10 Jun 2020

PRESS CONFERENCE


Hon. Minister of Finance and Economic Management, MP Johnny Koanapo

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  1. I am extremely pleased to be informed of a number of successful results achieved by the Vanuatu National Provident Fund Board led by the Chairman, Director General Letlet August and the VNPF Management, led by the General Manager Parmod Achary.

  2. The Board Meeting of the 5th June, 2020 is a memorable one as VNPF Board approved a number of historic decisions.

  3. 1.2% Net assets available to pay benefits is represented by:
    The Vanuatu National Provident Fund Board of Trustees takes this opportunity to announce to its Valuable Members and the General Public that we have declared an annual interest rate of 1.2% for the 2019 Financial Year. This is based on 2019 audited financial statements of the Fund, issued by KPMG.
    After paying 1.2% interest, VNPF’s financial position looks very healthy. It must be noted that during its operations this can be alluded as best financial position.
  4. VNPF Performance 2019
    Despite the number of failed investments still in its books, the Fund continued to improve its financial performance. The summary of performance is shown in the table below:
    31-Dec-19 Vatu ('000)
    Prelim Profit 391,944
    Audit Adjustments 7,907
    Unrealized gains/losses 478
    Adjusted Profit Vatu 400,329

    This is attributed to a net accumulated profit of VT400,329,000 of which a total of VT254,420,000 will be paid out to all Members of the Fund, leaving a balance of VT145,909,000 to be added to the General Reserve Account.
    31-Dec-19 Vatu ('000)Surplus of Net assets after deducting Member Funds ('000)
    General reserve 496,839
    Revaluation reserve 96,013
    Member funds 21,201,660
    Special death benefit reserve 53,269
    Vatu 21,847,781Vatu 391,701

  5. Net assets available to pay benefits is represented by:
    The Board noted that the Funds Reserves have improved since 2017 where we had negative reserves. At the end of 2019 the Board noted that the total funds available to pay members’ benefits is shown in the table below:
    31-Dec-19 Vatu ('000)Surplus of Net assets after deducting Member Funds ('000)
    General reserve 496,839
    Revaluation reserve 96,013
    Member funds 21,201,660
    Special death benefit reserve 53,269
    Vatu 21,847,781Vatu 646,121

  6. Port Vila Private Hospital Limited Project
    The Board made a number of historic decisions, and one other such decision is to engage in the operation of a private hospital for Members of the Fund. The Board discussed and agreed to engage with Port Vila Private Hospital Limited to purchase 49% of the shares.
    This is an investment opportunity, following a thorough analysis undertaken over the last two years to obtain access to much needed medical services, some of which are often sought after overseas.

  7. The National Bank Shareholding
    In Accordance with the recommendation of the Council of Ministers, the VNPF Board also approved on Friday 5th June, 2020 for VNPF to increase its shareholding to 60% of shares for the National Bank of Vanuatu (NBV). This acquisition means that NBV will need to float additional shares which the Fund can buy. This new investment will mean that VNPF and NBV will join hands and work together to achieve their national goals.

  8. Vanuatu National Power Generators Ltd
    I am pleased to announce that based on the Board’s submission to the Council of Ministers, that VNPF will now be establishing a power generation company in Vanuatu called “Vanuatu National Power Generators Ltd” (VNPGL). This company will responsible to manage and distribute the supply of electricity in Vanuatu. The VNPF Board will work with Management to conduct due diligence on all existing power generating facilities towards the acquisition of all facilities in the Country.

  9. Launching of VNPF’s New Membership and Contributions System
    Today is a special day as the Fund marks history with the launching of its new VNPF Membership and Contributions System. This has been a much needed change that the Fund has been looking forward to enhancing the system in line with the Fund’s new digital strategy. It will essentially make life more easier for Employers and Members to be able to access VNPF services online. I am pleased that we can all witness this occasion today, as demonstrated by the General Manager, Mr. Parmod Achary.

  10. Concluding Remark
    I take this opportunity to thank all Members, Employers and stakeholders who have contributed in one way or another towards the operations of the Fund. We look forward to your continued support as we work together in these challenging times to continue to provide for a secure financial future for our Members.

  11. Parmod Achary
    General Manager

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