Parliament approves changes to KCH Act


PARLIAMENT recently approved changes to the Kumul Consolidated Holding (KCH) Act, the legislation governing the operations of Kumul Consolidated Holdings, which enables the inclusion of one female director on each State-owned enterprise (SOE) board.
The changes were effected after a submission from State Enterprises Minister William Duma.
“These legislative amendments are necessary to ensure that KCH properly implements the Marape-Government’s SOE reform agenda,” he said in a statement.
“The changes will ensure that KCH and our SOEs are properly structured, demonstrate improved governance and follow best practice professional standards, preparing them, if necessary, for full or partial privatisation.
“There have been frequent criticism of the SOEs, so we need to make sure there is a consistent approach from them and KCH regarding transparency in the selection and appointment of directors and CEOs (chief executive officers), proper annual planning, public accountability for annual plans and reports, along with performance targets for the boards of SOEs.
“This includes a provision for one female director on each SOE board.”
Duma noted that the amendments were consistent with the Government’s public-private partnership and national competition policies.
“Reform of SOEs is essential so that the provision of cost-effective essential services to Papua New Guineans is restored after years of decline and that the State benefits, through dividends, from the operations of SOEs,” he said.
Duma said the approved amendments would ensure that highly qualified people are appointed in SOEs at director and senior management level and increased accountability.