NPF in share sell-off

PAPUA New Guinea’s National Provident Fund (NPF) will sell its interests in two resource projects and use the proceeds to clear its debt, says managing director Henry Fabila.

The fund has publicly announced its intention to sell its shares in Cue Energy Resources, but not its interest in High lands Pacific. According to the fund’s status report, which was sent out to mem bers last month, the sale of its shares in the two companies are part of a debt reduction strategy.

NPF’s total debt as at August 6, 1999, was K 107,879,310, while its total gross assets were K 269,788,000. Fabila said

PNG committee to

investigate ‘fast money

schemes’

PAPUA New Guinea prime minister.

Sir Mekere Morauta, has announced the formation of a special committee to examine the operations of so-called “fast money schemes” in the country.

He made the decision after meeting with heads of departments and statutory authorities, and representatives of the fast-money schemes. A statement from the Prime Minister said details of the committee’s membership and terms of reference are being worked out.

“The aim is to bring the fast-money schemes under the umbrella of the law of the country relating to financial institu tions, and to provide investors in the schemes with the same protection that people who use banks enjoy,” Sir Mekere said. “This means if the schemes want to continue operating, they will have to do so on the basis of all other financial insti tutions such as banks, savings and loan societies and credit unions.”

The decision follows an agreement between the Prime Minister and the fast money scheme operators. ■

they were aiming to reduce the debt to below K2O million by the end of the year.

NPF is the largest shareholder in Highlands Pacific, with more than 70,000 shares or a 35.18 per cent stake in the miner. Highlands Pacific is planning to develop the million dollar Ramu nick el/cobalt project in Madang Province.

The fund recently sold its sharehold ing in Collins and Leahy after the Swire group of companies launched a takeover bid for the company. The fund had expected a share price of A 53.32 a share

for the Collins and Leahy stock but had to settle for A 51.50 a share. Most of the companies in which the fund has equities in have dwindled because of their expo sure to Papua New Guinea’s resource sector, Fabila said.

He also reiterated that the fund will not undertake any new investments until it has repaid its outstanding debts, the board prepares and ratifies a “rigorous investment procedure” and its new asset allocation guidelines are presented to the Government for consideration. ■