State adjusting to economic situation, says Fleming

By MARK HAIHUIE
THE government’s sale of its shares in Oil Search shows that it is willing to adjust to the current economic situation, Bank South Pacific chief executive Robin Fleming says.
Fleming told The National that businesses would be anticipating similar undertakings by the government in the 2017 Supplementary Budget.
“The supplementary budget is important for business as it will be the first significant outcome of the government’s 100-day plan and an excellent signal to the business community of the specifics associated with the implementation of the plan,” Fleming said.
“Kumul Petroleum Holdings recently announced the sale of its Oil Search shares with the consequent exit of the UBS and JP Morgan-structured debt facilities.
“It indicates the government’s preparedness to make decisions that recognise current economic conditions.”
Fleming said the government could eliminate or defer commitments not critical to its long-term development plans.
“This is not to say that some of those longer-term developments are not important,” he said.
“But in the short-term, the focus should be on meeting any residual payment obligations from operational or development expenditure, where services have been provided or procurement completed.
“Payment and settlement of any such debt will provide cash flow for many businesses in PNG.”