Posted By Staff Reporter
Papua New Guinea’s State Owned Enterprises (SOEs) are said to be operated under confused legislative and governance framework with weak transparency and accountability.
ADB’s report; Finding Balance 2014: Benchmarking the Performance of State-Owned Enterprises in Island Countries, including PNG launched at a breakfast yesterday hosted by the Port Moresby Chamber of Commerce revealed among others highlighted; "operates under a confused legislative and governance framework with weak transparency and accountability."
In highlighting PNG’s SOE portfolio in the report, PNG was out performed by the SOE portfolios in Fiji, Tonga, and the Solomon Islands in 2012, PNG has seen its SOEs financial performances decline since 2017.
Despite the negative findings, the report states PNG SOEs had the highest average return on equity (ROE) in the Pacific between 2002 and 2012, at 5.8% while recording a total asset value of K5.8 billion in its 2012 financial year.
The report also indicated that PNG’s SOE portfolio should see improved performance following positive developments such as a community service obligation policy; enactment of the Public-Private Partnership Act in 2014 in light of the plans for increased competition in telecommunication, aviation, and energy.
Even if these changes are being proposed, PNG SOEs still urgently need more reforms to match the turnarounds seen in other Pacific countries.
This according to Finding Balance 2014: Benchmarking the Performance of State-Owned Enterprises in Island Countries. PNG Facts/Post Courier
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