Wealth Fund to have an independent board...It has been suggested ex PMs may automatically qualify ////// ------------------------------------------------------------- Wealth Fund a chance to ‘learn from past mistakes’ By Freddy Mou, PNG Loop. Dec 1, 2014. The establishment of a PNG sovereign wealth fund to control spending of revenue generated by the PNG LNG project was a “very big opportunity” to learn from past mistakes, says Bank of Papua New Guinea Governor Loi Bakani. Addressing the annual Papua New Guinea Independence Day oration at Parliament House in Canberra, Bakani said the Sovereign Wealth Fund is the tool that should balance between the real economy, fiscal and monetary developments, in the future. “The Organic Law was approved by Parliament in 2012, and the amendments have been prepared for Parliament first reading in the near future.” He said the Sovereign Wealth Fund will have a Stabilisation Fund and a Future Fund and will be managed by an independent board. “The rules in respect to the depositing of mineral and hydrocarbon revenues, both tax and dividends, into the two funds is set by the Organic Law and the drawdowns from the two funds are also embodied in the constitutional legislation,” says Bakani “The country had been given a ‘very big third opportunity’. To change the fortunes of the great majority of our population by the commencement of production of the LNG project the Sovereign Wealth Fund is a very good mechanism to control that. “Whatever can’t be efficiently and productively used, will be saved for the future generations. Such a mechanism was missing in the two missed opportunities we have had.”
Posted on: Tue, 02 Dec 2014 07:51:35 +0000
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