State selling non-core properties

By CLARISSA MOI
KUMUL Consolidated Holdings Ltd (KCHL) is selling its non-core properties as part of the State-owned enterprises (SOE) reform process, managing director Isikeli Taureka says.
Taureka said KCHL intended to use proceeds from the sale of its assets and properties in Port Moresby to improve its liquidity.
The assets are; 38 vacant residential allotments adjacent to Pacific International Hospital at 3-Mile consisting of 2.91 hectares, vacant land at 16-Mile, and special purpose lease consisting of 28.3 hectares located off Sogeri road, adjacent to Pacific Brewery and Hugo Cannery.
“These are properties that are non-core,” he said.
“We are selling to monetise and intend to inject the proceeds into our SOEs where these monies can be used to improve liquidity and strengthen their balance sheets as part of our SOE reform process.”
Taureka previously told The National that the total assets of SOEs was around K6 billon but only about K65 million was paid as dividend annually.
He said the reforms would change this situation.
Taureka said the Government was looking to sell its non-profitable companies.
He said the National Executive Council (NEC) had approved the sale of non-core State-owned entities not generating any revenue for the state.
The NEC had approved the reform supported by the Asian Development Bank (ADB) with a loan of K500 million over three years, according to Taureka.
The NEC decision was to have a SOE reform and debt-free financing.
“The NEC decisions allow us to go through the reform, selection process, better boards, better management selection process, returning to a sound financial footing and delivering services.”