Nambawan Super Limited (NSL) issued a final letter of notice to the State, seeking payment of its outstanding rental arrears.
This after the State’s failure to consistently make scheduled payments for its current rental invoices and arrears amounting to K113 million as at Tuesday, 1 August 2023.
These are rental areas for several years by the State Departments occupying NSL’s Revenue Haus, Vulupindi Haus, Eda Tano Haus, Treasury Haus, AOPI Centre and NSL Haus in Lae.
Last year, NSL and the State reached an agreement whereby the State would settle the remaining balance of its rental arrears in K10 million monthly instalments.
The instalments include K5 million for clearing the balance previously accrued and K5 million to pay its current rental invoices.
In 2023, the State has only paid K20 million for the January and February instalments and has fallen behind on its payments by six months as it is yet to pay the remaining K60 million for March, April, May, June, July and August.
NSL gave a notice to the State to advise that if the agreement is not upheld with the payment of the K60 million accrued in 2023 before Friday, 4 August 2023 with further consistent monthly payments then NSL will look to conduct another lockout of several State tenancies occupying NSL buildings, in the interest of protecting Nambawan Super Members’ from further undue losses.
The States non-payment of its rental fees impacts the profit given to Members each year, in a few ways, including:
1. Reduction to Interest to Members
2. Forgoing Opportunities to Reinvest & Reducing Member’s Income.
3. Loss of value on NSL’s properties.
NSL is reluctantly considering this option especially as the workers impacted by the lockout are Members of the Fund, however, this action is a result of many broken commitments for settlement of the arrears over several years.
NSL endeavours to avoid locking out the Department of Health based on humanitarian grounds, recognising the critical nature of the services that it provides.