By SEPKOLIN WALNE
Proceeds from the recent sale of the Motor Vehicle Insurance Limited (MVIL shares in Bank South Pacific would be used to fund incomplete projects, State Enterprises Minister William Duma told Parliament yesterday.
He was responding to Menyamya MP Solan Loifa who questioned him about the transaction, which had been widely criticised.
“There need to be a sell down to be able to help Kumul Consolidated Holding (KCH) fund some of the projects that need to be done.
“The aging infrastructure in PNG Power right throughout the country not only in Port Moresby but along the Highlands Highway from Lae to Madang, Wewak, Rabaul and everywhere.
“I keep telling this Parliament, and many people think that this is an excuse, but there is a fact that we have to have money to be able to fund those projects.
“We were able to secure a loan from the Asian Development Bank (ADB) under the title of State Owned Enterprises (SOE) into the form loans and that was USD$5 million.
“Unfortunately, due to misunderstanding with Treasury and National Planning departments two years ago, most of the money did not get to SOEs.
“We have to have other ways of raising funds, and this is one SOE selling down shares to allocate money to free up cash so that other SOEs are bailed out.
“Gone are the days when SOEs continue to rely on funding through the national budget.
“We appreciate that there are more competing needs, law and order, education, and these are supposed to be earning money,” Mr Duma said.