Polye attacks government on UBS loan payment delay

FORMER treasurer and Kandep MP Don Polye said yesterday that he was not surprised the State is now experiencing problems with the K3 billion UBS loan especially when it failed to pay the interest payment as part of its obligation.

The MP, who is also the party leader for THE Party, said he had warned against the ramifications when the UBS loan was approved in a speedy manner without considering the risks involved in the bridge and collar loans.

He said there are related problems with the loan if it is in default.

The sovereign risk would have serious impact on the value of PNG kina and it will affect the economy.

Mr Polye has commended the Ombudsman Commission for doing its independent job and the priority for the Ombudsman Commission is to completed the investigation on the $A1.239 billion loan which comprises of two components: a bridge loan of $A335 million which attracts an interest rate of 5.50 percent per annum and a collar loan of $A904 million which attracts an interest rate of 4.95 percent per annum.

Mr Polye has requested the Prime Minister Peter O’Neill to publicly inform the people of PNG that the State’s shareholding of 10.01 percent in Oil Search Limited has been automatically sold to UBS as the State has defaulted in the loan repayment.

He said the people have the right to know about the default situation which occurred on May 16, 2014 with the consequences suffered as he has warned against the strict compliance on the collar loan conditions.

Mr Polye said the government failed in its attempts in interfering into the role of the Ombudsman Commission as its priority was to complete the investigation into the UBS loan. The Ombudsman Commission would not compromise its role with the government in attending to the urgency surrounding the payment of the interest and the potential consequences after the default in the loan repayment.

"Mr O’Neill and his government are confronted with a worst case scenario as he failed to take my advice that the UBS loan was bad for the country," said Mr Polye.

He said Mr O’Neill should resign for poorly managing the country’s economy.

PNG Today / Post courier