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‘Cheated’ landowners threaten to close fish processing plants

Majestic Seafoods
Majestic Seafoods cannery line in Lae

SCOTT WAIDE | Asia Pacific Report

LAE - Landowning clans in here are threatening to close down five fish processing plants if the government does not review the existing agreements that govern them.

The clans, which include the Ahi and the Busulum, say they have been cheated of development benefits.

Since the agreements were signed four years ago, they have received K5,000 a year for the five portions of land they own.

The threat comes after three years of complicated wrangling with the government and the companies over landowner benefits.

If the landowners ge their way, Majestic Seafoods, Frabelle and three other fish processing factories will be forced to shut down on Tuesday.

Landowner company BUP Development is calling on the National Fisheries Authority to review the existing agreements so that they receive more in terms of landowner benefits.

After four years, it has become clear landowners got a bad deal.

The landowners are paid a total of K5,000 annually for the five land portions they leased to the companies. The deal was negotiated by the provincial administration at the start of the projects.

Apart from a K2 million premium payment made several years ago, the landowners receive little else.

They are also not party to agreements between the state and the fish processing companies.

They also do not know what the terms of the state agreement are.

The landowner company issued a seven-day notice to the government to come to Lae for negotiations.

They are demanding K20 million in compensation as well as a review of the memorandum of agreement they signed with the companies.

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