The Chief Secretary has provided the following facts for the benefit of the public to address misleading news article which appeared on the Post Courier on 28 October 2025.
Following the events of 10th January 2025, the Government established an investigation task force which was chaired by the Chief Secretary. A report was presented to the National Executive Council, following NEC Decision No17/2024. In its decision, the government established a funding assistance program to support the affected businesses to reconstruct and reestablish their businesses. The NEC decision also directed that the establishment of an inter-agency task force, compromising of relevant government agencies, to be headed by the Chief Secretary to provide a Whole-of- Government support to the affected business houses, including the administration of the government assistance program. Both have been established since, and are in operation.
The business assistance program covers administrative, policy, and direct cash support where necessary. It is structured into five distinct phases, namely; direct salary support for effected employees for six months, debris removal, restocking of necessary supplies, reconstruction through concessional loan arrangements, and policy and administrative support from key regulatory agencies, including the Bank of PNG, National Capital District Commission, PNG Customs, and the Internal Revenue Commission.
The NEC decision also capped the funding assistance program at K270 million only. In Mid-2024, an initial K50 million of the K270 million was released by Treasury Department. Twenty-one (21) qualified companies benefited from this tranche of the funding as direct salary support for affected employees, cleanup and debris removal for others, whilst some received restocking support payment. A second tranche of K50 million was released at the end of December, 2024.
On record, so far, 43 qualified companies have submitted total claims worth over K800 million. We have been able to disburse only K98 million with about K3 million worth of cheques for six (6) companies pending clearance from the Department of Finance. All cheque presentations are public events and the press events so there should be no doubts by Post Courier. The highest payment made to any one company is K15 million. No claimant has ever received K100 million. We are not aware of a K100 million single payment under this program. All claims are assessed and funds paid proportionately, based on availability of funds.
The payments to the companies are guided by NEC Decision No: 17/2024, and the basic guidelines developed by the task force for the administration of the government assistance program, which was done in consultation with the PNG Business Coalition, and consistent with the Public Finance Management Act. All claimants are required to have their claims signed off by the Business Coalition. The Business Coalition does its due diligence in ensuring each company that submits their claims are IPA and IRC complaint, and that their claims are supported by authentic and verifiable evidences.
The government assistance program goes beyond direct cash support, companies with larger claims for losses are encouraged to consider the concessional loan arrangement opportunities with both the National Development Bank and the commercial banks, when these options are made available.
Government support extends beyond direct funding, as the PNG Customs Services, Internal Revenue Commission, and the Bank of PNG have established Express Lanes to assist qualified companies with essential import, foreign trade, and international transaction processes. These coordinated efforts are designed to streamline bureaucratic procedures and expedite support for the affected businesses. Express Lanes have been established by the National Capital District Commission (NCDC) and other municipal and regulatory authorities. These lanes have been established to expedite the approval of reconstruction plans, enabling qualified companies to advance their rebuilding efforts without unnecessary delays.
Mr. Pomaleu said that the task force is now actively engaged in discussions with the National Development Bank to establish specific concessional loan products for qualified companies. Key elements under consideration include the types of loan products, grace periods, repayment schedules, and other relevant issues. Central to this dialogue will be a Memorandum of Agreement (MOA) between the State and the NDB, that would articulate how these loan products will be structured and delivered, ensuring only eligible companies qualify for these loans. This option will be activated once funds are made available by the Treasury Department.
Hence, the Chief Secretary has expressed disappointment that the Post Courier chose to run a completely false story, based on false information, purposely to tarnish the program, its stakeholders, being the government, as well as the Business Coalition.
Authorized by:
IVAN POMALEU, OBE
Chief Secretary