Cost of unused assets higher: Nauga

National

THE Auditor-General says idle property, plant and equipment continue to be a problem for the PNG Ports Corporation Ltd.
In his report for 2015 tabled in Parliament last week, Philip Nauga said this included the rubber-tyred gantry cranes at Lae Port which had not been used since 2013.
Nauga said during his inspection and enquiry of the property, plant and equipment, he noted that some items which were idle were of no use to the company.
“As per my discussion with the management, the cost of running these assets were higher than the revenue they would receive if they used the assets,” he said.
“I also noted that the company’s fixed assets register contains land without certificate of land titles.
“The property, plant and equipment recorded in the books may be impaired or overstated due to the recoverable amount of some items included in property, plant and equipment was lower than the carrying value of the assets.
“I recommended to management that at each reporting date, management assesses whether impairment indicators exists for long-lived assets.”
The PNG Ports management said it was aware of the matter which had been raised by previous audits.
“Management is working on acquiring titles for the land. Management considers as a management letter point as the total value of all missing titles is approximately K2 million, which can be considered not material compared to the total asset value.”

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