Prime Minister James Marape has confirmed that the National Executive Council (NEC) was not informed of Ok Tedi Mining Limited’s (OTML) acquisition of the Misima gold and silver project, raising concerns about governance and transparency in the oversight of state-owned enterprises (SOEs).
In response to a question in Parliament from Samarai-Murua MP Hon. Henry Isi Leonard, Marape stated that neither his office nor Cabinet had been briefed on the deal, which saw OTML acquire the Misima project from Kingston Resources Limited for A$60 million (approximately K140 million).
“I will get the Minister to ask Kumul Mineral Holdings Limited (KMHL) to find out from Ok Tedi what the total transaction involved and what exactly took place in that mine,” the Prime Minister said.
He advised that a more detailed and formal response could be provided once questions were submitted in writing.
The revelation has sparked renewed scrutiny of the governance practices of PNG’s state-owned resource companies, particularly their reporting lines to government and the transparency of major investment decisions.
While OTML is majority-owned by the state through KMHL, the apparent lack of Cabinet oversight in a transaction of this scale is likely to raise alarms among governance advocates. The Misima acquisition represents a significant expansion move by OTML, but questions now loom over whether due diligence, strategic alignment with national priorities, and appropriate approvals were in place.
This is not the first time PNG’s SOEs have faced criticism over opaque decision-making processes. With state entities playing a growing role in resource development and investment, ensuring transparency, accountability, and alignment with government policy remains critical.
Whether this incident prompts a broader review of SOE governance frameworks—or is quietly resolved behind closed doors—remains to be seen.