8 Apr 2014

Former PNG treasurer takes court action against govt loan

4:18 am on 8 April 2014

The sacked Papua New Guinea Treasurer and leader of the THE party has sought a court order for the government to pay back a US$1.1 billion loan.

The loan was taken out by the government with Swiss bank UBS, to purchase 10 percent of PNG's largest oil and gas company, Oil Search.

Don Polye, who was last month sacked as treasurer over his opposition to the loan says he is taking the action because the loan is wrong and needs to be paid back immediately.

"It is unconstitutional. It should not have taken place in the first instance. But it has happened and I think it is very important that the people of this country know that what the government did is illegal and unconstitutional."

Don Polye says the loan is an example of a government bowing to corporate interests and making a deal that isn't beneficial to the people of PNG