Losers should pack and return home, PNG tells corporate giants

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PNG Finance Minister Sir John Pundari

Losers should pack and return home, PNG tells corporate giants

PORT MORESBY: Does it make sense for corporate giants to declare losses every year and yet remain in Papua New Guinea (PNG) to do business?

This is what is happening and Finance Minister Sir John Pundari says it was time for corporate giants to pack their bags and leave if they continued to declare annual losses to the Internal Revenue Commission (IRC).

Read on to find out what Pundari has told the IRC to do:

State needs money

June 8, 2021The NationalMain Stories

By GYNNIE KERO and DALE LUMA
THE Government is looking for money to meet its obligations and is expecting big companies to pay their taxes as good corporate citizens, says Finance Minister Sir John Pundari.“The demand for money in this nation is so much that I find it very difficult to meeting the demands,” he said.“Demands for (overdue government) arrears, outstanding payments some of which are from many years ago.”“The demand for money for health, education, for litigated cases against PNG. We all want money (but) here is money going to come from?” Sir John warned those companies which have been declaring losses every year to leave the country.“We’ve got corporate giants who continue to declare a loss in their (annual) financial reports to the Internal Revenue Commission (IRC),” he said. “If you continue to declare a loss, why do you (remain) in this country? You might as well pack up and leave.” He said a recording losses reflected an “unattractive investment”. “If you continue to declare a loss, your investment is unattractive and does not return a good yield,” Sir John said. “It is indeed a shame for big corporate companies that continue to declare losses year in year out, and yet continue to remain in this country. “It is time the IRC wakes up and does a forensic audit on these corporate bodies. They know who they are.” He thanked the big companies paying taxes. “I take my hat off to you,” he said. Last Friday in Porgera, Sir John singled out Barrick Niugini Limited (BNL) as an example of a good corporate citizen.“We have many other mining companies that operate, employ people, and grow the economy and so on. But Barrick and the team rocked the boat in what I believe is a momentous achievement,” Sir John said. “By saying rock the boat, I meant that other investments in the extractive industry will have to now come on board and do the right thing as corporate citizens. “If Barrick can do it, you can do it. Given the Covid-19 and development needs of the nation, you can willingly offer free dividends as done by Barrick.”Meanwhile, Institute of National Affairs executive director Paul Barker said the US$300 million (K1.052 billion) needed to open the Porgera gold mine showed the massive cost to revive with well over a year of lost jobs, contract, revenue and foreign exchange. He said so much capital reinvestment was needed before costs were recovered and profits and positive tax contributions restored. BNL president and chief executive officer Mark Bristow said in Porgera the cost of restarting the mine would be US$300 million – US$120 (K421 mil) million for care and maintenance of the mine alone, plus another US$180 (K625 million) to get it reopened towards the end of the year.“It just shows the massive costs to be incurred in reviving this project, and clearing up the pit and the miles of underground tunnels and restoring plant and equipment,” Barker told The National.