O'NIELL ORDERS RESTRUCTURE TO LEASE MANAGEMENT

PNG Prime Minister Peter O'neill

Prime Minister Peter O' Neil has ordered the Public Service Minister to restructure of the management of office leases.

This follows a status report on government office leases, clarifying the issues over the management and cost of these leases.

Currently, the government spends 200-million-Kina alone on rents annually.

Mr. O' Neil has directed that the committee be restructured to include Chief Secretary as Chairman, Secretaries of Personnel Management, Finance and State Solicitor.

He urged Sir Puka Temu to immediately implement the recommendations before 2014 commences.

The Prime Minister, also recommended that an independent investigation be conducted immediately into the operation and management of the office leases, all office leases be obtained under the financial management Act, as it involves procurement of services by public tender where public force is involved, and the management of office leases be outsource to the private sector in future.

Mr. O' Neil says 200-million-Kina a year is a lot of money and money which can be saved to fund essential services to the people.

He says it's important that the government continues to build more office buildings to cut these cost down, as well as manage these leases, by ensuring they are consistent with the real estate market and lease agreements 

The current lease arrangements are totally in favour of the landlords, which if challenged in the courts, will surely be nullified.

In addition there's inconsistency in the leases rates applied in the properties.