Tisa eyes loans society takeover

Teachers’ Savings and Loan Society Ltd (Tisa) has proposed the acquisition of Police & State Services Savings and Loan Society Ltd (Polsav).
Tisa expected this acquisition to result in synergistic benefits, economies of scale and enhancement of its membership and revenue base.
Furthermore, K34 million of savings of ordinary Papua New Guineans will be lost through a writedown if TISA does not acquire Polsav.
Polsav was placed under administration by the Registrar of Savings and Loan Societies in April 2017.
Thousands of Polsav members were left high and dry after the society was declared insolvent by the Central Bank.
Tisa and Polsav said in a joint statement that necessary approvals had been obtained from all relevant stakeholders for this acquisition to take effect.
“The parties are working on the formal documentation to give legal effect to the transfer of Polsav assets and members’ savings balances to Tisa,” the statement said.
“The signing of this heads-of-agreement between Tisa and the administrator on May 3 will now pave the way for Tisa to move into Polsav and commence preparations to restore business to normalcy, and commence the process of restoring member’s savings.
“We therefore would like to advise the members of Polsav that there will be a transition in place to allow Tisa to take control of the business processes.
“The current loan-processing criteria will continue to remain in effect until such time Tisa completes the placement of its business processes and administrative arrangements.
“The administrator and his team will work with Tisa during the transition process to ensure a smooth transfer of responsibilities.
“Tisa will advise the members of Polsav in due course once the transitional arrangements are completed.”