Source: Post Courier

A KOREAN company which won a contract at the Cloudy Bay sustainable forestry has gone to court claiming area compensation of K9.6 million.

Managing director of Pako F&C Holdings PNG Ltd Chin-Sik Son took the matter to court after his three-month-old contract with Cloudy Bay was terminated early this year.

Cloudy Bay and Pako entered into a commercial agreement suitable to both parties and did carry out their contractual duties under the asset sale and purchase, procurement and construction agreement dated 18th November, 2013. There were two previous contracts with one dated 22nd July, 2013, and another with no date but believed to be of the same date. Both were not merged into the November agreement but are defunct, not operational, null and void and are superseded by the latest as stipulated in the terms of the latter contract.

Pako’s lawyers, Kuman Lawyers, have since gone to court to battle the issue but Cloudy Bay has also gone to court to make a counter claim and is also claiming K1.6 million in damages from Pako.

Pako’s lawyers have submitted to the courts that Mr Chin has incurred operational and out of pocket expenses of K9,640566.34 which Cloudy Bay is yet to settle upon termination.

The matter was registered on July 16th, 2014 and last Wednesday, the matter was adjourned to October 24th. According to the court papers, Pako’s contract was for six years as per the agreement signed in November of 2013.

The company was contracted to provide all sawmilling machinery and equipment which they purchased from South Korea.

Four months into the contract, Pako was terminated because a new management came in and allegedly advised they did not want Korean materials and machineries, despite the fact that money had already been spent and materials purchased, and already brought to PNG while others are still sitting in south Korea.

The matter will return on 24th of October.A KOREAN company which won a contract at the Cloudy Bay sustainable forestry has gone to court claiming area compensation of K9.6 million.

Managing director of Pako F&C Holdings PNG Ltd Chin-Sik Son took the matter to court after his three-month-old contract with Cloudy Bay was terminated early this year.

Cloudy Bay and Pako entered into a commercial agreement suitable to both parties and did carry out their contractual duties under the asset sale and purchase, procurement and construction agreement dated 18th November, 2013. There were two previous contracts with one dated 22nd July, 2013, and another with no date but believed to be of the same date. Both were not merged into the November agreement but are defunct, not operational, null and void and are superseded by the latest as stipulated in the terms of the latter contract.

Pako’s lawyers, Kuman Lawyers, have since gone to court to battle the issue but Cloudy Bay has also gone to court to make a counter claim and is also claiming K1.6 million in damages from Pako.

Pako’s lawyers have submitted to the courts that Mr Chin has incurred operational and out of pocket expenses of K9,640566.34 which Cloudy Bay is yet to settle upon termination.

The matter was registered on July 16th, 2014 and last Wednesday, the matter was adjourned to October 24th. According to the court papers, Pako’s contract was for six years as per the agreement signed in November of 2013.

The company was contracted to provide all sawmilling machinery and equipment which they purchased from South Korea.

Four months into the contract, Pako was terminated because a new management came in and allegedly advised they did not want Korean materials and machineries, despite the fact that money had already been spent and materials purchased, and already brought to PNG while others are still sitting in south Korea.

The matter will return on 24th of October.