MP queries state shares transfer

National, Normal

The National, Friday March 7th, 2014

 DEPUTY Opposition leader Sam Basil is not satisfied with answers by the government on the International Petroleum Investment Corporation (IPIC) loan that was used to fund Papua New Guinea’s equity in the liquefied natural gas (LNG) project.

He is calling for the immediate auditing of the IPIC Loan and is seeking answers on why the country’s Oil Search Ltd (OSH) shares, which are held as collateral on the IPIC loan, would not be delivered back to the country.

“The Opposition would like to see the transparency around the appointment of financing banks like UBS who, we’ve been advised, have failed in the refinancing of the IPIC loan and ultimately, it has failed the citizens of Papua New Guinea,” Basil said.

“Prime Minister Peter O’Neill stated that PNG will get the OSH shares back and the Opposition questioned as to whether he has the integrity,  as the final decision maker and chairman of National Executive Council (NEC), to appoint UBS if they have not raised the money.  

“By UBS not being able to refinance the IPIC loan, OSH shares will ultimately not be delivered back to the State by March.”