See Goh’s Compugates has decided against getting involved in illegal logging
Malaysian electronics distribution company Compugates has ditched plans for two controversial logging operations in PNG [see story below].
As we revealed in January – Malaysian company signs agreement to log illegal SABL – Compugates had signed a deal to log the 26,000 hectare Marienberg SABL in East Sepik and a further 72,000 hectares of forest in the Lower Sepik – Malaysian firm Compugates signs a second dodgy logging deal in PNG.
In both cases the proposed logging would have been illegal, the Marienberg SABL having been ruled invalid in a Commission of Inquiry and Lower Sepik Holdings not having any valid logging permit based on the informed consent of local landowners.
Compugates cancels plans for logging ventures in PNG
Source: The Star
Compugates Holdings Bhd has decided not to pursue the two logging projects in Papua New Guinea (PNG) covering areas totalling 96,000ha, for which it signed the memoranda of understanding earlier this year.
In a filing with Bursa Malaysia, it said this was in view of “the current challenging market environment”, without elaborating.
Its unit Compugates Perak Sdn Bhd (CPSB) had on Jan 25 signed a memorandum of understanding (MoU) with Marrienberg Hills Resources Development Ltd to engage CPSB as a logger over 26,000ha forested land in East Sepik Province, Papua New Guinea.
Marrienberg Hills Resources agreed to maintain its invitation to CPSB exclusively for a period of six months to enter into a binding commercial enterprise with it for a five-year term, which would be renewable.
On Feb 5 CPSB entered into an MoU with another landowner, Lower Sepik Holdings Ltd, to engage CPSB as a logger over 70,000ha also in East Sepik Province. Lower Sepik also agreed to maintain its invitation to CPSB exclusively for a period of six months to enter into a binding commercial enterprise with it, with the contract to be for five years renewable.
Compugates’ announcement comes on the same day that PNG prime minister survived a vote of no confidence, which followed protests between students and police last month that turned into violent clashes.
