Duma scheming again to buy 53% share own by MVIL in Pac Re Limited and Koki Property
Minister Duma is scheming again to buy more assets own by MVIL after the much publicised Manumanu land purchase issue has been subsided. Pac Re Limited is a Re- Insurance company based in Port Moresby. Motor Vehicle Insurance Limited is a major shareholder owning 53 percent of the shares. The balance of the shares is shared between Tower Insurance and QBE Insurance.
MVIL also owns the land and the houses at Koki in Port Moresby next to the Koki Primary School. The value of the property is estimated to be around K14 million. The Minister is now working around the clock to buy MVIL shares in Pac Re Limited and the Koki properties deceptively through the normal company asset disposal plan. However, it is not easy to get the asset disposal factored into the MVIL annual plan at the management level and obtain final approval at the Board level with the current Chairman ofMVIL Dr. Ken Ngangan and the Management.
The Minister has to remove the head of the Management and the Chairman of the MVIL board to pave the way for him to acquire those assets. The removal of Dr. Ken as Chairman of MVIL is very critical for two reasons. Firstly, to obtain the Koki property, the CEO of MVIL has to include disposal of Koki property in the annual business plan and submit to MVIL Board for approval. The Minister has already positioned his Wantok from Wester Highlands Mr. Bafino Koi as an Interim CEO in the place of Joe Wemin and he is determined to replace the Chairman Dr. Ken Ngangan claiming that the Chairman wears many caps and he does not handle MVIL issues well. What a deceitful reason? Does he forget that Chairmen of SOEs do not run the company? The Chairman only attends Board meetings on a quarterly basis and sits in for two to three hours every meeting. The Chairman may wear many caps but such an appointment is the prerogative of the ruling party.
The Minister is trying his best to seek approval from the Prime Minister to replace Dr. Ken with his long-time political Officer Steven Pim also from the Western Highlands Province. Once the chairman is replaced, Minister Duma will be on his way to the glory land. He will acquire both 53% shares in Pac Re and the Property at Koki. Further explanation of how the shares in Pac Re Limited will be acquired is explained in the preceding paragraph.
The Board members of Pac Re Limited is usually comprised of two members from major shareholder MVIL and a member each from the other two shareholders. The balance of power rests with the directors representing MVIL. The constitution of Pac-Re Limited allows the major shareholder to hold the Chairman’s position of the Board. Minister Duma has already placed Mr. Eno Daera as the Chairman of the Pac Re Board. Interestingly, Mr. Daera is from Manumanu and he was the acting Chairman of MVIL when his Board resolved to pay Dividend to KCH and KCH used part of the Dividend to pay the Manumanu land. Mr. Bafino Koi by virtue of his capacity as an interim CEO is also a Board Member of Pac Re. So you see, Minister Duma has already positioned his men in Pac Re Board to move a board resolution to dispose of 53 % of MVIL share. However, the disposal of shares is not possible as yet because a Pac Re board decision on disposal of the shares has to be approved by the MVIL Board which is unlikely to happen when Dr. Ken is still the Chairman. Hence, Minister Duma comes up with all kinds of reasons to convince PM to release Dr. Ken.
In his drive to acquire the shares, the Minister has directed Pac Re Limited Board to replace the Acting Managing Director Mr. John Chris. Mr. John Chris has performed well and deservedto be confirmed to the position but he was removed. Unfortunately, John Chris is from Hagen electorate and the Minister knows very well that John Chris will not support him in his quest to acquire the shares.
We are against white-collar crime. Let us wait and see what the Prime Minister will say. Unless he is part of the plot to acquire assets own by MVIL, he will not listen to Duma and replace his men in MVIL.