An Australian-owned logging company in Papua New Guinea has denied allegations of links to terrorism and demanded an apology from the newspaper that published the claims. Source: ABC Radio Australia
Cloudy Bay Sustainable Forestry Ltd (CBSFL) said it was deeply disappointed and disturbed by “artificial” reports published by PNG’s Post Courier newspaper.
“CBSFL confirms that the subject media reports are false, whereby the offending articles are fraught with erroneous and misleading information and imputations,” the company said in a statement.
“CBSFL confirms that all its members oppose and condemn all forms of terrorism, and … prominent members of the company are outspoken critics of terrorism and its abhorrent effects.”
On Wednesday, the Post Courier published a story alleging an Australian family with business interests in Papua New Guinea was linked to international terrorism.
The exact nature of the allegations remains unclear beyond family links to convicted or suspected terrorists.
PNG Prime Minister Peter O’Neill responded to the story in Parliament identifying the company as CBSFL.
“The prospect that businesses in our country could be involved with financing of these deplorable groups is alarming,” said Mr O’Neill, referring specifically to terrorist group Islamic State and its activities in Iraq and Syria.
“Our people are peace-loving people, our people are Christian people, they don’t need these kinds of investors in Papua New Guinea.
“Our intelligence agencies are working with security partners in other countries to deal with this cross-border issue.”
The Australian High Commission in Port Moresby later released a statement distancing itself from the allegations.
“We are not aware of any Australians in PNG who are suspected of involvement in terrorism,” it said in a statement.
“If Australian authorities had any information about a threat to PNG’s security, we would inform the appropriate authorities in PNG immediately.
“Australian authorities are not aware of any such threat.”
Company bosses related to man wanted over beheadings On Wednesday, Mr O’Neill said he had ordered national intelligence agencies to investigate the alleged links to terrorism.
“Our officials have had a quick look at it [and] this is a company that has recently been sold by PNG Sustainable Development Program – Cloudy Bay timbers,” he said. “Some of the shareholders in that [company], our intelligence community are advising us that their relatives are involved in terror activities that is around the world today.”
Cloudy Bay’s website lists Mamdouh Elomar as the executive chairman of the board of directors and his brother Ibrahim Elomar as managing director.
Mamdouh Elomar’s son Mohamad is wanted by the Australian Federal Police after posting photographs of himself posing with severed heads in Syria, saying he was fighting with Islamic State.
Mamdouh Elomar’s brother, Ahmed Elomar, was jailed after he assaulted police during the Hyde Park riots in 2012.
Another brother, Mohamed Ali Elomar, is serving a 21-year jail sentence for his role in the 2005 Pendennis terror plot.
On the same day as the Post Courier’s initial story, another News Corp newspaper, The Australian, published an article about Mamdouh Elomar’s efforts to promote moderate Islam and celebrate life in Australia.
The Australian reported that Mamdouh Elomar was sponsoring a “Muslims 4 Australia” barbecue in Sydney to celebrate his country and to denounce Islamic State.
“I want to show the Australian people we are Australian and we don’t believe in all this nonsense,” Mr Elomar said.
Mamdouh Elomar told media he was ashamed of his son, whose actions made him want to vomit.
PM’s complex relationship with timber company Mr O’Neill has a complex relationship to Cloudy Bay. It was an asset of PNG’s second biggest source of development money, the PNG Sustainable Development Program (PNG SDP), which is funded by earnings from the Ok Tedi mine.
Last year, the O’Neill government controversially nationalised PNG SDP, taking control of the Ok Tedi mine and its $1.4 billion Long Term Fund for development after the mine closes. But soon after PNG SDP sold Cloudy Bay for $17 million (40 million kina) in what Mr O’Neill called at the time “a fire sale”.
The prime minister mentioned this sale again on Wednesday in Parliament.
“I don’t know how this company was sold at some exorbitantly discounted price to these foreigners, but we are getting to the bottom of it and I want to assure this honourable house that swift action will be taken by our agencies of government,” Mr O’Neill told Parliament.
Last year, Australian economist and then-chairman of PNG SDP Ross Garnaut was banned from PNG after he said the country’s accumulated wealth meant it was “tempting for political figures to think of better ways of using it right now rather than putting it into long-term development”.
The PNG government has undertaken legal action against the PNG Sustainable Development Fund in a Singapore court.
In the past week there has been a bitter exchange of accusations as both sides claim victory in a Singapore Supreme Court case.
In its statement, Cloudy Bay Sustainable Forestry Ltd said the allegations were political.
“The initial media reporting and public statements made thereafter by certain members of the country’s political establishment clearly aim to tarnish the good standing of the company and its members, while plainly carrying political overtones,” the statement said.
“CBSFL seeks the unreserved withdrawal of the suggestions made together with a public apology from the Post Courier newspaper and other individuals that have acted to mislead the public and cause harm to the company and its members.”
