PNG and civil strife is high on the agenda

The story led the business pages in Papua New Guinea’s Post-Courier in early February. “Analyst: PNG on verge of change” screamed the headline. British-based market analysts Bdaily Business Network praised the $US17.3 billion Exxon-Mobil led LNG project. “[It] is the most important single development in the history of PNG”, it stated, coming online for overseas markets in 2014.

But the reality away from corporate spin is a simmering conflict. A source close to the Southern Highlands land owners, the site of the major LNG project, predicts civil strife in the coming years. Locals are starting to collect weapons and grenades for the coming fight. Sabotage and attacks on pipelines are likely. Weapons are being smuggled in from Indonesia, including West Papua and Thursday Island near Australia.

I fear what is coming unless something changes soon,” he says at a local Chinese restaurant covered in Coke-coloured wallpaper. “We are not being heard and feel we have no choice. We know we will be out-gunned, and Exxon, being an American company, may receive US government support, but this is about dignity and our rights.”

Stanley Mamu, editor of the LNG Watch blog, fears a Bougainville-style war over resources. It is almost inevitable, he argues, unless Exxon and the government listen to the grievances of the local people. Tensions are already high after a deadly landslide in January was blamed on nearby mining blasts.

LNG project managing director Peter Graham told Radio Australia last year he was satisfied with the “extraordinarily consultative process” with the landowners. That would be news to most of them.

A story in PNG’s Sunday Chronicle in mid-February highlights their anger. Two landowner chiefs demanded Exxon “fulfil relocation” plans previously agreed to. They complain about Exxon-hired private security firm G4S — the company has implanted itself in the highest echelons of the national government, I am told by countless NGOs — and local police using excessive force to re-open a key access road to the LNG project. They warn that other residents will heed a call to join them in resisting the development.

A former commander in the PNG army during the Bougainville “crisis” of the 1990s warned in 2010 that the presence of a foreign militia company such as G4S heightened the chances of another conflict: “They [G4S] have no appreciation of the local customs, culture and the people.”

I recently travelled to Papa Lea-Lea, about 30 minutes from downtown Port Moresby, to investigate a key LNG hub of the project. Driving through impoverished communities living alongside the shore, we pass small villages along the cracked road — small houses built of stilts to keep them from sinking. “They would have to move if a cyclone hit,” an Oxfam PNG staff member who accompanied me says matter-of-factly.

Passing a roadblock — our driver is forced to pay a small bribe to a policeman because he doesn’t hold a driver’s licence — we soon see kilometres of high fences behind which sit LNG facilities in various stages of completion. Security guards watch us drive past. On one side of the road is the beaten-up land of the project, the other is lush, rolling hills. Oxfam tells me some landowners have done deals with Exxon for the use of their property while others complain they aren’t properly consulted before work has begun.

Oxfam recently released a report on the LNG’s impacts in the area after engaging an LNG Impact Listening Project. The results were decidedly mixed and explained how alcohol abuse by men and women was leading to a spike in HIV infection, domestic assault and infidelity. One woman from Porebada said that road construction caused excessive dust that affected the growth of bananas, mangoes and paw paws. “Every time we go to find our gardens polluted.”

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Categories: Asia-Pacific, Federal

3 Responses

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  1. It is becoming increasingly obvious that what purports to be a government in PNG is a corrupt and mendacious group of individuals lining their own pockets and forming allegiances with powerful commercial interests to subjugate their own people for their own pecuniary interests.

    Big business operators whose activities are generally amoral unless constrained by significant government regulation can run riot in this environment, employing own militias to keep the “natives” under control.

    At the other end of the island, Indonesians conduct business in the same corrupt manner albeit slightly less visible.

    Meanwhile Australian politicians of all persuasions sit on their hands and do nothing to offend the corrupt governments in both situations.

    by Whistleblower on Feb 16, 2012 at 2:33 pm

  2. PNG hasn’t had “250 years of failed capitalism”. The capitalism is working exactly as intended.

    by Sancho on Feb 17, 2012 at 2:03 pm

  3. @ Sancho
    Capitalism only operates on an unconstrained basis in the absence of regulation. It is the absence of good governance that is the problem not the system.

    Similar if not more vile abuses of power have occurred under what a so-called Communist or socialist governments. The basis assessment should be good governance not the underlying social system.

    by Whistleblower on Feb 17, 2012 at 2:45 pm

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