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Enga-Sepik Highway

By Inside PNG 03/04/2022

Funding of K8 million has been committed by the National Government to build a road linking Maramuni in Enga Province and Karawari in East Sepik Province.

The announcement by Prime Minister James Marape comes three weeks before the Issuing of Writs for the 2022 National Elections.

Speaking at the launching of yet another road link connection Maramuni and Wabag in Enga, PM Marape said his Government is connecting rural Papua New Guinea like never before under its signature ‘Connect PNG’ program.

“We are trying to connect all rural areas right throughout the country, in this year’s Budget, we have allocations for 163 roads throughout the country,” PM Marape said.

The 57km road linking Maramuni and Wabag crosses some of the most-rugged and difficult terrains in the country and was done at minimal costs by the Wabag District Development Authority (DDA) and Enga Provincial Government.

The Maramuni Health Centre Project was also launched during PM’s visit.

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Business

62 participants complete SME Training in WNB

By Inside PNG 31/03/2022

Sixty-two participants in Talasea District have completed a SME training in West New Britain.

The training was facilitated by Small to Medium Enterprises Corporation in partnership with Buvusi AOG Church.

Speaking during the closing SMEC Managing Director Petrus Ralda said the training is necessary for people to start or improve their business. He said people cannot continue to depend on Government systems to improve their livelihood.

“We are blessed with many opportunities but yet we do not make wise decisions”, said MD Ralda. He said the training is designed to evolve in this challenging business environment. Mr. Ralda echoed concerns of cultural obligations as a key factor in many businesses drowning.

“We can change this”, said Ralda. He urged participants to take initiative and be creative and innovative following this training.

“Discipline in business is very important for any individual to startup a business”, said MD Ralda.

The SME training was conducted in Kaibo outside Kimbe Town and other at Buvusi. 20 participants attended at Kaibo while 42 at Buvusi.

Late last year West New Britain did a ground breaking ceremony for a SME Incubation Centre to be built in Kimbe. This would see interested individuals to seek help to broaden their business or how to start a business.

The Incubation Centre is expected to be completed this year and opened for business.

SMEC also signed an agreement with the West New Britain Provincial under the Commerce Department.

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Business

Nasfund Responds to National Newspaper Headline Article

By Inside PNG 31/03/2022

Nasfund Board Chairman, Charles Vee has clarified the facts surrounding the daily newspaper’s headline dated 30th March 2022 with reference to the acquisition of 50% share in State Owned Entity Telikom Limited.

He says Nasfund is undertaking an Independent Due Diligence exercise of the offer at this point in time to ensure it satisfies the investment objectives and investment criteria of the Fund and no formal offer has been given to the Vendor as yet.

He added that the focus of discussions and consultation to date are situated around the determination of a fair transaction value of the newly proposed merged Telikom and B-Mobile businesses.

Vee said discussion around equity participation and governance framework required by Nasfund to make the proposition attractive, shall not happen until the “Due Diligence” process is completed.

Independent findings of the due diligence alongside Nasfund’s Licensed Investment Manager and Nasfund’s Investment Committee and Board of Nasfund as required under the Prudential Standards from the Central Bank of Papua New Guinea is still work in progress.

Chairman Vee highlighted that the fund is pleased to engage in Nation Building and this proposal provides that opportunity for the fund to make a positive contribution as an Institutional Investor.

However, the Fund has a robust investment process to follow and unless and until the fund gets to the end of that process; the newspaper article does not fully represent the Fund’s interest and position to participate in the transaction.

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Finance

BSP Reduces Bank Charges

By Inside PNG 31/03/2022

Over 11,000 BSP SME Deposit customers will see a reduction in bank charges starting tomorrow (1st April 2022)

Despite the National Government introducing the Company Tax under which BSP will now pay K190 million per year, BSP CEO Robin Fleming said BSP recognizes the importance of providing its customers with cost effective services.

“Our SME BSP customers will enjoy a reduction on their Monthly account service fees by K7, from the current fee of K15 per month to K8 per month. They will see a reduction in the fees for an in Branch Eftpos Withdrawal fee from K4 to K2 and Branch Withdrawal Fee from K3 to K2,” BSP CEO Robin Fleming said.

SME Current customers will see a reduction of K2 from the K10 and will only be charged K8 for the Monthly Service Fee. In Branch Eftpos Withdrawal fee from K4 to K2 and Branch Withdrawal Fee reduced from K3 to K2.

Similar reductions will be applied to BSP Personal Account Customers starting tomorrow.

The reduction of fees doesn’t mean BSP will increase fees in other products and services.

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News

Land title hand over to superfund puts to rest 20-year land ownership dispute

By Inside PNG 31/03/2022

Nambawan Super Limited (NSL) has finally received a physical title over a portion of land for which it has been fending off ownership claims over the last two decades.

Lands Minister, John Rosso, presented the title to portion 2158 at 9-mile to the Deputy NSL Chairperson, Dame Meg Taylor, marking an end to one chapter over the 20-year long dispute.

The presentation follows a court decision in 2020 which, basically, recognized the superfund as the legitimate owner of the land portion.

Minister Rosso said this will pave way for the possibility of new housing for NSL members if the fund decides to go that route. But he has also, called for NSL to work in partnership with NCDC to relocate settlers currently living on the land.

“We have had 10 meetings with NSL to make sure all stakeholders are involved to get a win-win for everyone. The title should be restored to NSL and we also have to deal with the people residing on that land.

“So I’ve encouraged NSL to talk to NCDC and to find a win-win for those particular parcels of land.”

NSL has also had to battle against the inefficiencies within the lands department over the last 20 years which prevented the official recognition of the superfund as legal landowners.

Even after the court ruled in their favor, it took another year before the matter was finally actioned by the Lands Minister.

“We’ve worked very closely with the Lands Department, the NCDC and the Member of Parliament for Moresby North East to look at how you deal with people who have settled on this land.” said Deputy Chairperson, Dame Meg Taylor.

“They are citizens of this country and NSL is very sensitive to this and there has been a lot of consultation.”

Nambawan Super Limited legally owns three other land portions – 2156, 2157, 2159. The fund says any future development on the land will be discussed in detail.

However, there’s the possibility of the fund, with the ability it now has, to infuse the current housing market with more affordable housing for its members and others who may be interested.

It is something they will decide on later.

This is one of three important title handovers this year.

The first was for the Development of the Tuhava township where Roku landowners received a land title over the Tuhava township. Newcrest Mining also received a land title for the state land it owns which will be used for the development of a new township and the resettlement of local people displaced by the mine.

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Sport

Sports Precinct – Opportunity for Usino-Bundi People

By Inside PNG 30/03/2022

The newly opened Jimmy Uguro sports precinct at Walium in the Usino-Bundi district of Madang Province is accessible to all and can cater for all sporting codes.

Local MP and Minister for Education, Jimmy Uguro said, people can utilize the sports precinct and create opportunities and contribute to sports development in the province.

He appealed to his people to take care of the facility as it cost the district over K2million.

Young men and women were also challenged to use the opportunity to take part in sporting activities in order to expose their talents.

“Stop holding up vehicles, and stealing from people. The sports precinct was built to help you, young people expose your skills and export it to the outside world. There is money in sports. The facility is there to help you make money out of it, so make use of it,” said Minister Uguro.

The Jimmy Uguro sports precinct was opened by Prime Minister James Marape two weeks ago and witnessed by sports Minister Wesley Raminai.

To mark the opening of the precinct, Prime Minister James Marape launched the Prime Minister’s Cup tournament with four sporting codes taking part in the tournament. The codes included Rugby 9s, Volleyball, Basketball and Soccer. A total of 184 teams for women and men took part in the tournament.

Madang Governor, Peter Yama who was present at the event committed K150,000 to the tournament while the Sports Minister also committed another K100,000.

Meanwhile, Minister Uguro said the Prime Minister’s cup is a start for more sporting competitions to be held at the precinct.

He officially closed the tournament yesterday.

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Education

Teachers Warned Over Wasu Secondary Incident

By Inside PNG 29/03/2022

Morobe’s Education Provincial Program Adviser, Keith Tangui has warned teachers that sexual relationships or abuse towards students is a crime under the Teaching Service Commission Act and they will be terminated if found guilty.

His warning follows an incident of students allegedly attacking a teacher at the Wasu Secondary School, in Morobe’s Tewai Siassi District, over rape accusations against the teacher.

The Morobe Provincial Police have reported that on the 17th of this month, the teacher (male) was allegedly attacked by some students at around 2-3am in the early hours of the morning.

Morobe Provincial Police Commander, Superintendent Jacob Singura said the teacher was trying to rape a female student at the school’s basketball court when two male students caught him in the act. The teacher then attacked one of the students when he realized that they had seen him.

“The two boys ran to their dormitory and alerted other male students where they came back and allegedly attacked the teacher by chopping him on both shoulders,” Singura said.

Morobe’s Education PPA Mr Tangui said while the incident is a police matter now, the Provincial Education Division is also required under the TSC Act to present a report to the Provincial Education Board.

“My Deputy has already visited Wasu and is yet to present a report, as soon as it’s done, we will present it to the PEC.”

“Teacher’s suffering at the hands of the community is due to several reasons and those reasons will be spelt out during the investigation,”Tangui said.

Mr Tangui has cautioned teachers to be very careful in their conduct as committing such an offence toward a student is a serious crime and will result in termination.

Meanwhile the Provincial Police are still investigating the matter and have since arrested four suspects alleged to be involved in attacking the teacher.

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Business

PM Launches and Commits K50million to Credit Guarantee Corporation Limited

By Inside PNG 29/03/2022

Market failures and imperfections such as information asymmetries, inadequacy or lack of recognized collateral, high transaction costs for small-scale lending, and perceptions of high risk, all of which lead to lack of access to credit for MSMEs.

Despite adequate liquidity in PNG, financial institutions are often reluctant

to lend to SMEs and when they do the high interest rates charges becomes a barrier for SMEs.

These are some of the reasons highlighted by the Acting Governor for Bank of Papua New Guinea, Benny Popoitai for the need to create the Credit Guarantee Corporation Limited.

The entity was launched today by Prime Minister, James Marape.

Credit Guarantee Corporation Limited (CGC) is an entity established by the Bank of Papua New Guinea with the aim of assisting Micro, Small to Medium Enterprises.

The establishment of CGC was approved by the National Executive Council in 2018, under the Medium Term Development Policy III, to address the lack of access for credit and capital for micro small and medium enterprises in the country.

The Bank of PNG has taken the lead to do the preparatory work and incorporated the CGC under the Company’s Act 1997 on 5th January 2022.

The launch today of CGC is to support it as a legal entity that will support the Government’s policy to develop and grow the MSME sector in order to create new employment, achievement sustainable economic growth, and fair and equal distribution of wealth through majority citizen ownership of business activities.

The CGC will support the MSMEs by working with and through participating financial institutions to provide credit guarantee to financial institutions as a credit risk mitigation to lenders to absorb a portion of their losses on their loans made to MSMEs incase of default to encourage them to lend to MSMEs.

BPNG Chairman, David Toa said the establishment of the CGC is necessary to correct inefficiencies evident in resource allocation in the financial intermediary process of the financial institutions.

“The establishment of the Credit Guarantee Corporation (CGC) brings renewed hope into the MSME sector that has been struggling from the combined lack of basic infrastructure and skill sets that are necessary elements for their growth,” Toa said.

The CGC is a partnership between BPNG and Kumul Consolidated Holdings.

Prime Minister has committed K50million from BPNGs dividends to be held back for CGC.

“I want to encourage the financial institutions to fully utilize the services of the

CGC.

“When small businesses do not have sufficient access to financial products and services, they may be deprived of the opportunity to grow their business, and as a

nation, we lose from the benefits of their potential contributions to the economy,” Marape concluded.

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Sport

Sports Precinct – Opportunity for Usino-Bundi People

By Inside PNG 29/03/2022