Foreign entities and organisations wishing to do business on PNG soil, especially state land, will now be screened for proper certification.
Minister for Lands and Physical Planning, Justin Tkatchenko, announced this yesterday, stating the Lands Department will now begin measures to assess appropriately all companies who deal with them.
Tkatchenko explained that the reason for this development is due to some foreign investors who have not been doing the right thing by the governing laws, especially under the Investment Promotion Authority and tax compliance.
“Foreign investors must follow rules and regulations set by the government when acquiring state land,” said the Minister.
He added the following are required before a state lease or documentation can be given to a company: IPA compliance certification and tax compliance certification.
“We are not stopping any investment or stopping any partnership but we need the investors to be well aware that there are rules and regulations to be followed.”
He said under the law, including section 25 of the Investment Promotion Act, a foreign entity that carries on business in PNG needs to be certified.
Tkatchenko also noted that three foreign companies have already been rejected through this new strategy and there will be no tolerance from the department for any more investors who do not go by the governing laws.