City warns businesses

National, Normal

The National, Thursday February 20th, 2014

 COMPANIES in Lae that breach the Physical Planning Act will be dealt with, Morobe provincial physical planning board chairman, Patilias Gamato says.

He issued the warning after noticing an increase in the number of people conducting businesses in residential areas.

Gamato, Morobe’s deputy provincial administrator, said more than 40 companies and individuals in the city had been served default and stop work notices after they failed to comply with the Physical Planning Act.

Gamato said the problem had increased in the past six years because of the growth in businesses in Lae. 

He said those breaching the legislation included shops, workshops, kai-bars and PMV operators.

“More default notices will be issued to companies operating in residential areas,” Gamato said.

“A fine of K4,000 will be charged for those who breached these conditions.

“If companies ignore the notices and continue to trade, we will instruct our lawyers to deal with them.”

Gamato said he had engaged a law firm to institute court proceedings against the defaulters. 

He said under the Act, companies could operate businesses in residential areas for up to a maximum of three years.

“This is called a nonconforming status. After that they must move their office to a designated area and do business,” Gamato said.

He said the move was not to discourage people from investing and doing business in Lae but to get businesses to follow the regulations of the Physical Planning Board.