State Enterprises Minister William Duma has refuted what “misleading claims” by the Opposition about equity raising in the National Banking Corporation Limited (NBCL).
“The Opposition had been complaining that there was not enough private equity in the bank, and they have now been proven wrong,” he said.
Mr Duma explained that the Government continued to dilute its stake as a condition precedent to the issuance of a banking licence.
“In order to ensure independence from Government and political influence, the decisions of the Board of Directors of National Banking Corporation Ltd operate according to the Companies Act, the Central Bank Act and relevant regulations,” he said.
“The Board has the legal authority to make commercial banking decisions, including packages designed to attract top banking executives to PNG for the long-term benefit of both NBCL and the country.
“The issuance of shares by way of equity is the common and legal practice for banks and aligned to the interest of all shareholders to grow the company.
“It is clear to myself and investors, who now own 48 per cent of the Bank, that NBCL is on a pathway to profitability that includes a full Initial Public Offer to the citizens of PNG in 2027.”
Mr Duma said expanding private investment in NBCL was an independent process that strictly adhered to banking laws and regulations.
“This negativity from the Opposition is simply sour grapes, and I would like to see them get behind our efforts to strengthen our economy.
“Casting aspersions and throwing mud for political gain is easy, but as they know very well, bringing together the multitude of critical elements required to advance our economy takes effort and commitment.
“Talking down the economy only undermines investor confidence, and our country expects more from Members of Parliament,” he said.
“Perhaps the Opposition is thinking in terms of the UBS deal and Credit Suisse financing arrangements that were organized by the previous Government, however unlike those arrangements, the process employed by NBCL is transparent and fair where anyone whose efforts benefit NBCL is rewarded.
“I have every confidence that the NBCL have the right processes in place to handle internal governance and adhere to the laws of PNG.
“Competition in the banking sector will deliver strong positive economic benefits for our people and our country,” Minister Duma said.