PNG Power changes questioned in Parliament

Opposition Leader James Nomane today in parliament asked Prime Minister James Marape to explain the reason behind changes to the State-Owned Enterprise [SOE] structure following Tuesday's cabinet reshuffle.

During question time, Mr Nomane congratulated the newly appointed ministers but said the Opposition wanted to understand what the government hoped to achieve through the changes.

He questioned the decision to place PNG Power and some commodity boards under different ministers, saying the new arrangement could create conflicts of interest and weaken oversight. Mr Nomane also asked the Prime Minister to explain how the changes would improve government performance and service delivery.

In response, Prime Minister Marape said the reshuffle followed four years of reviewing the government's performance and was aimed at improving efficiency before the 2027 National Election.

The Prime Minister said too many responsibilities were previously placed under the Minister for State-Owned Enterprises through Kumul Consolidated Holdings [KCH], with more than 15 portfolios under one minister.

He said the structure had too many layers, slowing decisions and affecting the delivery of essential services.

Using PNG Power as an example, Mr Marape said the company faced serious challenges and needed urgent attention.

He said KCH would continue to own and manage the state's business interests, while selected ministers would now provide policy oversight for specific state-owned enterprises.

According to the Prime Minister, the changes are intended to remove administrative bottlenecks, improve accountability and speed up decision-making, while keeping KCH's role as the state's investment holding company.

Mr Marape said the reforms are part of the government's effort to improve service delivery before the 2027 elections.