Fletcher Building says no issues with payments for PNG operations

Monday 1st February 2016

Fletcher Building, which built the $170 million aquatic centre and stadium revamp for last year's Pacific Games in Port Moresby, says it has no issues with payments from the Papua New Guinea government and enjoys a good relationship with the tropical island nation.

A Wellington-based consultancy, Evaluation Consult, said this week it was owed $600,000 for work on a national strategic sustainable development plan for the PNG government even after winning a court case in PNG to recover the debt. The company urged other offshore companies to demand payment upfront when taking contracts with PNG and its directors said they had heard of other New Zealand and Australia businesses "who are owed millions of dollars".

A Fletcher spokeswoman said her company had no issues at this stage with payments from PNG. Fletcher's contracts have included the Grand Papua Hotel, and other commercial and residential developments in the capital Port Moresby, where its Fletcher Morobe Construction unit is based. Fletcher Aluminium is a member of the NZ Papua New Guinea Business Council.

Evaluation said it had been unable to recover money owed for its work on the government project despite pressure from the Ministry of Foreign Affairs and Trade, Foreign Minister Murray McCully and approaches to PNG's High Commission in New Zealand.

Managing director Brian Rumbelow said in an emailed statement that the New Zealand government should use some of the $70 million in aid earmarked for PNG over the next two years to establish better government processes and accountability.

(BusinessDesk)

BusinessDesk.co.nz

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