Morobe Coastal Shipping Services board need to step up

The National Letters

ALLOW me to comment on a report in The National on Feb 20 regarding the management of a newly-established shipping company, Morobe Coastal Shipping Services Ltd (MCSSL).
It was reported that the MCSSL management had been locked out of their Voco Point premises in Lae, owned by Nasfund, because of its inability to pay for its rental bills totalling K520,000 over the last 12 months.
Company manager Namon Mawason said it was looking to the Morobe government and National Government to bail it out of such difficult financial situation.
He said a K2 million rescue package promised to the company by the Treasury Minister never came but the company still hoped the provincial government would help.
This situation poses some serious questions regarding the MCSSL management:

  • Is MCSSL a state entity that the Government will continue to fund its operational costs including rental bills?
  • is this politically established and managed business venture, through its politically handpicked board, a worthwhile venture?
  • has the company been making any profit in the last 12 months and, if not, why?
  • is the calibre of the company management team including the manager, Namon Mawason, recruited on merit or politically appointed? and,
  • Can the income earned from the passenger and cargo freights be used to pay for the rental bills rather than having to wait for the Government to folk out public funds, not budgeted for this purpose, to sort its financial situation?

The danger of entities such as MCSSL is it is not immune to political interference in terms of decision concerning its affairs.
This could be one of the reasons why the company is not making enough money to pay its rental bills.
In its entirety this could be perceived as the issue of good governance including the suitable governance structure and its related transparency and accountability processes and procedures.
The people of five districts of Morobe – Kabwum, Tewae-Siassi, Finschhafen, Nawae and Huon Gulf – have the right to know how their company is being managed since their funds through the District Services Improvement Programme Funds have been used to purchase various ships for the company.
The Government cannot continue to support the operations of the company given the difficult financial situation country is facing where it is looking for money to implement its promised service delivery infrastructures and services.
The management and the board must step up their efforts and provide leadership in the running of this company so that is becomes a profitable venture and good example of successful small to medium enterprises.

Shareholder
Pindiu