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THE KING OF LIARS DOES IT AGAIN!

by MICHAEL J. PASSINGAN

On 21 March, at the PNC fund-raising – also known as the greatest gathering of thieves on earth – the Prime Minister boasted about PNG having an annual GDP growth rate of 9.2%. He said Papua New Guinea’s growth rate is the envy of many world economies – “9.2% is miles better than the global average, which is about 3% or less”.

 LIES LIES LIES! 

PNG’s annual GDP growth rate is 4.3%, according to the 2016 Budget papers, Volume 1, Table 1, page 107. Even worse, Treasury predicts annual GDP growth to fall to less than 3% for 2017, 2018 and 2019, according to the 2016 Budget papers, Volume 1, Chart 13 page 12. 

This chart also demonstrates how O’Neill has wrecked the non-mining sectors – mainly agriculture, on which 90% of the people depend for their livelihood. His mad policies and his greed have reduced non-mining GDP growth from a high of 12% per annum in 2011 to about 3% per annum now. 

MORE LIES! 

He also told his dinner companions - PNC konman cronies and other thieves - that PNG’s debt is 35% of GDP, which “is among the lowest in the world among other developing countries”. The King of Lies said the national debt is K17 million, or about 35% of GDP. It is not. The national debt is approximately K27 billion, or about 60% of GDP. 

(These numbers have been confirmed by the IMF and by independent economic experts.) The Fiscal Responsibility Act states that national debt may not exceed 35% of GDP. So O’Neill is breaking the law. But he couldn’t care less, so long as he can continue to enrich himself and his cronies through corrupt deals, secret commissions and all the other tricks they use to rob ordinary Papua New Guineans. 

LIES ON TOP OF LIES! 

 Last week the world’s most dishonest Prime Minister told Parliament and the media that the Government was asking for money from the International Monetary Fund to try to fix PNG’s foreign exchange crisis. "The Central Bank is talking to the IMF to create a temporary facility of $US250 million, which they will bring in to make sure they pass it on to the commercial banks," Mr O'Neill said. "Once all the commercial banks agree with IMF and the central bank the relief will be coming in very soon." 

The O’Neill regime is in fact seeking a line of credit from the International Finance Corporation, the commercial lending arm of the World Bank. There is an important difference between the IMF and the IFC, which is why O’Neill and his cronies are trying to hide the truth. The IFC is a commercial lender of last resort – it will lend to people that no one else will lend to. And as a lender of last resort, the IFC charges interest at rates higher than other World Bank-IMF lending. 

Nor do IFC lines of credit carry the usual World Bank requirements for accountability and transparency. Approval does not carry the structural adjustment conditions aimed at correcting the economic and governmental problems that caused the need for such a loan in the first place. The IFC line of credit, if approved, is a quick and dirty loan that helps the corrupt and wasteful O’Neill Regime continue to rob the nation.