Debts sinking shipping Co

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MOROBE Coastal Shipping Ltd (MCSL) will cease its services because of debts owed to service providers which it will settle through the sale of two vessels.
The vessels to be sold are MV Gejamsao and MV Maneba with the proceeds to be used to help repay debts of K7 million.
MCSL will not be liquidated but its assets sold to repay debts and the company will continue to exist in case the Morobe government or its districts decide to operate in the future.
MCSL manager Namon Mawason made the company’s intentions known after the return voyage of MV LBC 1 with 2,000 bags of coffee belonging to the Unen Choit cooperative group from Kabwum on Monday.
Mawason told The National that MCSL owed around K7 million to service providers.
He said he had written to Morobe Governor Ginson Saonu to bail MCSL out two weeks ago and they were waiting for a response.
Attempts to reach Saonu yesterday for comments were unsuccessful.
“MCSL is in the red and is unable to pay wages, outstanding payments for leasing LBC 1 from Sir Bob Sinclair, wharfage fees and accommodation rentals for chief engineers which have accumulated over the last four months,” Mawason said.
“Whatever little we received from running LBC 1 was used to pay water, electricity and communication bills to keep us running.”
MCSL shareholders are Finschhafen, Kabwum, Tewae-Siassi, Huon Gulf and Nawaeb district development authorities.
“MCSSL struggled for almost three years without financial support from the government to provide shipping services to coastal communities,” he said. “We are hoping Governor Saonu can come to the rescue of this company which has quietly been struggling to serve the silent majority along the coastal and island villages.”

One thought on “Debts sinking shipping Co

  • This is the reality we are facing over in the Bougainville Atolls . It is the obligations of the government to ensure shipping services are provided safely for all coastal people and those who are out on the Atolls who depend on these services.

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