Bank row: Popoitai to replace Bakani

CABINET has appointed Benny Popoitai as the acting governor of the Bank of PNG, replacing Loi Bakani who has been accused of refusing to cooperate with the bank’s review process.
Treasurer Ian Ling-Stuckey said the changes to the Central Banking Act passed by Parliament this month “are the result of a comprehensive consultation process involving key firms and institutions in PNG, central banks in the region, and the IMF”.
The Independent Advisory Group (IAG) led the consultations and submitted a 132-page report on reform options to the Government.
“Unfortunately, the former governor (Bakani) decided not to fully cooperate with the review process,” Ling-Stuckey said.
“He declined requests for meetings, and failed to appoint any BPNG staff to the secretariat for the review.
“He wrote to the Prime Minister protesting about the review.
“He constantly declined to cooperate.”
But Bakani yesterday “denied and disputed” that he did not cooperate during the review process.
“I do not blame (Ling-Stuckey) for misunderstanding the purpose of my letter to the prime minister after the review,” Bakani said.
“I had a duty to advise him and the prime minister on what I think is not right and suggest ways to change things.
“That’s my duty.
“I led all our discussions with the IAG on the proposed reforms to the Bank (of PNG) and CBA and they were held in a transparent way, except the transitional arrangements to oust the governor, deputy governor and board immediately after these amendments are certified as Amended Act.
“These transitional arrangement was never discussed with us at BPNG, and we as the affected persons were never given the opportunity to comment.
“Such transitional arrangement is a clear demonstration of being disrespectful and harsh for whatever reason unknown to us.”