BPNG vs Puma over alleged forex breaches

News that matter in Papua New Guinea

BPNG vs Puma over alleged forex breaches

(Central bank wants Puma to remit back K804.3m to PNG)

PORT MORESBY: Bank of Papua New Guinea (BPNG) has filed a writ in the National Court seeking an order for Puma Energy Ltd (Puma) to remit US$173.44 million (K610.7 million) and A$80.89 million (K193.6 million) in foreign currency back to the central bank.

BPNG also claims that Puma held K921.59 million as trade receivables from export sales of refined petroleum products in an undisclosed offshore currency account, which BPNG claims was in breach of the Central Baking (Foreign Exchange and Gold) Regulation.

The National reported the legal battle between BPNG and Puma which will be heard today (Dec 5, 2022):

BPNG vs Puma

December 5, 2022The NationalMain Stories

BANK of Papua New Guinea (BPNG) has filed a writ in the National Court seeking an order for Puma Energy Ltd (Puma) to remit US$173.44 million about (K610.7 million) and A$80.89 million about (K193.6 million) in foreign currency back to the central bank.
BPNG also claims that Puma held K921.59 million as trade receivables from export sales of refined petroleum products in an undisclosed offshore currency account, which BPNG claims was in breach of the Central Banking (Foreign Exchange and Gold) Regulation.
The matter came before acting judge Gertrude Tamade in Waigani on Friday.
Lawyer Jeanelle Niggs, who represented Puma, told the court that there was a change of circumstances and asked for the matter to be heard today (Monday).
BPNG lawyer Donald Kints did not object to Niggs’ request to have the matter heard today.
According to the originating summons, BPNG is asking the court to declare that Puma breached certain terms and conditions which it issued to Puma Energy on May 10, 2017.
The terms and conditions concerns an approval given by BPNG to Puma which allowed Puma to open and operate a foreign currency bank account with ANZ Banking Group Ltd in Singapore.
However, BPNG claims that Puma Energy breached these terms and conditions when it remitted US$173.44 million (about K611.2 million) and A$80.89 million (about K193.7 million) in foreign currency from its various bank accounts in PNG to its offshore account in Singapore.
BPNG has therefore sought the court to order Puma to remit US$173.44 million and AU$$80.89 million in foreign currency back to BPNG within 10 days.
BPNG is also seeking for the K921.59 million from Puma’s trade receivables from export sales of refined petroleum products held in an undisclosed offshore currency account be remitted back to BPNG within 10 days.
BPNG also seeks the court to declare that Puma Energy breached terms and conditions by:

  • FAILING to remit or convert surplus funds in excess of three months offshore commitments into Kina; and,
  • MAKING payments from its offshore account in Singapore to other third party goods and service providers outside of PNG.

BPNG also seeks the court to declare that Puma breached the terms and conditions by providing monthly reports to the central bank which were allegedly false and misleading.
BPNG is also seeking an order to permanently restrain Puma from halting the supply of refined petroleum products in PNG or limiting its supply on the basis that BPNG had failed to make available foreign currency through authorised foreign exchange dealers in PNG.

BPNG takes Puma to court over forex

December 5, 2022The NationalMain Stories

BANK of Papua New Guinea (BPNG) has taken Puma Energy PNG Refining Ltd (Puma) to court for allegedly breaching certain terms and conditions related to foreign exchange (forex), central bank acting governor Benny Popoitai says.
“We filed proceedings OS No. 228 of 2022 (IECMS – CC2) Bank of Papua New Guinea -v- Puma Energy PNG Refining Ltd on the allegations of the breaches.
“Therefore, we will not be commenting further on what is before the court until a final decision is made,” he said, adding that “it is unfortunate that Puma decided to reduce supply of fuel to Air Niugini”.
Puma country general manager Hulala Tokome told The National yesterday that the company would not comment as the matter was before the court.
However, Popoitai said BPNG was working to ensure proper functioning of the forex market.
“BPNG is not in dispute but is working to ensure compliance by everyone, including Puma, with the Central Banking Act 2000,” he added.
Popoitai was reacting to a statement by Air Niugini last week on the “dispute” between Puma and BPNG which affected supply of aviation fuel to the airline operator.
“We are working closely with the Government to support the forex market to have the required amount of foreign currency to meet imports and other external obligations.
“BPNG will continue to intervene in the forex market by supplying foreign currency as and when it is necessary to help meet overseas payments, including fuel import demand,” he added.

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