PNG Ombudsman Maintains Opposition to Starlink Entry

 Papua New Guinea’s Ombudsman Commission has reaffirmed its opposition to the entry of Starlink into the country, with Chief Ombudsman Richard Pagen indicating the matter will be taken up with the National Government.

Chief Ombudsman Richard Pagen/Photo supplied

Speaking during a public event in Kimbe, Mr Pagen said the Commission remains concerned despite the outcome of the recent court decision involving the satellite internet provider.

He explained that the watchdog’s earlier intervention was based on a number of issues it believes could affect the country’s economic and regulatory interests.

Among the concerns outlined were possible tax avoidance, the absence of local shareholding, potential job losses within existing internet service providers, and the use of foreign currency for service payments.

Mr Pagen pointed out that under provisions of the National Procurement Act, foreign investors are expected to partner with Papua New Guineans on a 50-50 ownership basis.

He said such an arrangement does not appear to apply in the case of Starlink.

“In Starlink, what’s the percentage that Papua New Guineans own? Zero. Because it’s a foreign company. So, all the money that we will pay to get the credits to use Starlink, everything is going abroad,” he said.

Mr Pagen also questioned how tax compliance would be monitored if the company does not establish a local office.

“How will we know that you made K100,000 when in your tax you will be reporting K50,000? It’s a government policy that you have your office here and we know how much tax you are going to pay,” Pagen said.