NDB told to provide work brief

Main Stories, National

The Nationl, Monday 3rd September, 2012

ANOTHER minister last week directed an agency falling under his jurisdiction to the dry cleaners over its past performances.
Agriculture and Lifestock Minister Tommy Tomscoll last week directed the National Development Bank (NDB) to present to him a full brief on its performance at the earliest opportunity.
Tomscoll directed that the bank to provide detailed briefs on the following specific matters:
lNDB’s graduate programme delivery;
lA property development loan of K1.32 million paid to Witherlam Investment Ltd;
lA loan fund of K187,100 approved to William Lamur, Edward Mark and Tala Nick and details of repayment;
lA housing loan funding of K350,000 to lending manager Desmond Yaninen;
lA loan fund of K5.7 million approved to Mainland Holdings of which K2.7 million has been expended;
lPurchase of a Toyota Landcruiser for former minister for agriculture and livestock Mathew Siune;
lA report on the write-off of a loan of K150,000 obtained by the same minister; and
lExpenditure and acquittal report on the PNG Indigenous Business Summit and Trade Expo in Kokopo.
Tomscoll’s move incidentally follows a similar detailed direction for reports by Trade, Commerce and Industry Minister Richard Maru last week into the affairs of the cooperative societies unit of his department.
Incidentally, Maru was the immediate past managing director of NDB and would have detailed knowledge of what his brother minister wanted to know.
Tomscoll also said in its 2009 financial year report, NDB declared a K2 million profit. The bank declared a profit assuming that it would recover K2 million from the Sogeri Rubber Development Corporation. This entry was later reversed in 2010.
Tomscoll also asked the bank to provide a comprehensive report on the monies expended on the following credit schemes; National Fisheries Authority, Small Business Development Corporation, Corporative Societies of PNG and the National Agriculture Development Fund.
Tomscoll said: “The NDB Act 2007 empowers me to enquire into the activities and the prevailing state of the bank.
“I am bound by constitutional duties of the office I hold to perform those lawful functions and, consequently, I do not consider my actions political and will not shun from my responsibilities and conscientiousness.”
The minister had also demanded that the NDB report to him should contain, among others:
1. Annual report 2010-11;
2. Current financial statement (income statement, balance sheet and statement of cash flow);
3. Detailed organisation structure including current headcount per business unit and cost and the profiles for officers occupying executive positions;
4. Latest annual report;
5. Operational risk report;
6. Business plan 2013;
7. Copy of application for a bank licence and details of approach to the Bank of PNG’s prudential requirements for banks;
8. Risk management policy;
9. Overview of loan bank by Industry concentration (including repayment schedules and interest rates of the top 100 customers);
10. Liability book (including balances of the top 100 customers);
11. Current loan delinquency report (non-performing loans);
12. Strategy report on micro
13. Treasury (ALCO) report;
14. Banking system architecture overview; and
15. Profiles of current members of the board including their representation and tenure of office.