Forex exemption for firms to be corrected

FOREIGN exchange exemptions for multinational companies granted the PNG LNG project will be corrected in the negotiations for the Papua LNG, says Deputy Prime Minister and Treasurer Charles Abel.
Abel was responding to questions from Opposition Leader Patrick Pruaitch on ExxonMobil’s exemption from BPNG regulations.
Abel said Pruaitch was the Treasurer at the time “along with others who let those terms go through, so he should be well aware”.
“We are now coming back to our law as the base case,” Abel said. “In fact we are going even further than the law to further add provisions that make these projects better for our country.
“That was one of the experiences of the PNG LNG where certain people championed and got it through, making a few mistakes of course, but they got the project over the line when perhaps it may not have at all because it involves a lot of work.
“We have to have the same attitude but we have to learn on the issues such as the fiscal regime and the domestic use of gas and spinoff for local businesses.”
Abel told The National Bank of Papua New Guinea would need to step up its role of enforcement and monitoring.
“We will also make sure that the tax system is set up so that we get the maximum tax-take, and things like exceptions of foreign exchange will be corrected,” Abel said.
“As for multinationals, why should they get exemptions on foreign exchange when other projects in the country have not? Just as importantly, when those exemptions are given, people at Bank of Papua New Guinea have to enforce them and they have to monitor (them so) that when there are sales out of the country that the proceeds are coming back to the country.
“Those terms will be looked at to make sure we get the optimum benefits as a country.”