Authority pays K500,000 to IRC, cleaning up LLG’s mess

THE Lae city authority (LCA) yesterday paid K500,000 to the Internal Revenue Commission (IRC) as part of settling a K4.2 million debt owed by Lae urban local level government (LULLG).
The authority, since taking the lead to administer LULLG’s functions and assets, has been able to collect adequate revenue to offset part of the debt which was incurred by the LULLG over several years.
LCA chief executive officer Neill Ellery said from estimation, the authority would be able to pay off the remaining debt over the next 24 months.
“I have negotiated a payment plan with the IRC for LULLG that will be in place and LCA will stick to this plan going forward to complete the balance of the debt by LULLG with IRC,” Ellery said.
He said with the current payment of K500,000, it had reduced the debt to K3.7 million.
Ellery said the payment was a result of cost saving measures such as reduction of staffing and other exercises by LCA resulting in a surplus of K1 million generated over the past few months.
“After LCA completes settling LULLG’s debt with the IRC, we will look at the debts it has with Nambawan Supa which is at K4.7 million in total,” he said.
Ellery said he had spoken with Nambawan Supa and they were aware of LCA’s commitment to see off its debt to IRC first. He said the debt owed to Nambawan Supa would also be repaid in a similar time-frame to IRC’s. Ellery said he expected to have LCA debt free in five years.