MORESBY North-East MP, Hon. John Kaupa has asked the government to initiate an independent inquiry into the services provided by BSP Financial Group Limited.
He urged the government to allow for the Bank of Papua New Guinea to lead this inquiry.
Kaupa said this when raising concerns about the services provided by BSP Financial Group Limited, despite the bank announcing a K1 billion profit last year.
In his question without notice to Treasurer Ian Ling-Stuckey last Friday, Kapua was seeking information about the government’s actions towards the bank’s high fees and services.”
The bank declared a K1 million profit in 2022, but the services still do not meet the standard, and their interest rates are unreasonably high,” he expressed.
Kaupa said excessive fees deducted from the services offered were ridiculous, pointing out that the bank does not prioritise the interests of the people. He questioned when the bank would provide a more affordable and convenient services.
Kaupa proposed for an establishment of a new bank that would allow people to save their monies without worrying about deductions from their savings.
He emphasized the importance of creating a bank that operates fairly and transparently, ensuring that unaccounted money is properly banked.Treasurer Ling-Stuckey, while responding to the concerns, acknowledged the frustration expressed by everyone.
He clarified that despite the government being the largest shareholder in BSP with 24% equity and the largest customer, they do not have direct control over BSP’s operations or does not have representatives on its board of directors.
Ling-Stuckey said monetary policy, particularly the kina facility rate can influence interest rates directly.
He, however, said that the monetary policy was handed over to BPNG back in 2001, making it an independent entity and no longer report directly to the Minister for Treasury.
Ling-Stuckey said the government’s lack of direct control over BSP and other commercial entities limits their ability to issue directives on interest rates and bank fees.
However, he assured the parliament that he would advocate for the concerns raised by Kaupa and work towards finding appropriate solutions.
