Govt owes businesses over K100mil: Chamber

By DALE LUMA
MANY businesses in Port Moresby and around the country are still owed outstanding bills worth more than K100 million by the Government dating back years, according to the Port Moresby Chamber of Commerce and Industry.
President Rio Fiocco said these were payments for offices rentals, construction, and other goods and services rendered and other services.
Figures previously provided by the PNG Chamber of Commerce (PNGCCI) showed that the private sector were still owed around K800 million at the end of last October.
Fiocco told The National yesterday that in this trying economic times, Government should sort out some of these payments as many businesses were on the verge of bankruptcy which included small to medium enterprises (SMEs).
CPL founder Sir Mahesh Patel told The National this week that the company is owed K4.6 million since last year.
Steamships Trading Company had said that it hoped the Government settles its arrears worth “millions of kina.”
Fiocco said some payments were made by the Government but only at instances such as when a landlord threatened to or shuts down a building used by a Government department.
“The pandemic has also added to the problem with most businesses such as hotels, food and restaurant, entertainment businesses such as pokies, bars and others being drastically affected by having to shut down as part of Covid-19 measures now in place to address the spike in Covid-19 cases,” he said.
“Some businesses are experiencing lower sales than usual,” Fiocco said.
“The overall impact on businesses has affected employees who were laid off.”
Fiocco said some business owners have lost confidence in how the Government was dealing with the Covid-19 in terms of vaccinations, which should have arrived in the country much earlier.
He said the Government should publish its policy of its vaccination rollout plan.
“Businesses are currently in contact with the government for vaccination of essential workers in the industry,” Fiocco said.