Cash flow constraints affecting PNG Power

Main Stories

MAJOR cash flow constraints facing the State is affecting PNG Power Ltd’s operations, Minister for Communications and Energy Rainbo Paita says.
He told Parliament yesterday in response to a question from Gazelle MP Jelta Wong that Treasury had made payments to a fuel supplier but the cheque was dishonoured.
Wong queried why there was continuous load shedding and power outages in East New Britain.
He said load shedding was affecting businesses and work in the province.
PNG Power began load shedding and disconnection exercises due to outstanding payments from customers including the Government.
Paita said he and State Enterprises Minister Sasindran Muthuvel in consultation with Treasury were working to ensure that some payments were made to PNG Power soon.
“It’s interesting to note that we have issues and at the same time the state also owes substantial amount of money to the company.
“Given the cash flow constraints that we are having now, we have been working with Treasury to ensure that we get some payments across to PNG Power.
“Treasury released the payment but as we have been experiencing with cash flow constraints, the cheque bounced.
“So we are dealing with that issue.”

Leave a Reply