CTSL announces 6.5% crediting rate

Comrade Trustee Services Limited (CTSL) have announced a 6.5% crediting rate, representing K15 million to be paid to member accounts.

This follows an impressive cash flow reversal for the fund after the CTSL Boards removal mid 2019.

The announcement was made by Statutory Manager, Sitiveni Weleilakeba, CEO Charlie Gilichibi, and PNGDF Commander, Major General Gilbert Toropo.

The announcement comes off the back of a turbulent year in which the entire CTSL Board except PNGDF Chief of Staff, Capt. Philip Poleware, were suspended by the Bank of PNG in July 2019.

The Central Bank was of the view that the then Board did not perform in accordance with the Central Bank regulations and expectations.

Following the appointment of Statutory Manager, Sitiveni Weleilakeba a number of strategies were implemented resulting in a positive performance.

Highlights of the 2019 financial year include:

  • Review of the Toea Home Project and Rehabilitation Plan;
  • Toea Home Project approval for continuation by the Bank of PNG;
  • PNGDF Commander approved waiver of restrictive covenants;
  • First Toea Home purchased on Oct 13th;
  • Distribution of K5 million to pensioners;
  • Reversal of cash flow;
  • Review of organizational structure

Key Performance Indicators include:

  • Fund size at K598.64 million, 4.7% growth from 2018;
  • Net Surplus (After Tax) K31.473 million, 32.3% growth
  • 7.35% Return on Investments (ROI)
  • 6.5% Crediting Rate to member accounts (K15,035,508)
  • Membership growth to 4, 171 from 3, 851
  • Increase in total pensioners from 1, 675 to 1, 701
  • Membership contributions K27 million (K27, 041, 496)
  • Total Benefits paid to members K32 million (K31, 732, 373)

Meanwhile CTSL has implemented strategies and Action plans in a way forward for 2020 and beyond.

These include stabilizing its cash flow position by fixing pain spots, and mapping its growth strategy by preparing a five-year strategic plan.

Also, with the COVID-19 pandemic, CTSL has developed strategies to cushion the impact of the virus.

Cedric Patjole