Treasurer Patrick Pruaitch, when delivering his 2017 Budget speech in Parliament yesterday, said an independent firm has been engaged to carry out a comprehensive executive search in the domestic and international labour market. This is to identify and recommend suitable candidates for appointment as chairman and members of the PNGSWF board.
He said the SWF board’s primary focus in the short term will be to develop a framework and arrangements for Fund Investment. It will also include the establishment of the administrative secretariat to support its operational and administrative functions.
The administrative secretariat is expected to be established and operational in 2017 in view of its role and responsibilities.
The implementation of PNG’s Sovereign Wealth Fund has undergone a number of processes, including the passing of the legislation in 2015.
The objective of the Sovereign Wealth Fund of Papua New Guinea (PNGSWF) is to prudently, responsibly and efficiently manage the benefits from the resources sector, added Pruaitch.
Unlike a ‘rainy day’, the PNG SWF is a ‘build Papua New Guinea Fund’ which seeks to invest in education, health, infrastructure, through a stabilisation fund which will be a part of the established budget management structure, and an ‘inter-generational’ component through a savings fund.
The Organic Law on the Sovereign Wealth Fund (OLSWF) of PNG was passed by the Parliament in July 2015 and certified by the Speaker of Parliament in January 2016.