PNG PM digs in for long haul, despite referral
Papua New Guinea's Prime Minister has welcomed his referral to a Leadership Tribunal over allegations related to the government's decision to take out a controversial state loan.
Transcript
Papua New Guinea's Prime Minister has welcomed his referral to a Leadership Tribunal over allegations related to the government's decision to take out a controversial state loan.
The allegations centre on claims Peter O'Neill didn't follow the normal administrative process for securing and approving the loan of 1.1 billion US dollars obtained from the Swiss bank UBS earlier this year.
The government sought the money to buy back shares in Oil Search which owns some of the key petroleum licenses in PNG.
Mr O'Neill told Johnny Blades it was vital that the state has a share of Oil Search.
PETER O'NEILL: Our government has been holding shares in that company for quite a number of years. Unfortunately, we lost those shares when the former government made a deal with the Arabs (International Petroleum Investment Company) and as a result the Arabs took control of the shares that we had in that company about a year ago.
JOHNNY BLADES: So do you think Arthur Somare's team messed up or were outgunned by the Arabs who are quite experienced in that sort of area?
PO: I think we didn't do enough to protect our interests and as a result, we had to go back to the market and try and buy the shares and maintain some interest in that company ourselves.
JB: And the way you and your cabinet went about securing this loan has been controversial, according to some. What do you say about that?
PO: That controversy has been created by our political opponents. I want to assure you and our listeners that government processes have been complied with fully. This particular transaction was not done individually. It has taken months and months of negotiations with the Arabs, months and months of negotiations with Oil Search, to try and secure our interest in that company. All senior government officials were participants in the advice to myself and to cabinet, endorsed this particular transaction and cabinet formalised that. I'm very aware of these allegations and I'm going to go to the Tribunal and of course explain what has happened so that they can make a determination but it is a serious concern where government officials and politicians with vested interests continue to run around trying to undermine an executive government performing its duties as mandated by the constitution, mandated by parliament.
JB: Sir Michael Somare has just come out saying it was this issue that has made him leave the government benches. Is this a loss at all to you?
PO: Sir Michael can do whatever he wants. Our government doesn't depend on Sir Michael's whims, it's entirely up to him.
JB: And so with his precedent (when referred to Leadership Tribunal as Prime Minister) do you feel you won't stand down while the Tribunal is convening?
PO: That's for the Tribunal to make. The process is very clear. I think people shouldn't get too excited about it. There are some critics who wished that I was gone yesterday. But I want to assure you that I will be around for many years so it's better that they get used to it.
The tribunal is to begin sitting on January 26th, will consist of three judges, from PNG, Australia and New Zealand.
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