Following the PNG Business Council statement regarding the business impact of unpaid bills by the State, today Nambawan Super Limited (NSL) revealed they are owed more than K156million in Government rent, with the bill expected to top K170million by the end of the financial year.
Chief Executive Officer, Paul Sayer, said the arrears represents more than 30 months’ worth of unpaid rent for the Fund and if left unpaid member returns will be impacted
Mr Sayer said the Fund enjoys high occupancy rates for its properties in Port Moresby and Lae, however late rental payments from State agencies is a drawn-out issue that requires urgent attention.
“Nambawan Super property portfolio includes a number of buildings, which house key government organisations,” Mr Sayer said.
“State tenants of our buildings include the Department of Treasury (Treasury Haus), Department of Finance (Vulupindi Haus), Department of Lands (Eda Tano Haus), Department of Health (Aopi Centre), Department of Higher Education (Aopi Centre), Ombudsman Commission and Auditor General’s Office in Lae and Internal Revenue Commission.
“Given the number of State tenants who have the equivalent of two and half years rent owing, the Fund is being put in a difficult position.
“Unpaid rentals means less is available to reinvest and grow on behalf of our members and ultimately reduces property values – it’s a double loss for the members,” Sayer said.
“As we near the end of the financial year, our Investment and Finance team have advised accounting provisions relating to this significant money owed to the Fund are expected to result in our members getting half a percent less in interest on their superannuation savings at the end of this year.
“The loss is higher if you consider the interest that would have been earned had the money been received when due and invested.”
NSL will continue to make every effort to engage with the State to discuss a mutually agreeable settlement of the amounts, noting there has been little success in this approach to date.
In 2017 Nambawan Super locked out a number of State tenants from their buildings after rent had been unpaid for a period of more than twelve months.
Nambawan Super has more than 208,000 members from both the Public and Private Sectors whose combined net assets are worth K8.5 billion and growing.
