OTML Management denied claims made by PNGSDP that the government instructed them not to pay the 2012 dividend due to PNGSDP.

OTML officially released a statement yesterday and countered claims made by Sir Mekere Morauta.
Sir Mekere Morauta claimed that the government has instructed OTML not to pay the 2012 dividends. OTML described them as FALSE.

It said OTML management had advised the OTML Board in its 30th August Board Meeting that it was not in a position to recommend a dividend at that time due to serious operational issues that were encountered from March, in addition to the drop in metal prices which had impacted its revenue.

It said the management further advised the board that the appropriate time to consider a dividend would be at the November 2013 scheduled Board meeting.

However, PNGSDP did not accept that advice and moved at the 30th August Board Meeting to declare a dividend of $US150 million.

OTML Board is yet to declare a dividend.

Managing Director and CEO of OTML Nigel Parker and Alan Roberts who are both independent directors then independently assessed management’s advice and opposed the dividend resolution as moved by PNGSDP.

Further to that, it said Mr Roberts is not ignoring the action of the state to take over PNGSDP’s shares in OTML. He is however retaining his independence and assessing the position of the company’s ability to consider a dividend as proposed by PNGSDP.
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