Polye clarifies reason for sacking

National, Normal

The National, Thursday March 20th, 2014

 SACKED Treasury Minister Don Polye has admitted that he refused to sign the documents for a K3 billion loan for the State.

He told reporters in Port Moresby yesterday that he was sacked by Prime Minister Peter O’Neill because of their differences over the 10.1% Oil Search shares to be acquired by the State.

“I would like to make clarifications on issues relating to the position of decision I made. I couldn’t sign the business loan. To buy 10.01 shares in Oil Search is not a wise decision for the Government,” he said.

“The money that is being borrowed should be put into tangible developments and not on buying shares. Putting PNG assets on the stock markets is not a good idea.”

He said Oil Search announced the 10.01 shares two weeks earlier putting the Government under pressure, thus the need to acquire the K3 billion loan.

Polye said the loan was not prudent as it only added to the existing debts.

He refused to sign the loan because it would blow the State’s fiscal management strategy over and above 35% of Gross Domestic Product, putting the country in an unmanageable level of debt. 

Polye said there also was a breach of the Constitution because such loans required the approval of Parliament.

“My position hasn’t changed. It (refusal to sign) is in the best interest of the people of PNG,” he said.

“THE Party is still in the coalition that formed the Government. I am only duty bound to tell the truth that I couldn’t sign the loan so I was sacked.”