PNG Government owes hire car companies over K7m

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Picture: PNG GOVERNMENT

PORT MORESBY, 19 FEBRUARY 2019 (POST COURIER) – More than 10 hire car companies say they are owed more than K7 million (US$2 million) by the Papua New Guinea government for services provided during last November’s APEC Leaders’ Summit in Port Moresby.

The total cost is between K7 million and K8 million (US$2.3 million) which the government has yet to settle.

Spokesman Rex Kambao who was representing the car hire companies said that the bills ranged from K600,000 (US$178,000) to more than K1 million (US$297,000) depending on the number of vehicles put for hire.

“The calculations have been made and the records summaries are there. It would be estimated to K7 million to K8 million for vehicle hires only,” Kambao said.

He said although the hire car companies had gone through the formal government processes and signed formal agreements, the government has not lived up to their bargain.

“This are poor business ethics.

“We signed the contract to assist the government to a provide vital service for the APEC preparations. We understand that the government has budgetted to pay and we have raised this issue last year hoping the government will pay us at the close of accounts in 2018, but is has not paid since,” Kambao said.

He said this was the second time the hire car companies were airing their grievances to the government to honour its agreement.

“We the owner of the hire car companies, provided services on the ground work and the preparations for the APEC through the joint security force operations – the police, Defence Force and Correctional Service – headed by Police Commissioner Gari Baki,” Kambao said.

Yajopi Hire Cars owner John Yama also urged the government to pay up.

“The police, Defence Force and the Correctional Service had used our vehicles to provide services and if their security allowances are being paid our vehicle hires should be paid too,” he said.

He said, the government has taken initiative to pay outstanding allowances and has not done the same to pay for the hires and services that we have rendered.

“Government advised us that they will pay before the close of accounts by the authorities concerned such as APEC Authority, Finance and the office of the Chief Secretary but they have not paid. We want them to pay us now,” Kambao said.

Susan Dots from the Sudo Hire Cars and James Tiginge from the Island Mobile Hire have joined with the other hire car companies to complain about the non-payment.

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