Kulang wants probe into Abu Dhabi, PNG deal

National, Normal

The National, Thursday 06th of March, 2014

A PARLIAMENTARIAN has suggested that a commission of inquiry be set up to investigate the loan deal between the International Petroleum Investment Company in Abu Dhabi and the Government.
Kundiawa-Gembogl MP Tobias Kulang said the inquiry should look into how the loan deal was negotiated and structured.
“The State stands to lose its shares in Oil Search Ltd and may pay more if the share price is trading below the price it was tagged on the maturity date of the bonds,” he said.
“The bonds fall due sometime this month.
“It appears that the State’s interests were not appropriately represented during the negotiation stages.
“Furthermore such blunder is at a magnitude where it cannot be swept under the carpet.”
No comments could be obtained last night from government authorities.
Kulang said it was important that the inquiry be set up before the Government engaged in talks on the next Liquefied Natural Gas project.
He said the Government must review the manner in which it had dealt with the first LNG project to ensure it did better in the next one.
“However, where it is evident that there was negligence involved in the negotiation and structuring of the first LNG project deal, then those responsible must be held accountable and prosecuted,” Kulang said.
“It is important that the nation must be told honestly and accurately about how much extra it will cost the State for our participation in the first LNG.”