The dispute between landowners and East New Britain Palm Oil Limited (ENBPOL) is set to move forward through court‑ordered mediation this week, following a government investigation into allegations of underpricing and unlawful land acquisition.
Edward Sasingian and Flora Matiabe of Sasingian Lawyers met with the Minister for International Trade and Investment Richard Maru on 14 November to provide an update on OS No. 194 of 2025 – Simbali Land Group Incorporated and Others vs. Tzen Niugini Limited and Others. Sasingian Lawyers represents the Ministry of International Trade and Investment, the fifth plaintiff in the case.
The court issued orders on 3 November 2025 for the matter to proceed to mediation. The sessions are scheduled from 17–21 November 2025 in Kokopo, East New Britain Province, with Justice Gavera Nanu appointed as mediator. The mediator has emphasised that only individuals with the authority to make decisions will participate. Accordingly, Minister Maru will attend and participate alongside his legal counsel and members of the investigation team, having been summoned as the official state negotiator.
"This mediation is a direct result of an investigation conducted by the National Government, with the support of the East New Britain Provincial Government, into the complaints contained in a petition presented to me by the landowners and oil palm farmers of East New Britain Province," Minister Maru said.
"They complained of gross underpricing of their FFB sales, outstanding payments exceeding K38 million, continued losses of income over 10 years, and the illegal acquisition of their customary land by the company," Maru added.
Maru said that settling these issues during the mediation this week will be a landmark decision that will shape the future of the palm oil industry in Papua New Guinea.
"I am very pleased that the courts have chosen the Mediation Dispute Settlement System to resolve this dispute permanently. I can only pray for common sense and sufficient goodwill from all parties to reach a settlement this week," he added.
The government’s investigation into ENBPOL was launched after complaints from more than 15,000 small oil‑palm growers in East New Britain Province. The probe, authorised under NEC Decision No. 192 of 2024, assembled an independent expert team to examine allegations of price fixing, underpayment, and unfair land acquisition.
In its final report, submitted on 27 February 2025, the investigation team found that ENBPOL had underpaid growers by an estimated K 38 million between 2009 and 2024. The report recommended sweeping reforms, including new legislation, an updated pricing formula, and a regulatory structure to ensure greater transparency and fairness in the industry.
Tensions flared following the report’s release, as landowner groups in the Wide Bay area of East New Britain closed the gates to the Liguria Oil Palm Mill. Their action was in response to unmet demands: repayment of the K 38 million in underpayments and the adoption of a more equitable market‑price formula for growers.
