NSL: Govt owes K160mil in rent

THE Government owes Nambawan Super Ltd (NSL) about K160 million in outstanding rent, according to chief investment officer David Kitchnoge.
Kitchnoge said the Government leased rented many NSL properties but had not been up to date with its rent payments.
“(The State owes) more than two and a half years in outstanding rent,” he said.
“There is a real impact on members’ return.
“Last year, the State paid K50 million of the total amount owed (but, since then) it has not been paying up.”
The outstanding rent are for the NSL properties in Port Moresby including the IRC building, Vulupindi Haus, Treasury building, Eda Tano Haus (Lands Department headquarters), parts of Aopi Centre, Higher Education and Ombudsmen Commission Office.
The main ones in Lae are the NSL Haus and Morobe Haus.
“We are the largest landlord of the State (which is) allowing the outstanding rent to build up again,” Kitchnoge said.
“We strongly urged the State to please (settle) some of the outstanding rent to help us manage the provision made against that asset.
“If the State doesn’t pay up, then we expect certain provisions made, and, therefore, the returns to our members will be lower than what it was last year.
“The main collectable for us is actually outstanding rentals from the State.
“This has been (allowed) to grow overtime.
“When we do not collect, the auditors come at the end of the year and make accounting provision.”