Public servants raise concern over establishment of PSNA

Public servants’ unions and associations have questioned the recent establishment of the new Public Service Niucare Association [PSNA] by Department of Personnel Management [DPM].

The public servants in a joint effort led by Public Employees Association [PEA] general secretary Ugwalubu Mowana said there was no proper consultation done by the government before forming PSNA.

Mr Mowana said the public servants and their unions were not consulted by DPM during the process of the formation of PSNA, raising alarms on the legality of the association.

“For an insurance company to operate, it must first register with the Investment Promotion Authority [IPA] and subsequently engage with the appropriate regulator to fulfill all licensing requirements,” he said.

“In Papua New Guinea, there are two regulators for the insurance industry: Bank of Papua New Guinea and Office of Insurance Commissioner.

“Our research tells us that PSNA only registered associations with IPA so it’s a business association entity.

“Operators in the life and medical insurance business must be adequately capitalized to ensure timely claim payments.

“The public service workshop is aging, exposing PSNA to high volumes of medical and life claims. Without adequate capitalization and proper risk management process, PSNA is at high risk of insolvency.”

Public servants though have welcomed the government’s initiative, probed the process in which PSNA was established.

National Doctors Association [NDA] president Dr James Naipao said it was important to include the public service workforce during the consultation process, which DPM did not ponder.

“From the NDA's point of view, I think we feel that the government has done the greatest thing to bring this about but the process at which they have gone about needs the stakeholders,” he said.

“The stakeholders of this industry is the 70,000 or so of the public service that are working from level one to level six.”

Public servants’ spokesman Mowana urged the government to decommission the public service insurance association as the board of trustee did not meet the ‘fit and proper’ requirements set by BPNG.

He also urged the government to clarify its intentions on the public service insurance as the government itself is not qualified to run an insurance business.

The unions called on to declare ownership of the new care insurance limited and its management structure and explain why it involved a consultant who was deported from the country.

“Explain why there was no consultation with the public service unions who represent voices of the workers in the public service as required under MOA of 2012 protocols regulating the industrial relations behavior,” Mr Mowana said.

“What will happen to union members such as police, nurses, health support workers,” he questioned the government.