STATE OF AIR NIUGINI A SERIOUS CONCERN

by BRYAN KRAMER MP

Following the recent Air Nugini Boeing 737 crash in Federation States of Micronesia on Friday, I've started making inquiries into the affairs of the airline.
Firstly, while many expressed their disappointment about the footage of country's national flag carrier sinking to the oceans floor it is important to note we never actually owned the plane.
The plane is one of the five Boeing aircraft owned by Iceland Air and leased by Air Niugini to service its international routes.
Right now the immediate issue for Air Niugini is what are the financial implications following the crash.
As the Shadow Minister for State Owned Enterprises I'm not just concerned about its financial situation but more importantly the welfare of its 1,200+ employees.
It is no secret Air Niugini is facing a serious cash flow crisis which probably explains why Prime Minister Peter O'Neill made the decision to appoint Chairman of Bank of South Pacific Kostas Constantinou as its new Chairman.
When O'Neill was recently questioned by Governor of East Sepik Allan Bird of a potential conflict of interest O'Neill responded that our airline is in a bad way and if we did not bring in experienced people who are able to make the tough choices, we may not have an airline within the next two year.
A more important point was that Peter O'Neill suggested the company may go bankrupt in two years if no action was taken.
The irony about O'Neill's statement is he appointed the previous people making him responsible.
So how did a company that was profitable before O'Neill took office now potentially facing bankruptcy?
In 2012, Air Niguni reported a profit before tax of K69.5 million.
2013 - K40.5 million.
2014 - K1.0 million
2015 - K14.0 million
2016 - (K1.2 million) - loss
I suspect 2017 earnings when released will report a record loss.
What is quite disturbing was that in 2016 Air Nuigini declared K20 million divided (payment) to the Government. Which made absolutely no sense when the company was struggling to stay afloat -which explains why it only paid K5m of K20m.
So why declare a dividend of K20 million when the company is making losses?
Well the O'Neill Government having run down the economy, expending billions on inflated Chinese contracts and responsible for systematic corruption was broke.
So it commenced an exercise to mismanage the State Owned Enterprises in an effort find cash.
After making preliminary inquiries into the company's affairs I have serious concerns about it's future and the welfare of its employees.
O'Neill has a record of running State owned organisations into the ground, Pacific Balance Fund and PNGBC to name a few, not to forget the infamous NPF Saga.
I seriously suggest Air Niugini 's 1,200+ employees start to organise yourselves and take a greater interest in holding the management and Government to account before you find yourself without a job.
In the coming weeks I will also start to write about the many other State Owned Enterprises who appear to be facing similar problems as Air Niugini.
Telikom PNG
Bemobile
Data Co
Water PNG
Eda Ranu
Post PNG
MVIL
PNG Power
PNG Ports

Comments

  1. It's only a matter of time before we see those who are genuine and true PNGuineans speak up and are counted against a regime that has taken this country for a ride.

    ReplyDelete
  2. BK, you are a true PNGean and always speak out the facts and truths leading to the down fall of this great nation.Air Niugini plane incident is a symptom of failing state entities. It's a sad moment of history for this nation.

    ReplyDelete

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