Cancel UBS loan: Lawyer

 LAWYER John Napu says the Government should cancel the K3 billion UBS loan as the biggest beneficiary is Oil Search Ltd and the bigger loser is Papua New Guinea.

Napu, who represented sacked Treasurer Don Polye in a dismissed USB loan case against the Government, said this was the greatest “evil” against this country.

“When the country got the K3 billion loan, they bought 10.1% share in Oil Search,” he said.

“Oil Search used that same money to buy 22.8% share in Elk and Antelope in Gulf. 

“Now, the State will bear the burden of paying that loan, all for the benefit and interest of Oil Search. 

“Why would Oil Search get shares in Elk-Antelope by way of purchase of 10.1% shares in Oil Search?

“The State will bear the burden of paying 100% of the loan.

“Oil Search is not a developer, it is a broker. 

“The best option available for the country now is for the Government to cancel the loan and then allow the USB Bank to exercise their right of mortgage over the 10.1% in Oil Search. 

“USB can acquire the 10.1% share in Oil Search. 

“The country will be relieved of the painstaking duty of paying the loan of which Oil Search will benefit immensely from at no cost.

“The bank can foreclose all the mortgage on their right of mortgage and acquire the 10.1% share in Oil Search. 

“If the Government is really interested in acquiring shares in Elk and Antelope, they can get another loan, for which Parliament approval must be sought first, not through brokers like Oil Search. The brokers don’t deserve it, that’s what we are saying.”