Shadow Minister for Petroleum, Energy and International Trade and Investments, Kerenga Kua, has called on the Government to be clear and legally compliant in its response to the fuel crisis.
Mr Kua noted that among other directives, the Government has given directives to Bank South Pacific to maintain Puma’s accounts for an additional 12 months and has appointed Deputy Prime Minister John Rosso to be the ‘Team Leader’ on this issue on behalf of Cabinet.
“Although I am not privy to some of the discussions going on between our industry leaders and the Government, I find it appalling the Government is forcing BSP with emergency provisions to maintain Puma’s accounts.
“Through BSP’s own assessments based on international banking regulations and good practice standards, they made a decision to suspend their services to Puma this month.
“However, it appears that the Government is giving further leniency to Puma, and by doing so, putting BSP’s adherence to international banking regulations at risk.
“The Government is trying to make it seem that they are taking steps to fix this crisis, but at the same time they are creating more problems for the country in the future.”
“BSP is one of the country’s important institutions and is recognised internationally for its independence and adherence to good practice standards.
“It is not a good look internationally when the Government of PNG is forcing our largest bank to follow its instructions against its will. All this says to international regulators, investors and businesses is your banking services can be controlled at the whim of the Government of the day.
“BSP has a competent board, management team and staff to make sound decisions in the best interest of the bank, industry and for their shareholders – so in my opinion, it is not good judgement for the Prime Minister and Cabinet to make such a call to BSP.”
Commenting on the decision to appoint DPM Rosso as the Team Leader of the fuel crisis, Mr Kua noted that the Minister for Petroleum Jimmy Maladina has also taken carriage of the Energy Ministry, but for some reason is not fully in charge of this effort.
“It is unclear why the Government is duplicating work responsibilities and giving the DPM one role and giving another to Minister Maladina.”
Mr Kua explained that although the Government’s decision to invoke emergency powers to deal with this issue is a blanket order, it is particularly the Minister for Energy who is enabled to take the lead on this effort since it relates to an energy emergency.
Section 6 (2) of the National Energy Authority Act 2021 states: “In case of an emergency, the Minister may… exercise such powers and give such directions as may be necessary for the public interest, for the proper continuance or resumption of the production or supply of energy.
Similarly, Section 136 (1) of the same Act states: “The Minister may declare an emergency under the Essential Services Act 2002, and exercise the powers granted to him under this Act and the Essential Services Act 2002, in relation to electricity and energy services.”
By law, this means the Minister for Energy should be in charge of the current emergency and not duplicate functions for the DPM.
“As I have stated, upon concluding the previous state of emergency into this issue last year, in my then capacity as Minister for Petroleum and Energy, I furnished a complete report on recommendations and solutions for the short and long term.
“If the Government cared to indulge this report last year, I don’t think we would be running around taking drastic measures like they are now doing,” Mr Kua said.
Kua emphasised that as Shadow Minister, he will continue to contribute in his new capacity to provide the Alternative Government’s solution and way forward.