A Malaysian logging company is refusing to obey a Papua New Guinea court order to pay out compensation to landowners.
Pililo Islanders in West New Britain say the company Cakara Alam Limited and its subsidiary East Arowe Timber Resources have refused to compensate them.
The Post Courier newspaper reports the General manager of Cakara Alam Meo Fadzillah has questioned the court decision to award landowners thirty-five-thousand US dollars for environmental damage to the reefs, marine life and seabed area in the Arowe passage.
Environmental campaigner Mathew Kepas said Mr Fadzillah's statements were misleading and a cover-up for their wrong doing.
He is assisting the landowners to file an application in the National Court to re-enforce the 1996 court judgement.