PNG Power Limited might shut down, if government does not come to its rescue.
The State Owned Enterprise is facing a huge financial crisis, and has no funds, to operate unless something is done immediately.
Documents obtained by EMTV shows, several letters addressed to the Minister for State Owned Enterprise, Ben Micah, calling for urgent government attention.
Following the suspension of John Tangit as PPL’s CEO, and the minister for Sate Owned Enterprise Minister Ben Micah, withdrawing his threat to sack the board, a letter was addressed to the minister, advising him that PPL was facing serious financial issues.
It said these financial issues, were created as a result of mismanagement, overspending, and spending outside of budget.
The acting chairman of PPL Board, Robert Bradshaw today, confirmed that the SOE is facing financial crisis, and the government must address this immediately.
In a second letter dated 19th March from the Managing Director of Independent Public Business Corporation, to the minister, it said PPL had gone past its overdraft facility, and did not have any money to pay its workers that day, therefor the bank sought authorization from IPBC, to cater for wages amounting K3.2 million.
PPL’s bank account balance now stands at negative K48 million, K8 million more than its approved overdraft facility of K40 million.
Twelve months ago, PPL announced a profit of K50 million, however today, there is not a toea left in its bank account.
The second letter also advised the minister that BSP has sought assurance from IPBC, to extend PPL overdraft facility.
It is understood that the recently established ministerial committee is addressing PPL’s financial crisis.
The board says the current investigation into PPL management, may uncover the cause of this financial crisis.
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