K5.8mil given to firms

By PETER ESILA
THE Government has released three cheques totaling K5.82 million to three businesses in Port Moresby affected by the Jan 10 civil unrest.
PNG Chamber of Commerce and Industry president Ian Tarutia said on Friday when receiving the cheques from Chief Secretary Ivan Pomaleu that City Pharmacy Limited received K2.75 million, Bismillah K2.514 million and Paypon with K588,000.
These are the first payments made out of a K270 million commitment by Prime Minister James Marape to the businesses affected by the unrest of January 10 and 11.
“Three cheque payments were for employee wage support,” he said.
“The most notable beneficiary was City Pharmacy which has over 500 affected staff.”
Tarutia said the delay was due to the compliance requirements with the Governments’ Public Finance Management Act.
Pomaleu said the government would work with the business sector.
“This is the first part of our government’s commitment to support and rebuild our valued businesses.
“This programme recognises the critical role businesses play in our economy and ensures they have the support to retain their workforce during these unprecedented and challenging times.
“The wage support programme provides financial assistance to eligible businesses to help cover a portion of employee wages.
“This support will help businesses maintain payroll, avoid layoffs, and continue operations, which is important for our citizens, especially Port Moresby residents,” Pomaleu said.
City Pharmacy Limited founder Sir Mahesh Patel thanked the government for the support.
“The wage support programme is necessary for our company to maintain employment levels whilst we go through our rebuilding programme, which could take up to two years.
“These funds will allow us to retain most of our employees and ensure we can continue providing our essential services to the community.
“We are hoping that the good Office of the Chief Secretary to Government can carry on the good work and resolve the major concerns, which remain unresolved,” Sir Mahesh said.
“It’s better late then never.”
“We had covered the costs until then and will make up for it for another three months.
“This is highly appreciated, but it is a long way to go from the K90 million loss we incurred.
“To start with, some of the larger sites (Rainbow and North Waigani), which were burnt to the ground, will take two years to rebuild – we will be confronted with the dreaded question again in three months time with all the additional staff we have kept on,” Sir Mahesh said.
“Whilst the rebuild planning is going on, we are looking at alternate sites for smaller outlets but, again, we need support to get these up and running due to the huge losses suffered.
“We need immediate cash support for the loss of assets, also, a timely refund of the Goods and Services Tax returns.
“Our staff have been amazing and they are the backbone of our company.
“Our customers, I cannot thank them enough for their loyal, ongoing support.
“I do, however feel for our farmers, suppliers, contractors and SMEs (small-to-medium enterprises) whose business has dropped due to our losses.
“Thus my plea to the Government to quickly start the next phase of support, not only for us to get going but also the support services to get back to their pre-Jan 10 volumes for supply and services,” he said.