Excerpt from Post Courier 31 August, 2012.
SOEs underMicroscope
THE Government will conduct a review on all seven State Owned Enterprises (SOE) performances, the State Enterprise Minister told the Post-Courier yesterday.
He said not all SOE are performing and the review would be conducted to check on their performances. “I’m now reviewing performance of all SOE’s for all the companies that are performing and not performing.
“Within three months after this exercise, I can come up with clear advice to the cabinet regarding the performance of these SOEs and the necessary steps to take after that”.
Recently, there have been allegations levelled against one, which is the appropriation of funds.
Another State enterprise performance was said to be hampered by poor management and mounting debts.
SOEs are one of the means the Government utilises to participate in the economy, particularly in delivering goods and services to the people. According to a report on developing a corporate governance regime for state owned enterprises in PNG, SOEs are established as separate legal entities and intended to be independent of the government so that they can be efficient and/or profitable, replicating the private sector, in their role in production of goods and delivery of services.
The report said that since Independence in 1975, SOEs have been increasingly facing problems in corporate governance. Some of the problems identified in PNG include situations where procedures are not complied with in appointing and terminating directors and chief executive officers (CEOs), most of which end up in court; responsible ministers, directors or CEOs involved in self-interested activities; cronyism and appointment of political associates and family members as directors and managers who do not have the required competence, i.e. attitude, experience, knowledge, or skills.
Hands up those who reckon it's gonna change 
.
Regards to ya all, Big E.
Last edited by The Big E; 1st Sep 2012 at 04:36.