MP issues warning to Western

 By SHIRLYN BELDEN 

THE people of Western have been warned by the Opposition to be wary of the government’s plan to take control of the PNG Sustainable Development Program (PNGSDP). 

Kundiawa-Gembogl MP Tobias Kulang told a press conference in Port Moresby last week that PNGSDP, which facilitated substantial funds for future development of Western, could be in danger if the people let the government take control of PNGSDP operations. 

“The major attraction for PNGSDP is the US$1.4 billion (K3 billion) held as future generation funds in Singapore on behalf of the people of Western by PNGSDP,” he said.

“This fund represents one third of the dividends from Ok Tedi Mining 

Ltd (OTML) since PNGSDP’s inception. 

“These funds will be drawn down only after the closure of OTML for the sustenance of the Western people.

“It must be understood that this fund belongs to the people of Western and not PNGSDP.”

Kulang is concerned that the government has lost significant assets (17.4% or 196.6 million shares) of state equity in Oil Search Ltd in an Arabian deal for the Independent Public Investment Corporation loan arrangement. 

There is nothing left on the government’s balance sheet to use as collateral for future loans, he said. 

“PNGSDP right now looks attractive. Because of the conversion of the state’s OSL shares into exchangeable bonds by IPBC to IPIC in March 2009 plus the charge placed on other state-owned enterprises assets the state quietly dropped the Chinese Exim  Bank loan arrangement because there is nothing left to collaterlise,” he said. 

Kulang urged the Western people to “read between the lines” on the move by the government on PNGSDP.