The state-owned petroleum company, Kumul Petroleum Ltd is in distress and facing significant cash crunch, says former Attorney General and Sinasina Yonggumgl MP Kerenga Kua.
Kua, in a statement claimed that the company’s revenues have been raided by the O’Neill government’s insatiable appetite to spend and spend.
He said the Government is not taking into account the consequences its reckless action will bring on to this new entrant in the oil and gas space.
“I dare the Prime Minister to prove me wrong when I suggest that Kumul Petroleum Limited could most likely fail an Insolvency Test if subjected to one and that day may come sooner than we think.
“The Government on numerous occasions has accessed monies and cash flow from Kumul Petroleum without regard to due process and without the full knowledge of the Board of KPL.”
Kua said the Government’s unconstrained interference in the institutional processes is weakening the governance mechanisms.
He added that unilateral decision-making (outside of NEC) should not be accepted from any prime minister or elected leader.
“An ever-widening cavity exists in our government coffers and yet these spending have not yielded any new or real revenue generating outcomes for our country.”
He is challenging all MPs to take responsibility as elected peoples’ representatives.
“You are not sheep elected to follow a leader that is leading you off a sharp cliff. Lawful actions must be taken to stop this insane spending spree.”
Kua claimed that the recent tax measures are a band aid fix to a gaping wound that is ever increasing as a result of complacency and non-action by many elected representatives.