Landowners must manage funds wisely

LANDOWNERS in recent times have cried foul that millions of kina had been wasted through dubious means and tangible development had not reached their far flung areas. They claim corruption was rife and millions in Business Development Grants and other funds had been abused, as such there is no tangible developments in their areas. They threw mud at the Government for the millions that were abused. But does the Government really need to take blame or should landowner associations, companies and leaders be blamed too. Despite the mud slinging, the Government paid out millions to landowners, just for attending the recent PNG LNG License Benefit Sharing Agreement forums. In the Hides Project Retention Licence 12 area, landowners were paid a total of K1.3m and in Gobe Petroleum Development License 4 area landowners were said to receive about K1.5m. Other areas also received such payments. After receiving the allowances, some up to K1000 each, landowners went on a spending spree, buying booze and other immediate earthly desires. Reports reaching The National newspaper said some landowners purchased brand new vehicles, acquired new wives and hired vehicles as a result of the recent windfall. Is this a reflection of the past mistakes or sign of things to come? Sure, it’s fun to shop and reward yourself every once in a while, but for landowners who cry out loud for change, such spending of the little windfall was wanton. Most landowners do not have the money-making power of Bill Gates, and already most are buried up to their eyeballs in debt and want the Government to intervene. This cannot be denied, most landowners acquire loans in the hope that sudden windfalls will take care of it, but this is a negative habit that will do more bad then good. Before that happens, landowners should take a step back and take a good long look at your money management skills and spending habits. Identify real needs in the family, in the clan, in the community and then larger development needs, then prioritise and spend accordingly and wisely when the time comes. With such slipshod spending, one doubts how landowners will manage greater windfalls generated from the massive US$15b (K42b) PNG LNG project. Are we ready to manage the royalties, equities, business development grants, special service grants and other windfall from the project? Landowner leaders must now take the people at heart and help them learn how to manage the funds that will be flowing in from the gas. Gas money will be lucrative and landowners will have so much money to spend. A good idea is to have some sort of fund, apart from Government controlled trusts and development funds. It’s always a good idea to have cash savings that you can easily get your hands on in case of emergencies. If a fund is an idea already on hand, good, if not start creating one now. Don’t put this off for tomorrow or the next day – you never know when disaster will strike or when a pressing issue needs to be addressed. Landowners can start by putting a small amount away and eventually adding to a family fund, community or Incorporated Land Group fund and so forth. Unexpected income, such as the LBBSA forums allowances, can also be a great source for these funds. It’s good not to blow your entire bonus on booze, women and other immediate wants. Put a little of that away. The whole idea is to save for the rainy day and save for a real need, such as an aid post or maybe buy a PMV truck for the village or family. Nothing beats the security of knowing that if the worst happens, you have something to use to get yourself out of a bind. The actions of landowners in recent times, the careless spending of funds are a serious issue that must be addressed by landowner’s leaders, local politicians, including the Government. Education Minister James Marape, who is a local MP, had said such windfalls can be a blessing or a curse; it’s how you apply it. Indeed, the statement by Mr Marape is spot on. Other local politicians, including Southern Highlands Governor echoed these remarks and that is a good sign. The PNG LNG project is described as transformational and will bring in a lot of money to landowners but at the same it will bring a truck load of issues. Teaching landowners how to save and spend wisely must be undertaken immediately and not as a reactive measure. It would also be wise to suggest now that the handout mentality by landowner leaders and politicians should stop so landowners are encouraged to save and manage funds wisely. For a start, the Department of Community Development should now visit the project areas and identify potential social issues that may surface when huge sums of money start being dished out. Look at the example of Porgera in Enga Province. Substance abuse is rife and the spread of HIV is like wild fire, because there is so much money floating around, luring landowners to indulge in beer, women and gambling, to name a few. There’s an old saying that goes ... "An ounce of prevention is worth a pound of cure." Let us not play the odds and 'wait and see'. Prevention is the smart thing to do - no doubt about it. For every one person who 'prevents' something, there will be many, many more who will gladly wait and see - and then PAY handsomely for a cure The choice now determines the future. Let’s not wait and see.