No alternative proposal to IPIC deal, Bakani says

BANK of PNG Governor Loi Bakani told a commission of inquiry that the bank did not have any alternative proposal if the Independent Petroleum Investment Company (IPIC) transaction was not going to result in the way that they had hoped to in 2014.
“We went by the agreement with the IPIC loan, but since they didn’t agree to retain the shares, we didn’t have the mandate to look for or ask for any other alternatives so to me, that was the end of the deal and end of my involvement,” he said.
“There was no meeting, there was no one else available to discuss with us relating to the IPIC loan, and so, it was apparent that IPIC was not going to agree to the redemption of the shares by the State.”
Bakani was cross-examined by counsel assisting the commission Elevente Jurth about a proposal that he went to convey to IPIC in Abu Dhabi.
He maintained that he had no knowledge of or involvement in the UBS transactions but he was asked to respond to same questions relating to the IPIC exchangeable bonds refinancing to the UBS.
Bakani was shown a document (email) from Gerea Aopi to Peter Botten, of conversations between IPIC and IPBC and himself with secretary Dairi Vele.
He was asked if the conversation were through telephone or in person.
He said: “If they were in writing, I would have some correspondence regarding those discussions, but I believe we may have had those conversations just by talking.”
Bakani was also shown an email by Dairi Vele which he and others, including Latimer Anthony, Jimmy Maladina and Paddy Jilek, from UBS, were copied on March 5, a day before the UBS transaction was approved by National Executive Council.
He said he didn’t recall receiving any email from Vele.