PNG's beleaguered power co "on verge of collapse"

8:13 pm on 1 August 2015

Papua New Guinea's public enterprises minister says the country's electricity provider, PNG Power, is broke and in deep cash flow shortage.

Ben Micah says the company is on the verge of collapse due to widespread misuse and mismanagement of money, including funds given by MPs for rural electrification projects.

The Post Courier reports that Mr Micah was responding to a question in parliament by the Angoram MP, Salio Waipo, who asked why no progress has been made on the Wewak to Angoram power project, despite 3.6 million US dollars being paid to PNG Power.

Mr Micah says that last year, PNG Power had an overdrawn bank account of 14 million US dollars, and has only managed to recoup 6.5 million from outstanding power bills and other costs.

He says he will prepare a detailed report on the financial status of the company.

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