​State paid off UBS loan: O’Neill

The UBS loan is now at zero balance; there is no further obligation on the part of the State to repay the K3 billion loan.

Prime Minister Peter O’Neill made the statement on the floor of parliament this morning when replying to questions from Sinasina-Yongamugl MP and Opposition member Kerenga Kua.

“The proceeds of the shares have completely paid off all the UBS loans, all the interest that is outstanding,” said O’Neill.

“There is no further obligation on the part of the State or even the Kumul Petroleum Holdings.”

The PM further stated that there is a residual value of close to K120 million that will be paid to the state and placed in the government’s consolidated revenues.

Meantime, on questions about outstanding royalty payments for LNG landowners, particularly the pipeline and upstream landowners, O’Neill said they will be paid once clan vetting has been completed.

He said his government is cleaning up the mess of the then National Alliance, which failed to carry out the clan vetting exercise before when LNG project was signed off.

“Clan vetting exercise has not been concluded,” stated the PM.

(Loop file pic)


Meredith Kuusa
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