Papua New Guinea's (PNG) deputy prime minister and finance minister Chris Haiveta suddenly sacked all but two members of the seven strong Air Niugini's board of directors during a meeting in February, leaving final negotiations stalled for the acquisition of two new Bombardier de Havilland Dash 8-200s, and other corporate business suspended.
The meeting was discussing the 1996 accounts when Haiveta made the move, which left only Sir Frederick Reiher and Minion Peen in place. Haiveta claims, among other things, that the sacked directors had failed to meet corporatisation-process deadlines.
Recently retired board member and former Air Niugini chief executive Joe Tuavasa says that the sackings could not have come at a worse time. The civil-aviation minister, who has overriding legislative responsibility, was not consulted.
There are some pressing and immediate issues which need the attention of a complete board, not least the completion of a stalled corporatisation process, a financing package for the airline, sensitive negotiations on the purchase of new aircraft and a strategic focus on the future. Tuavasa adds that the company had gone through a turbulent period, during which its 1995 loss of Kina 6 million ($4.3 million) had been turned around to a projected Kina 3.5 million profit.
New appointees include Sam Geno, the director of civil aviation, and Andrew Madiu who is human- resources director at a government pension fund which is now the airline's biggest investor.
Source: Flight International
