NDB systems need tightening: Govt

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)

THE Small to Medium Enterprise sector has been drummed home as a key policy agenda of government, however, it continues to be underfunded through yearly allocations to the government’s implementing agency, the National Development Bank- but according to Treasury, the bank needs to tighten its systems in order to get the people’s money into its vaults.

Treasury Secretary Dairi Vele, when asked by the Sunday Chronicle, on the main rationale behind the continues drop in funding to a sector that could boost revenue to the government- Mr Vele emphasized the need for restructure at NDB to strengthen its current processes and systems.

“Giving to money to people never ever works. There is no work in which government gives money and everyone survives. What we’ve got to do is create the right environment for people to get better in a sense,” Mr Vele said.

“Again you are giving people K1000- it’s not enough to build a meaningful life, but I think what we can do is trying to get proper credit and value for money.”

“Remember government’s money is also people’s money, so it’s not my money that I am giving to NDB- it’s your money. It is people in the rural areas, every time they go to the stores and pay GST, it’s that money.”

He referred to the need to see the balance between handing money over to a few individuals as opposed to building vital infrastructure in rural places in the country.

“We get people’s money to the NDB and NDB decides to give it to one or two, three or four individuals, opposed to us trying to build roads, schools, bridges, hospitals and the basic necessities.”

“I think that the SME policy is a foot in the right direction, and I think for us we need to restructure the NDB so that it is a bit more commercial. You see if people don’t pay the NDB back, nothing happens.”

“From BSP if you don’t pay it back BSP will come and take the things from you. It is that fear that drives credit. Right now that is not there with NDB.”

“NDB has proposed its restructuring to move into that commercial space and I think we going to support that, and when it does go into that space, hopefully the people’s money that they do get is lent to right project, appropriate projects where people try to make sure that those projects have returns and if doesn’t work NDB must go and get that money back because right now I don’t think that is happening.”