Conn against IPA move

Business

THE chief executive of the Port Moresby Chamber of Commerce and Industry David Conn has criticised the recent moves by the Investment Promotion Authority to have a long-term investor declared a foreign company.
Conn, a member of the IPA board for the last 10 years, said he had to reluctantly speak out against a “misinterpretation” of the IPA Act 1992 and deliberate obfuscation.
“To instruct a long-term business and employer of thousands of Papua New Guineans to register as a foreign business when 67 per cent of the shareholding is held by Papua New Guineans is totally unacceptable,” Conn said.
“The fact that only 33 per cent shares are held by a foreign national, because he is a director, surely passes whatever test the IPA management are trying to impose under their legislation for beneficial ownership.
“What are they saying? Any business with a foreign director has to become a foreign enterprise, pay the additional fees and possibly a fine?  “When business is doing it tough, the last person we need to be making life difficult is the IPA.
Our member cannot get visas, and therefore its work permits through Migration because Migration has asked IPA to apply this test on beneficial ownership. This is nonsense and heads should roll at the Investment Promotion Authority.”
Conn said he raised the issue at a board meeting on March 30 “and in a very heated debate, it became obvious the acting MD was behind this interpretation”.
“Now the board has been told to stick to its knitting and deal with policy matters and not interfere in operational matters. Unbelievable.”