PNG Government not able to confirm it has sufficient funds

Media Release

Date: 6 February 2017

PNG Government still to pay its legal debt - New Zealand business still waiting for payment from Papua New Guinea government for work carried out in 2014.

In June 2015, Wellington company Evaluation Consult (ECNZ) won its court case in Papua New Guinea (PNG) to recover its New Zealand $500,000 debt and costs. This debt was owed for work carried out by ECNZ in 2014.

After multiple delays, the PNG national court provided the court certificate in June 2016. The Solicitor General was required to sign the certificate, which didn’t happen until December 2016 following public pressure from ECNZ.

Despite the cheque finally issued on 10 December 2016, ECNZ still has had to wait for the authorisation letter from the PNG Department of Finance, which guarantees the cheque’s clearance. The cheque and the authorisation letter by Department of Finance are issued to ensure the cheque is honoured. We are still waiting for confirmation from Department of Finance to confirm there are sufficient funds to clear the cheque payment.

ECNZ’s law team in PNG is hoping to pick up the cheque and authorisation letter this week on notification from the Department of Finance that the PNG Government has sufficient funds for the check to clear.

ECNZ Executive Director Kate Averill has heard of other New Zealand and Australian businesses that are still owned millions of dollars by the PNG government. “This should be a warning to other international businesses who carry out work in good faith to benefit the people of PNG, that PNG government employs delaying tactics before it honours its debts or complies with its own law.” Who is going to do business with a government that won’t pay them? This behaviour threatens national and international partnerships that contribute to PNG’s development.

ECNZ is a specialist results-focused governance, management, planning, monitoring and evaluation business based in Wellington, New Zealand. It currently has ongoing projects in PNG and across the Pacific region with international governments and aid organisations. It has strong partnerships and relationships with in-country experts, working with them to support countries growth.

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