LNG Funds

Opposition Leader Don Polye has urged the auditor general to ‘wake up from his slumber and start to investigate those responsible.’

“Where has K3 to K4 billion from the LNG proceeds gone to? It is shocking that our people’s gas monies are missing in the 2016 budget.

 “The Opposition’s study of the 2016 Budget documents shows neither a clear indication of where the proceeds are kept, nor where they will have been spent,” Mr Polye said yesterday when speaking at a gathering in the Central Provincial Government headquarter in Konedobu, Port Moresby.

He says the government has done the right thing by making estimates according to the trend of oil prices on the global market.

Deloitte, the organisers of the budget breakfast session held today at the Royal Papua Yacht Club, say  the PNG LNG project has been producing consistently in excess of its original rated capacity and this has softened the revenue impact of the reduced oil prices.

Meantime the Government expects the Sovereign Wealth Fund (SWF) to start operations in 2016 and there were some projections made prior when the oil prices were good.

Opposition Leader Don Polye questioned why Mr O’Neill intends to mortgage the 4.27% equity interest of the LNG landowners and affected provinces for another loan of K2.5 billion through the issue of the sovereign bond.

Hela Governor Anderson Agiru, who over the recent week questioned the PM over the delay in the LNG payment to the landowners, walked out of Parliament as O’Neill got up to answer the questions.

Mr Polye wanted to know why there was an increase in the bond from K700 million kina as per the budget to K2.5 billion.