Cost of UBS loan inquiry likely to triple, says Injia

By HELEN TARAWA
CHAIRMAN of the Commission of Inquiry into Union Bank of Switzerland (UBS) loan deal Sir Salamo Injia says the cost of the inquiry is likely to triple and the period double from initial projections.
A second commissioner, a senior counsel and a junior counsel, all from Australia, have also been appointed for the inquiry to start on Sept 17.
Sir Salamo said the Government had fixed the budget at K4 million when it announced the inquiry for three months.
“After having done some preparatory work in the last three weeks, the cost might triple and the period required might double the initial projections,” he said.
“That’s my estimate, as realistic as I can be.
“But for now, the funds have been allocated and we will run on those funds until the need for further funds and more time is required and the request would be made to the Government in the course of the inquiry.”
Asked whether there would be witnesses from overseas, he said that would be determined by the full commission when it sat.
“It’s most likely that would happen given the international dimension of the UBS transactions.”
Sir Salamo said John Gilmour QC, a former judge of the Federal Court of Australia, would be sitting with him on the inquiry.
Justice Gilmour specialises in the resolution of commercial disputes in Australia.
Sir Salamo said the Government had also appointed an overseas counsel to assist the inquiry.
He is Mathew Howard, a senior lawyer in Australia and specialises in commercial litigation.
He said Howard would be assisted by a junior counsel, Alexander Mossop, a lawyer from Perth in Western Australia.
Sir Salamo said the appointments of overseas commissioner and counsel were necessary given the international dimensions of the UBS transactions.
“Further administrative arrangements to secure the resources required for the inquiry, including technical expertise, are still continuing,” Sir Salamo said.
“Granted that those administrative arrangements are completed in two weeks, the COI will commence its preliminary sitting on Tuesday Sept 17.”
The objective of the CPI is to inquire into and establish facts surrounding the decision by the previous government to obtain a loan of K3billion, the decision to seek off-shore loan and the decision to select Union Bank of Switzerland as the preferred financier.
The COI will investigate individuals who were instrumental in the negotiation for and on behalf of the State, how were they engaged and how much was paid as fees for their services as brokers and negotiators.
It will also determine whether breaches of mandatory conational requirements had occurred and whether there was negligence on the part of leaders and persons involved in the deal.
The ultimate object of the COI is to establish whether there were breaches in PNG laws and the constrictions requirements in the process of negotiation and approval of the UBS loan and whether persons involved in the deal can be held accountable for their negligence.