Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Papua New Guinea

Papua New Guinea 456 Papua New Guinea For the preceding two years, the Morauta government and the Privatization Commission have had to contend with the results of years of rampant corruption and mismanagement by political appointees, which by 2001 had virtually destroyed the independence and decimated the capital of most of the state-owned enterprises. Because the release of further World Bank loans was premised on the privatization of the state bank, the Papua New Guinea Banking Corporation (p n g b c), it had to write off bad debts amounting to k45 million in order to attract potential buyers and struggled with nonperforming loans in its portfolio. The previous year had seen the state bank incurring a declared operating loss of k31 million when it spent k114 for every k100 earned. Other state-owned enterprises were all technically insolvent. The Electricity Commission was over k400 million in debt, while Air Niugini had incurred operating losses of k42 million in 1998 and k36 million in 1999 (National, 26 July 2001). Post PNG, which is responsible for mail delivery, owed creditors some k25 million and was subsequently placed under liquidation. In response to trade union opposition to the privatization of PNG Banking Corporation and http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Contemporary Pacific University of Hawai'I Press

Loading next page...
 
/lp/university-of-hawai-i-press/papua-new-guinea-sH7qKh5oSp
Publisher
University of Hawai'I Press
Copyright
Copyright © 2002 University of Hawai'i Press.
ISSN
1527-9464
Publisher site
See Article on Publisher Site

Abstract

456 Papua New Guinea For the preceding two years, the Morauta government and the Privatization Commission have had to contend with the results of years of rampant corruption and mismanagement by political appointees, which by 2001 had virtually destroyed the independence and decimated the capital of most of the state-owned enterprises. Because the release of further World Bank loans was premised on the privatization of the state bank, the Papua New Guinea Banking Corporation (p n g b c), it had to write off bad debts amounting to k45 million in order to attract potential buyers and struggled with nonperforming loans in its portfolio. The previous year had seen the state bank incurring a declared operating loss of k31 million when it spent k114 for every k100 earned. Other state-owned enterprises were all technically insolvent. The Electricity Commission was over k400 million in debt, while Air Niugini had incurred operating losses of k42 million in 1998 and k36 million in 1999 (National, 26 July 2001). Post PNG, which is responsible for mail delivery, owed creditors some k25 million and was subsequently placed under liquidation. In response to trade union opposition to the privatization of PNG Banking Corporation and

Journal

The Contemporary PacificUniversity of Hawai'I Press

Published: Jan 7, 2002

There are no references for this article.