Opposition pushing for answers on Kokopo Loan

Post Courier

THE Government has been urged to come clean on the controversial K125m borrowed from National Superannuation Fund (Nasfund) to finance community projects in Kokopo, East New Britain.

Opposition Deputy leader Bart Philemon said the Government must produce the Cabinet decision that approved the “loan’’ and also called on Nasfund management to explain on what basis and on whose request the K125m loan to the government was approved. “The Government must justify why the whole nation should carry debts for community projects in one district – Kokopo arising from the issuance of this special purpose securities,” said Mr Philemon, a former Treasurer and Finance Minister.

“Did Prime Minister Sir Michael Somare sign the special purpose securities for this community infrastructure project? Or did Treasurer Peter O’Neill sign it? And what role did Department of Treasury play in this deal?” His comments follows the return of Kokopo MP and Communications Minister Patrick Tammur from Singapore on Friday where he had gone for medical treatment and the amputation of a leg because of illness. Mr Tammur instigated the proposal for funding by Nasfund as Treasury Bills or short-term loan.

Fundraising initiatives using this process are usually done to help fund the National Budget on projects of national importance. It requires a register of stock for administrative and regulatory purposes – usually performed by the Central Bank.

The Opposition wants details on the reasoning behind the selection of Kokopo which, based on the 2000 national census, has a population of 53,000 as opposed to Talasea for example which has a population of 128,000 or others with even higher populations and are less developed.

“If Treasury is not involved as the Opposition is led to believe – and therefore the Central Bank is not the register of stock – which private company is managing this stock and at what cost? What is the basis of selecting this company and who gave the expert advice on it?” asked Mr Philemon.

“And I repeat again: what justification can the Government give on approving this deal – to benefit only one district – without Department of Treasury’s involvement?
“When East New Britain Governor Leo Dion raised this matter, we as Opposition added our voice, but it seems to have fallen on deaf ears.”

While extending sympathies to Kokopo MP and Communications Minister Patrick Tammur on the loss of his limb, Mr Philemon added: “No national leader can boast about ‘securing’ that kind of money for his district at the expense of 108 other districts.

“That would be adding salt to wound by this unfair gesture.
“But the Prime Minister, the Treasurer and Cabinet are responsible for this departure from ‘equality and participation’ - one of the cornerstones of our sovereign statehood.”

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