Court to rule on BPNG-Puma feud
News that matter in Papua New Guinea
Court to rule on Puma-BPNG feud
PORT MORESBY: The National Court is set to rule today
(Dec 6, 2022) whether to stop Puma Energy Limited (Puma) from communicating
directly with Bank of Papua New Guinea (BPNG) on foreign currency transactions.
BPNG’s lawyer Donald
Kints said the Central Bank’s notice of motion sought to stop Puma from
shutting down the supply of refined petroleum products in the country.
The application also seeks
to stop Puma from limiting its supply on the basis that it (BPNG) had failed to
make available foreign currency through the Authorised Foreign Exchange Dealers
(AFEDS) in PNG, pending the final determination of these proceedings or until
further orders of the court.
The court proceedings were published by The National:
Court to rule on Puma
case
December 6, 2022The
NationalMain Stories
THE National Court is
set to rule today whether to stop Puma Energy Ltd (Puma) from communicating
directly with Bank of Papua New Guinea (BPNG) on foreign currency transactions.
BPNG’s lawyer Donald Kints said the Central Bank’s notice of motion sought to
stop Puma from shutting down the supply of refined petroleum products in the
country.
The application also seeks to stop Puma from limiting its supply on the basis
that it (BPNG) had failed to make available foreign currency through the
Authorized Foreign Exchange Dealers (AFEDs) in Papua New Guinea, pending the
final determination of these proceedings or until further orders of the court.
BPNG’s notice of motion also seeks to restrain Puma from:
- LIAISING directly or indirectly
with BPNG on its need for foreign currency but instead to liaise with
AFEDs in the country;
- ISSUING threats via any mode of
communication or publication to BPNG or to the public with reference to
the bank to force BPNG to make available foreign currency through the
AFEDs to serve the purposes of Puma and its affiliates; and,
- ISSUING threats via any mode of
communication or publication to BPNG or to the public with reference to
BPNG which will impede or is targeted to restrict or prevent BPNG from
performing its duties and carrying out its functions under the Central
Banking Act 2000 and its regulations and any other relevant laws.
Acting Judge Gertrude Tamade in the National
Court in Waigani yesterday asked Kints where in the Central Banking Act did it
talk about compelling businesses to sell.
“The supply of petroleum products depends on foreign currency which BPNG
regulates and one of the relief sought was to restrict Puma from limiting or
halting supply until further determination of the substantive
proceeding,”Justice Tamade said. “If an entity does not have the ability to
supply, you cannot stop them. You cannot tell the business how to do its business.”
Kints also said Puma did not provide reports on cash inflow and outflow.
Puma’s lawyer Erik Anderson said there was nothing legally wrong about Puma
approaching BPNG for foreign currency and that there was no arguable case.
Anderson said Puma had not been making any threats. “We have been transparent.”
Anderson said asking the Government or approaching politicians in relation to
this issue was not political interference because BPNG was a state entity.
“And the Government had a direct interest in ensuring there was no disruption
in supply of petroleum products,” he said.
Anderson said asking BPNG to perform its statutory function was not an
inconvenience, but just asking them to do their job.
He said there was no case and urged the court to dismiss it with costs.
Kints argued that the court should grant permanent restraining orders against
Puma, otherwise Puma would continue to directly communicate with BPNG.
He said Puma should communicate with the AFEDs or commercial banks. Justice
Tamade reserved her ruling for today.
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