BSP Financial Group Limited has refuted a media report in the Australian Financial Review asserting that BFL’s chair, is in breach of Papua New Guinea’s prudential standards.

The media report had stated that Sir Kostas Constantinou OBE, is in breach by exceeding the maximum stipulated term for a director on the board of a financial institution.

BFL affirms that the tenure of its chair is the subject of an exemption issued by the Bank of Papua New Guinea in 2019 in relation to prudential standards on governance matters.

It says the Bank of PNG has consented to Sir Kostas’ chairmanship continuing to February 2023, by which time another director will take over the chairmanship, and as a director until May 2023.

Group Chief Executive, Robin Fleming says that “the recent publication of the Australian Financial Review that BFL is in danger of losing its chairman has no basis.

Fleming says as required by the Bank of PNG, 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 says 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 PNG.