Air Niugini pays dividend to Government

The Minister for Public Enterprises, Sir Mekere Morauta, today accepted a dividend payment cheque from Air
Niugini for K6.45 million.

The dividend is the first the airline has paid since it was corporatised in 1996.
Sir Mekere welcomed the payment, made at the unveiling of the airline’s new Boeing 737 airliner in Port Moresby
today.

“The principal that they must pay dividends is very important,” he said.

“It helps instil commercial discipline in Public Enterprises and it recognises that the people of Papua New
Guinea, through the national Government, are owners of these organisations and are entitled to a return on their
investment.”

The cheque is to reimburse Air Niugini’s share of a K50-million dividend paid by IPBC to the Consolidated
Revenue Fund earlier this year.

Sir Mekere said this is the first year since 2007 that Public Enterprises have paid dividends.

“The fact that they are now able to do so reflects the reforms introduced after the O’Neill-Namah Government
was elected on the floor of Parliament last year,” he said.

“My reforms, which focus on independence from political influence for IPBC and its Public Enterprises,
accountability and transparency, efficient business practices and improved service delivery, are clearly working.
“There have been significant operational and governance improvements across all enterprises, and I look
forward to a lift in service delivery standards in the coming years.

“I implore the incoming government to continue with these reforms and most importantly I hope they see the
wisdom and practicality of earmarking some of the Sovereign Wealth Fund cash for infrastructure development
and Public Enterprise rehabilitation.”

Three other Public Enterprises have paid dividends this year.

They are Eda Ranu, with K3 million, PNG Ports with K15 million, and Water PNG with K500,000.

ENDS

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