13 Aug 2002

PNG Government advised to be careful with World Bank and IMF

10:59 am on 13 August 2002

The Papua New Guinea Chamber of Commerce has warned the government against offending international aid donors over its decision to review the privatisation of public enterprises.

The Chamber's President, Michael Mayberry, says the new prime minister, Sir Michael Somare, must consider the role of international financial and aid donors in supporting the privatisation initiated by the previous government.

Sir Michael says the planned sale is being delayed to review the process.

Mr Mayberry says privatisation is seen as the best way of eliminating nepotism and corruption in government departments and improving the delivery of public services.

He says Sir Michael cannot afford to offend international aid donors and should consult them.

"And they would have to take into account the reaction of overseas donors and the World bank and the IMF and what their reaction is and what they want from those organisations is probably fairly crucial to PNG's future"

Michael Mayberry of the PNG Chamber of Commerce