Facing the Robber Barons
p. 19 · Read in the full issue
VANUATU is the next island nation set to face the depredations of the big industrial logging companies dubbed ‘robber barons’ by Papua New Guinea’s Barnett Timber Industry Enquiry. The Barnet Enquiry found logging com panies operating in PNG were respon sible for corrupting politicians and officials, circumventing PNG’s tax laws, under —valuing and mis—declaring the species of log they were taking and failing to live up to their commitments to landowners.
Not one of the companies investigated had a satisfactory record of sticking to the conditions imposed by the PNG government. The environmental record shows companies were responsible for
silting up streams, polluting village
water supplies, damaging reefs, and taking so many logs that forests were either completely destroyed or open to weed infestation.
In Vanuatu, a new group of timber companies, based around Malaysian entrepreneur Ting Jack Sang, is set to begin massive logging operations on the Islands of Erromango, Malekula and Santo. According to environmentalists, equipment shipped to Vila last month will enable the companies (Premier Corporation and Delta Development) to take between 100,000 and 150,000 cubic metres of timber a year. In 1991 the entire industry in Vanuatu took only 15,000 cubic metres. At that rate, Erromango and Malekula (one of Vanuatu’s larger islands) would be logged out in three to five years. More equipment is believed to be on order in Malaysia which would enable the companies to cut at a similar rate on Santo.
Before moving his focus of attention to Vanuatu Ting Jack Sang was responsible for the Earthmovers group of companies in Solomon Islands. At Kalena Bay on New Georgia Island the Earthmovers company Kalena Timber is said to have breached many of the environmental safeguards imposed by the Solomon’s government. Insensitive reading and logging too close to streams and on steep gradients has left local villages with a water supply so polluted they have to get their water from elsewhere.
Aerial photographs show the entire eastern end of the big Roviana Lagoon has been damaged by silt. Picturesque Viru Harbour, closest to one section of the logging, has been so badly damaged that its marine life and fisnmg grounds have been ruined.
Under Ting Jack Sang, Kalena Timber was also caught i-r u r 7^ Va^U^ shipments. Evidence presented to the High Court earlier this year suggested the company had undervalued one shipment worth 515950,000 by 50 per cent.
Short-term, large scale logging such as that envisaged in Vanuatu brings more problems. Already Premier/Delta has been able persuade Forestry Minister Onneyn Tahi to reduce i) con^r ih ut ion it must pay to the government’s Reafforestation fund from the 75 per cent of royalties usually paid to just 10 per cent.
If Delta/Premier exports 150,000 cubic metres a year the Vanuatu government will have foregone more than Asl million in reafforestation charges.
While Vanuatu has quite strict regulations governing the Forestry department could not hope to keep track on an operation of this size. It has just three timber monitoring officers. At best they would be able to make only monthly trips to Erromango and Malekula and when they
got there they would be dependent on the company for transport to logging sites.
The difficulties confronting Vanu atu are being felt elsewhere too.
Premier/Delta is just one of a number of huge Malaysian consortiums now taking control of logging right across the Pacific. In PNG Rimbunan Hijau and its associated companies controls 85 per cent of the industry. In the Solomons, an upcoming takeover will fiven Malaysian consortiums around 0 per cent of the industry.
With drastically reduced cuts in other tropical timber producing countries other island nations with timber resources, even small ones, can expect to face similar pressure over the next few years.
By far the most insidious problem the logging companies bring with them is corruption. Despite tne de
tails revealed by the Barnett Enquiry in PNG, corrupt practices by logging companies have continued unabated.
Papua New Guinea’s Forests Minister Tim Neville who is Cushing through tough new guidelines to control the ‘robber arons is reported to have turned down a $3 million bribe and faced death threats as a result of his reforms. He told the Rowan Callick from the Australian Financial Review newspaper “One of my brothers was confronted by four Malaysians in Lae and told to get me to back off, or his family were as good as dead”.
The respected Premier of Manus Province Steven Pokowin reported a U 5525,000 bribe given to him by a Malaysian l°gg in g company to the Police and the Ombudsman’s Commission who are now investigating the incident.
During campaigning for the May 26 election in Solomon Islands the opposition parties, now installed as the new government, identified corruption, particularly that associ ated with logging, as one of the most crucial issues facing the country.
Despite the formidable threats and inducements offered by logging companies forests ministers in PNG and Solomon Islands are determined to control the environmental and economic vandalism being visited on their nations.
In PNG Tim Neville wants to reduce log exports and has initiated a national audit to assess whether all timber should be processed before export. He also plans to change the tax regime so the government and landowners get better returns and introduce measures to stop one company or consortium controlling a lion’s share of logging leases.
In Solomon Islands Natural Resources Minister Ezekial Alebua wants to phase out logging and concentrate on the export of milled and finished products which provide more jobs and a bigger income. Alebua is also planning to tighten controls on logging licences, to strengthen the capacity of his department to monitor the activities of logging companies and to tighten environmental controls by insisting on a sustainable yield. For Alebua a big part or cleaning up the lo gßi n g.industry will be measures to help landowners harvest and mill their own timber, by-passing the big foreign
companies altogether.
In a context in which corruption comes hand in hand with logging the biggest problem the Solomon government faces is making sure none of its back benchers are enticed away.
When last tested the government’s fragile majority stood at just one member of parliament. □