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PNG Faces Deepening Crisis as O’Neill Warns of “Loans Without Medicines”

Former prime minister Peter O’Neill has sounded a strong warning over what he calls dangerous financial decisions by the Marape Government, saying Papua New Guinea is moving deeper into crisis as hospitals struggle without basic medicines. In a statement issued yesterday, O’Neill said the country is borrowing heavily while doctors and nurses are being told to continue working despite the worsening shortages.

He claimed that Prime Minister James Marape secured another K1 billion in loans last week, only weeks after withdrawing more than K1 billion from Kumul Minerals. According to O’Neill, the latest borrowing includes K600 million from local banks for the Connect PNG program and K400 million from the Asian Development Bank for budget support.

 PNG Faces Deepening Crisis as O’Neill Warns of “Loans Without Medicines”

O’Neill criticised the Prime Minister’s comments to health workers last Friday, saying Marape had acknowledged a cash shortage before telling doctors and nurses to “do more with less.” He said frontline workers were instead being blamed for raising concerns about the lack of medicines.

He said the message contradicted Marape’s earlier claims that Governors and Provincial Health Authorities were responsible for the crisis because the medicine budget had already been spent. O’Neill said the shifting blame showed that the Government had no funds left to restock hospitals.

He said public frustration has escalated as hospitals continue to operate without essential medicines, with many families blaming the Government for unnecessary suffering and deaths. O’Neill said billions of kina were being directed elsewhere while patients were left without lifesaving supplies.

O’Neill said it was unacceptable for the country to continue borrowing while the health system collapses. “If the money is not going to relieve our people’s suffering, then where is it going?” he asked.

He concluded by calling for the Connect PNG program to be halted. “Just stop the corrupt Connect PNG and buy medicines,” he said.


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