Former PNG PM called as witness in UBS inquiry

9:09 pm on 29 January 2020

Papua New Guinea's former prime minister has been called as the first witness at a Commission of Inquiry into a controversial loan from a Swiss bank.

Former Papua New Guinea Prime Minister Sir Michael Somare

Former Papua New Guinea Prime Minister Sir Michael Somare Photo: RNZ / Johnny Blades

The $US1.2 billion loan was used by the PNG government to buy a stake in the company Oil Search in 2014, but the value of its share soured with falling oil prices.

The Commission of Inquiry is investigating whether the country's leaders broke the law in passing the deal.

Through his lawyer, Sir Michael Somare said he was willing to assist the inquiry, and would re-appear in April to present his evidence.

Sir Michael is one of 12 witnesses asked to appear before the inquiry.