PPL MD Resigns, OIC Appointed Amid Power and Union Woes

By: PNG Business News June 28, 2021

Photo Credit: Loop PNG - Flagon Bekker 

PNG Power Limited’s Managing Director has resigned and an Officer In Charge has been appointed by the PPL Board of Directors.

This comes as the power utility continues to face operational challenges that included a prolonged 16 hours of power outage last week Friday in Port Moresby that saw many business houses resort to generators to keep doors open to customers and deliver services. It is understood the sabotage of a major substation line had been responsible for the prolonged outage.

Earlier in the day, it is understood an impending strike by the PPL Union was addressed by the management, according to the now resigned MD.

Union meetings started earlier during the week on Wednesday and Thursday led by the PNG Power Workers Union, through the PNG Energy Workers Association regarding certain workplace issues.

On Friday afternoon a townhall meeting was hosted at the Airways Hotel and Apartments in Port Moresby that saw senior PPL team and the former MD Mr Flagon Bekker address various stakeholders and media about the challenges that they were facing and what they were doing to address these challenges.

It was some minutes following the start of question time, that Mr Bekker excused himself after being notified by a staff during question time.

In a statement released Sunday, Chairman of PNG Power Limited (PPL) Mr Moses Maladina announced the resignation of the Managing Director, Mr Flagon Bekker, effective immediately on Friday.

“Mr Bekker’s decision to leave the organisation after nine months are based on personal reasons,” Mr Maladina said.

The Chairman also announced the appointment of Mr Obed Batia as Officer in Charge of PNG Power, whilst a more formal engagement is finalised.

Mr Batia has over 30 years of service with the company and has served the Leadership Team with distinction and possesses outstanding credentials. I have every faith in Mr. Batia’s ability to provide much needed stability.

The statement assured that the Chairman and Board of PNG Power will provide the new Officer in Charge and the Leadership Team with its full support, during the interim.

“We assure all the PNG Power employees and their families, key stakeholders and suppliers, and the valued PPL customers of continued stability during this transition period,” Maladina said.

“It remains our key priority, to focus on the objectives of our Annual Operating Plan and to deliver on a promise to provide accessible, affordable and reliable energy services to the people of Papua New Guinea.

“I would like to take this opportunity to thank Mr Bekker for his time here at PPL and to wish him well, as he returns to his family in Australia,” the chairman said.

PPL’s challenges include aging and aged infrastructure, a K25 million monthly loss to power theft and sabotage, and millions owed in outstanding fees, particularly from Government.

Among other issues that may need the immediate attention of the new OIC are staff and union issues, and the cancellation of a Power Purchase Agreement (PPA) signed with Oil Search Limited last year for the Biomass and Solar Farm project, that OSL is championing in the Markham valley of Morobe province.

Local landowners have expressed disappointment learning of the negative implications of the PPA cancellation. The biomass and solar farm project will provide an additional source of sustainable power supply to feed into the Ramu grid that supplies power to the Momase and vast Highlands region, both with quickly rising energy demands for major resource projects. It is not yet known why the PPA was terminated, with an opportunity to ask the now resigned MD on Friday not eventuating.


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