Nambawan Super posts K24 million net profit for 2011

Nambawan Super Ltd has posted a net after tax profit of K24 million compared to K263 million for the corresponding period in 2010.  

“It is not the best outcome but still a good outcome,” said Sir Nagora Bogan, chairman of the board of Nambawan Super when announcing the financial results for the fund for the financial year ending December 31, 2011.

Sir Nagora Bogan

“This is a good outcome considering the volatility in performance of some of the assets in its investment portfolio which are subjected to global market factors.

 “This result enabled the board to decide on an interest crediting rate of 2% for our members compared to 10% in 2010. 

 “This crediting rate is marginally higher than the interest rate on funds deposited in commercial banks which is about 1%.

 “This is also a solid performance considering some funds globally including in Australia have been experiencing negative growth. 

 “The board has set a reserve level of 1.32%.

 “The interest has already been credited to members’ accounts including in the accounts of our growing number of RSA members.”

 Reflecting in hindsight,  Sir Nagora said it was not realistic to expect a continuous run of double digit interest in a global market place adversely affected by the global financial crisis,  the impact of depressed economic conditions of countries in Europe and exchange rate volatility.

 In fact, the board of the fund had recognized this fact and had taken the prudential step to have an overarching investment objective in its revised investment strategy which is “to provide an after-tax return of at least +2% above CPI with negative returns in no more than one in five years”.

 “The board has also consistently cautioned members, over past seven years, not to expect a continuous run of double digit interest,” Sir Nagora said.

 “In 2011, we faced many challenges from investment markets, and we were reminded that prices do not always rise, and how important it is to have a diversified portfolio of investments to mitigate risks.

 “Locally, our share market had a generally quiet year, with share prices moderating after several years of strong returns.

 “The days of double digit returns are behind us, and in 2011 we were reminded of that.

 “Our offshore investments were severely affected by the appreciation of the PNG Kina over 2011, which rose against most currencies by some 23% over the year.

 “This immediately resulted in a fall in the value if our overseas investments by this amount.

 “Some members will have only experienced the very strong returns of the past few years, and many of you will have experienced the strong returns of the past decade.

 “In any case, it is worth considering the return over the past year, in the context of the longer term and implications for their retirement benefits.”

 Sir Nagora said: “Nambawan Super Ltd is a proud Papua New Guinea institution.

 “Over the past decade, Nambawan Super has invested on your behalf in a diversified portfolio including property, bank deposits and in blue chip PNG companies such as Bank of South Pacific and South Pacific Brewery.  

 “More than 80% of the fund’s investments continue to be invested locally, benefiting not only members through strong returns but also our country through employment generation, growth in investments, retention of capital and wealth creation. 

 “We will continue to have a majority of members’ funds invested in PNG assets, as we see a strong long term outlook for PNG and also to minimise exchange rate risks associated with investing offshore.”

Nasfund 2011 financial report delayed because of K125m investment

By MALUM NALU

Nasfund’s audit of financial accounts for 2011 has been delayed because of the controversial K125 million Sovereign Community Infrastructure Treasury Bill (SCITB) investment, according to board chairman Mel Togolo.

Mel Togolo

This means that members will have to wait until at least the end of this month to hear the 2011 audited financial report.

Togolo said yesterday the Nasfund board expected the 2011 sign-off to occur on or before April 30, 2012, and not the end of March as it had initially anticipated.

“The reason for this delay is to do with outstanding matters pertaining to the K125 million Sovereign Community Infrastructure Treasury Bill (SCITB) investment,” he said.

“The board is in close consultation with our regulator, the Bank of Papua New Guinea and the Department of Treasury to agree on the treatment of this investment in conformity to internationally-accepted accounting standards in our book of accounts for the said period.

“To protect the fund and members’ interests, the board agrees it is prudent to ensure all issues relating to this investment are adequately addressed and resolved before it signs off the 2011 accounts.

“The board assures members that your savings and funds are safe and intact and there is no reason to worry.”

The SCITB caused much controversy last year after a study conducted by National Research Institute categorised the treasury bills as illegal, a claim which was vehemently denied by Nasfund.

In its report released last June, the NRI said the deal was done without the approval of parliament as required by the PNG Constitution sections 13 and 14, and was not in line with the Public Finance Management Act and Bank of PNG Act, which limited government borrowing.

Treasury bills, the Nasfund board argued then, were issued under the Treasury Bill Act by signature and authority of then Treasurer and Minister for Finance Patrick Pruaitch, and co-signed by then Minister for National Planning and Development Paul Tiensten with the sponsorship of then Minister for Communications and late Kokopo MP, Patrick Tammur.

Togolo cautioned members yesterday not to expect high interest returns to be sustained forever.

“The drivers of high capital gains such as real property and local shares are showing signs of peaking and we anticipate a period of stabilisation before a market correction,” he said.

“In addition, the appreciating kina against the Australian dollar impacted our Australian-denominated investments as margins from currency exchange gains declined.

“All these factors are beyond the board’s control and influence.

“The Board regrets the inconvenience that the delay of announcing year end results is causing and assures members that a detailed statement will be made in due course.”

Today's buai pekpek (betelnut shit) in Port Moresby

Buai pekpek at Mobil Serve Station, Waigani.-Pictures@MALUM NALU

Entrance to City Pharmacy, Waigani

Entrance to City Pharmacy, Waigani

Fire at bemobile bus stop, Waigani! Only in PNG!

MPs vote for deferral of 2012 elections!

Update from Parliament: 63 MPs have voted for deferral of 2012 elections, 11 MPs against!
Time for a people power revolution?

NBC Radio reports:  Parliament has passed a motion to defer the national elections for six months.
Minster Assisting the Prime Minister on Constitutional Matters, Wake Goi moved the motion after lengthy debate on the issue.
He told parliament there's a budget shortfall of 60-million-Kina, the preliminary rolls for public inspections are not ready, and security is also not in order.
63 M-P's voted in favor of the motion and 11 voted against.
An absolute majority of 55 M-P's was needed to pass the motion.
The Electoral Commissioner will be asked to advice the Governor General to fix the new dates accordingly.
Mr. Andrew Trawen (Electoral Commissioner)  is currently in a closed door meeting.

Daru shakes off “forgotten cousin” tag

By MALUM NALU

Daru will no longer be the “forgotten cousin” of Western province as a number of multi-million kina projects begin on the island town, says PNG Sustainable Development Program CEO David Sode.

These projects – which promise to transform the local economy - include the US$300 million (K622 million) Daru Port for international ships, K12 million wharf for local ships, K36 million airport redevelopment, and K52 million water project.

Daru Airport terminal. The airport is being redeveloped under K36 million funding from the PNGSDP.-Picture by DAVID WILLIAMS

A multi-million kina barramundi hatchery is already in place in Daru to replenish the fast-diminishing popular meat fish.

Sode revealed PNGSDP’s ambitious plans for Daru yesterday (Wednesday) after signing an agreement with Water PNG managing director Patrick Amini for the water project to begin.

Work on the port will commence as soon as the domestic wharf is completed by the end of this year.

Airport redevelopment is just about complete, while work on the water project – which will take 12 months to finish – is to start immediately after yesterday’s agreement signing with Water PNG.

Sode told The National that the Daru Port project, especially, had the potential to transform the forgotten island town, a reference to it being allowed to deteriorate, with the provincial capital moved north to Kiunga.

“They (Daru) will no longer be the ‘forgotten cousin’,” he said.

“They will be the ‘most-remembered’ cousin.”

Sode said the scale of the Daru Port project would be phenomenal.

“It’s a massive thing,” he said.

“This new port will be a massive leap for the people of Daru.”

“It’s going to be unbelievable.

“If we succeed, it’s going to be a game change for the Australian front, Indonesian front, and PNG.

“It’s been a lot of hard work for some of us.”

PNG Ports Corporation Limited (PNGPCL) and PNGSDP embarked on a project funding partnership to restore normal operations at Daru Port last year.

The funding provided by PNGSDP is at the cost of K10 million for construction work and K360, 000 for the project management feeds under a separate agreement.

The trestle and the wharf head were originally built in 1964 but had not been in operation since 2008 due to severe deterioration to the trestle structure.

The Daru Airport development is a private-public partnership between National Airports Corporation and the PNGSDP.

Sode said work on the airport, which began in the middle of last year, could have been finished earlier but for the fact that rocks had to be sourced from Port Moresby.

“The contract was issued last May,” he said.

“Airport development should be finished by the end of this month.”

Under the water agreement signed yesterday, PNGSDP will provide funding of K52 million to improve water and sewerage systems while Water PNG, which owns the systems, will provide the technical support for the project.

The project is estimated to cost about K20 million and will take 12 months to complete from signing of the agreement.

Somare men try to stop judges' suspension

By Eoin Blackwell,

AAP Papua New Guinea Correspondent

The supporters of former Papua New Guinea prime minister Sir Michael Somare are expected to apply for an injunction against controversial laws that allow parliament to suspend judges.

Yesterday, the PNG parliament voted to effectively suspend two of the nation's top judges, after Chief Justice Sir Salamo Injia refused to disqualify himself from overseeing hearings into the government's legitimacy.

Sir Michael's supporters were expected to apply on last night for an injunction against the laws allowing the suspension.

Lawyers for Prime Minister Peter O'Neill and Attorney-General Dr Allan Marat had moved to have Sir Salamo recuse himself from the hearings on Tuesday, saying he would indirectly benefit from ruling against the government.

Yesterday, just over an hour after Sir Salamo rejected arguments for his stepping aside, parliament moved to suspend him and Justice Nicholas Kerriwom.

In introducing the motion to suspend the pair, leader of government business Moses Maladina said PNG was facing a national crisis.

"Our nation is experiencing a serious crisis severely rocking the foundations of the three arms of government, the corner stones that hold this nation together," he said.

"We have experienced in recent times, because of court orders, a divided police force, our military was divided, our head of state was deceived.

"The chief justice is sitting on his own case, determining his own fate and refusing to disqualify himself."

The vote was carried on voices before parliament was adjourned until today.

Dame Carol Kidu, who leads the two members who make up PNG's opposition, was heard shouting, "We will regret this", when the vote was passed.

 Since November last year the government has repeatedly tried to suspend Sir Salamo, only to have the court overturn the order.

Police arrested him last month on allegations of trying to pervert the course of their investigation into his handling of court finances.

The court quickly issued a stay on proceedings after his arrest, calling the police action an abuse of process.

The government also wants Justice Kerriwom gone after a memo bearing his signature and calling on the judiciary to band together and defend themselves against government attacks was leaked online.

The parliamentary vote means Sir Salamo and Justice Kerriwom will be referred to Governor-General Sir Michael Ogio, who will in turn refer the pair to a tribunal of former judges for investigation.

While before the tribunal, they will not be allowed to oversee any court hearings.

Parliament passed laws to allow the suspension - called the Judicial Conduct Bill 2012 - two weeks ago, a move that sparked a protest in the capital, Port Moresby.

Following the public outcry, Mr O'Neill last week indicated the law would not be implemented to allow for wider consultation.

In what may be a hitch for the government, members of the former administration of Sir Michael were outside court brandishing two different versions of the law.

One version certified by Speaker Jeffery Nape on March 30 and another certified by him on April 3.

Arthur Somare, a former minister in his father's government, said the latest version of the law speeds up the process by which the justices can be referred to the governor-general.

The March 30 version of the law was the one voted on by parliament, not the one certified by Mr Nape on Tuesday.

"It amounts to fraud," he told AAP, adding his father's supporters will publish both versions in the nation's national newspapers today.

"You cannot replace a law that was voted on with another version (that wasn't voted on)."

Supporters of the former PM Sir Michael Somare failed to get an injunction against the Judicial Conduct Bill being implemented last night.

Today's buai pekpek (shit) in Port Moresby!

Yucky, yucky at the Mobile Service Station, Waigani.-Pictures@MALUM NALU

For the first time in many moons, the area outside BSP Waigani was clean as a whistle, with the big pile of buai pekpek and rubbish bin gone, not a buai seller in sight. I don't know if that has anything to do with all the pictures I've been posting daily recently, however, I felt a sense of achievement. At least it is a start!

For the first time in many moons, the area outside BSP Waigani was clean as a whistle, with the big pile of buai pekpek and rubbish bin gone, not a buai seller in sight. I don't know if that has anything to do with all the pictures I've been posting daily recently, however, I felt a sense of achievement. At least it is a start

BSP Waigani as it looked from the road today, with all the buai pekpek and "drug" dealers gone. This is the way to go, if we want a cleaner and healthier future for our children.

Same old story at bemobile bus stop, Waigani!

Breakfast fix!

The buai seller has got it right this time with her "rubbish box", however, I wonder if any of her customers use it!

Outside Garden City Boroko today!

Outside Garden City Boroko today!

A quick fix outside Garden City Boroka today!

We just don't need this shit at all, like outside Garden City Boroko today!

I wish everyone could take ownership of our city as Powes says, on this billboard, and stop spitting buai, littering and shitting everywhere!