PNG Power has been restrained from terminating the employment of John Mangos as the Executive Director and from ceasing payment of his fortnightly salaries until the court fully deals with his case.
The National Court’s ruling this morning went in favour of Mangos to preserve the status quo until the substantive issues in the proceedings are fully heard and determined by the court.
The substantive issue which will be dealt with by the court on a later date is whether the PPL Board had the power to terminate Mangos’ employment.
Acting Judge Danajo Koeget in his ruling said whether PPL had the power to terminate Mangos’ employment is a serious issue to be tried in the proceeding.
He refused an application by PPL to dismiss the entire proceeding for disclosing no cause of action.
He said balance of convenience also favoured the granting of restraining orders against PPL as seeking damages are not an adequate remedy in this case.
Acting Judge Koeget said there is evidence before the court that section 12 of the IPBC act or the Kumul Consolidated Holdings Amended act 2015 provides that the removal and appointment of any director in any SOE is vested in the NEC.
He added that clause 19A1 of PPL’s constitution provides that the appointment of the Executive Director shall be by the NEC.
Mangos remains on the PPL payroll in the meantime while the court will deal with the substantive issue.
His lawyer made known in court today that he has been receiving his fortnightly allowance since the National Court on Jan 5, this year temporarily stayed Mangos termination.
Mangos was appointed the though an NEC decision as the Executive Director of PPL on April 9, 2015.
The Constitution of PPL was later amended to include the position of Executive Director after his appointment.
His appointment as Executive Director was under the terms and conditions of his employment contract dated May 21, 2015.
He was later suspended on Sept 29,2015 and purportedly terminated on Dec 4,2015.