A Port Moresby casino project agreement with south Korean company CMSS has been suspended because it was “not in a position to fund the project”.
The National quotes Commerce and Industry Minister Charles Abel as saying an investigation will now determine “who has invested monies and how these funds have been expended”.
The PNG government has provided state land for the construction of the casino hotel, waived customs duty on import of construction materials and promised a 10-year protection from granting another casino licence to a competitor to CMSS.
The government also raised K22 million to buy equity in the project. However there has been no construction activity for 12 months.
CMSS says it is seeking legal advice.