9 Jan 2012

Somare's attorney general forecasts economic derailment in PNG

1:41 pm on 9 January 2012

Papua New Guinea's attorney general under Sir Michael Somare says illegal spending by Peter O'Neill's government is threatening the economy.

Sir Arnold Amet, part of the government cabinet claiming legitimacy following last year's supreme court ruling, alleges that the Prime Minister has tried to cover up the spending by pushing through a loan bill in the 2012 budget.

He says Mr O'Neill last year used 300 million US dollars of unappropriated money to buy the support of members of parliament.

"In project obviously, projects but projects that were not appropriated, not properly planned and submitted through the financing processes, just ad hoc."

Sir Arnold Amet says while there might be agreement on how money should be spent, the legal process has to be followed and the ends don't justify the means.

He says the bureaucrats who revealed the spending to him are worried that they were compelled to violate the law and will be prosecuted.