Minister for State Enterprises, William Duma, CMG, MP, has refuted misleading opposition claims relating to equity raising in National Bank Corporation Limited (NBCL).
“The Opposition was complaining that there was not enough private equity in the bank, and they have now been proven wrong,” Minister Duma noted.
“The Government continues to dilute its stake as a condition precedent to the issue of the banking licence.
“In order to ensure independence from Government and political influence, the decisions of the Board of Directors of National Banking Corporation Ltd operate according to the Companies Act, the Central Bank Act, and relevant regulations.
“The Board has the legal authority to make commercial banking decisions, including packages that will attract top banking executives to PNG for the long-term benefit of both NBCL and PNG.
“The issuance of shares by way of equity is the common and legal practice for banks, and is aligned with the interest of all shareholders to grow the company.
“It is clear to investors and me, who now own 48 per cent of the Bank, that NBCL is on a pathway to profitability that includes a full Initial Public Offer to the citizens of PNG in 2027.
“Expanding private investment in the National Banking Corporation Limited is an independent process that adheres to banking laws and regulations.”
Minister Duma urged the Opposition to stop mindlessly politicising the NBCL and allow the Board and management to do their work and deliver the Bank to the people.
“This negativity from the Opposition is simply sour grapes, and I would like to see them get behind our efforts to strengthen our economy. Casting aspersions and throwing mud for political gain is easy, but as they know very well, bringing together the multitude of critical elements required to advance our economy takes effort and commitment.
“Talking down the economy only undermines investor confidence, and our country expects more from Members of Parliament. Perhaps the Opposition is thinking in terms of the UBS deal and Credit Suisse financing arrangements that were organised by the previous Government; however, unlike those arrangements, the process employed by NBCL is transparent and fair, where anyone whose efforts benefit NBCL is rewarded.
“I have every confidence that NBCL has the right processes in place to handle internal governance and adhere to the laws of PNG.
“Competition in the banking sector will deliver strong positive economic benefits for our people and our country.”
