Sir Mekere Morauta says Prime Minister Peter O’Neill’s “insatiable appetite’’ for spending money will make people suffer for a couple of years.
In a media statement released on Thursday, Sir Mekere says O’Neill’s limitless spending will cause major turbulence in the country.
“Reckless spending, illegal and wasteful borrowing, the raiding of national institutions like MVIL, Ok Tedi and NPCP to satisfy his spending appetite, and misapplication of billions of kina that should be used for national development have now combined to create a turbulent storm,” he said.
Sir Mekere said the value of the kina had almost halved since O’Neill came to office and foreign currency reserves had more than halved in those four years.
“A series of foolish deficit Budgets and mini-Budgets have brought Papua New Guinea to the brink.
“Commercial banks are unable to provide foreign exchange to their customers – apparently there are back-orders for foreign exchange of over K2 billion.
“Importers are suffering, and businesses are unable to meet their payment commitments to overseas suppliers in a normal commercial manner.’’
He reiterated that conditions today are similar in most respects to those caused by the Prime Minister’s PNC predecessor, Bill Skate.
“Only urgent action saved the nation from disaster in 1999, and only a well-structured and disciplined recovery package, implemented consistently over the next four to five years, will create the environment necessary for sustainable economic and social advancement.”