Home > Corruption, Logging, oil palm, Papua New Guinea > Konoagil logging companies bankrupt

Konoagil logging companies bankrupt

December 30, 2016 Leave a comment Go to comments

bankruptThe two companies engaged by New Ireland businessman Walter Schnaubelt to log the Konoagil district of New Ireland were effectively bankrupt at the end of 2015 when they negotiated their logging contracts. Together the two companies were almost K3 million in the red. This is revealed in financial documents filed with the Investment Promotion Authority in Port Moresby.

The two Malaysian owned companies, Millionplus Corporation and Islands Forest Limited are owned by Tiing Siu HAH and Kie Yii LING. In total they have been granted permits and licences to log up to 135,000 hectares of forest in southern New Ireland. The logging operations are illegal because of a lack of informed consent from local people, a flawed landowner identification process and the false promises and inducements used to get some people to accept the logging.

Schnaubelt has promised local forest owners the companies will establish 35,000 hectares of oil palm and build an international standard hospital, nursing school, bridges, schools and main roads in the district, but according to IPA records, both companies were bankrupt at the end of 2015 and could not meet the ‘Solvency Test’.

millionplus-insolvent

islands-forest-insolvent

The Konoagil logging operations have been clouded in controversy, with local people stating they have not given their informed consent, that landowner identification processes were rushed and incomplete and they were forced to sign documents that were never fully explained. Now they must face the fact their forests are being destroyed by two companies that were heavily in debt when they were engaged.

According to its annual return, at the end of 2015, Millionplus Limited was over K2.5 million in the red with liabilities of K3,814,616 and assets of just K1,215,122:

millionplus-debts

Islands Forests’ position was marginally better – it was only K293,668 in the red, with assets of K3,137,907 and liabilities of K3,431,575:

islands-debts

The PNG Forest Authority and National Forest Board need to answer for how such companies can be given licences and permits for logging operations and Walter Schnaubelt needs to explain to the people of New Ireland why their forests have been handed over to two bankrupt companies and who will fund all the expensive infrastructure he has promised.

  1. Ken Travitz
    December 30, 2016 at 5:15 pm

    Does Schnaubelt owns the companies mentioned or is this his initiative?

  2. December 31, 2016 at 10:08 pm

    Firstly, why are YOU the people of Papua New Guinea allowing this to happen?
    Stop feeling powerless please.
    It is YOUR beautiful forests, so with great heart, stop the corruption.
    With love and respect xxx

  1. January 3, 2017 at 10:35 am

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