Authoritarianism and Corruption in Papua New Guinea

Parliament makes changes to Bills

Source: Post-Courier, October, 27, 2015, 03:00 pm

  

BY JEFFREY ELAPA

PARLIAMENT yesterday passed three Bills that would regulate the security commission Bill, an important legislation that updates the outdated provisions in the Securities Act 1997.

The three Bills are the Security Commission Bill 2015, the Capital Market Bill and the Central Depository Bill 2015.

The Securities Commission Bill 2015, which repeals and replaces the Security Act of 1997 will allow for the establishment of the securities commission of Papua New Guinea as an independent and fully fledged office.

Minister for Trade Investment and Commerce Richard Maru said the proposed changes will established a board of the commission, the office of the chairman, and the establishment of a proper organizational structure of the commission.

He said currently the office is situated as a division with the Investment Promotion Authority and has been deriving its fund and resources from IPA in the last 17 years.

Mr Maru said the Bill will accommodate new developments, in term of corporate governance, clear guidance on the objective of the commission, the establishment of the board of securities commission and allow the commission to conduct investigations into improve conduct including; Providing investigative powers to the commission, powers to prosecute, and funding of the commission,.

Once the securities commission is fully established, it is able to fully regulate the capital market industry in PNG, including the Port Moresby stock Market.

Mr Maru said the Capital market Bill will change the way business are conducted on the Port Moresby Stock Exchange.

He said the Bill will establish the approval process of a stock exchange in PNG; establish the approval of derivative exchange and market in PNG, licensing of market intermediaries, proper screening process for approval of initial public offering or issue of shares to the public. Approval of sale of assets by companies and unit trust management investment schemes.

He added that it will also takeover and mergers, compensation funds and disclosure of CEOs, capital development funds and penalties.

He said the Central depository Act is intended to improve the efficiency and transparency of the market infrastructure at the Port Moresby stock exchange.