PM MARAPE COMMITS TO REVIVE SWF
MAJOR BREAKTHROUGH FOR SWF
Prime Minister, James Marape assures PNG his government will revive the much-discussed sovereign wealth fund (SWF). https://pngsun.com/2021/08/11/polye-urges-pm-marape-to-revive-swf/
PM Marape made the assurance following numerous calls by politicians and experts for its establishment.
He said for the first time ever, his government has a clear policy on payment of dividends from resource projects.
Mr Marape announced this major breakthrough today when receiving a K100 million dividend payment from Kumul Petroleum Holdings Ltd (KPHL).
KPHL Board Chairman Prof Benedict Yaru and Managing-Director Wapu Sonk presented the cheque to PM Marape. Finance Minister Sir John Pundari witnessed the occasion at Parliament’s State Function Room today.
He said he expected the company to pay another K200 million to meet the full dividend of K300 million as budgeted under the 2021 National Budget.
The dialogue on creation of SWF was in the public domain for many years in light of billions of Kina the country has earned from its natural resources. Resources include mining, oil and gas.
“Since our Government took office, for the first time, we have a clear dividend policy,” PM Marape.
“This has not been in place for many years.”
PM Marape said KPHL, like many State-Owned Enterprises (SOEs), was now subject to an annual work plan which came under directions from its Board and Government.
DIVIDENT PAYMENT POLICY FOR SOEs
He said under the dividend payment policy for SOEs now in place:
- 60 per cent of all revenue was to be channeled back to the State;
- 10 per cent to community-based projects;
- 7 per cent to an SWF;
- 13 per cent to the SOE concerned; and
- 10 per cent for administration costs.
In as far as our country is concerned, the law has created that facility (SWF), however, no government in the past has seriously thought of putting money into a sovereign wealth fund,” PM Marape said.
I can understand why, when we don’t have much money, but our Government has now decided to differ, with 7 per cent of all revenue from resource projects to be put into a sovereign wealth fund. “We intend to start to utilize this facility (SWF) this year and going forward.“This will instill a savings culture in our Government for tomorrow.”