consideration. And ultimately, you have the recourse to sue if there are indeed any damages caused to your land at all. However, that is only a point that I just wanted to explore. Counsel, you got any?

MR BOI: Yes, just one final question. Mr Maso, are you aware of any person, anybody from the village, village chief or the chairman of the ILG or anybody 20  

signing any document, lease or any commercial government reports giving consent for the land to be made available for a SABL lease?

[12:22pm] A: No, I am not aware of any of our people giving consent.

Q: Thank you, that is all the question I have for this witness.

THE COMMISSIONER: Any other, you may have some other matters; have you anything more to speak on before you are excused MrMaso?

A: Commissioner, first of all I want to thank you for the opportunity to make my statement so I have no further comments to make. Thank you.

THE COMMISSIONER: Thank you. Before you step down, in the process of land investigations, it is important and I am saying this generally because this 30  

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Commission of Inquiry is dealing with an aspect of land dealing that is not elaborately stated in the various legislations and it is very important for consultation. Apart from aspects or consent landowner involvement in different corporate entities that we have mentioned, it is very important to ensure consultation takes place with not only the landowners but the neighbouring landowners so that you cater for each other and there is no reason why you should be at odds and at logger heads and should be fighting each other. You should be able to be mature enough to sit down together and discuss this matters. I noted form your evidence MrMaso that whilst a small portion of your land may be comprised within the whole of portion 323C, you are first of all 10  

entitled to have it removed, if you so wish. Secondly, in relation to the matter of environmental damage, that is the matter that officials, both of the Department of Environment and Conservation as well PNG Forest Authority must take note of seriously and they are really the officials who must ensure this consultation is had with you who consider such a project as environmentally damaging or with a great likelihood of environmental damage to you and your people further downstream. They should consult with you. But ultimately people who want to use their land to progress into the market economy should be able to do so, taking into consideration and catering for these other considerations. Thank you MrMaso, you are excused thank you, you many step 20  

down. Yes, MrKanu?

MR KANU: Commissioner, counsel be kind enough to make available to us those documents over the lunch hour break?

THE COMMISSIONER: Can you confer with your brother counsel MrBoi? He seems to have all these documents so.

MR BOI:Yes, we will try arrange it, for the copies to be – exhibits to be given too.

THE COMMISSIONER:Particularly submissions.

MR BOI:I think there are some documents which we might have – that is MrKoaru’s affidavit and the Agriculture Development Plan, they actually came 30  

from his clients. So may be the documents he does not have, we might be able to make copies for.

THE COMMISSIONER:Can you counsels work it out?

MR BOI: Yes.

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THE COMMISSIONER: Because I definitelycannot provide you any because I do not have any. All I have what is stated on the transcripts.

MR BOI: Yes, we will arrange that.

THE COMMISSIONER :I just want to inform all interested parties here, we have venue problem, we have come into conflict with the Central hearing, Central Provinces hearings. We have requested the Secretary for the Department of Justice and Attorney General to avail us the larger of the two conference rooms on the ground floor of Sir BuriKidu building on the other side and they have not responded yet and I have proceeded to convene our Gulf segment of the Inquiry because we were fixed for 8:30a.m start and we started 10  

soon after 8:30a.m and I have not conferred with the Chief Commissioner to find out exactly where his is with the balance of the Central Province Inquiry and it may be that after lunch the venue may change. It may also be that after lunch we continue here depending on how ready they are to proceed with the Central matters. Sorry counsel, you have some information?

MR BOI:Yes, Commissioner I have a note from MsKoisen, the Counsel ---

THE COMMISSIONER: Counsel in the Central Province matters, yes.

MR BOI: And the Central Province that for the witnesses for Central and NCD to go to Sir BuriKidu building ground floor conference room for the Central and NCD matters. 20  

THE COMMISSIONER:Is that both in consultation with the Chief Commissioner, who has courage of the Central matters?

MR BOI:Commissioner, I assume so because as the Counsel taking carriage of these matters---

THE COMMISSIONER : Then I want to be on record as thanking the Chief Commissioner availing us this main avenue to continue with the Gulf hearing. So those of you who are here in relation to SABLs in Central Province, you should go at 1:30 to the ground floor of the Sir BuriKidu building which is the ground floor of the Department of Justice and Attorney General and I believe the conference room on the right – the bigger one is the one that had been 30  

availed for the Commission of Inquiry to conduct its other hearings. How many more witnesses have we got to continue after lunch?

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MR BOI:For this SABL, we have four more, but they are mostly objectors which I believe would be---

THE COMMISSIONER:Wewill find out exactly the nature of objection and we will determine whether we need to hear them or not.

MR BOI: Yes.

THE COMMISSIONER: But we have a very tight schedule for the Gulf SABLs because we start West New Britain next week Monday and we cannot have a long lunch, it has got to be one o’clock. We resume at 1 o’clock, Counsel.

MR BOI:Very well Commissioner.

THE COMMISSIONER: Associate, adjourn to 1 o’clock. 10  

LUNCHEON ADJOURMENT

[1.32 pm]THE COMMISSIONER: Counsel? MR BOI: Thank you, Commissioner. We will resume with witness examination. The next witness is Mr K Kingsley Lore. He is K Kingsley Lore. This witness represents one of the ILGs who actually made submissions objecting to the grant of the SABL. 20   THE COMMISSIONER: Associate, have the witness sworn in. KORAEA KINGSLEY LORE, Sworn: XN: MR BOI Q: Witness, for the record, you will give your full name and address and your 30  

status for the records. A: Commissioner, my name is in full Korea Kingsley Lore. I am representing

the Leo Mora KeotaILG.

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THE COMMISSIONER: Sorry, let us just get your name first, Koraea Kingsley?

A: Lore, L-o-r-e. Q: All right, and you are representing? A: I am representing Levo Mora Keauja ILG. Q: How do you spell the full name of your ILG? 10   A: Levo Mora is spelt L-e-v-o, Mora is spelt M-o-r-a; Levo Mora. Q: Yes. A: Keauja is spelt K-e-a-u-j-a. Q: Yes. A: Professionally, I am First Assistant Secretary for the Department of Public 20  

Enterprises. Technically, I am a Deputy Secretary in Operation.With respect to this particular matter, I am not only the member of the ILG, but I am also the Chief Technical Adviser to the ILG executives as well as the members at large.

Q: Yes? A: Commissioner, during Mr Koaru’s presentation, he did make a mention so

far as stakeholders are concerned, that we are strangers. My ILG seem to be also strangers. However, the amount of the hectares of land that is in 30  question actually attracted our submission and as well as our interest in this Inquiry. The permit, the portion actually covers 59,460 hectares which in our mind includes our ILG. For your record, our ILG has a land area of about 3,000 hectares which also includes or covers the now defunct Epo plantation which is close to Cupola. When it comes to rule of engagement within our ILG executives and when dealing with projects of such magnitude, the executives plus myself meet and deliberate on such proposals and weigh out the implications as to both the negatives as well as the positive. It is only the executives which represent 12 clans, makes the decision with the outsiders. 40  

[1:38 pm] I must say that, that decision has not been done to this effect. Even though

I personally know about this project,because formally I was a senior

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planning officer with the Department of National Planning and Monitoring. So I have some idea of the concept of Malalaua/KeremaAgroForest Project. Commissioner, the permit basically with respect to the length of the permit infringes on our ILG, which I mean it includes our formally recognized ILG area - ILG number 10578.

THE COMMISSIONER:Was registered on?

A: It was registered on 10 March 2006, and I take note that this particular SABL was issued on 3 August 2007, well after our ILG was registered. My number three point relates to the concurrency provided by the customary landowners. We all know as civil servants that there are due 10  

processes established to be followed, and the SABL was basically established in such a way and manner and intent that the landowners meaningfully participate in the nation’s development, at the same time improve their lot in life. As such the government through respective laws and policies and guidelines have established the due process to be followed. One of this due process is very much hinges or relates consulting the landowners their concurrent. Now consulting landowners, Commissioner, in my view and in our view relates to two points; one, awareness, informing the landowners, the indigenous people.

THE COMMISSIONER:Can I just interrupt you. We are well aware of their 20  

requirements for SABL issuance. I would like you to get down to it and tell us where there was no consultation and obtaining of consents from your particular clan members, who as I now understand from you have formed themselves into ILG. So let us get to that.

A: Commissioner, agreed.

MR BOI:MrLore, can we start you telling the Inquiry the name of your clan and tribe?

A: Our ILG comprises of 12 clans. Commissioner, I will go through that. Lavaipi – Lavaipi is spelt L-a-v-a-i-p-i.

THE COMMISSIONER:Lavaipi? That is L-a-v-a-i-p-i? 30  

A: L-a-v-a-i-p-i. Auvipi, A-u-v-i-p-i, Laivaivora, L-a-i-v-o-r-a, Keauja, K-e-a-u-j-a.

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[1.43 pm]THE COMMISSIONER: A? Did I hear A at the end? A: That is correct, Commissioner. Q: Laivora. A: Oroipi, O-r-o-i-p-i; Tijoea, T-i-j-o-e-a; Savoripi, S-a-v-o-r-i-p-i; Kaivipi,

K-a-i-v-i-p-i; Laikupi, L-a-i-k-u-p-i; and finally Marasaija, M-a-r-a-s-a-i-j-a; altogether are 12 clans.

10  MR BOI: 12 clans all from one particular village or different villages? A: The ILG covers three – or two main villages. THE COMMISSIONER: No, just forget the ILG first. The clans, are they from a single village or from several villages? A: Two villages. However, Commissioner, the membership also extends

beyond the two villages because we traced their genealogy. So there are a good number of people from Kerema Bay and also around Melarepi as 20  well as the Keipi area.

MR BOI: The two villages being – the names of the villages? A: Silo Number 1 and Lovera, L-o-v-e-r-a. Q: Those are villages located within the SABL area we are talking about? A: That is correct. 30  Q: What would be the total population of these villages, these clans? A: In terms of ILG membership, it will be roughly around 2 to 3,000 people,

including those who are from the other villages who are part of our ILG. Q: These clans are from the Keipi tribe or which tribe? A: I am not sure of where Mr Koaru was coming from. Keipi is the

constituency and it does not necessarily cover Melarepe. That is a different matter. 40  

Q: What is the name of the tribe there? You have the 12 clans, they are from

which tribe?

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A: The story between this – the story behind the composition of this tribe is made up of three different groups of people. Some group of people in the 1800s, or 1700s or 1600s, they came from the west. The others were there. The other groups were there and others came from the mountain. So we have a blend of three categories – three different groups of people. But, there is a story – history, where the three groups actually merged into one. There has been a great war in the 19 – back then. I do not intend to go down that road.

THE COMMISSIONER: Yes, 1800s, okay. 10   A: They stand side by side and fought together and as such because they all

share the blood on that land, we decided that no one, no one clan owns a portion of land because people died on those different portions of land. Therefore, there has to be a merged one ILG.

[1:48pm]THE COMMISSIONER:In terms of today’s organisation?

A: That is correct. Because of the historical nature born as – that the three groups came together and as such we built upon that historical fact and ended up with this Keauja Lovera. The Keauja relates to people who 20  

were there both mountain as well as on the coast. The Livemora people who came from the Keauru side back then. So we handed up having this particular ILG today because of the commonness that we have.

Q: Let me, let us not contaminate clan and landownership with ILGs. ILG is just the legislative instrument to better organize clans. So let us just leave this word ILG out of all explanations relating to clans and tribe for the time being, later we can come to understand how to understand on how you formed into an ILG.

A: That is correct.

Q: We all come from similar back ground so let us understand that number 30  

one we all understand what we are talking about, but it is the specifics of clans and tribes and families that eventually will determine in the modernsense and in the current legal sense as to why we ended up forming into ILGs. So those three different groupings of people in the early 1800s or mid 1800s, the previous century to the last one were involved in a manner you just describe and therefore settled that land which is now part of portion 323C.

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A: That is correct, Commissioner.

THE COMMISSIONER:All right.

MR BOI: Can you tell the Inquiry as to when you became aware of this SABL, the issuance of this SABL?

A: I was aware of this Inquiry, basically when the moratorium was actually launched. However, the specific lease area was not known to me, I never knew of this particular until it was on the paper by the Commissioner of Inquiry seeking submission.

Q: You mean to say you were not aware of the issuance of this particular SABL portion 323C to Koaru Resources Owners Company Limited until 10  

you saw the name on the new paper following the inception of the Inquiry?

A: Counsel, that is correct. What attracted me was the size of the permit, it was unusually huge. I was aware that Koaru Resources Owners led by Roddy HilaKoaru was doing something for his own people but I was not aware that, that will cover as wide as ours until I saw the size of the land on the paper then I started to consult my executives.

[1:53 pm] Q: Prior to the issuance of the SABL there is a requirement that there will be land investigations be conducted by government officials.

THE COMMISSIONER:Before you get to that counsel, where would the land that you say belong to the 12 clans where they formed themselves into the ILG 20  

you represent, where would that portion of land be located in portion 323C?

A: It is closer to Cupola but to the east.

Q: Cupola. Cupola is a village?

A: Cupola is a mountain close to Kerema town.

THE COMMISSIONER:You were going to say something MrKanu?

MR KANU: Commissioner if I may be off assistance to the Commission. We have not sealed the area, perhaps the gentleman might be shown.

THE COMMISSIONER:Thank you, I will appreciate that assistance MrKanu,thank you. MrBoi, obtain the assistance of MrKanu or Major Kanu so

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look at the map and if it is relevant show it to the witness. Major Kanu which one would be of relevance?

MR BOI:There are two copies.

THE COMMISSIONER: Two copies, could I have one please. All right.

MR BOI:You just have a look at this map, map of the SABL area and you point to the Commissioner where your land is situated? I mean the 12 tribes or clans?

A: It is right here Sir.

THE COMMISSIONER:Those are the hills leading into the hill on which Kerema town is patched?

A: Yes Commissioner, this area. 10  

Q: There is the Epo Plantation.

A: That is correct. And my village is Silo number one and Lovera on the other side.

Q: Silo number one, yes?

A: With Lou just in between our villages and Kerema town.

Q: Yes. And the first river that is running from the coast coming back from Kerema, what is the name of that river?

A: That is correct. We call this, because it actually comes down to Silo river, there are two bridges there we sometimes call Miaru but that is the same river connects up towards Cupola somewhere close to Epo Plantation we 20  

call it Pijara. Nowadays they call it waraKerema or whatever but the real name is Pijara.

Q: All right now, where is portion 323C? MrKanu, you got any delineation clearly marked in a colour, shaded in a colour?

MR KANU:Perhaps MrKoaru is in a position to assist the Commissioners.

THE COMMISSIONER: Yes. MrKoaru, can you be able assist the Commission?

[1.58 pm]MR KOARU: Yes, portion 323 is way out of the area that is being described by Mr Lora. In fact portion 323, we will colour it and give it to Mr Commissioner.

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THE COMMISSIONER: I will appreciate that. MR KOARU: So that, yes, includes--- THE COMMISSIONER: Take a point which I recognize immediately there. MR KOARU: Okay, from here--- THE COMMISSIONER: Tauri/Meporo. 10   MR KOARU: Meporo River. THE COMMISSIONER: Yes. MR KOARU: Meporo River, come easterly direction to a place where it is pencil-marked Horehape and in those northerly directions, or north direction towards the Soa mountains, up towards and then it cuts across in a westerly direction to dark hills, and then cuts down to a place called Kepamai. I mentioned that this morning. 20   THE COMMISSIONER: Yes. Is it Kepamai No 1? No, that is Karama. MR KOARU: Karama is not included. THE COMMISSIONER: No. MR KOARU: And what he is saying is not included as well. He is about 20 miles out. His is 20 kilometres outside of Meporo, the actual precise area is Meporo. 30   THE COMMISSIONER: All right, thank you, MrKoaru. Let me just - you heard what MrKoaru described on the map. A: Commissioner, I followed what Mr Koaru has said. This map was as well as the boundary of the permit was not made available to us; I enquired with the Commission of Inquiry. It was not available at that time when I requested to ascertain the boundary itself as to where it will cut off.In light of the absence of the information given at that time, the only point that I actually got was the name Cupola. Cupola is not in the east, Cupola is to the west. 40   Q: Cupola or Capala?

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A: Cupola; Cupola settlement.It has been written as Cupla. So that is where we got our interpretation from – given that it was not---

Q: Based on that interpretation, you then deduced that this could have

involved your land which is more the ranges that runs all the way to the hill on which Kerema town is patched?

A: That is correct. Q: And which obviously it is not within the portion that we talking about in 10  

this SABL? A: Given the explanation that MrKoaru has now indicated and if it holds

water, then I agree that our ILG is outside of the permit, on the condition that what he is indicating is the truth.

Q: You have this recourse; you have this recourse, subject to your further

investigations if indeed this particular portion does not include any of your land then obviously you will withdraw your objections because you have no interest in this other land comprised in that particular SABL? 20  

MR BOI:Commissioner, in view of the regulation by Mr Koaru, it might be – I apply to stand this witness down. THE COMMISSIONER: It is the correct thing to do,but he is invited to return. You are invited to return if your further investigationsconfirm that any of your clan land or your 12 clan land, 12 membership clans’ land is involved in Portion 323C, but otherwise MrLora you can step down. A: Thank you Commissioner. May I say a password before I stand down? 30  

Just a generic statement whether our ILG is within the permit or other villages or affected landowners---

Q: You mean whether your combined clans land is within the permits or

rather within the lease? A: That is correct, within the lease. The important point for us or message for

each of us especially those of us who are well educated to inform our own people what the subject matter is; inform them also of what the implications are and allow them to make judgment and make decision and 40  not to impose upon them what we think is right. Having said that, it is also grossly wrong for any of our educated people, us to hide the truth of the intentwithout disclosing them to our own people.

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[2:05 pm] It is morally wrong and culturally wrong. We are educated to an extent

that the intention is to serve our own people. Having said that, thank you Commissioner, I stand down.

THE COMMISSIONER :All right, you are excused. WITNESS WITHDREW

10   MR BOI:Commissioner, the next witness is Mr Lesley Mark from Laripi Incorporated Land Group. LESLEY MARK, Sworn:

XN: MR BOI MR BOI: Commissioner, he represents also one of the ILGswho have made 20  representations to the Commission. Witness, for the record, clearly state your name and your official position? A: Thank you Commissioner. My name is Lesley Anton Mark. I am self-

employed, I am here to represent my major landowner clan from Koaru village, Lavipi ILG number 8303.

THE COMMISSIONER:Lavipi is the name that represents your clan as well? A: That is right, Lavipi. 30   Q: Same name for the clan? A: Thank you. Q: Yes? A: Mr Commissioner, I will be basically giving oral submission. Q: Please. 40   A: Basically, I want to highlight from day one, we believe Lavipi ILG believe

the whole case was fraudulently structured, incorporated up to this stage.

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And let me put on record here for the purpose of this Commission of Inquiry, Lavipi ILG never and will never give consent to this SABL as far as portion consent matters. Let me give a brief background to where MrKoaru comes from and how the name, Koaru is part of this SABL. Mr Commissioner, Mr Koaru originated from Silo village. His grandfather was a plantation worker in my village in Koaru and that is how he has got that name Koaru. From day one when this agreement or this project was formulated, we were never party to it nor do we have any idea about this party, about this agreement, about this project. It came to light in 2008 when I first came across, Mr Commissioner, this agreement which I have 10  here just for the attention of the Inquiry, that we managed to come to know what MrKoaru and his purported co-heads were doing. When we subsequently went into this agreement here, we found out that we were already – our consent were duly given when we never did give any consent for this SABL.

Q:What date is that agreement ? A:I have a copy of a draft agreement between Papua New Guinea Forest

Authority, Department of Agriculture and Livestock, Pacific International 20  Resources and Gulf Provincial Administration.

Q: Perhaps Counsel we could have that tendered first so that he can speak to

that agreement as well as other matters. Can you organize tendering of that agreement?

MR BOI: All right, witness you are able to indentify this document – Kerema District Agro-Forest Project Development agreement? A: Yes, it is a draft agreement. 30   Q: Is it a draft or? A: It is not signed, we believe that, that agreement has been signed, that was a

draft copy of it. Q: Okay.

[2.11 pm] MR BOI: Yes. But you became aware of this document? 40  A: Yes, in 2008. Q: Some of your views are based on this document?

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A: Exactly, because the land in question is the land that we proclaim

ownership to Meporo and my land – my ILG is Lapipi. Q: How did you come about to get access to this? A: This copy was given to us by somebody from the Department of

Agriculture. Q: Commissioner, the witness has attained his document from Department of 10  

Agriculture, he says, and--- THE COMMISSIONER: It affects his land; it is relevant. MR BOI: Sorry? THE COMMISSIONER: It affects the matter of his claim to the land. MR BOI: Yes. 20  THE COMMISSIONER: And he claims to be from Koaru village and therefore that document is relevant. I will receive it. MR BOI: Commissioner, I tender this document as part of the record. THE COMMISSIONER: You will endeavor to make copies later? MR BOI: Yes. THE COMMISSIONER: To Mr Kanu and Mr Koaru? 30   MR BOI: Yes. THE COMMISSIONER: All right. A: Thank you, Counsel, that is the only copy I have. MR BOI: It cannot be numbered. THE COMMISSIONER: Can I have it, please? Witness, just confirm the 40  heading and other matters I will raise with you. A: Yes.

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Q: That the document you seek to tender or you will be tendering, rather, is

an agreement between Papua New Guinea Forest Authority, the Department of Agriculture and Livestock, and Pacific International Resources (PNG) Limited, and Gulf Provincial Administration.

A: Yes. Q: And their title is Kerema District Agro-Forest Development Agreement? 10  A: Yes, Commissioner. Q: The copy you have here is in draft form and not signed? A: Yes, Commissioner. Q: And which you will be referring to in raising your objections to this

particular SABL, namely portion 323C, Kukipi, Gulf Province? A: Yes. 20   Q: That is the document? A: Yes, Commissioner. Q: Which you handed up? A: Yes, Commissioner. Q: Alright Counsel, I will accept this as exhibit, for what it is worth, I will 30  

accept it as exhibit – where were we with the last exhibit? MR BOI: F, Commissioner. THE COMMISSIONER: So, this will be exhibit G - Koaru Resources Owners Limited, Portion 323C, Gulf Province. [EXHIBIT G –KEREMA DISTRICT AGRO-FOREST DEVELOPMENT AGREEMENT – PORTION 323C, GULF PROVINCE – KOARU RESOURCES OWNERS LIMITED, PORTION 323C, GULF 40  PROVINCE]

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THE COMMISSIONER: Associate, hand it back to the witness. When you finish referring to it - it is now an exhibit before this Commission of Inquiry – when you finish referring to it, you have to hand it back. A: Thank you, Commissioner. Commissioner, I will just give you the

background of the set up in Koaru village. We have four major clans in Koaru and out of the four major clans, Lavipi clan is the major landowner clan.

We are the fourth generation of Lavipi clan. Mr Koaru is the second 10  generation of his Lavipi clan, I mean, especially his own village, his own family. Mr Commissioner, if you will allow me to continue. (Interjections by Mr Koaru)

Q: Mr Koaru, I will have to warn you that it is his turn to give evidence and he will not be impeded.

MR KOARU: Sorry, Commissioner, because I am of the view that he is getting into a land dispute. 20   THE COMMISSIONER: That is a matter I will decide eventually. I have already informed the audience. A: Thank you, Commissioner. I just want to give you the set up to have a

basic idea why Koaru SABL is in question. Q: Witness, I will hear you. A: Thank you. 30   Q: It is up to me to determine eventually whether this is a land dispute or I

can take matters of relevance from out of that land dispute and aid me in what I have to determine under our Terms of Reference.

A: Thank you. Q: So, please proceed. A: Lapipi ILG, we incorporated our ILG in 2008. When this matter came 40  

into light, we decided to incorporate our ILG. When we went to Lands Department, to our horror, we found out that our ILG was already registered by persons unknown. I have a copy here from Warner Shand

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Lawyers who had acted incorporating my ILG and other subsequent ILGs. Whether they are ghost ILGs or not, I do not know but I believe purposely for the purpose of this SABL. When we inquired, they informed us that it was already registered. We found out all the details were exactly the same except the signatories which were different people’s signatory. So the Lands Department advised us to do a report in there to ensure that we were the rightful genuine Lavipi clan members or leaders, and I have a true copy of the ILG Certificate and one is the fraudulent one that was incorporated or registered; and the other one is the proper registration that myself and my executives did. 10  

[2.17 p.m.]Q: Counsel, assist the witness. Counsel, be on your feet, assist the witness as he takes us through different documents stop the witness, have the different documents properly tendered so that we are on track.

MR BOI: Yes, Commissioner.

THE COMMISSIONER: Begin with the first one alleged to be fraudulent certificate of registration of an ILG and then proceed to the one that he claims to be the genuine authentic one.

MR BOI: Yes.

A: Commissioner, the first registration of our ILG was done on the first day of 20  

March 2002.

THE COMMISSIONER: 2002?

A: 2002.

Q: Hand on. Two ILGs registered in the same name?

A: Yes.

Q: Which name is?

A: Lavipi. Lavipi ILG.

Q: Yes.

A: Registration number 8303.

Q: Dated? Date of registration? 30  

A: First day of March 2002.

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Q: And this one you say?

A: The proper registration that myself and my executive did was on the fourth day of ---

Q: No.

A: Sorry?

Q: On that previous one still.

A: Yes.

Q: The one registered on 1 March 2002.

A: 2002.

Q: And this one you say? 10  

A: That was done by persons unknown to us.

Q: Unknown to you. Alright, hold on. Alright, second one?

A: The second one was registered on 4 December 2008.

Q: Registration number?

A: Every particulars of this ILG registration is the same except that it was ---

Q: Also 8303?

A: That is right.

Q: 8303. And dated, sorry, 4 December 2008 and registration?

A: 2008.

Q: And this one? What do you say about this one? 20  

A: This was probably done by us, the executive of Lapipi ILG.

Q: Yes? Now, Counsel, the first one, the Lapipi Incorporated Land Group registered on 1 March 2002, ILG registration number 8303, Certificate of Registration is to be received first. Could you have it tendered up and that will be exhibit H. Counsel, note it as exhibit H – Koaru Resources Owners Limited, Portion 323C, Gulf Province.

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[EXHIBIT H – LAPIPI INCORPORATED LAND GROUP REGISTERED ON 1 MARCH 2002, REGISTRATION NUMBER 8303 – KOARU RESOURCES OWNERS LIMITED, PORTION 323C, GULF PROVINCE]

THE COMMISSIONER: The second, exactly the same incorporated land group, namely Lapipi ILG, registered on 4 December 2008, registration number also 8303 will be received as exhibit I – Koaru Resources Owners Limited, Portion 323C, Gulf Province. Would that be correct, exhibit I?

MR BOI: Yes.

THE COMMISSIONER: Alright, those are now marked. 10  

[EXHIBIT I – LAPIPI ILG REGISTERED 4 DECEMBER 2008, REGISTRATION NUMBER 8303 – KOARU RESOURCE OWNERS LIMITED, PORTION 323C, GULF PROVINCE]

THE COMMISSIONER: Please proceed witness.

A: Thank you Mr Commissioner. I would like to further state here for the purpose of this Inquiry, we, the Lapipi Clan, have not given our consent. We are against this project. We are not against the development taking place in our area, we are against the way this project was formulated, planned and it is a blessing that the political situation of the day changed, that is this project was never executed. Had the previous administration 20  

was in place, a lot of people from Kaipi Melari would have lost their land. SABL G115 covers Kukipi all the way to Cupola. If Mr Koaru is talking about the portion of land that is in question from East Meporo to Kepamai, then he is talking about our land. And we have not given consent to our land.

[2.23 p.m.] How come he is saying that the landowners have given them the okay to have this project done?

THE COMMISSIONER: Show the witness the map please. And pass a copy up to me. Mr Mark, take a look at this map. First of all you noted that this map was produced earlier by Mr Koaru when we were dealing with the other 30  

witness?

A: Yes.

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Q: And it has been shown and I think it is now shaded in that light yellow the particular SABL area. First of all can you show where Koaru village is?

A: Mr Commissioner, Koaru is right over here.

Q: Yes. And you say the shaded area is your people’s land?

A: Yes, Mr Commissioner.

Q: All of this shaded area?

A: Yes.

Q: Counsel, any questions arising?

MR BOI: Yes. Now, Mr Mark, can you advise the Inquiry when you became aware of this SABL, the existence of this SABL? 10  

A: Commissioner, I first became aware of this in 2008 when I first came across the copy of this agreement and I subsequently went home to Meporo and did an awareness with my clansmen on about May 2008 and explained the content of this agreement and to everybody’s surprise, nobody knew about this agreement. That all along this was done secretly and had he not come up with a copy of this agreement, nobody would have known what was really happening behind the closed doors. As a son of this land, I would not sit down and watch and just do nothing about it. After that I started organising with my clansmen, to start protesting about this SABL. At that time we did not know that SABL was granted. We 20  

thought it was in the infant stage of the SABL. But as the years draw on, we came to know about the in-depth of this agreement, and what the people they are about to lose. Mr Commissioner, we could not lose our land for 99 years, let alone 90 years now that we have come to know in this Inquiry. Being an educated son from the clan, let me put it on record that Mr Koaru Kwaru always say he was the only educated son from Koaru village. He was their highly qualified lawyer. He used us as a means to getting our people, to suppress them and that has affected all my clansmen here. They will testify to that. Thank you.

MR BOI: Okay, witness. Mr Mark, we will just stick to the granting of the 30  

SABL. We will keep the evidence---

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[2.28p.m.] THE COMMISSIONER: I want to ask you a question. Are you and Mr Koaru both from the same village?

A: Yes, we are from the same village. I am from mix parentage. My mother is from Manus and my dad is from Koaru.

Q: Hold on, I will ask security to remove people who are – no, security, you will not remove them yet. I will warn them only.

A: Thank you.

Q: Alright, keep your tempers down. Let us deal with this Inquiry properly.

A: Thank you Commissioner.

Q: In fact, after you hear Mr Mark and if you wish to counter some of the 10  

things he has said, you can submit your name to Mr Boi and we will hear you; we will not shout you down. This is not a court of law, this is a Commission of Inquiry exercising semi-judicial powers, you know half judicial powers and we will be a bit flexible about these things.

A: Thank you Commissioner. While I have the table, may I have peace in presenting my case.

Q: While you have the ears, yes.

A: Thank you. I will not drag it on, Mr Commissioner. Let me just give a copy of a letter and I will end my submission. I have a letter dated 14 August 2008 from one of our senior elder, Mr Jack Posu, he is from the 20  

same clan as Mr Koaru. Let me just highlight the headings of it. It is written to---

Q: Start with the date. What date is that?

A: Thank you, 14 August 2008 by Mr Jack Aipi, Koaru Village, Malalaua, Gulf Province. It is addressed to Dr Chau Chee, Pacific Investment Resource Limited, Beijing, Peoples Republic of China. If the Commissioner can allow me, I will just briefly go through.

Q: Please. How many pages is it?

A: It is one, two.

Q: Alright, go on read it. 30  

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A: I will just read the relevant part. “Regarding brief report on false pretence and representation by Mr Roddy Koaru and Koaru Resource Company Limited---

Q: You better let me have that letter and read it first before you go to the records.

A: Thank you.

Q: Counsel, I will just take a few minutes to read or rather a minute to read this. Mr Mark, I do not feel it is appropriate for you to read it out for the records but you can have it tendered in confidence and we will make a copy available to Mr Koaru. 10  

A: Thank you. Mr Commissioner ---

Q: You just restate the date of the letter.

A: The letter dated 14 October 2008.

Q: And the author of the letter?

A: The author of the letter is Mr Jack Aipi, Kaipi clan and principal landowner.

Q: And who is the letter addressed to?

A: The letter is addressed to Dr Chau Chee, Pacific Investment Resource Limited, Beijing.

Q: And do you agree with me – I have sighted the letter – do you agree with 20  

me that basically the content of the letter is objection to Mr Koaru representing the whole of the Lapipi clan?

A: Exactly.

Q: In the proposed project with Pacific International Resources (PNG) Limited?

A: Yes Mr Commissioner. The author of the letter is from the other clan that Mr Koaru also belongs to.

Q: And the author of the letter is also from the other clan of which Mr Koaru is a member?

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A: That is right.

Q: Alright, I will have the letter tendered without the contents being read out on the records, and if I find publicly disclosed, for the purpose of protection of individual’s reputation which may be adversely affected by the contents of the letter. Counsel, proceed to have that handed up. What exhibits will it be?

MR BOI: Exhibit G, sorry, H.

THE COMMISSIONER: Okay, that will be Exhibit H – Koaru Resources Owners Limited, Portion 323C, Gulf Province.

[EXHIBIT J – LETTER BY JACK AIPI – KAIPI CLAN DATED 14 10  

OCTOBER 2008 TO DR CHAU CHEE OF PACIFIC INVESTMENT RESOURCE LIMITED – KOARU RESOURCES OWNERS LIMITED, PORTION 323C, GULF PROVINCE]

THE COMMISSIONER: Mr Mark, you better clarify because we may be receiving witnesses or one witness or two witnesses who will want to challenge your status in Koaru village. So you better give some evidence as to your parentages.

[2.35 a.m.]A: Thank you Mr Commissioner. My dad is a full blood Koaru man and my mum is a Manus. And any given day if this Commission of Inquiry should require I can provide my DNA to prove beyond all reason I am also a 20  

Koaru man. Thank you.

Q: Have we got that scientific ability here?

A: I will have to go to a land to prove that.

Q: It is good to see you all laugh a little. That is good. The customs of the Koaru village area and generally Gulf is inheritance by patrilineal system?

A: That is right.

Q: Alright. That is all that is necessary.

A: Thank you.

Q: Any further matters, Counsel?

MR BOI: Yes. 30  

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THE COMMISSIONER: We do not have the benefit of the ---

MR BOI: Time?

THE COMMISSIONER: No. We have all the luxury of time, there is no worries about that. For today, anyway. We do not have the benefit of the Lands file so we are making do with this very, probably one of the most crucial objectives to the SABL and we cannot point to the so called statutory declaration as to custom relating to native land tenure because the Department of Lands and Physical Planning has seen fit not to have this file, the file on this particular SABL made available to us. And that will be a matter, Counsel, you will take note of and a little bit tougher action needs to be taken. 10  

MR BOI: Yes.

THE COMMISSIONER: So we cannot really verify with Mr Mark as we were unable to with Mr Koaru and also Mr Maso, the matter of consent. Because ultimately, Mr Mark, we are talking about consents in the satisfactory manner to surrounding customary rights of the customary landowners, authentic ones that is, prior to the grant of such leases, and secondly other related matters, including also subleases. So we are handicapped with that. So Counsel, perhaps you could take us through other evidence that is necessary from Mr Mark and we will have him also stood down subject to being recalled in the event that we secure these documents. 20  

MR BOI: Just for record, Mr Mark, are you aware directly or through other sources as to whether there was a land investigation carried out by Government officials over this particular land?

A: No, I am not aware. I do not have any information nor record regarding that.

Q: Was there any consent, to your knowledge, was there any formal consent given by members of your tribe or yourself or your clan, Laripi, to the lease of this land to the State?

A: No, sir. We have not given our agreement; we have not given our consent. In fact, we want the sublease terminated. 30  

Q: Commissioner, I have nothing further ---

THE COMMISSIONER: At this time?

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MR BOI: For the moment, yes.

THE COMMISSIONER: For the moment?

MR BOI: Yes.

THE COMMISSIONER: I have a number of questions. Mr Mark, you did say that you are not against development?

A: No, sir.

Q: If Mr Koaru, that is Mr Roddy Hila Koaru, and others who have brought this matter to the extent of having an SABL granted as already had been done, and if they rectify or if they undertake or do, commence the rectification process to ensure that there is full participation, full 10  

knowledge and participation by your people, would you consider continuing with this SABL?

A: Mr Commissioner, from the onset, I personally as a Koaru son, I do not oppose any development coming to my area. If Mr Koaru had engaged us in the first place and worked with us in the first place, and we had done this thing proper, we would not have this SABL here today. But that has not been the case. And that is why we are fighting. Thank you.

[2.35 p.m.]Q: Let me be a bit more precise. If Mr Koaru, yourself and the others have to meet and number one arrange for all ILGs who should be incorporated or registered, be registered and participating; number two, ensure that the 20  

landowner company has already in place has all its shares issued to all these ILGs and they become shareholders of that landowner company; and three, a board of directors appropriately appointed to represent all the ILGs, including yours and yours, would you be prepared in those circumstances to move the development forward?

A: Mr Commissioner, if there was a public company that incorporated all the ILGs and landowners concerned, yes; and if the project is in the best interest of the people, yes. Thank you.

Q: I am sure Mr Koaru takes note of that.

MR KOARU: Thank you. 30  

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THE COMMISSIONER: Because this Inquiry is not only to reveal defects, irregularities, losses but in the course of which you take note of these irregularities or defects and if you embark on a correctional process now, the final recommendation might come out differently and probably more favourably. So please do not hesitate to talk among yourselves; stop fighting.

MR KOARU: Thank you.

THE COMMISSIONER: Mr Mark, until we have to recall with regard to the specifics that are not available, you have heard, particularly from the Department of Lands and Physical Planning, we may need to recall you but in the meantime you are excused. 10  

A: Thank you.

THE COMMISSIONER: Thank you.

WITNESS WITHDREW

THE COMMISSIONER: Pass that to Counsel will you. That has become exhibit. They will make copies for you as well. Counsel, any other ---

MR BOI: We have the next witness who has not formally made any submissions to the Inquiry but has indicated he would like to give some evidence to the Inquiry because he was mentioned in Mr Koaru’s evidence 20  

earlier on this morning. He is Mr Gillis Kerekere from Lelefiru village.

THE COMMISSIONER: Please have him sworn.

MR GIBEST KEREKERE, Sworn:

XN: Mr Boi

THE COMMISSIONER: Counsel, proceed.

MR BOE: Witness, for the record, can you give your name and where you are from and your tribe.

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A: My name is Gibest Kerekere. It is spelt G-i-b-e-s-t K-e-r-e-k-e-r-e. I am actually from Ikiviri. My original village is Ikiviri; the real Ikiviri currently known as Lelefiru. Lelefiru was the name that was given to the Ikiviri people because of the cranes that sat on an island, the egret. But the real name of that place is Ikiviri. I hold a Bachelor of Law Degree from the University of Papua New Guinea. I entered the University of Papua New Guinea in 1982 and I graduated after a long period of time in 1995; 1982 to 1995. I have been working with Telikom. After graduation I was with the Lands and Survey – I was in charge. I was actually in many other parts of Telikom but when I finally left Telikom I was the Manager for Site 10  

Management that was responsible for land acquisitions in all the provinces throughout the country, 400 sites plus. I was in charge of all repeaters and exchanges and I travelled extensively in the Gulf Province by chopper and I am very familiar with the land marks that we are talking about. Unfortunately, I do not have access to the particular SABL area that we are actually referring to in this particular Inquiry. But I understand that particular area covers my village and the communal land that my people represent or we represent.

THE COMMISSIONER: Will it help if we show you the map that had been produced of the area? 20  

A: Yes, it would be. Mr Commissioner, what I am basically interested in – my question is basically related to the actual area mass that this particular SABL Inquiry is actually talking about. Because a lot of people in the Gulf Province, from all the way from Kerema to my village and past Kukipi are not very much aware of what particular area are we actually talking about. For instance this morning earlier on when my brother was giving evidence in this Inquiry, he was asked what particular area did he represent and he was of the mistaken belief that his land was part of this SABL but then he threw some questions basically established that maybe perhaps his land was part of this Inquiry. There is a reason why I need to – 30  

we need to be satisfied as to what particular area we are talking about.

THE COMMISSIONER: Your brother was the third witness, Mr Lora. Is that him?

A: Yes, Mr Lora.

THE COMMISSIONER: Show him the map.

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A: Mr Commissioner, my question is basically, is this the shaded area the portion of the land that we are actually talking about that is covered under this Inquiry, the SABL Inquiry or does this shaded area the SABL Inquiry extend all the way to Kerema-Murua and all the way back to Kerapo and Malalaua and Kukipi?

Q: Alright, I am in a situation you are in. I have absolutely no idea. Counsel, have our people provided the coordinates to the communication section of the Prime Minister’s Department for the satellite image?

[2.41 p.m.] MR BOI: I have talked to Maya in relation to this over lunch time and she told me that she was going to organise that and they were going to super-impose it 10  

on to the map.

THE COMMISSIONER: I do not want that professor of hers. I want her to give it to Mr Mobiha of the Prime Minister’s Department.

[2.49 pm] MR BOI: Very well, that is what Maya was saying.

THE COMMISSIONER: Well, counsel, this is my instruction to you. We will confirm that. I suppose your further evidence will be subject of that confirmation.

MR BOI: Yes.

THE COMMISSIONER: So ---

MR BOI: Perhaps, because the other witness we will also be objecting could be 20  

in the same boat. We will have to confirm the ---

THE COMMISSIONER: Well, he can, this witness can confirm if the other one who was objecting is in a similar situation. Mr Kerekere ---

A: Yes.

Q: In your statement so far is really inquisitive of the actual area and for you to be able to determine if your area is included in the SABL or not.

A: Exactly, Mr Commissioner.

Q: So in that regard we should not proceed any further. I think all those who want to come in and give evidence – sorry counsel, you can sit. All those who are going to come and give evidence because they do not know and 30  

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they only became aware of this proposal, well, project development proposal and the issued SABL, namely, portion 323C are to find out if your land is actually comprised within that SABL or not. I think all of you should just bear with us until about Friday morning, by which time we hope the coordinates would have been provided to the Prime Minister’s Department, the section that is involved on satellite images. And when the coordinates are provided on each of the SABL, we will get the exact area. We have requested that last week and it had not been forthcoming because our people were unable to provide these coordinates. Now, if it is not available at the end of this week, that will be 10  

a matter to be dealt with next week. I am saying next week because I have been informed and I know now that we will not proceed to West New Britain next week.

A: Mr Commissioner, if you may bear with me. My name was actually mentioned in one of the evidence that was given before this Inquiry with respect to my consent to the project. Okay, I am specifically here to rebut that particular statement that was made by Mr Koaru. But I am actually here on assumption that Meporo which is a communal land that is basically shared by my people and the people from Koaru, because historically they have the same genealogical ties until the migrations 20  

came and all these. Everybody has a history. And we are no different from the Koaru people and they are not different from us because we are related to them genealogically. And when Mr Koaru says that we are landless people, he has not actually identified our history. He does not know my history, where I came from, where my grandparents came from, where my forefathers came from. A person should not claim to be a landowner and discard every other person and claim that he owns all the other communal land that basically compiles whole of that area that we are talking about in the SABL lease and give ownership to that land to a particular family that has incorporated as a resource owner landowner 30  

group; a particular family not the communal people. That is the contention that I need to put before this Inquiry.

Q: I am hearing you on this. Yes?

A: When you look at the composition, I have been advised and reliably informed, when you look at the Koaru Resource Landowner Company, that resource landowner company belongs to one particular family. The

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directors and the shareholders are the Koaru Fose family and their immediate kin. That land – that company does not represent any other persons who communally own land within the SABLs area.

Q: Counsel?

A: According to our customs, the ---

MR BOI: Commissioner, I was going to ask the witness questions in relation to the consent and the knowledge of the SABL but in view of the situation we have where ---

THE COMMISSIONER: You could ask him generally without the benefit of any documentation. 10  

MR BOI: Very well. Mr Kerekere, at about what time did you become aware of this, the existence of this SABL?

[2.55 pm] A: In fact, I was aware of it at the very early stage because I have very close associations with the people in the Gulf Provincial Government, some of them went to school with me. I actually inquired with them about the documentation with respect to this particular project, because I said that I was not aware of it, I wanted to be informed of it. They said they were going to give it to me, they never gave it to me. So I drew the conclusion that these people were actually trying to be secretive about this whole thing; exercise, because none of these documents have been made public 20  

to anybody within the vicinity of the project SABL. They have been very secretive until the Inquiry has actually brought up before this Commission to basically determine what the purpose of the whole SABLs was and who was actually included in the consent for this particular project.

Q: To your knowledge, are you or have you been made aware of any land investigations undertaken by government officials in relation to this parcel of land?

A: Counsel, I am not aware of any land investigation report. I am very familiar with what land investigations reports are. They eventually lead 30  

to Certificates of Alienability and then once the land is basically declared, but with the SABLs, actually I worked with SABLs, not necessary SABLs, but section 11 of the Land Act which basically allows the

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landowner to give his land; customary land, it does not come under the Land Tenure Conversion Act. It is under the – under section 11 of the, sorry, but Mr Commissioner, if you can allow me.

THE COMMISSIONER:Go ahead, yes.

A: Section 11 of the SABL - under section 11 of the Land Act, basically allows customary land to be given to the State by the customary landowners. It does not come under the Land Tenure Conversion Act. It basically direct leasing of the land to the State to ---

Q: Nor is it an acquisition by the State.

A: It will become an acquisition once the State accepts it and gives a good 10  

title.

Q: No, no, no. It is not an acquisition either. It is a Lease-lease back.

A: Yes, it is a Lease-lease back.

Q: All right, do not dwell on it. We know what SABLs are all about otherwise we will not be holding this Inquiry.

A: Yes. But I am actually ---

Q: No, you do not waste my time going through that.

A: Sorry Mr Commissioner.

Q: With respect, you have been asked, answer the question. Was there any land investigation? 20  

A: There was no land investigation conducted that I am aware of.

MR BOI: Are you also aware of any public hearings, public consultations been conducted by proponents or the Lands Department or any government agency in relation to this SABL or the proposal to have a Lease-lease back arrangement for that particular piece of land in among the villages and hamlets covered by this SABL, including your Lerefiru?

A: I am not aware of any discussions held by the developers nor the project proponents with respect to my people concerning the acquisition of this particular area for the SABLs project; the Agro Forestry project.

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THE COMMISSIONER: This process may have taken place between 2006 until now. In 2006 were you still employed with Telikom?

A: I was employed with Telikom. But why I am actually saying here is that Mr Commissioner, my people were not ---

Q: Could it be possible that because your employment engagements took you everywhere that you were unaware of what was going on in your village?

A: No, Mr Commissioner. Why I am saying here is that my people were not alerted to the fact that there was a land investigation report which took place or they were not a party to that investigation. Because my people 10  

are basically isolated and they were basically told that they are not landowners of the Meporo area where the project is going to take place by Mr Koaru.

[3.00 pm] MR BOI: If your people were isolated and not involved then, obviously they never took part in any process leading up to the granting of the SABL. A: No Counsel. THE COMMISSIONER: Can we have the maps on again to the witness. You see that shaded area there? That is the map of that area leading right up to 20  Kerema Township. Shaded in light yellow up there, that is alleged; let me use the word “alleged”, alleged to be the SABL area within Portion 323C. You said, that is your land as well. Doyour clan have any form of customary ownership to that land? A: Mr Commissioner, I understand that usually when these matters were --- Q: Just look at that map and tell me if any of your land is in there? A: I am going to answer that question but before --- 30   Q: Please get to it, I have not got all afternoon. A: The issues here are that this area is still contentious, okay as to customary

ownership, the area is too contentious. We can argue that it belongs them; they can argue that it belong us, yes ---

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Q: No, that is not – that is the whole point. I am not here to hear any customary land dispute. You are contending; that is what you should be saying to me. You are contending that the customary ownership does not lie with Mr Koaru’s people, exclusively.

A: Exclusively, yes. Q: Now, where are you located on that map? A: This is Lelefiru. Ikiviri is at the back. 10   Q: The original village. A: The original village, yes. This is Koaru okay. We share a common

boundary. The Meporo river is, according to folklore is basically the boundary between where they will go and where we will go, okay. But we own this land communally, both the Koarus and us.

THE CHAIRMAN: Right, where do you yourself reside now? 20  A: I reside in Port Moresby but my whole family live in the village. THE COMMISSIONER: So your family, that is what I should be asking. Your family, where would they be residing? A: They are in Lelefiru. THE COMMISSIONER: Originally--- A: Ikiviri, yes. 30   MR BOI: Commissioner, I have no further questions for this witness because I was – only in relation to consent and the participation of his people. THE COMMISSIONER: Yes, we cannot be assisted without this document. But he has answered that as far as his group is concerned, there was no public meetings which is a requirement for - they used the word “awareness” but it is an inappropriate word. It should be public meetings and landowners be properly informed and authentic consent be obtained; willing and participating consent into the - not to the project but project is part of the awareness that 40  should be carried out earlier and when consent – when they are tasked to obtain the consent, is to be performed, the Department of Lands and Physical Planning people should actually be there to authentically receive each individual

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landowner by name and signature. Not pass through the landowner executives and the ILG executives. As we have seen elsewhere, they actually forcefully obtain some of these consents. MR BOI:I am finished with the witness and will he be excused? THE COMMISSIONER: Yes, with subject to - Mr Kerekere, your concern about the actual coordinates to show exactly the boundaries of portion 323C is not only important to you and your people but important to our Inquiry and we have been unable as yet to get the exact coordinates so that we confirm that. 10   A: Mr Commissioner, my concern is simply because the repercussions, we

would be basically setting ourselves out in the assumed area and all of a sudden the Developer should come in and get graders and chase us out of the place and what is happening. So these are the kind of issues that – it will not be good for the project because it will lead to other more serious consequences later on okay, and who is going to be responsible for this? Mr Koaru?

THE COMMISSIONER: All right, that is noted. Mr Kerekere, you may step 20  down and subject to - can you return on Friday morning. Hopefully we will get the confirmation through the satellite images and other methods. But return on Friday morning 8.30 and we will inform you if we have it and we can proceed with you further, if not, it will be sometime early next week. You may step down now. WITNESS WITHDREW MR BOI: Commissioner, I have one final witness who will give some evidence 30  in relation to the consent. We are still handicapped by location of the coordinates but still nevertheless we will call this witness--- THE COMMISSIONER: Is that witness from a village within --- MR BOI: A separate village, Moveave Village. THE COMMISSIOMNER: Is that within Portion 323C?But let us not forget, it does not matter which village they are, they may have connections with the kind of landownership system we have in Papua New Guinea – customary 40  landownership.  

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[3.08 am]So if the witness has a claim, of perhaps not direct land ownership, customary landownership, but even usufructuary interest. MR BOI: Commissioner, I have been advised that Moveave village is further out and except subject to --- THE COMMISSIONER: Counsel, you obviously did not hear me. MR BOI: Sorry. 10  THE COMMISSIONR: Mr Koaru is not a person to say if the person does not have any interest in the indicated portion 323C. Let us hear the witness himself and he can say whether he is from there or not; he has some interest in the land or not. DANIEL KASARI, Sworn: XN: WEMIN BOI 20  Q: Witness, in a very clear voice, for the record, state your name and village. A: Thank you, Commissioner. My name is Daniel Eafere Kasari. THE COMMISSIONER: Last name? A: Kasari. That is K-a-s-a-r-i. Q: Right. 30  A: I am from Moveave Village. I am a subsistence farmer from Moveave

Village, Gulf Province. Commissioner, I have no knowledge about the progress of this project.

Q: Sorry, first of all, do you have any interest in the land concerned here? A: Yes. As far as the sketch has been shown here through the Soa mountain,

I saw it has interfered my ownership right, Your Honour. Q: Yes. 40   A: Commissioner, I have ownership right over Tauri Lakekame area. The

Tauri Lakekame area was surveyed, nor inspected by the early

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government of previous New Guinea, Papua. Sir William McGregor in 1893 and having declared ownership no leadership right through Kasari which was as per British New Guinea annual report No 32 appendix G page 25 paragraph 6 which explicitly stated that, “On ascending the Mapu River to Moveave, we were joined by Kosoni or Kasari, the Chief of the tribe who accompanied the party in the inspection of this country”, that is Tauri Lakekame area. As such, our forefathers and fathers and we the present generations who maintained our land boundaries of 80 miles distance from the western river bank of Tauri nor eastern river bank of Lakekame until the arrival of the western civilization nor Governor 10  McGreggor’s inspection, because as far as McGreggor’s report is concerned, we Moveave people were hostile tribesmen, was put off by Honourable John Douglas, Special Commissioner to British New Guinea Expedition force over the death of Toaripi, coastal neighbor, teacher or Pastor in 1856 by having shot at the Eastern end of Moveave Village, killed both young and old who have died from the fire power. And the same report further stressed that the whole of this country, Tauri Lakekame is claimed by Mobiave or Moveave tribe.

MR BOI:Mr Kasari, what is the name of your tribe? 20   A: I represent the whole 12 clans of my village – Mairovera tribe. Q: What is the name of your tribe? A: Mairovera tribe. Q: You are, did you say, this particular SABL, the boundaries also

encompass your land or your tribal lands? 30  A: That is true. 80 miles from Soa Mountain, we call it Mirua. That is M-i-

r-u-a. Q: Now, if that is so, was there any meetings, public consultation organized? THE COMMISSIONER: Sorry counsel, before you go to that, just establish further the physical presence within their area that is already seen as shown on the map.Are your people living anywhere within or near that land at the moment? 40  A: My people living along Tauri Lakekame. Commissioner, the present

inhabitants are the migrants from Engans and Kameas known as – Engans

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from Menyamea, Asika, Kaimtiba, Kanabea.    They have no land within TauriLakekame area.

[3.15 pm]Q: Do you go hunting or gathering up on that land?

A: Mr Commissioner, I have already mentioned that the early Governor has

regarded ---- Q: I am not interested in the early Governor. 10  A: He is the Governor, he is the one--- Q: Do you - answer my question. Do you go hunting? A: Yes. Q: Gathering of trees and other forms of natural resources up there? A: Your Honour, as far as, you can imagine from Tauri, from the mouth of

Tauri, anyway Moveave is situated between Tauri and Lakekame. That is 20  in between – we travel from Lakekame, from the place where Murai village is.

Q: I know Lakekame. My uncle is from there. A: Mr Commissioner, we travel from Moveave to the headwaters of Tauri

and we travel from Moveave to the headwaters of Lakekame. During our forefathers and our fathersdays there has been nowhere to go to. Our restriction has been maintained until the independence of the country, what we call the freedom of movement has brought this people. Mr 30  Commissioner, we had a dispute between the inhabitants around TauriLakekame area.

Q: Land dispute. A: Land dispute. That was back in 1989. Q: What has happened to the dispute? A: The dispute was a gold mine within Lakekame area, 40   Q: Soa Mountain?

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A: No, that was between the Lakekame area but a dispute has come all through the whole area. So we had a dispute with these people that is inhabitants along the ---

Q: In relation to the shaded area of the map that you have seen, have you

registered any dispute there? A: No, we have registered this dispute generally about TauriLakekame area

because as Moveave people, we knew that place is ours. 10  Q: Show the witness the map. A: I would rather, he should have claimed here, that would be okay. He

cannot go further up there. You see. That is Tauri headwater up here. That is Moveave country.

MR BOI:MrKasari, this SABL is set to be centered in and around Meporo, Meporo River, so --- A: Meporo went inside this Soa Mountain here. Soa Mountain lies this way 20  

toward the eastern end is right into Tauri River. Q: So that shaded area is in and around the Meporo River. Are you - you

have some claim to that piece of land there or? A: This is my part of the country. This is my part of the country. THE COMMISSIONER: Obviously these people are led by MrKoaru. They have obtained a SABL title. What I would like to know is when did you become aware of the fact that they have obtained an SABL title over that area, 30  which you also now claim as your land, your tribal land? A: Mr Commissioner, that was only yesterday. I arrived here on Saturday. I

did not know about the Inquiry here until I got a copy of the newspaper and I walked here and I understood that there is an Inquiry about this place. They have confirmed this is my country. Taure is my country. The land disputes with the present inhabitants back in ’89, ‘90 Kerema Local Court which was presided by former Gulf Administrator, Mr Miai Larelake. Mr Miai Larelake had made his decision that TauriLakekame belongs to Moveave people, possession or ownership right was given to 40  inhabitants of both Tauri and Lakekame people, inhabitants.

Q: Show me the Moveave Village is on the map?

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A: Moveave is here. Q: I cannot see it so call the next name that is nearest toMoveave. A: Heavala, Vetohale, Larafuri, Terapo, Sevaiviri, Utotapara, Virivera

areMoveave people.      

[3.21 pm] THE COMMISSIONER: I see, all of these villages are Moveave people? 10  

A: Yes. Q: What about Sapeape? A: Sapeape is further down to the coast.

Q: And Uritai?

A: Uritai, Sapeape, Lawai, Lawaraipi and Larapipi.

Q: Are there any of your people located up on that shaded area?

A: Yes. 20  

Q: Which village do they occupy?

A: We occupy along Taure.

Q: No, in that shaded area. You see the shaded ---

A: The shaded area, no, that is a country.

Q: There is no person from your village located anywhere within there?

A: Some of them are around here, somewhere in here. We are river people.

Q: Counsel.

MR BOI: Just one or two more questions to tidy up. Have you been living in your village Moveave all this time or living somewhere else?

A: Yes, I have been in the village. 30  

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Q: Have you been made aware of any meetings or consultations about establishing this SABL?

A: No.

Q: No meeting, all right. Do you recall signing any papers or giving your consent for this SABL to be created? Did you sign any papers ---

A: No, no.

Q: As a landowner or ---

A: No.

Q: Some people from your ---

A: No. 10  

Q: Some people from your village or your councillors?

A: No.

Q: Your ILG chairman?

A: No, never heard of it.

Q: Never heard of him.

A: Mr Counsel, Commissioner, Mr Koaruhad related on the present inhabitants, let me inform you that the present inhabitants has no ownership nor human rights which I have already been relooked. As per MP 200 of – Waigani National Court Order number MP 200 of 1991, dated --- 20  

THE COMMISSIONER: You sure it is MP?

A: Dated 26 June 2000.

Q: 2000 and?

A: 2000.

Q: Year 2000?

A: Year 2000.

Q: So 1991, MP1991. What sort of a proceeding is MP?

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MR BOI: Miscellaneous proceedings.

A: I was represented by Soi and Associate Lawyers.

Q: Soi and Associates.

A: Associate Lawyer during the hearing.

THE COMMISSIONER: Have you by any chance have a copy of the Order with you?

A: I have.

Q: Please, may I see it?

A: Sorry, it is ---

Q: You want to get it from the back. Has anyone from the back got the, 10  

please provide him a copy of the order. This order does not help you Mr ---

A: That is the human right application, sir.

Q: Well, it does not help you. It was dismissed anyway, does not help you much with this Inquiry, not that we are going to delve into questions of your land dispute. I note however, the futility is that you are giving evidence in respect of your claim to the land that is shaded on the map. But the more appropriate venue will be to pursue it in the Local Land Court onwards.

A: Your Honour, my concern is as a human being because my people live 20  

along the river.

Q: I understand.

A: So any spill-over of the project, wastes like the oil palm, it creates more problems. That is my concern.

Q: I understand that and unfortunately, this Inquiry is not the tribunal to deal with that. I can well appreciate your traditional claim to all of or part of your land but you will have to raise it in the appropriate avenue which is the Local Land Court and you start with mediation under the Land Dispute Settlement Act. Unfortunately, I cannot deal with the matter or this Inquiry cannot deal with that matter. 30  

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A: It is okay.

Q: The fact of the matter is that the Special Agricultural and Business Lease over portion 323C which covers areas you just showed us on the map as being part of the land you claimed rights to; traditional rights to is not a matter for this Inquiry to determine. And if you are unhappy about that you can proceed to that process of mediation over customary land ownership dispute and go to the Local Land Court. But this Inquiry will not deal with that.

A: That is all.

Q: Now, I can also understand why your peoples’ consent may not have 10  

been sought.

A: True.

Q: And if you are able to establish that you are actually the traditional landowners through that process; through the Local Land Court, then you may well be able to undo the whole of this Special Agriculture Business Lease issued in favour of Koaru Resource Owners’ Limited. So you have to seek legal advice very quickly if you want. Counsel?

[3.27 pm] MR BOI: Commissioner, I have nothing; no further questions for this witness. He maybe stood down.

THE COMMISSIONER: Nor do I. Mr Kasari, you are excused. Thank you. 20  

WITNESS WITHDREW

THE COMMISSIONER: That will be the last witness but there is a matter in relation to Mr Mark. There may be a need to call a witness who would have to say why Mr Mark should not have any right to say anything about ownership. Can you, sorry, guide me on that, counsel?

MR BOI: Well, no one has come forward as yet.

THE COMMISSIONER: There is one putting his hand up now. I know your back is to him. 30  

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MR BOI: You want to call him or I have one witness who has actually been summoned. He submitted a submission as an interested person and he has been summoned and he is here and I would like to ---

THE COMMISSIONER: You would like to proceed with him first and then we can get ---

MR BOI: Yes.

THE COMMISSIONER: Sure. Please sit down. We will come to you.

MR BOI: Mr Kalasi Oavelare.

KALASI OAVELARE, Sworn: 10  

XN: MR BOI

Q: Witness, for the record, can you tell the Inquiry your name and your status, village, clan?

A: Sure. My name, Mr Commissioner, my name is Mr Kalasi, K-a-l-a-s-i, first name, second name, surname O-a-v-e-l-a-r-e. I am here, Secretary of the Koaru village ILG Incorporated. Commissioner, your Honour, Roddy Koaru, Lesley Anthon Mark and me, Kalasi Oavelare, we are from the same village called Koaru and we are brothers. No differences in generation, no customary differences, no family difference, we are brothers in one village.My concern is that Mr Koaru, when started this 20  

business of Koaru Resource Owners Company, he did not consult me and my people in the village since, I think, he established that company in 2006.2007, he went and gazetted without any documents; land rights documents, no nothing. Here, this is the gazette. Commissioner, you aware of this, Gazette Number G115, date, Friday, 3 August 2007? That is his gazette. After that I learnt that there will be something happening in our land and we cannot sit and wait; we have to secure our customary land by registering ILG. So I went ahead, Lesley did his clan already, I did the rest. And this is ILG, contains here. All certificates, all claims, all ILG numbers are in here. I submitted a copy already to the 30  

Commission of Inquiry for your investigation into this SABL.

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The land concerned is only Meporo because people from this side, they are objecting. If Roddy Koaru get this investment and to do the business he will be doing it on Koaru land. But he did not consult us; the landowners which we have incorporated our land and gazetted.

[3.35 pm] And he divide his ILG as nothing; no value at all. He should put us first as a landowner. Em save pikinini blong mipla, putim mipla ol landowner pastaim na wokim pepa wok blong mipla na kisim investment kam lo halivim mipla lo wokim. Dispela em i lukim mipla as nating; these audiences are here, they are all his brothers, family, immediate family. Commissioner, I honestly declare with the family. And that is why I am 10  

concerned because I incorporated the land, gave to the State to reorganize us. This is our customary land. Thank you.

THE COMMISSIONER: Counsel, he has mentioned a number of documents, could you now assist to have them formally tendered in some form of an order; in an orderly manner.

MR BOI: Witness, the submission.

A: Yes. This is what ---

THE COMMISSIONER: He has a gazettal and that needs not be tendered. We have that, have we not?

MR BOI: Yes, we have that. 20  

THE COMMISSIONER: But he has got ---

MR BOI: He has got gazettal of the ILG, I think and the gazettal of the SABL.

A: ILG, Commissioner.

THE COMMISSIONER: So only one document that will comprise of all its contents?

MR BOI: Yes. Sorry, is your ILG, Lijipi Oahea Land Group?

A: Lijipea Land Group, that is, we, Roddy, everybody in there.

Q: I see. So it is not really Koaru village?

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A: Meai Land Group, all in there, Laporo land group, all in there. Only Lesley went and did his and he forgot all about us, so I went and did, complete everything. So all ILGs are there Commissioner.

Q: All these ILGs are ---

A: They are certificated.

Q: Yes. You have Leijipi Heioya; how do you spell that Heioya?

A: Heioya, that is in traditional land research, group of people in a clan; Leijipi Heioya.

Q: Melaripi Heioya ---

A: Yes, and Lakoro Heioya. 10  

Q: Lakoro Heioya and Ovelare Ivei, all these are land groups from Koaru village?

A: Koaru village alone.

Q: You have all of them bind in one document?

A: Yes, they are in there, Commissioner. I think I will have a copy if you ---

Q: Yes, we have a copy.

A: Sorry, previously, I did state – sent you the gazetted ILG numbers, rather I found that one. So ---

Q: Is this the one you sent us?

A: Yes. 20  

Q: Can you just have a look and identify this?

A: Yes, this is it.

Q: Commissioner, the witness has identified his document.

THE COMMISSIONER: And that is being tendered?

MR BOI: I tender that, yes.

THE COMMISSIONER: All right, I accept it as exhibit – to be marked as exhibit I, Koaru Resource Owners’ Limited Portion 323C, Gulf Province.

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[EXHIBIT I – ONE DOCUMENT WITH ATTACHMENTS BY KALASI OAVELARE- KOARU RESOURCE OWNERS’ LIMITED, PORTION 323C, GULF PROVINCE]

MR BOI: Mr Oavelare, when you say you were not consulted, how do you mean you were not consulted on this SABL?

A: When this business dealing was going on in the village, I have the ILG in hand, being heard, Roddy Koaru was avoiding me not to consult with me. He was taking the ---

THE COMMISSIONER: Mr Boi, look at the registration date of the ILG witness is referring to, just tell me what date it is? 10  

A: It show on the front page Commissioner, letter wrote to the provincial ---

MR BOI: Yes. Mark Tolo, the Registrar’s letter says 29 September 2008. That is after the SABL was granted.

[3.41 pm] THE COMMISSIONER: Nonetheless, witness is saying there was no consultation.

MR BOI: Yes.

THE COMMISSIONER: There was no consultation and was there any public meetings held in your village?

A: Yes, it is, but we were not invited. They were in a group concerning people that are interested in business. So some of us were isolated not 20  

toso I am one of them isolated with my group. So most of these people here, sitting here, they are not registered in that land because they ---

Q: Do you know which government official attended at that particular meeting in Koaru village?

A: I did not know.

Q: Which, you did not ---?

A: No, I did not know anyone.

Q: Did you not think you ought to have attended?

A: I should have attended, notified.

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Q: So that you can express your opposition or difference?

A: Yes. But we were not told. Also in one of this letter here I will be bringing it out.

Q: What does the letter say?

A: This is about the meeting recently at Koaru village.

Q: No, I want to know about public meetings because consent of landowners usually commences with a public meeting held in the area concerned.

A: Public meetings were on but not in the village. It was in the Meporo land. Most of the elders were in the village sitting there. But they were having a meeting at Meporo where people are hardly, to walk up. 10  

Meporo is a subsistent farming area. The original village is Koaru village on the coast. Commissioner ---

Q: Are you concerned that you are not involved in the landowner company in any position?

A: No.

Q: You are not upset about that?

A: I am not upset. I am not jealous or upset about this. My only fear is that he ignored us to allow us with this ILG. That is why I am standing here.

Q: From what you are telling me, Livipi has now three different ILGs. One led by MrKoaru, second one led by Mr Mark and third one, led by you? 20  

A: Yes. May I specify to you Commissioner ---

Q: Please.

A: MrRoddyKoaru and Mr Anton Mark, did they have the same formula as what I did, just handed ILGs. Do they have the same? Have they had the same? Have you seen it, sighted it?

Q: Actually, not. But what would interest me is the fact of registration which is the certificate.

A: Yes.

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Q: But counsel, we really actually need to look at the content of membership of the ILG, given this peculiar situation we have at hand.

MR BOI: Yes.

THE COMMISSIONER: Peculiar indeed.

MR BOI: Sir, three ILGs in a clan.

THE COMMISSIONER: We have got the Memorandum of Association or Constitution?

MR BOI: No, we do not.

THE COMMISSIONER: All right, take note for that to be a matter that must be procured before the matters return on Friday morning. Yes? 10  

A: Commissioner, ---

Q: Lasari?

A: Kasari.

Q: Kasari, sorry. Counsel?

MR BOI: Have you been living at the village; at Koaru village about the time the meetings and consultations were heard to create this SABL?

A: Mostly, in – yes, not in the village but up in Meporo. These Asians used to go with Roddy in the Meporo not in Koaru village. That is why I ---

THE COMMISSIONER: The question is, were you living in the village at the time they were doing that? 20  

A: Not in Meporo.

Q: No, were you living in your village Koaru at the time MrRoddyKoaru and the Asians were going in, doing these “things”?

A: Yes.

MR BOI: You also said that there was a public meeting hearing or there was a meeting held at Meporo?

A: Yes.

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Q: But you were not invited?

A: I am not in, I did not, I was not invited and I did not take any note of that meeting.

Q: Was there any other meeting other than that one or just that one?

A: That is their business, I did not turn up because they did not invite me. They did not – they did not ask me you know, the land group to attend. The land group must attend because we have registered our customary land for such business. But we were ignored, see. That is why I have no intention.

[3:47pm]Q: As far as you are aware, other than that one meeting which you were not 10  invited, was there any other meeting held at Koaru, or Meporo or Lelefiru or elsewhere?

A: Couple, Roddy mentioned those names, they were having a meeting in

Meporo not Koaru. Q: But you are aware that there has been some meeting? A: There have been meetings. 20  Q: Are you also aware or have you been alluded to the fact that there was

another than those public hearings, was there a land investigation done by Lands Department?

A: No, I am not aware of that, Commissioner. Q: You were not aware? A: No. 30  THE COMMISSIONER:Could it be possible they carried out the investigation about but you just did not know about it? A: I did not know. Q: You are a native of Koaru village and do you classify yourself as a

landowner? A: Yes.

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Q: Were you required to sign some documents for consent to give your

consent for the lease of this SABL to the government? A: No, Commissioner. Q: You never signed anything? A: I never signed any document. 10  Q: Were you the only one or were there other people who did not know what

was going on? A: Many people in the village does not know what going on. Q: As to the ILGs’ involvement, you are the Secretaries to one of these ILGs A: Yes, Commissioner. Q: I do not know whether you were in the room when Koaru was giving his 20  

evidence? A: I was here. Q: But he mentioned something about the ILGs meeting and deciding to

appoint his family company, Mekoro Timber Resources, member of Forest Products Limited to be changed to be the landowner company in which the shares were supposed to be or agreed to be held in Trust and eventually transferred to the ILGs in the area. Now, as a Secretary/Chairman of your ILG, were you involved in that meeting? 30  

A: I was observing, witnessing, taking the note of that meeting recently on the

29th October 2011. Previously there were three directors of the company. Now, he went to the village on the 29th and said---

COMMISSIONER JEREWAI: That is 2011 or 2008? A: No recently 2011. He went and appointed – asked the people to pick up 19

to 20 Directors. I have noted that it is here Commissioner. 40  MR BOI:What is the date of that, when do you say MrKoaru went and did that?

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A: MrKoaru went and did the meeting on the 29th October 2011, that is the contents of the meeting.

Q: This is your record of the recollection of what transpired at that meeting,

this particular meeting? A: Yes. Q: All right, this is your signature? 10  A: That is my signature. MR BOI: Commissioner, I tender this document through this witness there is a record of the meeting which was held on the 25th October 2011. THE COMMISSIONER: Yes. That is your own record? A: Yes, I was present taking a note of the meeting. Q: Finally you became interested? 20   A: Yes. Q: You ought to have been interested earlier on. Now, you know the value of

that kind of a record. It is unchallenged, it is not objective and it is not an official record of a meeting. You could say it was a secretive record kept of the meeting which you did not participate and so I will take it on that face value and as to what the Inquiry attaches to it will a matter to be determined by ourselves, but I will receive it.

30  A: Thank you Commissioner. Q: Would we have that record tendered Exhibit J now, is that right?

[3.55 pm] MR BOI: Mr Oavelare, Mr Koaru also testified or gave evidence to the Commission that on 26 June 2007, he held a meeting with ILG chairman at Koaru - Meporo.

A: No, Koaru.

Q: Wherein it was decided ---

A: I was not present in that meeting. 40  

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Q: By those ILGs.

A: I was not present in that meeting. I have not seen the ILG, Commissioner. I was not present.

Q: Where you aware of the meeting or what?

A: I was not – I was not present. I heard the meeting but I was not present in the meeting.

THE COMMISSIONER: You heard about the meeting?

A: Yes, I heard about it, yes.

MR BOI: You heard about the meeting?

THE COMMISSIONER: Counsel, I want to ask a few questions to Mr Kasari. 10  

Mr Koaru gave evidence that a number of his people in the village and I would have to assume that you among them, sought to register separate incorporated land groups because of Inter Oil’s exploration in your area and there was a belief that there were going to strike an oil found in your area and that was not only special to your area but generally on the eastern side of Malalaua right up to Kairuku. And in fact, there was a big fight between the Waikas and the Kivori Pois and Kivori Kuis of Kairuku where youths or young men were killed over that exploration. And the Roves and the Kivori Pois were at odds with each other as well as the Waikas of Mekeo. Mr Koaru gave evidence that in anticipation, all of you rushed off to register ILGs so that you will become 20  

something similar to Kutubu and Hides in the Southern Highlands with Foe Landowners Association chairman and all sorts of ILGs. Now, what do you say to that? Did you all go and incorporate or register these ILGs in anticipation of Inter Oil’s exploration of oil in your area or did you do it because you were really interested in the kind of development proposed by the ILG led by Mr Koaru? I want to know.

A: Yes, Commissioner, thank you. I went and incorporated an ILG because we do not know, we are people, village people, we live in the village. We do not know anything happening in this country. We heard that there is a gas and oil coming, there is agriculture sectors coming, there is fisheries 30  

coming, if it happens to come to our land, this is the only ILG that we are trying to get true benefit out of this ILG. Because we identified by the

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State through ILG that we are entitled to receive the benefit. That is why I went and did ILG without objections.

Q: Okay, good. In that case, if you were to combine yours with Mr Koaru as well as Mr Mark’s and you merge, would that be acceptable because you are for development, from what you just told me.

A: Yes, sure.

Q: And why have you not started that and you are almost at each other’s throat here in this Inquiry room?

A: Commissioner, I personally went to Roddy’s house at Sabama and I presented the ILG to him. He saw it and he said, okay, okay, okay. And 10  

then he did not take notice of this ILG. That is why I am here today in the presence of the Commission. Maybe he has some hidden motives behind this?

Q: I heard you. Mr Koaru is taking note, I hope.

MR BOI: Mr Oavelare, there was some dispute or objections from among the people in the Inquiry room when Mr Anthony - what is our friend’s name, Lesley Anthon Mark was testifying; giving some evidence as an objector. He has objected to the SABL; this particular SABL. And there was some indication or some comment that he was not from Koaru village and that he did not qualify to speak as a person from Koaru village. You are from that village 20  

so, can you be able to tell, assist the Commission as to Mr Mark’s status?

A: Commissioner, I regard that as you know, hate, jealous, you know. We are one people.

THE COMMISSIONER: Irrespective of the fact that Mr Mark’s mother is from Manus?

A: Manus, father is pure Koaru. So father produces the children so he is the landowner. See, he is the landowner.

Q: Yes, we - Mr Kasari, we dealt with the Pomios where they, the women said the mother produces the children and our system in Pomio is you inherit land through your --- 30  

A: Father.

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Q: Mother.

A: No, father. Or your side, yes.

Q: No, over in Pomio.

A: Ours is through father.

Q: Yes, same with mine, yes. Good. Go on counsel.

MR BOI: So you really have no objection to him.

A: No.

Q: Testifying before the Commission in relation to land relating to your tribal lands?

A: No, counsel, we are brothers; we are one. 10  

Q: Thank you.

[4.02 p.m.] MR BOI: Just to repeat, you have not signed anything, any consent or anything as a landowner?

A: No Counsel, only ILGs. Q: Commissioner, I have no further questions for Mr Oavelare. THE COMMISSIONER: Yes. The last point that you drew out from the witness, witness it is a very important point. In this time and age, you are likely 20  to get more children from intermarriages and there is no point in trying to rule out some children. A: Thank you boss. Q: Can this witness now step down? He can be excused? MR BOI: Commissioner, yes. THE COMMISSIONER: Subject to return on Friday morning. 30   MR BOI: Yes. THE COMMISSIONER: I just want this matter mentioned again on Friday morning.

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MR BOI: Friday morning, at 9.30? THE COMMISSIONER: At 8.30 a.m. Mr Kasari, you have been a very entertaining --- A: Mr Karasi, Commissioner. Q: Sorry, Mr Karasi? A: K-a-r-a-s-i. 10   Q: I almost made you a Sepik by calling you Kasari. A: Thank you. Q: I will return you to Gulf and call you Mr --- A: Karasi. Q: Karasi. Thank you. You are excused until Monday morning if you could 20  

return as well.

Mr Koaru and also Mr Kanu, there should be no serious contest about inheritance by patrineal system in your area. I do not think it is necessary to call anyone to verify that. We have heard from Mr Kasari and I think Counsel? Please, let me hear you on it. Mr Koaru especially.

A: May it please the Commissioner, that is correct. What the last witness

has mentioned in respect of registration of ILGs, people think I am so bad in trying to --- 30  

Q: No, Mr Koaru, that is a matter you would have taken note of. I just want

you to address me on the status of Mr Mark. A: We have an issue about Mr Mark in respect of the land that he has

wrongly pointed. Q: No, no, I do not have to go into that at this point. A: The issue about Mr Mark? 40   Q: Yes, whether he has a right to speak on the matters of the land?

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A: The issue about Mr Mark is generally contested in the village because of the fact that Mark was born in Port Moresby and his father lived in Port Moresby and died in Port Moresby. And speaking in terms of property ownership, the father does not have a garden plot, the father does not have a sago plot, the father does not have a house spot, a plot where he can rightly build a house in the village. And therefore, the village people, including the ladies themselves, they say, how come you come in?

Q: By that statement alone Mr Koaru, you would have ruled out 90 percent

of Gulf people living in Port Moresby. 10   A: That is correct, but in this respect, Commissioner, in this respect, what I

am saying is that he should not, because he is more or less said something against me.

Q: What about Mr Kasari? A: Mr Kalasi--- Q: Kalasi, sorry, Mr Kalasi, do you rule him out as well? 20   A: No, he is from Koaru. He is from Koaru, I am from Koaru--- Q: Very well, I have heard him on it and you have said what the general

objection is in relation to Mr Mark. I do not think I need to hear any more.

A: That is right, thank you.

Q: Thank you. 30  

WITNESS WITHDREW

MR BOI: Commissioner, that brings us to the end of the witnesses I have at this stage. Inquiring into this particular SABL as you have indicated will be adjourned to Friday to allow for certain issues to be dealt with including the map and some government officials we have to --- 40  THE COMMISSIONER: If we can find the Lands Investigation officer. MR BOI: The Lands fellow, yes.

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THE COMMISSIONER: Also consider an appropriate action to have the Department of Lands and Physical Planning produce some records. MR BOI: Yes. THE COMMISSIONER: It is a pathetic state of affairs again needless to repeat. MR BOI: Yes. 10   THE COMMISSIONER: It does place in question mark the naming of the new building that is going up, that is as far as I can make any statement in that regard. That concludes substantial number of witnesses except for the matters to be tidied up on Friday morning. MR BOI: Yes. For this SABL. 20  THE COMMISSIONER: Yes. Which one is the next one to be commenced with tomorrow? MR BOI: The next one is Purari Development. THE COMMISSIONER: Purari Development Association? Is that totally contested such as the current one? MR BOI: Mr Commissioner, very much so; very much so. 30  THE COMMISSIONER: Yes, and that will be one whole day also? MR BOI: We have got one day fixed up for that one tomorrow. THE COMMISSIONER: And in the event that we carry over, we have got a shorter one to follow immediately. MR BOI: That is correct, Perpetual Shipping. THE COMMISSIONER: Alright, in that case with regard to Portion 323C, 40  Koaru Resources Owners Limited, Gulf Province is adjourned to 8.30 on Friday 2 December 2011.

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I beg your pardon, is there any further matters? MR BOI: No, thank you Mr Commissioner. THE COMMISSIONER: Okay, Associate, adjourn this Inquiry. 10   AT 4.10 P.M. THE COMMISSION OF INQUIRY INTO SABL WAS ADJOURNED TO FRIDAY 2 DECEMBER 2011 AT 8.30 A.M.

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INDEX PAGE NO

RODDY KOARU, Sworn:...............................................................07 XN: MR BOI............................................................................07

WITNESS WITHDREW.................................................................... 77

LESLEY MARK, Sworn:……………………………………………. 77 XN: MR BOI…………………………………………………… 77

WITNESS WITHDREW.................................................................. 91 10  

MR GIBEST KEREKERE, SWORN:....................................................91 XN: MR BOI..................................................................................91

WITNESS WITHDREW........................................................................96

KALASI OAVELARE, Sworn:.........................................................96 XN: MR BOI.......................................................................... 96

WITNESS WITHDREW...................................................................121 20  

EXHIBITS PAGE NO

Exhibit A – Copy of Letter of Mr Koaru’s Appointment - ................

Koaru Resources Limited Portion 323C, Gulf Province Exhibit B – Sworn Affidavit of Mr Koaru - Koaru Resources ...........

Limited Relating To Portion 323C, Gulf Province Exhibit B – Compilation Of Customary Landowners Project ......... Documents From Mr Koaru - Koaru Resource Owners’ Limited 30  

Portion 323c, Gulf Province

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Exhibit C – Agriculture Report – Koaru Resources Limited, ………. Portion 323c Gulf Province

Exhibit D – Compilation Of Customary Landowners Project ...............

Documents From Mr Koaru - Koaru Resource Owners’ Limited Portion 323c, Gulf Province

Exhibit E(1) – Extracts Of The Company Search – Koaru ................ Resource Owners Limited, Portion 323c, Gulf Province.

Exhibit E(2) – Declaration Of Trust By Mr Koaru In Relation .............. 10  

To 50 Shares Held In Trust - Koaru Resource Owners Limited, Portion 323c, Gulf Province.

Exhibit F – Koaru Resource Owners Limited, Portion 323c, .......................

Gulf Province Exhibit F(a) – Minute of Meeting held at Karama Village on ............ 21st November 2011- Koaru Resource Owners Limited, Portion 323C, Gulf

Exhibit F(b) – Meeting Minute Signed By Mr Jim Pokara,................ 20  

Chairman On 21 November 2011 – Koaru Resource Owners Limited, Portion 323C, Gulf

Exhibit F(c) – List Of Signatures Of Leaders From Toare To................ Tairuma Villages Dated 22 November 2011 – Koaru Resource Owners Limited, Portion 323c, Gulf Province

Exhibit G – Lapipi Incorporated Land Group Registered On ................ 1 March 2002, Registration Number 8303 – Koaru Resources Owners Limited, Portion 323C, Gulf Province

Exhibit H – Lapipi ILG Registered 4 December 2008, Registration Number 30  

8303 – Koaru Resource Owners Limited, Portion 323C, Gulf Province

Exhibit I – Lapipi ILG Registered 4 December 2008, Registration Number 8303 – Koaru Resource Owners Limited, Portion 323C, Gulf Province

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Exhibit J – Letter By Jack Aipi – Kaipi Clan Dated 14 October 2008 To Dr Chau Chee Of Pacific Investment Resource Limited – Koaru Resources Owners Limited, Portion 323C, Gulf Province


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