PNGBLOGS

by GOVERNMENT INSIDER In a meeting with some World Bank people and some former Ausaid Consultants to PNG, this is what they had to say about PNG parliamentarians and the current government's management of the economy. They say, 99% of our parliamentarians are economically and financial illiterate. For example; They do not have any idea about the UBS Loan or the LR Generator deal, or even the importance of the 2016 budget document, as such no one is capable of debating the nitty gritty ties of such enormous financial transactions and legislations provocatively.  They even don't care about the economic implications befalling from such decisions. Therefore PNG Parlaiment under the current regime lacks good governance. What a shame? The other thing, they said there is no prudential Management of the PNG economy by the Peter O'Neill government, they said the current government manipulated fundamental data and statistics on the real GDP, a sign shown by the 2015 budget outcom

by GOVERNMENT INSIDER Isaac Lupari has recently become the Chairman of Public Debt Committee,(PDC), their core function is to manage the cashflow of the country. PDC is made up of Treasury Management(Chairman), Finance Management and Bank of PNG. PM's Dept is not suppose to interfere with the operation of Treasury management. The responsibilities to raise revenue and expenditure lies with the treasury IRC, Customs and Finance according to the constitutional functions of these institutions. Never in the history of this country a Chief Secretary becomes the Chairman and manipulate the cash flow management of the country, that means, Isaac Lupari is a superfluous who is hell bent on destroying  the core functions of these constitutional institutions and politically compromise the prudential fiscal management and governance of established government institutions. Does this show that the Governor of the Central Bank, Secretaries for Treasury and Finance and their Management t

by GOVERNMENT INSIDER The Swiss bank UBS struck a massively controversial deal to land the PNG government with a 10 per cent stake in ASX and PNG-listed company Oil Search.  The shares as you all know costed PNG A$1.2 billion, a staggering 8 per cent of our GDP. UBS insiders describe this deal as one of the "most amazing deals" the bank has ever done due to the staggering 12.3% interest they are earning from us.  This rate is well above an average commercial banks interest rate. Others, however, say the amazing part is that the bank was able to get away with it. This lucrative deal, the PM has coerced The National Petroleum Company Board to sign on an Irrevocable Escrow Agreement to keep our 19.4% LNG revenue in a Singapore Bank account as a collateral to the collar Loan, managed/Controlled by UBS According to the Clause 14.  Of the UBS Collar Loan Agreement dated 12 March 2014, UBS AG Australia Branch will appoint a Receiver Manager to sell the Oil Search Sha

by MICHAEL JOSEPH PASSINGAN On 17 March PNG Blogs revealed that Peter O’Neill has secretly begged the World Bank for a loan of up to K1 billion. On 22 March we revealed that international agencies are about to downgrade Papua New Guinea’s credit rating once again – after already being downgraded late last year. Now some good news – the economy and national finances have been damaged so badly by O’Neill’s reckless borrowing and wasteful spending that his proposed $US1 billion sovereign bond issue is dead - D.E.A.D. This is good news because it means the nation’s indebtedness will not increase by $US1 billion in the immediate future. It means the long-suffering people will not have more debt to repay each year. IT MEANS THERE WON’T BE $US1 BILLION FOR O’NEILL TO STEAL AND WASTE The failure of the bond issue proves that international money markets won’t lend a toea to O’Neill’s corrupt regime unless it is at unaffordable penalty interest rates. Such unaffordable interest

by MICHAEL JOSEPH PASSINGAN Prime Minister Peter O’Neill has just cost Papua New Guinea almost K1.5 billion because of his reckless, corrupt and unnecessary borrowings. The loss is on the refinancing of his illegal K3 billion UBS-Oil Search loan. The deal was done in secret in Sydney earlier this month to avoid having to reveal the massive loss that the Prime Minister, UBS and Oil Search have inflicted on the nation. Details of the deal were not revealed when Kumul Petroleum MD Wapu Sonk announced it over the weekend.  Mr O’Neill’s secret loss comes at a time when the Government is virtually bankrupt, unable to pay public servants and cutting spending on essential services such as health, education and power generation.  It will add to the record and illegal levels of debt already incurred by the Prime Minister. It will contribute to further worsening of the living standards of ordinary Papua New Guineans. The refinancing of the UBS-Oil Search loan is even worse tha

by PAULUS KANAMBO Peter O’Steal, the biggest liar, thief and konman in PNG history, has been exposed again by new facts revealed about the 2016 Budget. He said the 2016 money plan was “a conservative budget that carefully manages spending to ensure essential services are delivered to the people. Core services for our grassroots including school fees and access to healthcare will continue to be properly funded. “Our law and order programs will continue with more funding for police, the courts and correctional services. “Funding for critical infrastructure will be maintained in order to provide ongoing stimulus for business and for job creation.” Each and every one of these statements by O’Steal is a lie, as shown by the latest economic research by the prestigious Lowy Institute in Sydney. THE FACTS ABOUT PETER O’STEAL’S LIES Core services for grassroots have in fact been savagely cut because of O’Steal’s corruption, waste and mismanagement. Education sp

by SAM BASIL MP  Deputy Opposition Leader As Deputy Opposition Leader (DOL), I have continuously criticised the mismanagement of the economy by the O’Neill government and their continuous lies that the economy will recover back to pre-2012, when PNG was in a surplus budget. My predictions on the negative high spending and reliance on oil and gas prices, from as far back as 36 months ago when the 2013 Budget was handed down, is now very real; the citizens of Papua New Guinea (PNG) don’t have to look far on the basic figureswhen they’re experiencing: i) The high costs of goods and services acknowledging the high inflation rate that I predicted which current figures don’t acknowledge, and ii) The rapid devaluation of our exchange rate reflecting a slowdown in the economy because- a. The exporters aren’t getting the revenue they used to get, as well as b. The importers awaiting their products to reach our shores because there is a lack of foreign reserves available, to pay o

By Nemo Yalo: Principal of Nemo Lawyers   former Acting National Court Judge former Chief Legal Counsel for Ombudsman Commission There is in an ongoing public debate between the Government and the Opposition in Parliament regarding the receipt and application of the proceeds from the sale of the LNG. In its 2015 first half Environmental and Social Report, Exxon Mobil states that its US$19billion project loaded the 100th LNG shipment on LNG carrier Methane Spirit on 15 June 2015. The first LNG cargo was shipped on 25 May 2014 destined for Tokyo Electric Power Co. Inc. (TEPCO) in Japan delivered on 2 June 2014. The LNG Project is expected to produce nine (9) trillion cubic feet of gas over 30 years. It has the capacity to produce 6.9 million tonnes per year. The report reads in part: “The Papua, the first custom-built LNG carrier for EMPNG, arrived at the LNG Plant Marine Terminal on 22 February 2014 to begin loading its first cargo. The 172,000-cubic metre, 290-metre-long

INSIDE INFORMATION By Carl of BPNG and Pat of Treasury Department Peter O’Neill, Patrick Pruaitch, James Marape, and Loi Bakani have not told Papua New Guineans the real causes of our economic crises and the effects that should be expected.   PNG’s economic crisis is far worse than what it appears and we are dumbfounded by the silence of the people in the know. Learned Papua New Guineans continue to zip their mouths and eyes whilst Prime Minister Peter O’Neill continue to peddle his lies across our simple minds. Two of us have compiled this report together for the love of our country. Most of these information are already available to the public. We hope that all equally concerned Papua New Guineans will be enlightened by this article, for an enlightened citizenry never remain silent. We have four interconnected yet separate problems on hand at the moment: Government Coffers without Money Bank of Papua New Guinea without Sufficient Foreign Reserves (Forex)