BSP Financial Group Limited responds to allegations, Air Niugini temporarily suspends flights to Cairns and Memorandum of Understanding signed to boost green finance initiatives in Papua New Guinea.

Resources

In an update about the Pasca A offshore oil and gas project, Twinza Oil Country Manager Roppe Uyassi told The National that ‘unfortunately, for all stakeholders, we have not made much progress.’ Uyassi said that the company is still waiting for the Minister of Petroleum, Kerenga Kua, to say whether the terms agreed with the State negotiation team have been accepted.

Prime Minister Marape has said that he ‘wants the project agreement to be completed this month.’ (The National)

Banking & finance

Despite the many challenges the COVID-19 pandemic imposed last year, Nasfund Contributors Savings and Loans (NCSL) reported a 14 per cent increase in revenue to K32.2 million, and K13.2 million in profit. Chairman Ian Tarutia also announced a 10 per cent increase in net loans to K121.9 million and net assets increase by 14 per cent to K29.2 million for 2020.

During NCSL annual general meeting, Tarutia also talked about the steps NCSL has taken to become an e-bank, including engaging with Deloitte last year and having discussion with the Bank of PNG.  ‘As a board, we are not blind to the issues and hurdles we must overcome to progress your society, to a provider of e-banking services.’ (The National)

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The Bank of PNG has signed a Memorandum of Understanding with the Global Green Institute and the Centre for Excellence and Financial Inclusion (CEFI) for inclusive green finance initiatives to help the ‘vulnerable communities impacted by climate change’. The funding partner for this initiative is the Government of New Zealand. The Assistant Governor of the Bank of PNG, Ellison Pidik, reportedly said he hope to see this initiative launched by the end of the year.

‘We expect support and contribution from all financial institutions,’ said Pidik. ‘Commercial banks, finance companies, micro banks, savings and loan societies, to actively participate in the policy formulation process and to take ownership of this policy. (LOOP PNG)

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Following reports in the Australian Financial Review that BSP Financial Group Limited (BFL) ‘faces possible fines or regulatory action in PNG for breaches of the country’s anti-money laundering laws’, BSP has issued an explanatory statement responding to the suggestion.

BSP’s statement confirms that a review by the Financial Analysis and Supervision Unit (FASU) of the Bank of PNG took place in 2019, after which the FASU ‘formed a preliminary view about non-compliance by BFL with its AML [anti-money laundering] due diligence obligations in respect of eight customers’.

The financial group says its subsequently substantially refuted the allegations and that ’to date FASU has not refuted BFL responses’. It described its current anti-money laundering policies and procedures as ‘adequate’.

‘BFL considers that the likely outcomes of the review, whether as to any remediation actions or imposition of penalties, will not be material to BFL’s share price,’ said the statement.

National

The National Executive Council is endorsing the National Intellectual Property Strategy, which aims to promote creative and innovative activities, increase protection of intellectual property, stimulate research, and protect, preserve and enforce cultural heritage, among other things. The National Intellectual Property Strategy will be implemented by the Intellectual Property Office later in the year. (Prime Minister Office)

Fisheries

The Pacific Marine Industrial Zone (PMIZ) project in Madang has been delayed for over 15 years, but the National Fisheries Authority (NFA), which is reportedly leading the project, is ready to recommence its implementation.

The NFA will work with the Minister for Fisheries and Marine Resources and Treasury on financing options. ‘This is a national project of paramount importance that will create jobs and grow our economy,’ said Lino Tom, Minister for Fisheries. ‘The PMIZ will contribute to developing a vibrant, broad-based, and value-adding fisheries sector that will be globally competitive and domestically inclusive, providing revenue for the Government, creating wealth and securing food for the people,’ he said. (The National)

Agribusiness

The vanilla producer and exporter Kamapin has partnered with the PNG Expo 2020 to promote its products in the Dubai World Expo, which will start in October this year. The Managing Director of Kamapin, Nancy Irwin, said that the whereas PNG has potential to grow organic vanilla beans, ‘the challenge is for the relevant government authorities to work with farmers to improve quality.’ (Post-Courier)

Travel

Air Niugini has cancelled flights to Cairns from 19 to 30 June because the Australian government extended the suspension of international arrivals into Cairns until the end of June. Air Niugini has said that passengers with tickets must contact the airline or travel agency for rebooking. The company continues to operate services to Brisbane and Sydney. (Air Niugini)

Photograph of the week

Credit: Prime Minister Office & NEC via Facebook

The K66 million Bulolo Highway rehabilitation project in Morobe Province was launched last week. The project, supported by the Australian Government under the Transport Sector Support Program, should help rehabilitated the existing road network. In the photograph, Prime Minister Marape and senior members of the cabinet during the launch of the project in Morobe Province last week. (Department of Prime Minister & NEC)