I AM frustrated about the way National Development Bank (NDB) is run because it is run by people with vested interests to suit their own desires and those of their cronies.
One of the Government’s desires to stimulate the dying economy was to introduce the concept of funding small to medium enterprises (SMEs) and micro, small and medium enterprise sectors to turn the economic wheel and put money into people’s pockets.
Although the concept seems workable and practiced by a lot of third-world countries, it seems unlikely to work in PNG.
Initially, the Government relaxed the equity portion to 10 percent and security was not necessarily considered.
That sounded good for our market mothers and those in the informal sector.
Unfortunately, things went uncontrollably opposite.
It was thought that the target group were the people involved in the informal sector such as market vendors, the public motor vehicle sector, including taxis, and those who were in the low and middle income-earning brackets.
The requirements now are so high.
People are told to register companies with Investment Promotion Authority and Internal Revenue Commission to get their certificates of compliance.
They were told to attend SME courses and attach certificates of compliance.
Just recently, the bank’s requirements changed.
Equity has jumped from 10 to 20 per cent.
Houses, land titles and cars were added to the list as security.
The people involved in SMEs are most unlikely to participate.
Who are the target group now?
We are not promoting the informal sector but the rich.
I call on Prime Minister James Marape to look in to the management of NDB.
There were rumours of two expatriate managers that were sidelined.
They eventually they resigned.
The minister responsible and his chairman are trying to control everything.
The staff morale is down.
People are confused and are getting conflicting orders from people who are not supposed to give orders or directions.
Please, look in to that and relax the requirements to promote real SME.
Concerned SME Advocate