Kindly correct the error made by Hon. Minister of Finance, Raso Johnny Koanapo stating that the Net Reserve of the VNPF is 22.7 billion vatu.
The amount of 22.7 billion vatu is the total book value of the Vanuatu National Provident Fund also known as Total Members’ Funds. That means all the buildings and lands, all shares in businesses, all loans to other entities, and all bank deposits.
Net Reserve is the monies that would remain if, God forbid, the fund was to be liquidated and all the liabilities paid off from all sold assets. This would be around 300 million vatu.
In the past the net reserves were negative but under the current General Manager the net reserves are back in the positive. People can have confidence that the VNPF is healthy but it is not awash with cash as erroneously stated.
Thank you for publishing my letter to the editor for the public interest.
MP for Ambrym Constituency