By Stanley Ove Jr – EM TV, Port Moresby
Doubts are surfacing as to how funds will be properly placed into the government’s Sovereign Wealth Fund (SWF).
National Research Institute Director Dr Charles Yala said from the first SWF bill report, revenues will be directed to state owned entities (SOEs) before being put into the SWF.
Dr. Yala said that from consultation with the public parliamentary committee earlier this year, they (the NRI) have made submissions to change the funds distribution criteria.
On Monday, Director of the Institute of National Affairs, Paul Barker, raised similar concerns. Barker said that the government must not manipulate the SWF and instead must manage the fund with the highest level of governance and principle.
Barker also made calls for the government to cut down on borrowing, which in the long run will have a positive impact on the SWF.
Meanwhile, Dr. Yala has stated that the NRI is yet to make a report on the final SWF bill passed in parliament last week, but will be doing so in the near future.