Treasurer Ian Ling-Stuckey is pleased with the work underway to implement the changes to the Central Banking Act that was unanimously passed by Parliament last December 2021.
In a statement, Treasurer Ling-Stuckey said following NEC’s decision on a new Acting Governor, the former Head of Financial Analysis and Supervisory Unit and former Deputy Governor, Benny Popoitai, who will be sworn in as Acting Governor.
Ling-Stuckey said that this was the start of the reform process to modernize BPNG in improving its governance, accountability and independence.
“The reforms are the result of a comprehensive consultation process involving key firms and institutions in PNG, other central banks in our region and the IMF. The nation must say thank you to the Independent Advisory Group that led these consultations and their 132-page report on reform options.
“The Government has carefully considered these recommendations and is now proposing specific reforms,” he said.
According to Treasurer Ling-Stuckey, it was unfortunate that the former Governor decided not to cooperate with the review process and declined frequent requests for meetings, and failed to appoint any BPNG staff to the Secretariat for the review.
“The former Governor wrote to the Prime Minister protesting the review. The time for his input was in the preparation of recommendations to the government from the IAG. He constantly declined to cooperate. It is disappointing that he is now claiming inadequate consultation with himself,” said Ling-Stuckey.
He added further, “The government considered the recommendations of the IAG review and inputs on the recommendations were provided by the IMF, Treasury and eventually even BPNG.
“These were considered by the government and built into the drafting instructions for the State Solicitor and the First Legislative Counsel. The changes received the unanimous support of the Parliament, including being praised by the Leader of the Opposition.”
Treasurer Link-Stuckey encouraged the former Governor to accept the unanimous decision of the Parliament and support a good handover procedure to a modernized BPNG.