PM orders sweeping review of SOEs to tackle blackouts, water failure, and inefficiency

Excerpt from thepngbulletin.com

Prime Minister James Marape has announced a sweeping review of Papua New Guinea’s state-owned enterprise governance system, warning that layers of boards and holding structures are undermining service delivery and contributing directly to persistent blackouts, water shortages and poor infrastructure performance.

Speaking as Cabinet convened today, Prime Minister Marape said the Government is now examining the entire Kumul Consolidated Holdings (KCH) structure and how major utilities such as PNG Power, PNG Water and Air Niugini report through multiple governance layers.

“We are also looking at the entire KCH structure — how PNG Power reports to the mother board, how PNG Water reports to the mother board, how Air Niugini reports to the mother board,” he said. “I think a couple of layers of boards have become a quagmire. That in itself can be an impediment.”

The Prime Minister said the current system has created too many bureaucratic choke points, delaying decisions, weakening accountability and slowing urgent investment and maintenance.