By GEORGINA MICHAEL
THE Opposition has described the sale of Motor Vehicle Insurance Limited (MVIL) shares in Bank South Pacific (BSP) to the Mineral Resources Development Company (MRDC) as an “unequal distribution of national wealth”.
MVIL sold 70% of its shares in BSP to MRDC through the PNG Stock Exchange. The transaction has drawn wide criticism and condemnation.
Outspoken Sinasina – Yonggamugl MP Kerenga Kua said the transaction was not a question of illegality but fairness and equity.
“It’s a question of national unity,” he told a news conference on Monday.
“MRDC is predominately owned by a very few resource provinces and they are already benefiting from the resource projects in those areas since 2014 compared to the majority of the provinces in PNG.
“On top of that, the Minister for State Enterprise Hon William Duma, takes away shares that benefits the entire nation and gives it away to a company that can benefit only recourse provinces with resource projects.
“This action can only be called inequitable distribution of national wealth, that is we are not honoring the fourth national goal and directive principle that states for collective benefit of national wealth.”
Mr Kua said MRDC managed the funds for only a few provinces which benefited from oil and gas, and mining projects while MVIL managed funds benefits the whole country.
“Taking out its assets and giving it to MRDC is like giving it to five or so provinces. What’s the equity in that? Shouldn’t you rather leave it for the benefit of the whole country?
“Leave it in the hands of MVIL because the beneficiaries in MVIL comes from all 23 provinces in Papua New Guinea, including Bougainville.
“Those resource provinces are already benefiting from the resource projects and the revenues generated are more than the other provinces who don’t have resource projects.
“You are concentrating the national wealth of this country in the hands of just a few resource provinces, and you are sending the other provinces into a state of poverty.
“These actions will lead to instability in our country, it is totally unequitable and this will cause future problems.
“I am now calling up on those institutions with legal responsibilities like the Ombudsman Commission, Independent Commission Against Corruption, Port Moresby Stock Exchange and National Securities Commission to start exercising their mandated jurisdiction to investigate this issue immediately.”