O’Neill Says PNG Has Lost Investor Confidence Under Marape Government

Former prime minister Peter O’Neill has accused the Marape Government of weakening Papua New Guinea’s financial standing internationally, saying the country has moved from attracting billions of dollars in investor interest to facing scrutiny over money laundering and financial governance.

O’Neill said PNG had earned strong international confidence in 2018 when investors offered more than US$3 billion for a government bond seeking US$500 million, but argued that poor financial management and corruption had damaged that reputation.

 O’Neill Says PNG Has Lost Investor Confidence Under Marape Government/Photo supplied

In a statement to the media, the Ialibu-Pangia MP recalled that his government had taken PNG’s investment opportunities to major financial centres, including Singapore, Hong Kong, London, New York, Boston and Los Angeles.

He said the overwhelming response from investors demonstrated confidence in the country’s economic direction and willingness to support its development.

According to O’Neill, investors were prepared to provide financing under standard financial conditions without demanding political influence over PNG’s security arrangements or government decisions.

He contrasted that period with PNG’s placement on the global financial crime watchdog’s grey list in February, saying the development had damaged the country’s international reputation.

O’Neill said the International Monetary Fund had warned that the listing could increase international transaction costs, threaten overseas banking relationships for smaller local institutions and worsen foreign exchange difficulties.

He questioned the Government’s continued emphasis on budget repair, pointing to figures he cited showing the national deficit increased from 2.5 per cent of GDP in 2018 to 8.9 per cent in 2020.

The former prime minister also said public debt had increased from K27 billion at the end of 2018 to K69.6 billion by June 2026, representing more than K42 billion in additional borrowing.

He argued that the Government’s handling of the economy had left future generations with a growing financial burden.

O’Neill acknowledged the effects of COVID-19 but criticised decisions involving the closure of a major gold mine and the reopening of a signed gas agreement, which he said had further complicated the country’s economic position.

He said PNG had become increasingly dependent on the IMF for financial support, with international assistance now carrying conditions.

The MP also raised concerns about government spending priorities, citing a World Bank review which he said showed health expenditure at 1.9 per cent of GDP, while debt repayments averaged 2.5 per cent between 2020 and 2024.

He highlighted child mortality, declining literacy and reduced real education spending as evidence of the pressure facing essential services.

O’Neill further blamed the depreciation of the kina for increasing the cost of imported food and fuel, saying the currency had weakened considerably against the US dollar since 2019.

He also criticised electricity and water shortages in Port Moresby, saying PNG Power and Water PNG had struggled to meet demand despite government reviews of state-owned enterprises.

The former prime minister said the 2028 bond repayment would require the next government to rebuild investor confidence and honour the country’s financial commitments.

He called for greater accountability and prioritisation of public services, saying national resources should be directed towards clinics and classrooms rather than political interests.

O’Neill said the country could restore its reputation through responsible financial management and keeping its commitments, adding that “we won the world’s confidence once and we can win it back”.

He said voters would have their opportunity to decide the country’s political direction in 2027.