Call to probe financial system

BUSINESSMAN and former Sumkar MP Ken Fairweather wants a commission of inquiry set up to investigate the financial system of the country.
Irritated by the blame game going on between Treasurer Ian Ling-Stuckey and former Prime Minster Peter O’Neill and a few Opposition members on the status of the economy, Fairweather said the K4.6 billion budget deficit was equivalent to only US$1.3 billion. He described it as “just peanuts really” that could be devalued by 25 per cent.
Fairweather, who is also the chairman of the Manam Restoration Authority, said it was a brilliant move when Sir Julius Chan and Chris Haiveta (Chan-Haiveta) government devalued the kina by 17 per cent.
“What is the biggest issue why the Kina was so high against trading partners like China, Indonesia and Philippines and many others currencies,” he asked.
He said much blame should be laid at the feet of Bank of Papua New Guinea.
“We need a royal commission to investigate our entire financial system.”
Fairweather said the hard currency policy needed to be challenged.
He said the other reason for the call for a the royal commission was because the bank and financial companies were ripping people off with fees and interest rates paid by treasury bills.
He said opposite to world central bank trends, PNG was 8 per cent and the world 2 per cent.
“The Interest Bearing Deposit rates at the banks are at 2 per cent but, the borrowing rates are so high at 14 per cent at all the banks.
“No financial institutions are lending to the agriculture sector and therefore banks such as National Development Bank or the Agriculture Banks should be closed.”
Fairweather said there was no need to keep pointing fingers at each other when such issues could be addressed.
He said the world was going through a massive financial upheaval and PNG, despite the rhetoric, was at the bottom of the food chain.