Puma Energy payments on hold

Restraining orders against PNG Customs taking any further action against Puma Energy Ltd, to pay alleged unpaid Goods and Services tax, on shipments of Crude Oil, have been extended by the court.

Payment of alleged administrative penalties, amounting to K124 million and a further K890,000,000 for unpaid import GST by Puma Energy PNG Ltd, remains on hold by orders of the Waigani National Court.

Temporary injunctive orders issued on March 2 last year has been extended by the Waigani National Court against PNG Customs collecting the said amount amounts until the final determination of the matter in court.

The three main banks, Bank of South Pacific, Westpac bank and ANZ Banking group have also been restrained from paying money through garnishee notices, paid pursuant to section 191AA of Customs Act by the Chief Commissioner.

Justice Derek Hartshorn, extended the orders after the court saw that Puma Energy had serious questions to be tried in court, and that damages would not be the adequate remedy.

Puma Energy had submitted in court that it would have to cease business if the interlocutory injunctions are not continue because of the amounts involved.

Puma supplies approximately 60% of PNG’s fuel supply chain, 50 branded service stations, many third fuel suppliers, and is the sole supplier of A1 jet fuel to airports across the country. It is also the principal supplier of liquid fuel (Diesel and HFO) to PNG Power.

On 12 September 2016, the Customs Chief Commissioner, without prior notice, issued a demand for the payment of K124, 700, 621.79 for alleged administrative penalties and a further K896, 997, 735.81 for unpaid import GST.

Puma Energy disputed its liability for any of the monies claimed.

It lodged an appeal with the Customs review Tribunal. Despite the appeal, and knowing the Customs claims are disputed, the Chief Commissioner issued statutory garnishee notices to the three main commercial banks, requiring payment for the amounts in those notices.

Puma Energy filed an originating summons proceedings in the National Court, seeking declaratory relief amongst others, and that the garnishee notices serviced by the Chief Commissioner are invalid and unlawful.

The court is yet to hear full arguments regarding the matter.

The restraining orders remain in place, pending that hearing.

Author: 
Sally Pokiton
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