The Member for Sinasina- Yongamugl, Mr. Kerenga Kua after resigning as a State Minister from the government yesterday, gave a stunning revelation of the Puma Energy PNG’s situation and its issues that are being experienced in the country, even right now. Mr. Kua revealed that while as the Minister for Petroleum and Energy in the Marape- Rosso Government, he had recommended that Puma Energy PNG closes its operations in Papua New Guinea because it is bound to be doomed due to its failing situation with regards to the closure of its bank accounts with the major commercial banks and its inability to purchase fuel and satisfying the domestic demand for fuel due to Forex issues. “This problem emerged in July last year and an emergency was declared on fuel supply in Papua New Guinea under various legislations I was responsible for,” said the Member of Parliament (MP). “I took it through and we tried to understand what the underlining reason for the disagreement between the commercial banks, Bank of Papua New Guinea (BPNG) and Puma as the supplier of both general and aviation fuel.” What was discovered was apparently something to do with Puma’s invoicing system to BPNG for the US Dollars foreign currency, which Mr. Kua said was one of the main problem. “The Central Bank has got questions about the integrity of those claims of foreign exchange, those invoices. On top of that the local commercial banks are also under pressure from correspondent banks from overseas.” He explained that every bank in the country has a relationship with an overseas company, it’s an official relationship called the Correspondent Bank Relationship, which is to make sure that international transactions are conducted through that relationship. “The pressure for the local banks to shutdown Puma’s accounts is also coming from the overseas correspondent banks, we don’t know the grounds but the pressure is there.” The MP said ANZ bank and Westpac bank have closed Puma accounts already and Puma is operating on its BSP account only, but BSP has given notice to close that account. That notice was given last year on the 08th of June to Puma that the account will close on the 08th of September 2023. “But when we introduced the state of emergency, I on behalf of the government asked for an extension and it was extended to the 08th of March this year. So, Puma’s ability to operate is still there up to the 08th of March,” said Mr. Kua. “Now in the interim, we’ve tried to ask Bank of Papua New Guinea and BSP to reconcile their difference and I can tell you now that it’s irreconcilable. Also, the correspondent banks demands for the closure of Puma accounts are also there. So, BSP has no choice and apparently Bank of Papua New Guinea has no choice, so what do we do?” Kua said Puma is running out of options and he recommended that the fuel company sell out. “I said it’s time to shut down your business in PNG. Do it in an orderly manner, and don’t interfere with supply (fuel supply) itself. Maintain your orders, maintain the distribution, at the same time you put your business on sale.” He concluded by saying that Puma Energy shouldn’t hold the country to ransom with the fuel supply rationing or stoppage, and that it should start making efforts to transit and allow another distributor to take up the business going forward.