Committee calls for amendments to KPHL Act

There is a need to amend the Kumul Petroleum Holdings Limited, to ensure its compliance and consistency of payment of dividends to the main government coffers.

KPHL was created to hold the State's interest in the PNG LNG and other petroleum ventures, with the Prime Minister as the sole trustee.

Permanent Parliamentary Committee on Plans and Estimates Chairman Joseph Yopyyopy says the current legislation that created KPHL has placed significant limitations on the Government's ability to access its rightful shares of revenue.

He says, "the current governance structure concentrates decision-making power, limits parliamentary oversight, and creates a potential conflict of interest."

Mr. Yopyyopy cited several instances from 2022-2024 where billions of kinas worth of funds received by KPHL, were not fully remitted to the consolidated revenue:

He says under the Government's 2025 dividend policy, KPHL is expected to remit 80% of its revenue to the State.

However, this needs to be backed with legislation in order for compliance:

The Chairman of the Permanent Parliamentary Committee on Plans and Estimates says while the committee is not questioning the importance of KPHL's role in managing resource projects - dividends must be paid fully so as not to suffer other essential services across the country.