National Development Bank names its top businessman and woman

By MALUM NALU

Young Western Highlands woman Dorothy Prul has been named as National Development Bank’s businesswoman-of-the-year.

Her Kimbe colleague, Albert Kamilus, made it a double by being named NDB’s businessman-of-the-year while the bank’s Kimbe manager Lui Masti completed the trifecta by being named branch manager-of-the-year.

The awards were presented during an NDB dinner at the Crowne Plaza in Port Moresby on Monday night.

From Kimbe with love…NDB businessman-of-the-year Albert Kamilus, Kimbe manager Lui Masti and businesswomen-of-the-year Dorothy Prul show their accolades on Monday night.-Picture by AURI EVA

Prul, from Nebilyer in Western Highlands, runs a busy plant hire operation which serves oil palm-rich West New Britain province.

“I’ve been involved in this business since 2008,” she said after collecting the accolade.

“I was involved in buses and real estate before that.

“I’ve been to other commercial banks before, however, I didn’t receive the kind of help I got from NDB.

“This is my third year in dealing with the NDB.”

Kamilus, 48, originally from Nuku in West Sepik but now permanently settled in West New Britain, runs an oil palm estate on 231 ha of land with 24,000 seedlings.

“The business is going very well,” he said.

“I started off with 100ha of land at my own costs, and I asked the bank for assistance with the rest.

“I applied for a K5 million loan in August 2010, which I’ve already started paying back.

“I used this money to develop reserved land which would otherwise not have been developed

“I bought the land from my wife’s relatives.

“I’m now thinking of setting up my own oil palm mill.”

“I’m happy that the bank has recognised me as one of its clients

“I currently employ 40 casuals, two office staff, two supervisors and four bos bois.”

Top NDB managers, employees and divisions also collected their awards on the night.

Top branch was Kimbe, top branch manager was Lui Masti of Kimbe, top regional manager was Tomalis Hoa, top performing department was women in business, top head office manager was Vicky Vene, top division was accounting and finance, and top employee was Desmond Yaninen.

ANZ: Economic outlook positive for PNG

By MALUM NALU

THE economic outlook for Papua New Guinea remains positive despite the on-going political impasse, according to the ANZ Bank, The National reports.
 The vote-of-confidence was given by ANZ in its Asia Pacific Economic Pacific Quarterly released yesterday.
“We continue to see a mixed bag of developments in the Pacific,” ANZ’s Asia Pacific chief economist Paul Gruenwald said.
“The ‘harder’ commodity intensive export economies of Papua New Guinea, the Solomon Islands and Timor-Leste continue to outperform.
“Elsewhere, the pace of activity remains lacklustre.
“ However, unfavourable weather and ongoing global weakness may slow economic growth.
“Interest rates remain low on high liquidity while inflation pressures have eased.”
The report highlighted:

• GDP growth is expected to be well above the official target of 7.0% this year, driven by the LNG project and government spending;
• Exports were expected to have declined 5.4% year-on-year during the third quarter of last year from mining disruptions and farmers’ response to high operating costs.
•   Imports were expected to have declined 10.8% year-on-year: general imports will have declined offsetting high mineral imports.ANZ expected a trade balance surplus of K1,584 million over the quarter;
• Employment growth continued upward from its low of -0.1% year-on-year during the third quarter of 2010, rising 7.6% during the third quarter of last year. Transport sector employment during the third quarter jumped 23.9%, while employment in retail and wholesale grew 3.0% and 15.1%, respectively.However, employment in construction declined 9.9%;
• Credit growth remained sluggish with many companies self-funding their activities, while those involved in the LNG project sourced financing offshore as local banks have tightened lending on global economic uncertainties.Lending grew 10.6% year-on-year during the third quarter last year, compared to 12.8% in the second quarter, same period;
• Solid foreign currency inflows together with rising government deposits are keeping bank liquidity levels high and adding pressure to interest rates.The 28-day bill rate was 2.69% at December-end, up slightly from 2.65% at September-end, but below the March-end rate of 3.02%;
• Inflation eased to 8.4% during the third quarter of last y ear on falling import prices.An 18% decline in rice prices and government pressure on businesses to reduce prices on the back of kina appreciation may have resulted in a further reduction in inflation during the fourth quarter last year; and
• Recent unfavourable weather was expected to continue into April-May and global uncertainties may slow growth.Rising government expenditure ahead of the national election might add inflationary pressure.

National Development Bank to lend K130m in 2012

By MALUM NALU

The National Development Bank board has approved a plan to lend K130 million this year.

Board chairman William Lamur made the announcement during a dinner in Port Moresby on Monday night.

“We plan to spend K42m on new capital investment, which will include completing our three new-look offices at Boroko, Madang and Wewak, and building new offices at Popondetta, Kavieng, Goroka and Hagen,” Lamur said.

“We also plan to open offices at Buka, Aitape, Kiunga and other provinces, subject to the acquisition of land or office space.

“We have set aside K25m to set up and roll out the Stret Pasin Stoa scheme, where we have begun advertising for expressions of interest.

“The interest and response so far has been overwhelming from our people and we are keen to see the roll-out of the scheme as soon as possible.

“We are also investing in new technology to develop SMS banking and interest banking services to our clients in 2012.

“With our planned investment of K42m in 2012, the board has resolved not to pay any dividends to the government until we complete our new office building and other critical capital investments, which we foresee will take another two years at this stage of planning.

“We also plan to announce a number of new initiatives to assist our women entrepreneurs and our youth in business initiatives which will be announced shortly.”

National Development Bank posts K9.4m profit

By MALUM NALU

THE National Development Bank has announced a record after-tax profit of K9.4 million - after having gone through three insolvencies.

This compares to a mere K1.5m profit in 2010 - a record 620% increase in profit in one year. It is the biggest profit the bank has recorded since 1967.

Among the highlights of 2011 was increasing lending to women in business from K700, 000 in 2010 to K9m in 2011 - a huge 1,000% increase.

Board chairman William Lamur told a dinner in Port Moresby on Monday night that 2011 had certainly been the “defining year for NDB”.

“We have broken all previous financial and operational records,” Lamur said.

“We envision one day being the “development bank” of the Pacific and this is not an unrealistic goal if we get the support of our government, like we did in the historic NDB budget-funding support in the 2012 budget of K130m.

“We assure you of our plans to fund a number of high-impact agriculture products this year, increase funding to women by a further K20m, provide K20m in Stret Pasin Stoa loans in 2012, and announce a number of new and exciting initiatives to seriously empower our people to take advantage of the opportunities now before us, consistent with our Vision 2050 wealth creation aspirations.”

Lamur said 2011 was a very busy and challenging year for NDB, starting off with the staging of the historical indigenous business summit in Kokopo.

He also highlighted:

•   Lending K53m in 2011 - the highest ever NDB had lent in any one year since its inception in 1967 as the agriculture bank;

• Maintaining arrears over 90 days at less than 1%, a performance not achieved by any previous management or board;

• ·      Completing new offices at Banz in Jiwaka province and Tari in Hela;

• ·      Starting rebuilding of new branch offices at Boroko, Wewak and Madang at a cost of K15m;

• ·      Applying for a microbank license from Bank of PNG;

• ·      Growing its good loan book from K89m in 2010 to K121m in 2011;

• ·      Growing net assets from K189m to K228m in 2011; and

• ·      Increasing lending to women in business from K700, 000 in 2010 to K9m in 2011.

“This is a 1,000% increase in lending to women entrepreneurs in one year, a feat that we have never achieved since 1967, and we plan to lend more to women entrepreneurs in 2012,” Lamur said.

Telikom CEO suspended

Minister for Public Enterprises, Sir Mekere Morauta, said today the chief executive of Telikom, Peter Loko, had been suspended pending investigations into large-scale unauthorised contracts and commitments by the corporation.

“Evidence obtained by IPBC during audits of all public enterprises indicates that Telikom illegally entered into numerous contracts involving the payment or receipt of more than K1 billion,” Sir Mekere said.

“Telikom was required by law to seek approval from the Treasurer in accordance with section 45B of the IPBC Act. It did not do so.

“It is the CEO’s responsibility to ensure approvals are sought, which is why he is suspended.

"The investigation will also seek to establish whether the Telikom board was aware that the requirement for ministerial approvals appeared to have been routinely ignored.

“These are very serious matters and require thorough investigation.

“People are entitled to know what happened to their money, and I will provide details of the results of the investigation to Parliament.”

Sir Mekere said the failure by Telikom to seek approvals and to fully inform the Treasurer of its financial dealings had placed Telikom in financial difficulty.

It now requires very substantial public funding to save it from insolvency.

“Let us be very clear – the operation of the national telecommunication system and thousands of jobs have been put at risk,” Sir Mekere said.

He said the worst example of financial illegality was the unauthorised borrowing of K340 million from two banks, of which K200m has been drawn down.

Telikom is unable to repay the capital (it is repaying on the basis of interest-only) and is asking the Government to bail it out. The banks are also asking the Government to guarantee the loan.

Even worse, a Telikom document from some time ago states that the K200 million “...has not yielded enhanced revenues because the capex programs have not been taken to their logical conclusion”. In other words, K200 million of borrowed money has been spent, without the required approval, and without yet producing any revenue for Telikom.

“Too many public enterprises are flouting the law, with disastrous consequences for the nation,” Sir Mekere said.

“The law is there to protect taxpayers’ funds and the national interest, and I will not hesitate to pursue public officials and others who do not comply with the law.”

CPL group posts K21.86 million profit

City Pharmacy Ltd Group, Papua New Guinea’s biggest retailing network, has announced a profit before tax of K21.86 million, The National reports.

It is a 62.77% increase from the K13.43m it recorded the previous year.

It yesterday released its chairman’s statement announcing the unaudited profit before tax.

Both its City Pharmacy and Stop N Shop stores recorded good sales growth last year.

 “Our retail business continues to work hard to execute strategies that are improving the value and shopping experience of our customers,” said CPL group chairman Mahesh Patel.

CPL group chairman Mahesh Patel

“The bottom line continues to grow faster than the sales.”

Patel added that the directors, after the board meeting last week, would be recommending a bonus for its hardworking employees and shareholders in their annual general meeting in April 2012.

CPL Group is PNG’s biggest retailing work.  It has established five strong retail brands - City Pharmacy, Stop N Shop, Hardware Haus, BonCafe and HomeMaker.

It will open during the first quarter of this year Paradise Cinema - PNG’s very first multiplex cinema which will be at the third floor of Vision City.  

In 2011, the CPL Group had a combined retail operations of 54 stores nationwide which employ over 2,000 staff of which 95% are Papua New Guineans.

Its retail network spans health and beauty chains, grocery, hardware stores, coffee shops and now a multiplex cinema.

PNG political legal fight adjourned

From: AAP 

February 13, 2012 2:34PM

SIR Michael Somare's son Arthur has vowed to continue the legal fight to have the O'Neill government turfed out of office after the Supreme Court of Papua New Guinea adjourned for another week.
The court had convened today and was expected to issue more directions for fresh hearings on the constitutionality of parliament's move to legalise its decision to end the 43-year political career of Sir Michael, 75, late last year.
However, neither side, except lawyers for Deputy Prime Minister Belden Namah, had filed documentation, prompting the court to reschedule its directions hearing until 10.30am (AEDT) next Monday.
"We have decided to hear all the applications who wish to be joined as interveners," Deputy Chief Justice Gibbs Salika said.
Lawyers for the O'Neill government also raised the issue of Sir Michael Somare and his followers appointing heads of departments.

"The issue now before the Supreme Court is about legitimacy of the government and only a legitimate government can do that (make appointments)," Justice Salika said.

"They can wait for the Supreme Court reference, then they can go hell fire if they want to."The majority of parliament backed the decision to dump the former prime minister and approved it on the same day the Supreme Court ordered Sir Michael back to power.

That ruling sparked a political crisis in PNG, when there were briefly two police commissioners, two cabinets, two governors general and two prime ministers.

PNG will hold a general election in June this year.

The writs will be issued in late April, putting the government into caretaker mode.

Outside the court, Arthur Somare told reporters he would not give up the fight to have the government of Peter O'Neill thrown out, even if Mr O'Neill won the election.

"I do not care about my own election," Mr Somare, a suspended MP, said.

"I will pursue this to the end."

He said he wanted Mr O'Neill, Mr Namah and their supporters to serve "nine months and a day" for contempt of court for ignoring a Supreme Court order in December to return Sir Michael to power.

He said he wanted the sentence because convicts who served longer than nine months ere banned from running for parliament.

"Nine months and a day, that's the punchline," he said.