Petroleum Resources Gobe Limited (PRG) Chairman Mathew Sisimolu has clarified the company’s involvement in the failed Boroko Hotel and Casino Project, revealing that the current Board is considering legal action to recover K11 million invested nearly two decades ago.
In a statement issued today, Mr. Sisimolu said he was responding to a number of misleading statements made during the Parliamentary sitting on 14 July 2026 regarding the Boroko Hotel and Casino project.
He explained that in 2007, the PRG Board of Directors, then chaired by Philip Kende, approved an investment of K11 million into the project despite strong advice from the company’s investment managers, the Mineral Resources Development Company (MRDC), not to proceed.
“In my view, it was a bad investment. It was made against MRDC management advice,” Mr. Sisimolu said.
He said the current PRG Board has since reviewed the investment and is now considering all available options to safeguard the interests of Gobe petroleum beneficiaries, including pursuing legal avenues to recover the funds.
According to Mr. Sisimolu, the Boroko Hotel and Casino Project was a National Government initiative undertaken in partnership with Korean company CMSS, with the then Department of Commerce and Industry spearheading the investment.
PRG and Petroleum Resources Moran (PRM) were invited to participate in the State-led project. Despite MRDC advising against the investment, both companies each contributed K11 million, securing a combined 10 per cent equity stake, with each holding five per cent.
Mr. Sisimolu said the project ultimately failed after both the State and CMSS were unable to deliver the development.
Today, the incomplete structures at Four Mile in Port Moresby remain abandoned and have been condemned, with demolition expected to be carried out by the relevant authorities.
He confirmed that PRG is now considering all legal options to recover the funds invested, including possible legal action against the State, CMSS, and former PRG directors responsible for approving the investment.
Mr. Sisimolu said the current Board remains committed to protecting the interests of PRG shareholders and ensuring future investment decisions are guided by sound commercial judgment, proper governance and accountability.
He added that the Board’s priority is to safeguard landowner investments and pursue every lawful avenue to maximise value for its beneficiaries while learning from past investment decisions.