Govt owes fund over K156mil

THE Government owes Nambawan Super Ltd over K156 million in rental arrears, with the amout expected to top K170 million by the end of this financial year, chief executive officer Paul Sayer says.
Sayer said this following a Papua New Guinea Business Council statement regarding the impact on businesses due to unpaid bills by the State.
He said the arrears represented more than 30 months’ worth of unpaid rentals and if left unpaid, member returns would be impacted.
He said the fund enjoyed high occupancy rates for its properties in Port Moresby and Lae, however, late rental payments from State agencies was a drawn-out issue that required urgent attention.
“Nambawan Super property portfolio includes a number of buildings, which house key Government organisations,” Sayer said in a statement.
“State tenants of our buildings include the Department of Treasury (Treasury Haus), Department of Finance (Vulupindi Haus), Department of Lands (Eda Tano Haus), Department of Health (Aopi Centre), Department of Higher Education (Aopi Centre), Ombudsman Commission and Auditor General’s Office in Lae and the Internal Revenue Commission.
“Given the number of State tenants who have the equivalent of two and half years rent owing, the fund is being put in a difficult position.
“Unpaid rentals means less is available to re-invest and grow on behalf of our members and ultimately reduces property values – it’s a double loss for the members.
“As we near the end of the financial year, our investment and finance team has advised accounting provisions relating to this significant money owed to the fund are expected to result in our members getting half a per cent less in interest on their superannuation savings at the end of this year.