Pruaitch on cash flow issues

​ The Opposition Leader Patrick Pruaitch says although he only stepped down as Treasurer eight months ago, he was not fully satisfied with the role he had been able to play.

That was his response when responding to Deputy Prime Minister Charles Abel on cash flow issues in the country.

The Opposition leader said his advice from his very first budget in 2014 was to sharply curtail the level of borrowing.

He added that when Government is in receipt of record revenue, it is not the time to be making excessive loans and running large fiscal deficits.

He said the Government borrowed far too much in a brief period and most of it has been misspent.

Mr Pruitch added that he even warned Prime Minister Peter O’Neill that we could not go on ripping money out of State Owned Enterprises without adversely affecting their operations, as made abundantly clear by the ongoing financial and operating problems now facing Air Niugini.

He further reiterated that much of his powers as Treasurer was also taken away in his final year in office so the government spending spree could continue unabated.

He said the cash flow and management problem has been made much worse with the record levels of unjustifiable borrowings and the rising dependency on loans from China that have zero level of public transparency.

Meanwhile, the Deputy Prime Minister and Treasurer, Charles Abel, has called on Mr Pruaitch to not talk down on the Government on the current status of the economy.

He said the Government had to borrow in order to stay within the 30% debt to GDP guidelines.

Freddy Mou