Reported losses at K1.27bil

The National Business

By PETER ESILA
BUSINESS houses in Port Moresby affected by the civil unrest last Wednesday are working with the Business Council of PNG to make it easier for the Government to finalise financial relief assistance.
PNG Chamber of Commerce and Industry president Ian Tarutia (pictured) said losses reported so far from businesses in Port Moresby stood at K1.27 billion – but could increase.
“The Business Council and the PwC are responsible for the data collection through a survey currently being circulated among affected business houses,” he said.
“We appeal to all business houses to complete the survey as soon as possible and return it to the Business Council of PNG office. This will make it easier for Government to finalise its financial relief assistance to affected business houses.”
He said there were forex (foreign exchange) requirements as well, important for stock replenishment from overseas.
The Bank of PNG has given assurance that forex will be made available, he added.
A letter from peak business representative bodies sent to Treasurer Ian Ling-Stuckey states: “What happened is likened to a major national disaster. Thus, businesses are seeking from the PNG Government, an immediate cash injection of up to K1 billion.”
The request includes:

  • IMMEDIATE needs of the business community to recoup losses (both stock and capital infrastructure), and rebuild to be operational again in the shortest but most practical time possible. This will require an immediate capital injection of between K800 million and K1 billion;
  • THAT foreign exchange be immediately made available by the Bank of PNG and specifically earmarked for businesses affected by the illegal events of January 10; and
  • THAT there be blanket waiver or at the least serious expediting by all relevant national and provincial governments and municipal authorities for all building and related regulations to facilitate rebuilding and refurbishment of buildings affected by the illegal events.
  • TO fund the losses, the following options are offered:
  • AN immediate issuance of a Kina denominated Bond (Government inscribed stock) through the Bank of PNG similar to the bond issued in response to the Covid-19 emergency in 2020. This proceeds of this bond offering is to be directed to all affected businesses; and
  • THE Government to review the current planned expenditure and votes from the 2024 budget on where to draw down to support this request with transparency.