Bank group responds to report
27 July, 2021, 6:15 pm
BSP Financial Group Ltd (BFL) has affirmed that the tenure of its chairman, Sir Kostas Constantinou OBE, was the subject of an exemption issued by the Bank of Papua New Guinea in 2019 in relation to prudential standards on governance matters.
In a statement issued yesterday, BFL stated the Bank of Papua New Guinea had consented to Sir Kostas’ chairmanship continuing to February 2023, by which time another director would take over the chairmanship, and as a director until May 2023.
BFL provided the following response to a media report which appeared in the Australian Financial Review on July 22, asserting that BFL chairman Sir Kostas Constantinou OBE was in breach of Papua New Guinea’s prudential standards by exceeding the maximum stipulated term for a director on the board of a financial institution.
Group chief executive officer Robin Fleming said the recent publication of the Australian Financial Review that BFL was in danger of losing its chairman had no basis.
“As required by the Bank of Papua New Guinea, succession planning for the chairman’s role has commenced and will continue through 2022 and be resolved ahead of BFL’s 2023 annual general meeting,” he said.
“The recent imposition of sanctions in relation to anti-money laundering allegations will not adversely affect that planning as the chairman’s role was not called into question by the Bank of Papua New Guinea.”
BFL stated in its Information Memorandum, this would be Sir Kostas’ final term of office, having been most recently re-elected to the BFL Board of Directors in May 2020 (and first elected a director in 2009).