Minister Mandates Cost-Cutting and Revenue Collection at PNG Power
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
Richard Maru, the minister responsible for PNG Power, has instructed the company's new board to implement cost-cutting measures, particularly targeting high human resource costs. Maru stated that PNG Power must become profitable and that the board's first task is to collect revenue and begin retiring debt. PNG Power continues to lose 26 per cent in revenue, according to the minister.
From thenational.com.pg
Why it matters
The directive signals a major operational turnaround for PNG Power, which is facing financial difficulties and revenue leaks. The minister stressed that the company must operate as a business and ensure payments are made to its Independent Power Producers. Deputy board chairman Noel Mobiha also stated the board would strictly review management professionalism and integrity.
Power supply in Lae faces challenges from GNC constraints, El Nino impacts, and political scrutiny of PNG Power.
From thenational.com.pg
Who's involved
- PNG PowerThe utility company whose operations and finances are under ministerial review.
- Richard MaruThe minister responsible for PNG Power, who mandated cost-cutting and revenue collection.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- MaruSpeculative
The company might implement recruitment freezes and mandatory operational changes to reduce high human resource costs.
Keep exploring
The entities involved
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PNG Power
Nothing else this week.
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Lae
city in Papua New Guinea
Nothing else this week.
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Richard Maru
politician in Papua New Guinea