Constitution defines fund board

NATIONAL Superannuation Fund chairman Charles Vee says the fund has a constitution that defines the composition of its board members.
Vee told The National, when responding to queries, that there were four shareholder representatives from peak bodies representing members and employers and six independent directors.
The Micro Small Medium Enterprise (MSME) Council said that there should be an MSME representative on the Nasfund board to represent the interest of contributors from the MSME sector.
“The composition is in compliance with the Bank of PNG Prudential Standards 7/2012 on governance which requires the boards of super funds to have a majority of independents on its board,” Vee said.
“The four shareholder reps are from the Manufacturers Council of PNG, Employers Federation of PNG, PNG Trade Union Congress and PNG Chambers of Commerce and Industry.
“Position of the independent directors are chosen from the public and based on a person meeting the board’s appointment protocol which covers skills matrix requirements, fit and proper clearance, regulatory Bank of PNG clearance, strategy fit and gender balance.”
Vee said interested persons could lodge applications at the time notice for a vacancy for independent director was advertised and this would then go through the usual appointment process.
MSME Council president Desmond Yaninen told The National that there needed to be a representative not just on Nasfund, but for every financial institution.
Yaninen said businesses both in the informal sector and formal sector make up for K12 billion of the GDP (gross domestic product) every year and therefore must be represented.
“Both formal and informal small medium enterprises (SMEs) account for over K12 billion in GDP every year,” Yaninen said.
“They are the largest sector and deserve to be represented not just on Nasfund, but on the boards of every financial institution to drive financial inclusion for SMEs.
“We can’t have them being excluded from the financial system.
“When you have an SME representative on those boards, they will be able to push that agenda and make sure that there’s greater inclusion and access.
“For example, with the K200 million loan package that’s coming out, in order to access that you have to be formally registered, you have to be financially included.
“Therefore, you need an SME representative in those organisations in order to inform the board and strategy and help them to accommodate SMEs in their strategic plan in going forward.”