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He added that the decision to pass the Petromin PNG Holdings PNG Authorisation Act 2007 on March 28 would allow the company, which will hold government equity in mining and oil projects, to operate at arms length from the Government.
"Parliament's intention was to keep Petromin away from political control and influence so that it can make independent and professional investment decisions for the benefit of the people of PNG," the Post-Courier newspaper quoted Somare as saying.
He said that Petromin's incorporation under the Company's Act subjected it to corporate governance and accountability laws like any other private sector company.
"By not subjecting Petromin to the relevant state oversight agencies, the company can operate as an independent being with respect to conducting its business, including arranging commercial borrowing from the strength of its balance sheet," Somare added.
The formation of Petromin has previously come under fire from the country's Ombudsman Commission which said that the enactment of the Petromin legislation was unconstitutional and that it would challenge it in the Supreme Court.
