Last Friday, the State presented a cheque of K50 million as the first tranche for the agreed payment of the outstanding K130 million in rental arrears.
The parties agreed to settle the total amount owed to the Fund in three instalments to ease the strain that the payment might have on the State’s cash flows management.
The parties hope to settle the balance of K80 million before the end of the year. The second tranche payment of K30 million is due this week and the final tranche of K50 million is to be received in the final week of December.
After the balance is met, the parties have agreed to a further ongoing payment of K5 million a month for the ongoing rental payments.
Nambawan Super Limited (NSL) Chairman, Mr. Reginald Monagi said: “We appreciate that Prime Minister Hon. James Marape, Finance Minister Hon. Sir John Pundari, and the State have shown their commitment to meet this obligation with the first payment of K50 million”.
“We are grateful to the Departments of Finance and Treasury who after extensive discussions and negotiations have helped us to achieve a payment schedule that is mutually satisfying”.
“Our members will also be grateful to hear that payments are coming through before the end of the year as it will add to our calculations for the interest component of our payments to members for 2021”.
“We also expect that when the remaining payments are received it will stabilise the property values and importantly provide cash to reinvest and grow for our members”.
“The State has been an important investment partner for NSL on several projects in the past and we intend to continue working closely with the various State departments and agencies on future projects for the benefit of our members”.
As a significant investment partner, NSL supports the State through the purchase of weekly Treasury Bills and periodic purchases of the longer-dated Inscribed Stocks. The parties have agreed to settle the rental arrears utilising this relationship with terms that are attractive to the State.
Mr. Monagi continued, “this arrangement required close collaboration between the Department of Treasury, Central Bank, Department of Finance and the Fund. As such, we would like to thank all parties concerned for their cooperation in addressing this long outstanding issue”.
“The Fund is aware of the State’s ambitions to own and operate some of the properties in which it is a tenant, and will progress discussions between the parties on this matter from next year and onwards”.
NSL owned properties occupied by State tenants include Revenue Haus (Internal Revenue Commission); Vulupindi Haus (Department of Finance and Department of National Planning); Eda Tano Haus (Department of Lands and Physical Planning); AOPI Centre (Department of Health and Department of Higher Education); and NSL Haus in Lae (Ombudsman Commission, Independent Consumer and Competition Commission, and Auditor General’s Office).
NSL is a leading PNG super fund for more than 208,000 members consisting of Teachers, Doctors, Nurses, Police Officers, and many other hardworking Papua New Guineans who deserve to retire and live with dignity, after a lifetime of work contributing to building our Country.