PM’S ILLEGAL UBS-OIL SEARCH SCAM COSTS PNG A BILLION KINA


Prime Minister Peter O’Neill’s illegal and corrupt deal with UBS to buy 10 percent of Oil Search is now a full-scale disaster.

It is threatening the viability of the 2016 Budget and could further undermine Government finances, which are already at crisis point.

The State’s 150 million shares were bought in March 2014 for $8.20 each.

That is a total $A1.2 billion, or about K3 billion at the exchange rate early that month.

A few days later, on 14 March 2014, the Prime Minister boasted that the country had already made a profit on the shares of $A75 million (about K170 million).

Today, the losses on the purchase are stupendous.

Those 159 million shares were worth slightly less than $A5.70 today.
That is a loss of $A400 million. At today’s exchange rate that is about K850 million.

Peter O’Neill, Peter Botton of Oil Search and UBS have cost Papua New Guineans almost a billion kina.

Worse still, the disastrous slide in the value of Oil Search shares may cost Papua New Guinea even more.

To finance the purchase of the shares, the State borrowed $1.2 billion (K3 billion) from UBS in Australia.

The security for the loan is the Oil Search shares.

When the value of a security falls below a set point, it is common for big banks to make what is known as a margin call.

Margin calls are when the holder of a security that is falling in value calls on the borrower to pay cash to maintain an equivalent.

Or the lender can call on the borrower to sell certain assets, such as the shares, or other assets that the borrower has agreed to form part of the security arrangements.

The value of margin calls could easily run into many millions of kina, putting even more pressure on Government finances, which are already at the point of collapse because of the Prime Minister’s corruption, waste and mismanagement.

SO THE PRIME MINISTER MUST COME CLEAN.

HE MUST TELL THE PEOPLE OF PAPUA NEW GUINEA WHETHER UBS CAN MAKE MARGIN CALLS ON THE STATE UNDER THE TERMS OF THE LOAN, THE DETAILS OF ANY MARGIN CALL ARRANGEMENTS, AND THE TOTAL OF ANY MARGIN CALLS MADE TO DATE.

HE SHOULD ALSO TELL THE PEOPLE OF PAPUA NEW GUINEA WHAT OTHER ASSETS MAY BE AT RISK FROM MARGIN CALLS, SUCH AS THE ASSETS AND INTERESTS OF KUMUL PETROLEUM/NPCP, INCOME FROM THE SALE OF LNG, AND THE LANDOWNER SHAREHOLDING INTERESTS IN PNG LNG.

Popular posts from this blog

PANGU FRAUDSTER BABY: REX KIPONGE aka TIMOTHY KAIPAL

Daylight robbery and fraud at Department of Labour under Pangu's watch

TWO FACE PUNDARI, THE "KONE" HAS EMERGED

REX KIPONGE'S APPOINTMENT BYPASSED CAA ACT

INQUIRY INTO WHAT EXACTLY?

MARAPE EXPOSED IN PUBLIC LIES

Killer & Crook: Pangu's mission to take back PNG