Forex affecting overseas payments

By LUKE KAMA
THE shortage of foreign currency liquidity in the country is affecting businesses which cannot transfer money out of the country to buy items from overseas, a company manager says.
Managing director for Trans Wonderland Limited Larry Andagali is the latest in a list of businessmen who have raised their concerns on the foreign exchange issue.
Trans Wonderland is one of the biggest transport and logistic companies providing transport and logistics support services to the ExxonMobil PNG-operated PNG LNG project, Oil Search Limited and other businesses in the Highlands region.
Andagali said yesterday that the company was unable to buy new trucks and parts for the trucks from Australia because money could not be transferred out of PNG.
“Asset replacement is becoming a major issues because we cannot transfer money to Australia to buy Western Star trucks,” he said.
“We have ordered two trucks for 2017 and six trucks for 2018. But truck manufacturers cannot start building until they receive cash for the trucks.
“We have been in the queue for the last four months and not sure how long it will take for the six trucks for 2018.”
Andagali said it would affect the company’s productivity, a problem other big companies in the country were also facing.
“Most of the (truck) parts are imported and the delivery is greatly affected as well. The only way is to strip our reserve trucks to replace the parts. But that can be done only for a few parts,” he said.
He urged Treasury Minister Charles Abel to sort out the foreign liquidity situation in the country.
Andagali said future project agreements should include setting up project developers/financiers revenue distribution account onshore.
This would avoid the mistakes of past project agreements which failed to bring in revenues and foreign reserves into the country.
Meanwhile, Dr Harry Poka, chief executive of the Sir Joseph Nombri Memorial Kundiawa General Hospital in Chimbu, said earlier that they could not purchase medical equipment in Dubai because of the lack of US dollars at the Central Bank to convert the K4 million they paid.
“So we have been told by the banks that our purchase is still in the queue and it’s over five months now since we made the payment.”