The Chief Secretary to Government, Amb Isaac Lupari, CBE, has announced that all outstanding utilities liabilities to State Owned Enterprises (SOEs) will be settled through a set schedule over twelve months.
Chief Secretary Lupari also announced that all future Government utility usage would be monitored and paid through a centrally-administered process.
“The Government is implementing new protocols to address outstanding utility liabilities owed to State Owned Enterprises,” the Chief Secretary said.
“We have a complete commitment to ensuring the effective operation of our utility SOEs including PNG Power, Telikom and Eda Ranu.
“As the Acting Treasurer, the Prime Minister has directed action be taken to retire outstanding utility bills, dating back many years,
“The recent audit established that the State has an outstanding liability of K132 million to combined entities.
“This recurring debt has accumulated over many years and is a chronic legacy that began with past governments, and continues to affect each annual budget and the performance of SOEs.
“A process will now be put in motion that will have a consistent and visible payment schedule to rectify this legacy issue.
“This will see all outstanding liabilities retired within twelve months, and future payments to be made on time.
“To prevent a reoccurrence of this situation in the future, a centralised payment system will now be implemented to will monitor utilities usage and administer payment for all Government departments.
“Arrears will be paid down at an amount of K32 million each month that will cover both current expenditure on utilities and arrears.