Commission of Inquiry to Look into PNG Sustainable Development Program

Following the Singapore High Court's rejection, the Papua New Guinea Government will appoint a Commission of Inquiry to look into the PNG Sustainable Development Program.

The Prime Minister Peter O'Neil said the government's stand had always been that the company's funds in a trust account in Singapore should be given to the people of Western. O'Neil said the court ruling implied that the company was a 'private trust'. However, the prime minister brought forth the rights of the people.

"What about the rights of PNG and the people of the Western? These funds must be given to the Western province as required under the agreed terms with the company's co-founder BHP Mineral Holdings."

O'Neil said he will appoint an Independent Commission of Inquiry to establish the facts once and for all and appeal the court's decision as the court acknowledged that there was an arguable case.

The PNG government lost its battle to wrest control of the company with assets worth about US$1.4 billion spawned from a deal reached with BHP Mineral Holdings, the largest mining company in the world. It also failed to prove that there was a charitable trust that allowed the State to 'intervene'. The ruling means that the company is free to carry out its objectives under the control of its independent board without interference from the government.