Kurua updates on SOEs

KUMUL Consolidated Holdings Limited (KCH) acting managing director Parkop Kurua has reiterated the company’s determination to restore lawful systems and processes and appropriate levels of accountability and transparency for state-owned enterprises (SOEs).
“KCH wants to reassure the public that it will act swiftly and effectively on allegations against itself or the SOEs it is responsible for,” he said in a statement.
“We have zero tolerance policy for any failure of due process or accountability.
“SOEs exist to provide efficient, cost-effective and reliable services to all Papua New Guineans. We cannot do that if poor corporate practices are eating away at our capacity to deliver services. They must be eradicated.”
Kurua was responding to recent complaints against Kumul Telikom Holdings and Water PNG/Eda Ranu.
He said the complaints were being investigated by KCH, and the boards of the relevant SOEs had been notified and asked to take appropriate action.
He said in the case of Telikom, KCH as the shareholder had instituted interim arrangements aimed at restoring financial stability and to resolve any misunderstanding between the board and management.
He said the position of group CEO would remain vacant until a permanent appointment was made.
Meanwhile, Kurua said the heads of Telikom, PNG DataCo and bmobile would report directly to the Kumul Telikom Holdings board. He said attempts to create alternative physical or virtual operating structures outside of the legal structures approved by KCH would cease.
In the case of Water PNG, a temporary officer-in-charge Susanta Chanda had been appointed by KCH following the expiry in December of the appointments of all directors and the managing director.
Chanda, the chief financial officer of Water PNG, would report to KCH pending permanent appointments.
KCH has also instituted an independent external examination of recent allegations concerning financial transactions at Water PNG/EdaRanu. That review is currently under way.
Kurua said it was important that these issues were dealt with quickly and transparently to restore public reputation of the SOE system and resume the delivery of affordable and reliable services.