Government not clear on K500 million from superfunds: Lelang

SHADOW Treasurer Joseph Lelang says the Government is not clear on details surrounding a K500 million expected to come from superfunds to help affected workers.
He made reference to the amount highlighted recently by Treasurer Ian Ling-Stuckey in the K5.6 billion economic stimulus package in Parliament last Thursday.
Lelang noted that the K500 million was expected to come from superfunds to help people affected or become jobless as the result of Covid-19.
Ling-Stuckey, when announcing the proposed K500 million in superannuation measures, had said: “One of the great assets of PNG is our very sensible superannuation arrangements.
“These savings total about K14 billion.
“This part of the economic stimulus package is about using some of these savings now.
“In talking to the superannuation funds, we had some ideas.
“Rather than imposing them through changes in legislation, we have asked them to come back with a package of activities worth K0.5 billion to support jobs, businesses and investment.”
Prime Minister James Marape last Friday said the superfunds had been approached to release K10,000 to any member who recently lost jobs through the crisis.
However, Lelang said: “We must understand that the superfunds want to keep cash in order to address needs of its members and if the Government decides to go out and raise K2.5 billion from domestic financing by issuing treasury bills, the market is very small.
“How will you raise money from them when they need cash?
“Many of the funds held by superfunds are in investments.
“With the Government putting pressure on superfunds to release that K500 million, I’m not sure now.
“The details on the K500 million package is not clear.
“The K10,000 – how is that going to help everybody?
“You cannot get members’ money and pay them while they are still working unless you comply with processes and procedures.
“We should not allow statutory entities to break the law irrespective of the situation we are facing.”