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MANNING AND DIVISIONAL COMMANDERS CONFIDENT ON DELIVERY OF ELECTION SECURITY OPERATIONS MANNING AND DIVISIONAL COMMANDERS CONFIDENT ON DELIVERY OF ELECTION SECURITY OPERATIONS
The top echelon of the Royal Papua New Constabulary concluded a high-level meeting last week aimed to firm down on the 2022 National General Election security operation plans in Port Moresby. The two-day conference was attended by Assistance Police Commissioners, Police Commissioner David Manning, Deputy Commissioner Operations Anton Billie and the National General 2022 Planning Team, as well as PNG Defence Force and Correctional Services officials. The conference began last Thursday and ended on Friday with the team committed to delivering the security overlay required for the elections around the country. Last week marked the end of the planning phase with the transition now into the pre-deployment and operation proper phases. Commissioner Manning when receiving briefs from respective Commanders assured them that the security deployment will proceed as planned and there is no room for complacency nor will the Constabulary retreat from its constitutional duty to provide the conditions necessary for the PNG Electoral Commission to conduct the 2022 National General Elections. “Election operations are not a new thing to most of us and I’m sure your plans are based on past operational experiences and imminent threats assessments within your respective commands,” Mr Manning said. He said in times where the Constabulary lacks the necessary resources it demands experience and good leadership to deliver the expected outcomes for a free, fair and safe national general election. He told the Assistant Commissioners, “You have been bestowed with this position based on your leadership and experiences and I have no doubt each of you will demonstrate those qualities during this election period.” Mr Manning said the conference last week marked the transition from planning into operation mode, adding that “the election security operations will proceed as planned with no retreat”. The Commissioner said that the security forces will deliver the election security operations regardless of resource issues or changes to the election dates. The conference was also attended by the Electoral Commissioner and Senior officers form the Papua New Guinea Defence Force and the PNG Correctional Services.
Published on April 27, 2022
AIR NIUGINI’S LOYALTY PROGRAM RENEWS PARTNERSHIP WITH KOKOPO BEACH BUNGALOW AIR NIUGINI’S LOYALTY PROGRAM RENEWS PARTNERSHIP WITH KOKOPO BEACH BUNGALOW
Air Niugini Destinations Loyalty Program proudly welcomes back onboard Kokopo Beach Bungalow Resort in East New Britain Province for another two years partnership. This brings the total Destinations corporate partners to 10. The extended two-year partnership provides Destinations members the opportunity to earn and redeem loyalty points when staying at Kokopo Beach Bungalow either for business or leisure. The airline’s Chief Executive Officer (CEO), Mr Bruce Alabaster welcomed Kokopo Beach Bungalow to the program, highlighting the importance of corporate partnerships, adding value to the program. Alabaster stated that the partnership illustrates Air Niugini’s commitment to focus on the domestic market and continue to promote local tourism. He said, “This is an exciting way for Air Niugini customers to earn points whilst enjoying the experience at our beautiful domestic destinations. “We want to encourage individuals to take trips and enjoy the diversity of Papua New Guinea by working with the hotel industry,” Mr Alabaster added. Each time, a Destinations member visits the resort, they earn points, which can then be redeemed on accommodation the next time they visit Kokopo Beach Bungalow, or redeem on airline tickets or goods and services from our other corporate program partners. Kokopo Beach Bungalow Resort Manager, Mukesh Kumar said the resort is proud to be a partner with the Air Niugini Destination Loyalty Program. “Since opening in 2002, we have been in the hospitality sector, promoting local tourism products in the national and international market. “We, as a resort, provide a variety of services such as accommodation, a multicuisine restaurant, conferences, vehicle rental, boat charter, and land and marine tours. “East New Britain's tourism sector will benefit from the partnership with the national airline carrier. “We cordially invite all Air Niugini Destinations members to visit East New Britain Province and indulge in the aesthetic surroundings,” Mr Kumar concluded. Air Niugini’s Destinations Loyalty Program was launched in August 2009 as PNG’s first Frequent Flyer Program with currently over 125,000 active members. Please visit the Air Niugini Destinations website www.destinations.com.pg for more information on similar partnerships with other hotels and organisations in the country and how you can earn more points.
Published on April 27, 2022
NEW START DATE DEFERS ELECTION BY TWO WEEKS NEW START DATE DEFERS ELECTION BY TWO WEEKS
The start of 2022 National General Election has been delayed by two weeks after the start date was moved to May as officially confirmed by the Papua New Guinea Electoral Commission (PNGEC). The PNG Electoral Commissioner Mr. Simon Sinai in a statement released by his office, said the Issue of Writs and Nomination Open is now moved to the 12th of May and not initially scheduled for Thursday April 28th. The statement stated that under the Authority of Section 73 (Writs for General Elections) of the Organic law on National and Local Level Government Elections (Election Laws), the PNGEC advised the Head of State to issue the Writs for the 11th General Election for members of parliament in accordance with the provisions of Section 105 (General Elections) of the country’s constitution.      As per this advice, the new election dates are as follows, The Issue of Writs/ Nomination Opens:           Thursday 12th May 2022 at 4:00pm Nomination Closes:                                        Thursday 19th May 2022 at 4:00pm Polling Period Starts:                                       Saturday 09th July 2022 Polling Period Ends:                                        Friday 22nd July 2022 Return of Writs:                                              Friday 29th July 2022 at 4:00pm     Calculation of Dates, (7days) Period of Nomination                                                 12th May to 19th May 2022 (8 weeks) Period from Issue of Writs to start of Polling Period   12th May to 9th July 2022 (14 days) Period of Polling                                                         09th July to 22nd July 2022 (7 days) Period from End of Polling Period to Return of Writs   23rd July to 29th July 2022 Meanwhile, the number of writs to be issued for the provincial electorates is twenty-two (22), including the National Capital District and the Autonomous Region of Bougainville. The number of Open Electorate writs to be issued increases from eighty- nine (89) to ninety- six (96) following the 10th Parliament acceptance of the Electoral Boundaries Commission’s recommendations for seven (7) new Open Electorates in line with Section 35 (Open Electorates) and section 41 (Determination of New Electorates) of the Electoral Law.   All together the total number of electorate writs is now one- hundred and eighteen (118) for this 2022 National General Election.
Published on April 27, 2022
GOVERNMENT SHOULD DO MORE FOR UNEMPLOYED YOUTH GOVERNMENT SHOULD DO MORE FOR UNEMPLOYED YOUTH
Morata settlement in Port Moresby is a sprawling multi-ethnic settlement inhabited by a mix of Port Moresby’s low-income and middle-income households, the unemployed and those who engage in informal economic activities especially the youth. This PNG NRI Issues Paper No. 40: The situation of young people in Port Moresby’s Morata Informal Settlement and what the government could do to keep them from social evils by Research Intern Julian Melpa and Dr. Francis Odhuno, Senior Research Fellow at Papua New Guinea National Research Institute (PNG NRI), provides insight into the challenges faced by the youth and reforms needed to assist them at the Morata settlement and elsewhere in the country. The lack of job opportunities and lack of source of income, have led some youth from Morata settlement to engage in criminal activities to sustain themselves and their families. In order to keep the youth away from social evils, the government should consider providing the youth: • More facilities for job opportunities through engaging the youth in community service projects; • Financial support through youth loan schemes to start their own businesses; and • Entrepreneurial training opportunities to enable the youth to have more knowledge on how to manage a business in an efficient and effective manner. The initiatives being promoted here using Morata in Port Moresby as a case study can be applied elsewhere in PNG to address the problem of youth unemployment.
Published on April 27, 2022
WOMEN'S FOOTBALL TAKES OFF IN THE HIGHLANDS WOMEN'S FOOTBALL TAKES OFF IN THE HIGHLANDS
Women’s National Conference football in Papua New Guinea has come to the Highlands, after the first games of the Highlands Conference of the Women’s National Conference Soccer League 2022 took place over the Easter weekend. Whilst the three other conferences that make up PNG’s Women’s National Conference League – the Southern Conference, Northern Conference and NGI Conference – were already in full flow, bringing the league to the Highlands is considered a big step forward for the women’s game in PNG. The Highlands Conference will be contested between six teams – Mommers FC, Goroka FC, Simbu Ambai FC, SHP FC, Hagen FC and Kuri FC. The action got underway over the Easter weekend, with round one and two matches played at the Kimininga Police Barracks Oval in Mount Hagen. Mommers lead the way after two games, after beating Simbu Ambai 7-0 and SHP 2-0. Hagen are currently in second after following up their round one 5-1 win over Kuri with a 1-1 draw against Simbu Ambai. Kuri drew their round two game with Goroka 1-1 to ensure they also have points on the board after the first round of historic fixtures. Whilst the results will catch the eye, just having women’s football of this level in the Highlands region is considered a big win for the Papua New Guinea Football Association (PNGFA). The PNGFA have helped facilitate the new league, providing balls, training cones and ball pumps to all six teams – as they have with those in the other conferences. “The women taking part are now part of football history in the Highlands region,” PNGFA vice-president Francis Ank is quoted as saying on the PNGFA Facebook page, in which he commends PNGFA president John Kapi Natto and general secretary Pius Letenge for following through with their vision. With the commencement of the Highlands Conference, the Women’s National Conference is now in full flow. After five rounds of the Southern Conference, NCD Hekari United FC currently lead the way with 15 points from a possible 15, scoring an impressive 42 goals in the process. The Northern Conference is currently led by Lahi Power FC on 10 points after four games just ahead of Bara FC on nine points in second. After four rounds of fixtures in the NGI Conference Kiara FC are top with a 100 per cent record following a midweek 3-1 win over nearest rivals Hamatana FC. The Women’s National Conference Soccer League 2022 continues this weekend.
Published on April 26, 2022
USAID PARTNERS CEFI IN PROVIDING FINANCIAL LITERACY TRAINING OF TRAINERS USAID PARTNERS CEFI IN PROVIDING FINANCIAL LITERACY TRAINING OF TRAINERS
The United States Agency for International Development (USAID) through the Lukautim Graun Program and its partnership with the Centre for Excellence in Financial Inclusion (CEFI) delivered financial literacy training to 20 participants from various women’s groups, conservation groups and staff of Jiwaka provincial administration. The training was conducted under the USAID LGP ‘Women’s Empowerment Program’ and aims to produce a pool of financial literacy trainers specifically to support rural and remote communities in six provinces in Papua New Guinea. These include Eastern Highlands, Jiwaka, Madang, Milne Bay, Morobe, and Simbu provinces. Newly graduated trainers will be able to deliver programs specially tailored to rural and remote villages on understanding and managing their household and livelihood finances. The five-day financial literacy ‘training of trainers’ program ended on April 22, 2022 with the issue of certificates to the participants. Provincial Administrator for Jiwaka, Joe Karap, when presenting the certificates to the participants, thanked USAID for implementing this program in Jiwaka province. “Jiwaka is a new province and it needs every support it can get from development partners. Thank you, USAID, for choosing my province to implement this program,” said Mr. Karap. Each graduating trainer signed a letter of commitment agreeing to train at least 50 other Jiwaka individuals in financial literacy resulting in a total of 1000 individuals trained in basic financial literacy. In addition to being certified in basic financial literacy training, new graduates also received training on how to help those in rural and remote communities access to online banking services through their mobile phones and options to open bank accounts with MiBank after receiving training. In addition, those trained, including women’s groups, small-to-medium enterprises, faith based-based organizations, and community based conservation groups, can move ahead by choosing to register as banking agents for MiBank in their communities. Participant Roselyn Issac from Aviamp village was excited to attend the training. “I’ve learned a lot in the last five days but one that stands out for me is how to train people to make family budgets and strictly spend within their budget. I will take this with me not only to teach others but to apply it in my own family!”. Thank you, USAID for this opportunity”. Women leader, Eva Simp from Banz, an organization that… said “ The challenge for me is to impart what I have learned to my community. I am pleased that training manuals were provided. This will make it easier for me to impart what I have learned to my community”. This training is part of the USAID’s commitment to provide financial literacy skills to over 1000 entrepreneurs, family business representatives, and women in Papua New Guinea so they can fully participate in the formal economy and access financial services like banking and small-scale village saving and loan schemes. USAID and its implementing partners continue to empower people in rural communities to access economic opportunities that improve their livelihood prospects which, in turn, reduces pressure on forest resources and helps protect Papua New Guinea’s rich biodiversity for future generations. USAID’s Lukautim Graun Program is a five-year USAID funded program led by Cardno International Development in collaboration with Care International, The Nature Conservancy, the PNG Tree Kangaroo Conservation Program, Woodland Park Zoo, and the Wildlife Conservation Society.
Published on April 26, 2022
BSP DELIVERS STRONG FINANCIAL RESULT Q1-22, BEFORE ‘ADDITIONAL COMPANY TAX’ BSP DELIVERS STRONG FINANCIAL RESULT Q1-22, BEFORE ‘ADDITIONAL COMPANY TAX’
Strong underlying business performance across the Group has resulted in an increased Q1-22 Group Net Profit After Tax, before deduction of the additional company tax, of K259m, compared to K203m for the first quarter 2021. However, the new K190m Additional Company Tax (ACT), which only applies to BSP in the banking sector, has had a significant negative impact on Q1 results, with Group profit falling to K69m after expensing the tax in full in the first quarter. According to BSP Group CEO Robin Fleming, the pre additional company tax Q1-2022 financial results were driven by improving economic conditions and income growth, when compared to Q1-2021. “Growth in BSP’s offshore branches and PNG Bank were the main drivers for the overall uplift in underlying Group NPAT,” according BSP Group CEO Robin Fleming. Mr Fleming said in accordance with accounting standards BSP recognised the full K190m additional company tax in the first quarter this year, reducing Group NPAT to K69m despite our strong underlying performance. “BSP’s share price on the PNGX finished 0.4 percent higher in the trailing 52 weeks at K12.05, with average prices of K12.21 in Mar-22. ASX prices reached an all-time high of A$6.00 after the K1.1bn profit announcement, but fell to A$5.00 in the weeks following the announcement of the additional company tax in March 2022,” said Mr. Fleming. [caption id="attachment_21095" align="alignnone" width="689"] BSP Group Chief-Financial Officer having a discussion with the shareholders representatives after the BSP Quarter 1 profit announcement yesterday at Ravalien Haus.[/caption] Mr. Fleming added that 2021 dividend yields were 14.4 percent and 13.6 percent on the PNGX and ASX respectively, and that BSP paid a record dividend to its shareholders of K626.1m on 22 April 2022. BSP’s market capitalisation on the PNGX was K5.6bn and A$2.2b on the ASX at 31 March 2022. Meanwhile, Mr Fleming stated that BSP Group’s key performance ratios remained strong, with cost-to-income ratio increasing slightly to 37.8 percent but generally in line with recent levels. He added that capital adequacy ratio decreased to 21.3 percent due to timing of the 2021 final dividend which was declared in February this year, while prior years had the final dividends declared in May at the time of the company’s Annual General Meeting of shareholders. Capital adequacy remains well above BPNG’s 12 percent requirement. Group Return on Equity (ROE) was 24.0 percent in Q1-2021, impacted by the ACT. [caption id="attachment_21096" align="alignnone" width="619"] BSP Group CEO Robin Fleming speaking during BSP Quarter 1 Investor and Media Presentation on Monday 25th April, 2022, at the Ravalien Haus in Port Moresby.[/caption] When presenting the first quarter results to investors and the media, Mr. Fleming concluded by stating that the additional company tax is unfair and inequitable, in that BSP is the only bank in PNG that is targeted for this tax and our PNG shareholders are the hardest hit. “It dissuades investor confidence in PNG and sets a dangerous precedent for arbitrary taxes. Super Funds estimate that BSP shareholders will lose K1.0 billion in value directly and indirectly as a result of the tax. “Despite the tax, BSP has and will continue to invest heavily in PNG, with its new core banking system, more ATMs and EFTPOS terminals, and additional branches in Lae and Mt Hagen, an upgrade of Maprik to a full branch and two additional hybrid sub-branches in Telefomin and Palmalmal. BSP’s PNG branch footprint is the largest in the country, with 84 branches and sub-branches, which is significantly more than Westpac’s and Kina Bank’s combined 32 branches in total. Further, BSP branch access ranks highly when compared to other leading banks in comparable markets, with BSP branch coverage per 100,000 people being 1.56, compared to Phongsavanh Bank in Lao at 1.22, ACLEDA Bank in Lao of 1.04, First Bank of Nigeria at 0.56 and the other two retail banks in PNG at 0.32 and 0.28. The first quarter financial results also highlighted that BSP has not increased its fees since 2014 and today forgoes in excess of K90 million per annum in fee income from our fee reductions and waivers since 2014. In addition, BSP provides a large number of fee free services to its customers, far more so than our competitors do and BSP fees are generally much lower than those of our competitors’.”
Published on April 26, 2022
NEW LOOK MOMOTE AIRPORT AIMS TO BOOST ECONOMY IN MANUS NEW LOOK MOMOTE AIRPORT AIMS TO BOOST ECONOMY IN MANUS
Manus Province now has a massive new state of art airport terminal after the opening of the upgraded Momote Airport by Prime Minister James Marape yesterday. The upgrade work sees the establishment of the new terminal building, runway extension from 1, 810 meters to 2, 010 meters, a new power station and a market facility. The redevelopment project comes at a cost of K101.9 million that was co-funded by the Asian Development Bank and PNG Government and implemented under the Civil Aviation Development Investment Program (CADIP). Designed resembling a stingray, the new state of art terminal includes departure, arrival and VIP lounges, check-in counters, Close Circuit Camera TV (CCTVs), baggage screening machines, toilet facilities among other modern terminal facilities. The upgraded facility also caters for VISA and immigration processing counters for the case of direct international flights while the airport parking bay itself can accommodate one Boeing 737-800 series aircraft and two Fokker 100 aircraft at one time. Prime Minister James Marape speaking during the opening ceremony said the airport redevelopment is well aligned with his government’s ambition to stimulate economic activities in the province. He said this compliments the recent passing of the Manus Special Economic Zone Bill in parliament that will allow national and international companies to set up and do business in the province without having to pay their corporate tax. He also called on the National Airports Corporation to allocate a space so that they can set up the Head Office for the Special Economic Zone at Momote. “We will commitment K10 million for that establishment and I want the Manus Provincial Government and NAC to work together on that to grow business and commerce activities,” Mr Marape said. “National Fisheries Authority is also tasked to set up cold storage facilities in the province and that will support the ambition of exporting fish products within the country and also overseas.” Civil Aviation Minister Walter Schnaubelt told the people that Manus is fortunate to be part of this important infrastructure redevelopment and must ensure it is sustained well for the long run of its operation. “The sustainability and consistency of the operation of this terminal and airport depend on the care you people of Manus offer,” Mr Schnaubelt said. “It is not only the job of National Airports Corporation to look after the facility, it is everybody’s job.” Present for the opening yesterday Prime Minister James Marape and wife Rachael Marape, Cilvil Aviation Minister Walter Schnaubelt, Fisheries Minister Dr Lino Tom, Commerce and Industry Minister Henry Amuli, Manus Governor Charlie Benjamin, Manus MP and Parliament Speaker Job Pomat along with government departments’ and statutory heads and other senior government officials. The officials received a rousing welcome upon arrival in Manus.
Published on April 26, 2022
PNG ATHLETES CONTINUE TOP FORM IN THE US PNG ATHLETES CONTINUE TOP FORM IN THE US
It was another windy day in Kansas last Saturday (Sunday morning PNG time) but that didn’t stop the PNG athletes from posting some more outstanding performances. Competing on their home track in the city of Concordia the athletes continued their excellent recent form with Leroy Kamau again leading the way and with Isila Apkup and Shadrick Tansi also posting great performances. Kamau followed up a wind assisted 10.36 sec clocking in the 100m (+4.7) with a sensational 20.85seconds in the 200m. The following wind (measured at 3.3metres per second) meant that this cant be recognised as a national record but it is once again as sign that Kamau is heading for something special in the near future. Emmanuel Anis finished third in this race in 21.44 seconds with Emmanuel Wanga fourth (21.47) . Shadrick Tansi also returned to form after a low key month , winning the 400m in 48.42 seconds after battling a strong headwind in the home straight. Jonathan Dende finished third in this race with 48.96. Meanwhile Isila Apkup is also running very well and caused an upset to win the 200m in 24.01 seconds (+4.7). Considering that she had already run a 4*100m relay and a 400m race this really was an outstanding result. Meanwhile over in Iowa Roland Hure maintained his consistent long jump form with another effort over 7metres, this time 7.06m. The Kansas based athletes have one more competition this weekend hosted by Butler Community College in El Dorado before their Regional Championships the following weekend. Butler have some very fast runners in the mens sprints so both Kamau and Anis will be hoping that this strong competition will push them to faster times.
Published on April 26, 2022
SP PNG HUNTERS LOSE TO BURLEIGH BEARS SP PNG HUNTERS LOSE TO BURLEIGH BEARS
The Kokoda Cup will go to the Burleigh Bears again in 2022 following a 34-0 win over the SP PNG Hunters in an emotional ANZAC Day clash during Round 5 of the Hostplus Cup. Wet weather threatened to dampen the historic annual match-up but both sides adapted to the conditions to produce an entertaining 80 minutes. Despite what the scoreboard suggests, the Hunters earned their share of opportunities but the difference lay in Burleigh’s ability to capitalise on field position and weight of possession. From the kick-off, the Hunters defended an early penalty and worked themselves into good field position, only for an attacking grubber on the last to take an unlucky bounce and end up in Burleigh hands. A few minutes and another penalty later and Burleigh did what PNG could not when fullback Taine Tuaupiki scored down the Bears’ right edge. The Hunters responded well after conceding points, working quickly up field and trapping Burleigh on their own line courtesy of a pinpoint kick from Jamie Mavoko. The Bears would have too much class though, sustaining pressure and containing whatever the Hunters threw at them in attack before taking their chances down the other end of the field. The Hunters endured an early injury to right centre Benji Kot which would end his afternoon as well as lasting ten minutes with a man down following Sherwin Tanabi’s sin-binning in the first half. Against a vastly more experienced Burleigh outfit that featured several NRL former stars, a young Hunters side fought bravely until the siren and will take plenty from the loss. Coach’s Comments Head Coach Matt Church was full of pride for the way his players are handling adversity. “I’m proud of my guys, they are putting in until the 80th minute and we are just getting beaten on rugby league education not on our ability as a footy team,” said Church. “Obviously we will own the result but it just wasn’t our day today – even the bounce of the ball just wouldn’t go our way.” “We’ve got the bye week this week so we’ll take the time to review things, refresh and get ourselves ready for Norths.” Result Burleigh Bears 34 def. SP PNG Hunters 0
Published on April 26, 2022
HONOURING THE COURAGE AND SACRIFICE OF THE ANZAC's THAT LIVES ON TODAY HONOURING THE COURAGE AND SACRIFICE OF THE ANZAC's THAT LIVES ON TODAY
ANZAC Day is one of Australia’s most important national days to honour the service and sacrifice of men and women who gave their lives for their country and the people they loved. In the past two years, the COVID-19 pandemic forced ANZAC Day to be held in small private ceremonies. Today we were able to join those in Australia, New Zealand and the world including across PNG for public commemorative dawn services. Public dawn services were held in 12 locations across Papua New Guinea. These included Bomana in Port Moresby, Isurava in Oro, Alotau in Milne Bay, Popondetta in Oro, Kimbe in West New Britain, Rabaul in East New Britain, Manus, Madang, Wewak in East Sepik, Lae in Morobe, Bulolo in Morobe and Tabubil in Western Province. Defence senior leaders and personnel were part of ANZAC Day ceremonies in Australia and around the world. Chief of Air Force, Air Marshal Mel Hupfeld, attended the ANZAC Day dawn service this morning at the Bomana War Cemetery in Port Moresby. Air Marshal Hupfeld also visited Isurava in Oro and Alotau in Milne Bay to participate in commemorative services. On Anzac Day, at memorials and ceremonies across the country, and around the world, we remember those who served our nation when they were called to do so. We honour the courage, endurance, mateship and sacrifice of the ANZAC’s that lives on today. Lest we forget.
Published on April 25, 2022
ADDITIONAL COMPANY "TAX" WILL DETER FURTHER FOREIGN DIRECT INVESTMENT ADDITIONAL COMPANY "TAX" WILL DETER FURTHER FOREIGN DIRECT INVESTMENT
The new Additional Company Tax introduced following the March 2022 sitting of Parliament, will ultimately increase uncertainty and reduce investor confidence in PNG, says BSP Group CEO Robin Fleming. “Consequently, the Tax may well result in a further reduction in Foreign Direct Investment (FDI) at a time when PNG needs increased FDI,” Mr. Fleming said. According to the BSP Pacific Economic and Market Insight Q1 2022 Report, Mr. Fleming said clearly the new tax will have a direct negative impact on BSP shareholders with the tax taken up in BSP’s first quarter results for 2022. The Report stated that BSP is also hearing concerns from the broader corporate sector about the seemingly arbitrary nature of the tax. “This has resulted in a high degree of business uncertainty that may well reduce their appetite to make decisions on investments and capital expenditure as the tax sends a message to businesses not to invest and strive to be successful,” Mr. Fleming said. Mr. Fleming stated in the report that the new tax will also reduce the attractiveness of PNG’s banking industry, making it less likely that offshore banks will enter the PNG market. This will further reduce competition at a time when ANZ recently exited PNG’s retail market, with the sale of its retail businesses to Kina Bank. “The recent amendments to the Income Tax (Amendment) Act 2022 introduced significant change, with the Additional Companies Tax, based on a company’s market concertation and the one-time tax liability on Digicel of K350 million, appear arbitrary and will adversely impact future business investment decisions, Mr. Fleming added. “When confidence is up, customers are buying, sales are higher, jobs are created, inventory investments are made, capital expenditure increases, and business owners feel assurance that the future for their business looks bright, which then boosts economic growth,” said Mr. Fleming
Published on April 25, 2022