By Chairman Mr. Gerea,postcourieronline

Copyright postcourier

Prime Minister James Marape has today addressed issues concerning the leadership of Kumul Petroleum Holdings Ltd (KPHL), reaffirming his Government’s commitment to upholding transparency, accountability, and good governance in Papua New Guinea’s national oil and gas company.

In light of the recent suspension of KPHL Managing Director, Mr. Wapu Sonk, the Prime Minister emphasized that the company must always operate with integrity and in line with the laws of the country.

“Kumul Petroleum is not a family company, not a tribal company, and not a provincial company. It is a company that belongs to the people of Papua New Guinea, for the benefit of every citizen,” Prime Minister Marape said.

“As the trustee shareholder on behalf of the people, my role is to ensure that propergovernance and legal processes are followed at all times.”

The Prime Minister clarified that while he holds the role of trustee shareholder, he does not exercise unilateral authority over KPHL’s Board and Management. “In my seven years as Prime Minister, I have never once directed the Chairman of KPHL to act on my instructions. Boards must operate independently, guided by law and proper corporate governance,” PM Marape said.

He added that even the former KPHL Board Chairman, Dr. Benedict Yaru, can confirm this. “Dr. Yaru knows that in the seven years I have been Prime Minister, I never made a call or gave directions to him. I am a leader who wants to uphold moral ethics and integrity, accountability and transparency in our Government processes.

“The only time I am involved is when I sign instruments to appoint Board members or Executives. Apart from that, I don’t interfere in their operations. I have trust that they manage the respective organisations as required and expected of them. Where their actions are not right when measured against law, then they will be held accountable.”

The Prime Minister further stressed that the current situation has nothing to do with politics or political influence. “This process of suspension has nothing to do with politics. No politician at all levels is causing the Board to act in this manner. No politician is involved in this process. It is purely, entirely a Board decision that has been taken,” he said.

A new Board was installed once the old Board’s tenure expired and the Board have a duty of care for the company. PM Marape reaffirmed confidence in the newly-appointed Board of KPHL, led by Chairman Mr. Gerea Aopi.

“Mr. Aopi is one of Papua New Guinea’s most respected oil and gas experts and a senior citizen of our nation. His appointment, along with other Board members, followed a due process of merit-based selection. I have full confidence in their ability to steer KPHL forward.”

The Prime Minister also outlined the reasons behind the suspension of Mr. Sonk, as provided by the KPHL Board. These included serious allegations of financial dealings with a law firm representing the former Board, the use of company resources in legal matters against the current Board and trustee shareholder, and ongoing allegations reported in international media.

“These matters must be addressed openly and properly,” Prime Minister Marape said. “I respect the professional contributions of Mr. Sonk over the years. This is just a due process and if he rises above this and proves his innocence by suing the media organisation that revealed impropriety against him, then I am sure the Board will consider his innocence but he must take the responsibility to prove his innocence.

“The integrity of the company is bigger than any individual, including myself and I can understand why the board took this position.

“It is now incumbent upon him to clear his name and respond to these allegations. The Board was appointed to look at the company, and the MD has been in the company for a long time, so he has nothing to fear if he is totally innocent. This process will help him clear his name once and for all as a professional son of the country.”

He further stressed the importance of ensuring that KPHL, as Papua New Guinea’s flagship national oil and gas enterprise, operates above reproach in order to safeguard the interests of the nation’s resources.

“This company is vital for the future of our country. PNG LNG and other key resource projects flow through Kumul Petroleum. For that reason, the company must function with integrity, free of doubt, and with leadership that upholds the law and protects the people’s interests,” the Prime Minister stated.

PM Marape concluded by reiterating his confidence in the independence of the Board and the rule of law.

“The Board has done its job, and now it is up to the suspended Managing Director to do his part by clearing these allegations. My Government will always respect the rule of law and the independence of Boards to carry out their functions. We will never compromise governance for politics. Kumul Petroleum Holdings Ltd belongs to the people of Papua New Guinea, and it must always serve them with integrity, transparency, and accountability.”