Nasfund credit to continue

Business, Normal

The National, Friday 13th July, 2012

NASFUND will continue to credit members’ accounts with a total of K43 million while holding K44.8 million (1.87%) of net asset value in reserves despite challenges the fund is facing, chairman Mel Togolo said.
He said this following a number of comments over recent weeks regarding Nasfund’s activities and its capabilities to produce reports to members on timely basis.
“Despite the provisioning of K40 million, the board’s proactive policy of building reserves when times are good has paid off and this is why we are still able to credit 2% to members’ accounts, amounting to K43 million, despite challenges the fund has faced,” Togolo said,
“The fund still also holds K44.8 million or 1.87% of net asset value in reserves.
“The delay in finalising the 2011 audit and issuing the final crediting rate was necessary as the Nasfund board, together with the auditors and the central bank, were resolving the issues associated with the K125 million ‘investment’ in the SCITB  (sovereign community infrastructure treasury bill) and the K100 million loan to MVIL (Motor Vehicle Insurance Ltd).
“It was agreed by all that the board should make a K40 million provision in the accounts and make this disclosure to members.
“This provisioning was a contributing factor affecting the final crediting rate for 2011 approved by the board.
“The board now has an agreement in place with the state for the recoverability of the expended SCITB funds.
“The 2011 annual report has been finalised and is now with the printers.
“It will be available to members through their employers before the end of this month.”
Togolo said the concerns raised by members had been noted and the board had acted to ensure members had accurate information regarding their account balances and the activities of the Fund.
“The board has also implemented a ‘best practice’ approach to all future investments to ensure members’ interests are paramount and the best possible returns for them are explored.
“Members will realise that 2012 is a time of change and consolidation.
“The new board has taken proactive steps to review all of the fund’s operations and investments and has implemented ‘best practice’ change management to ensure transparent decision making, optimal capacity building and the strengthening of management support.
Recently the board appointed a new chief investment officer, human resource manager and internal auditor to assist the chief executive officer ensure key functionalities were attended to.
Togolo said the board will continue to work closely with the regulator – Bank of PNG – to ensure all obligations and compliance requirements are met in accordance with the Superannuation Act.