Photo credit: Securities Commission of Papua New Guinea
Prime Minister James Marape has expressed his delight at the news that a four-year leadership dispute at the Securities Commission of Papua New Guinea has been settled.
The commission is in charge of the organic capital market's growth and development. According to the PNG National Stock Exchange (PNGX) Markets Ltd, this has been a significant impediment to the growth of the capital market in the nation and the capacity of enterprises, large and small, to access capital.
The PNG Securities Commission stated in a statement that the industry has been plagued by uncertainty for the previous four years due to a power struggle between two former commission chairman over the governing body's leadership.
As a result, it is critical that the leadership of this regulatory body is not misunderstood by the stakeholders.
Over the last four years, that leadership has been lacking, and attempts to resolve it have been hampered by court orders.
Marape stated that his government could now proceed with the merger of Oil Search and Santos, as well as efforts to liberalize and restructure Papua New Guinea's National Stock Exchange.
At Marape's request, Christopher Taylor Hnanguie, a former chairman who had initiated legal action, agreed to drop the case.
Hnanguie, a former Asian Development Bank economist with 25 years of experience in the industry, was named executive chairman in mid-2017.
He was removed from office, however, less than a year into his term, prompting him to seek legal redress.
“My noble intention to create the commission and develop our capital market and the securities industry was disrupted by an unlawful decision to remove me from office,” Hnangui said.
“While my actions at the time I made the decision to fight was a matter of principle, in hindsight, I now recognise that our acts or omissions have, over the years, hurt the securities industry.”
At the request of the prime minister, Hnanguie claimed he had subsequently reconsidered his position.
On the other hand, PNGX chairman David Lawrence said: “PNGX looks forward to developing a constructive and respectful working relationship with the PNG Securities Commission under Salmon-Minak’s leadership.
“We hope to work quickly and constructively with Salmon-Minak to assist the commission to create and develop a promising future for the capital markets and securities industry. We will also move quickly to modernise the listing rules for the current market and to establish new markets and products.”
Meanwhile, the commission will continue under the leadership of current acting executive chairman Robert Minak.
Reference: The National (9 November 2021). “Resolution brings certainty to market: PNGX”.
