Bill provides framework for privatized Papua New Guinea Postal Service
Prime Minister Sir Mekere Morauta announced yesterday that the National Executive Council [cabinet] had endorsed the Postal Services (Amendment) Bill, which creates a regulatory framework for the profitable operations of Post PNG Ltd.
“Work conducted by the Privatization Commission has shown that Post PNG was nearing collapse and needed a period of recovery before it could be privatized,” Sir Mekere said. “This bill sets out important changes to the way Post PNG operates, so that the recovery plan developed by the Privatization Commission can be effected. Mail services are an essential part of the nation’s social and economic infrastructure and cannot be allowed to fail.”
The proposed legislation makes changes to the functions, appointments and termination of the board, including the managing director, and provides for a comprehensive financial reporting regime.
Weaknesses in financial reporting, coupled with political interference, had been the primary causes of the downfall of Post PNG, the prime minister said.
The bill requires an annual report and audited accounts to be provided to the minister each year, with penalties if the board fails to deliver. It also includes sections on community service obligations relating to the quality of Post PNG’s services to the public and allows it to provide a range of other services.
