SOEs due for restructure

Many State Owned Enterprises (SOEs) continue to work outside Treasury’s scrutiny, says Prime Minister James Marape.

As a result, SOEs are in for a restructure under the new Minister, Sasindran Muthuvel, who was the then West New Britain Governor.

“State Owned Enterprises are not declaring dividends to state,” said Marape.

“Many are working outside Treasury’s scrutiny. Many of our SOEs are building empires of their own. There will be a restructure in our SOEs. There will be greater visibility in Kumul Consolidated Holdings, we will set up other Kumul subsidiaries and the minister for SOE will be in charge of those areas.”

At the announcement of the full cabinet on June 7th, two important SOEs have been moved and will come under the Ministry of Communication and Information Technology and Energy.

“Telikom Limited and PNG Power will go under the ministry. If you can bring the cost of power down in this country, honourable minister, you are doing our service a great favour,” said Prime Minister Marape.

“And I put the chairman of PNG Power on notice, your job is to bring the cost of PNG Power down.

“Of course he will also be presiding over Telikom. Telikom you are put on notice, if Digicel can be 100 percent all over the country, Telikom you must be 100 percent too.”

Air Niugini has been moved from SOE to Transport Ministry.

“Air Niugini we will be doing diagnostic into how you have been operating thus far. You will now operate directly and report directly to a minister who will do diagnostic into how Air Niugni is coming so that we maintain safety but at the same time improve in productivity and efficiency and at the end of the day, we all also want you to do profit.”

(New SOE Minister, Sasindran Muthuvel, with other Members of Cabinet)

Sally Pokiton