ADB: IPBC should own SOEs

Business, Normal

The National, Tuesday 18th September, 2012

THE Asian Development Bank (ADB) has recommended that the government consider winding up its General Business Trust (GBT) and reconstitute Independent Public Business Corporation (IPBC) as a company that owns state-owned enterprises (SOEs).
The ADB, in its Finding Balance: Benchmarking the Performance of State-Owned Enterprises in Papua New Guinea released last Thursday, said the analysis undertaken through this study showed that the trust structure added no benefit to the effective control and oversight of PNG SOEs, nor did it enhance their commercial status.
“What it has done is add another level of legal and operational complexity that has assisted in shrouding what is actually happening with and within the SOE portfolio,” the report says.
“Incorporating IPBC under the Companies Act would give it the same legal status as that of eight of the nine SOEs in its portfolio, and would simplify reporting and accountability mechanisms.”
The report noted the PNG government has made remarkable progress in strengthening the framework for SOEs over the last 12 months.