PNG Foreign Minister Pruaitch defends Somare Govt's IPIC Loan deal
PNG's National Alliance Party leader Patrick Pruaitch has defended the Somare government’s IPIC loan as one of the best deal ever by any government since Independence.
Mr Pruaitch said this when rebutting former prime minister Peter O’Neill criticising Prime Minister James Marape of grandstanding and to come forward with evidence at the UBS commission of inquiry.
“Prime Minister Marape has done the honourable thing by fronting up at the Commission of Inquiry into the UBS loan,” Mr Pruaitch said.
“Former prime minister Peter O’Neill is criticising Marape while having, thus far, refused to present himself for questioning even though he personally masterminded the A$1.2 billion UBS loan and purchase of 149 million Oil Search shares.”
He said the UBS inquiry headed by the former Chief Justice Sir Salamo Injia currently under way deserves the cooperation of politicians and bureaucrats involved in the 2008 IPIC transaction and the ill-fated 2014 UBS loan.
“While the IPIC (International Petroleum Investment Company) transaction went through due process including endorsement by the ministerial economic committee which I headed in my former capacity as Treasurer.
“These processes did not occur prior to the signing of the UBS loan,” he said.
Mr Pruaitch said it is ironic that Mr O’Neill was party to most decisions involving the IPIC transaction, arguably the best deal carried out by any PNG government since Independence in 1975.
“Immense benefits have flowed to the government and people of PNG following this transaction.
“In the 10 years from 2005 to 2014, total Oil Search dividends paid to the PNG government for ownership of 196.6 million shares amounted to an average of K34.6 million a year.
“By using proceeds from the IPIC loan to gain a 19.6 per cent stake in the PNG LNG project, the PNG government enjoyed a return of K2.254 billion (USD663 million) in 2015 alone.
“Or approximately 65 times the average annual proceeds from Oil Search dividends.
“The former Somare government has no difficulty in deciding that ownership of a direct stake in PNG LNG was far more beneficial than ownership of OSL shares.
“There was never any inclination, or plan to buy back these Oil Search shares. One asset, the Oil Search shares, were swapped for direct equity in PNG LNG.”
Rather than becoming simple passengers in our own oil and gas sector, as Mr O’Neill put it, the Somare government was able to exchange an asset with annual returns less than 2 per cent for a vibrant, and direct stake in PNGs largest and most beneficial private sector project.”
Next :
Mr Pruaitch said this when rebutting former prime minister Peter O’Neill criticising Prime Minister James Marape of grandstanding and to come forward with evidence at the UBS commission of inquiry.
“Prime Minister Marape has done the honourable thing by fronting up at the Commission of Inquiry into the UBS loan,” Mr Pruaitch said.
“Former prime minister Peter O’Neill is criticising Marape while having, thus far, refused to present himself for questioning even though he personally masterminded the A$1.2 billion UBS loan and purchase of 149 million Oil Search shares.”
He said the UBS inquiry headed by the former Chief Justice Sir Salamo Injia currently under way deserves the cooperation of politicians and bureaucrats involved in the 2008 IPIC transaction and the ill-fated 2014 UBS loan.
“While the IPIC (International Petroleum Investment Company) transaction went through due process including endorsement by the ministerial economic committee which I headed in my former capacity as Treasurer.
“These processes did not occur prior to the signing of the UBS loan,” he said.
Mr Pruaitch said it is ironic that Mr O’Neill was party to most decisions involving the IPIC transaction, arguably the best deal carried out by any PNG government since Independence in 1975.
“Immense benefits have flowed to the government and people of PNG following this transaction.
“In the 10 years from 2005 to 2014, total Oil Search dividends paid to the PNG government for ownership of 196.6 million shares amounted to an average of K34.6 million a year.
“By using proceeds from the IPIC loan to gain a 19.6 per cent stake in the PNG LNG project, the PNG government enjoyed a return of K2.254 billion (USD663 million) in 2015 alone.
“Or approximately 65 times the average annual proceeds from Oil Search dividends.
“The former Somare government has no difficulty in deciding that ownership of a direct stake in PNG LNG was far more beneficial than ownership of OSL shares.
“There was never any inclination, or plan to buy back these Oil Search shares. One asset, the Oil Search shares, were swapped for direct equity in PNG LNG.”
Rather than becoming simple passengers in our own oil and gas sector, as Mr O’Neill put it, the Somare government was able to exchange an asset with annual returns less than 2 per cent for a vibrant, and direct stake in PNGs largest and most beneficial private sector project.”
Next :
Post a Comment