Paper mill owes $1M for gas bill: Auditor General

The Yangon Region Auditor General’s office has revealed that the Yae Ni Paper Mill has an outstanding debt of US$1 million (K1.43 billion) owed to Myanma Oil and Gas Enterprise (MOGE). According to a report released recently, the paper mill still owes $982,446.51 for natural gas from fiscal year 2017-18.

MOGE signed a gas sales agreement with Yae Ni Paper Mill owned by Myanmar Paper and Home Utility Industries under No.3 Heavy Industries Enterprise in March 2014 for natural gas to be delivered to the paper mill. However, Myanmar Paper and Home Utility Industries leased the paper mill to Lat War Co starting from October 2019. The original plan called for Lat War Co to use the natural gas while the responsibility of paying for the gas fell to Myanmar Paper and Home Utility Industries, which signed the original contract, the audit report stated.

However, and official from No.3 Heavy Industries Enterprise under the Ministry of Planning, Finance and Industry recently declared that although the contract was signed between two state-owned enterprises, Lat War Co is liable to pay for the natural gas.

The paper mill is currently unable to pay for the cost of the gas from August 2014 to February 2015 amounting to some $$1.04 million under the original contract for the gas.

The government has issued letters requesting payment of the debts several times, after which Lat War Co made for payments in 2017.

According to a repayment scheme put forward by Latwar Company, it has to repay a total of $982,446.51 – US $801,316.15 for gas and interest of $181,130.36 as of April 2019.

If the company fails to repay the outstanding sum, it will face action in accordance with the conditions stated in the agreement, the Auditor General’s report stated.

Asked for comment about the issue, U Khin Maung Aye, managing director of Lat War Co, “We will get the return on our investments this year and so we may pay back the gas debts in 2020 or 2021.” – Translated

To see the original article click link here

Source : Myanmar Times

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.