Abel: I relied on advice provided by cabinet

ALOTAU Open MP Charles Abel told a Commission of Inquiry that he only relied on what was explained to him regarding the Petroleum Investment Company (IPIC) loan because he was new to the cabinet.
“I was new to the cabinet, most of this transaction had already been processed,” he said.
Abel was responding to questions by the commission about his knowledge of the transaction as then minister for tourism in 2009 when the IPIC transaction was obtained.
He said necessary processes had been followed to obtain the IPIC loan so he relied on the advice from cabinet, the cabinet secretary and the supporting paperwork that came with the submissions.
When asked to give an insight on the UBS transaction in 2014 when he was minister for national planning from 2012 to 2017, he said: “The State had wanted to pay out the IPIC loan and retain its stake in Oil Search shares and decided to utilise the UBS funding to buy Oil Search shares.
“A price for the Oil Search shares was negotiated at below market value.
“It was also argued that the shares had significant upside as the PNG LNG project was due to commence production.
“I, at all times, maintained a position against the transaction, however, the position was not based on any legal grounds. It was based on the principal that I was against the utilisation of public funds.
“I preferred to let the Oil Search shares go and maintain direct equity in the PNG LNG project date free.
“I have always held a position that the State should derive its benefits primarily from taxation and royalties and if equity is taken up, it should be free or free carried.”