The Member for Moresby North-West is urging the Government to come clean on the exact costs of the Oil Search share sale.
Sir Mekere Morauta believes the total cost to the people of Papua New Guinea is likely to be more than K1 billion, while the Kumul Petroleum Holdings Limited (KPHL) Board said State lost over K760 million (US$254 million) after the approved sale.
“We always knew that this deal between the Prime Minister, Oil Search and Union Bank of Switzerland was a bad deal, a bad investment and a bad use of public money,” he said. “But we never knew it would be this bad.
“Selling at a loss – announced by Kumul Petroleum as $US254 million, is not a sound commercial decision. The shares were legally owned by the bankers as security for the loan; they were not Kumul Petroleum’s to sell,” continues Sir Mekere.
He says PM Peter O’Neill must also tell the nation what the balance of the loan was left to pay.
Former Prime Minister Morauta said a full, independent inquiry is needed into the deal.
“Those responsible for this loss of possibly K1 billion of public money through illegal means must be held accountable,” Sir Mekere said.
“In the forthcoming sitting of Parliament, Mr O’Neill should table all the relevant documents relating to this financial disaster. These include all of Kumul Petroleum’s financial statements and all documentation for the deal in its possession, as well as details of the impact on Kumul Petroleum’s balance sheet.
“Mr O’Neill should also table the terms sheet and other documentation for the original deal. The public, the owners of this investment, and the people who will pay for the mistake, have a right to know the extent of profiteering by foreign banks, companies and advisers.
“The losses are not coming from Peter O’Neill’s own pocket; they are coming from the public purse.”
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