BSP cuts ties with PNG fuel supplier Puma

Photo: Puma Energy

BSP Financial Group Limited (BSP) has cut ties with Puma Energy, according to Papua New Guinea Petroleum and Energy Minister Kerenga Kua.

According to Minister Kua, the action by BSP is independent of the Government and Bank of Papua New Guinea’s influence and is purely a global banking and finance response.

He also said government is aware of Westpac and ANZ Banks closure of the Puma companies operating accounts.

The country has been experiencing ongoing fuel issues due to foreign exchange (FX) debacles between Puma Energy and the Bank of Papua New Guinea (BPNG) until most recently, BSP coming into the picture with Puma stating the banks’ unwillingness to work with the company.

BSP released a statement last week, announcing that it has recently taken a decision to cease its relationship with one of its customers without naming it.

The statement read that: “BSP has allowed the customer time to make alternative arrangements before its relationship with BSP is concluded.

“The reasons for BSP’s decision are known to the Bank of Papua New Guinea and the Financial Analysis and Supervision Unit and have been communicated to members of government.

“Currently the customer has the capacity to operate its accounts with BSP until its relationship with BSP comes to an end.

“As a licensed bank in Papua New Guinea, BSP has an obligation to strictly comply with all regulatory requirements.

“The regulatory framework is essential to ensure Papua New Guinea’s financial system is robust nationally, and critically also to ensure Papua New Guinea is connected to and compliant with the international financial system.

“BSP has complied with its regulatory and contractual obligations in making its decision.” Post-Courier was unable to get comments from the other two banks mentioned, Westpac PNG and ANZ.