SOEs told to find balance between profit, delivery of services

PRIME Minister James Marape says State-owned enterprises (SOEs) must find the balance of making profit and deliver services.
“We are looking at some policies for that harmony to be optimised,” he said.
Marape said this in Port Moresby yesterday during the presentation of K50 million from Motor Vehicle Insurance Ltd (MVIL) to Kumul Consolidated Holdings Ltd (KCHL).
Marape said the Government was embarking on major reforms to ensure SOEs were supported and made profitable.
He said one of those measures was ensuring that there was no political interference in appointing boards and management of SOEs.
“In the last 18 months, we had to make sure that we steered clear of SOEs,” he said.
“We ensured that merit-based appointments were taking place at the board level as well as in management.
“While we want to make a profit, the service delivery aspect remains crucial in the SOEs for instance PNG Power.
“While we want them to make money, they are also serve areas that are non-profitable, those such as PNG Water and Air Niugini who is flying to routes that are non-profitable.
“So finding the balance between making a profit and at the same time delivering services for our people has been a challenge over the last 45 years.
“We came with a clear view to restructure and reform our SOE to ensure efficiency in performance, ensure they perform and deliver not just services but in the business of serving our country, returning a dividend and profits for what has been a hard year.”
Marape said it was satisfying to know that state agencies were at work with returning dividends.
“2020 was one of the hardest years,” he said.
“The depression is similar to what had happen during the world wars and global economic contractions.
“We have felt the pinch of a slowdown of economic activities as a result of strains on businesses locally and internationally during the pandemic.”