Security firms fail super duty

Business

THE Papua New Guinea Security Industries Authority (PNGSIA) has revealed that 364 security companies failed to remit to super funds their employees’ future savings.
The companies also failed to pay their security guards the K3.50 rate per hour approved by the national minimum wages board.
Only 467 security companies are registered with the Investment Promotion Authority (IPA) and PNG Security Industries Authority while 230 are operating illegally in the country.
PNGSIA registrar Paul Kingston Isari said  compliance with government laws was important.
Isari attended a workshop facilitated by the Bank of Papua New Guinea and PNGSIA, in collaboration with the IPA, Internal Revenue Commission and Department of Labour and Industrial Relations in Lae on Friday.
“Many security companies never pay their employees based on K3.50 wage rate and fail to remit employees’ deduction to super funds, while avoiding paying tax to the Internal Revenue Commission,” Isari said.
“These 230 illegal security companies know who they are and must get themselves registered with IPA and be recognised under the PNGSIA.”
The penalty for operating illegal security companies is K500,000.
“The security companies’ pay offices must give the guards their pay slips every fortnight to see how and where their pay was deducted and for what purposes,” Isari said.
Bank of PNG’s Benny Popoitai said being compliant with government laws was significant for the company’s image, the reputation of the workforce and the security of the country.

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