PNG Power Company Board Of Directors Suspended

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Minister assumes control, to prepare Corporation for privatization

PORT MORESBY, Papua New Guinea (The National, March 10, 2015) – Public Enterprises Minister Ben Micah has suspended the board of directors of PNG Power Ltd, including chairman Larry Andagali.

Micah has taken control of all company expenditure and directed chief executive officer John Tangit not to interfere with its daily operations.

In a letter to Andagali yesterday, Micah conveyed the National Executive Council’s decision to privatise the State-owned electricity-provider.

He said the Proclamation of Emergency regarding the company had been extended from February 23 for one month.

"PNG Power Ltd is under transition to be unbundled and restructured toward privatisation," he said.

"I will be presenting to NEC shortly a comprehensive report on the way forward for PPL in this regard." He made the following directives (pursuant to Section 4 of the Essential Services Act 2002):

"Failure to comply with these directives will result in the enforcement of fines and penalties stipulated in Section 9 of the Essential Services Act 2002," he said. Micah’s letter was copied to Prime Minister Peter O’Neill, board of directors and Tangit. Andagali could not be reached for a comment yesterday. It is understood that he is in Brisbane, Australia, on a business trip.

The National has copies of the Micah’s letter and the National Gazette notice on the extension.

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