Former PNG PM issues warning over super

7:22 am on 22 March 2018

Former Papua New Guinea prime minister, Sir Mekere Morauta, has welcomed a government decision that will see retired public servants get at least some of their outstanding superannuation payments.

Sir Mekere Morauta

Sir Mekere Morauta Photo: Post Courier

His comment comes after the Treasuer, Charles Abel, that the government might issue a bond for $US69 million dollars to settle the debt owed to superannuation provider, Nambawan Super.

This money would enable Nambawan Super to pay the former public servants money they were due on retirement.

Sir Mekere says it is a disgrace the government had been giving higher priority to expenditure such as APEC rather than paying public servants their legal entitlements.

But Sir Mekere warned Nambawan Super not to allow the government to settle the remainder of what is a $US603 million dollar debt by accepting equity in state-owned enterprises.

He says the SOEs are suffering from gross political interference, coupled with lack of working and investment capital, and most of the shares have virtually no value.