14/04/2009 (Solomon Star) - EMPLOYEES of the failed Vangunu Palm Oil project in Marovo say the government was aware of the problem at Merusu but failed to act in time.

Plantation Manager Joseph Nemaia, who is currently in Honiara with some of the staff, to follow up on their wages, salaries and the National Provident Fund (NPF) contributions said this last Thursday.

He said the Ministry of Agriculture knew it too well that the palm oil project failed to produce any positive results by achieving any harvests and process of palm oil for exports over the ten years period since its operation.

The palm oil project started in 1999 under Silvania Products Limited to plant palm on the land left vacant from logging.

Since then 709 hectares of palm oil were planted.

Although most of the palms have bear fruits, they were never harvested nor processed for export, he said.

 Mr Nemaia added that not even a palm oil milling factory was set up in the area.

“Yet the Government never follow up on the progress of the project and to ask the management why nothing was harvested or processed after years of operation,” he said.

Mr Nemaia said the Government only learned about the redundancy exercise last year and sent two of its officers to Merusu to investigate the situation.

“Yet nothing positive came from the Government to address the situation last year because it’s too late,” he said.

The Permanent Secretary of Agriculture Henry Pika earlier said based on the report produced by his two officers, the Government will step in to assess the situation.

However it is understood nothing was addressed based on the report.

Mr Nemaia said when his delegation visited Mr Pika, they were told the Government is not responsible for the affairs of the employees.

A Government taskforce set up to look into the case said once most of the problems are identified, solutions to address the problem would be carried out.

Chairman and Special Secretary to the Prime Minister John Keniapisia said his task force would investigate the mess involved in the failed operations.

About 130 employees are currently at Merusu without any wages or salaries for the past five months.

The Managing Director Joseph Wong has reportedly left the country. It’s unlikely that he will return.

It was reported that he had sold most of the company’s properties before he left.

Indeed, no less a figure than Lee Shin Cheng, the owner-chairman of IOI Corporation, thinks that prices could remain between RM2,600 (S$1,104) and RM2,800 per tonne for the rest of the year. Currently, it trades at around RM2,300.