Polye: K3bil loan illegal

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FORMER Treasurer Don Polye told the Royal Commission of Inquiry into the Union Bank of Switzerland K3 billion loan yesterday that the Government deal in 2013 broke “every law in the constitution”.
“Every law in the constitution was breached to acquire the loan,” he said.
Polye is expected to give a full statement to the commission, with evidence, next month on everything he knew about the transaction.
The K3bil loan (AU$1.3billion) was acquired by the Government led by prime minister Peter O’Neill to buy 10 per cent shares in Oil Search in 2014.
Polye who was then treasurer allegedly refused to sign documents relating to the transaction.
It is understood that it led to his sacking as treasurer in April 2014.
He later unsuccessfully challenged the legality of the Government loan in court in 2016, as the Opposition leader.
Polye told the commission of inquiry in Port Moresby yesterday that he would submit a written summary of evidence next month.
“I will also give evidence as to the court proceedings that I took,” he said.
“I brought this through my lawyers to court to nullify this loan because it broke every law – the Constitution, the Finance Management Act and the IPBC Act – about eight or nine laws.
“I will talk about the country’s economy and how this loan has affected all of us in the country.
“This loan has affected us.
“We cannot deny this.
“Our development budget is only K4 billion.
“You cannot (therefore disregard) K3bil loan and say it is nothing.”
Polye said all the development budget was consumed by the loan when repaid.
Polye said he will also give evidence on what happened in the Treasury Department and the economic management team that entrusted by the constitution.
“I will be giving evidence on what happened at the cabinet because I was there.”
Polye urged the commission of inquiry to make recommendations so that this country “gets some salvation out of it. We cannot continue to allow people to make decisions that are detrimental to our people and act as if nothing has happened and yet we suffer,” he said.
“This is a national issue and one that is going to be impacting the future generations for a long time.”
Commission chairman Sir Salamo Injia said Polye would give a written summary of evidence with relevant documents when the hearing resumes on Aug 24.


  • i would support Don Polye comment. why should this country have two separates laws
    rather then one law.

    Big people have one law and small people have another law. Why do we not persecute those culprits leaders and lock them behind bars. like the rest small people committed miner crime, Rape, Family violent. first think arrest charge lock up. ok do the same to the Ganges

    compare to other small pacific national countries, they can manage it well without so many resources like PNG we have, Gold, Oil, Gues, Copra,Timber, Fisheries, coffee, Tea, Suga, many things to name.

    if they still millions of kina why not push them to kalabus

  • Hello Papua New Guinea!
    Why don’t we speed up the inquiry & just send the perpetractors to jail for a very long time?
    Aren’t some of these leaders the same people who were implicated for serious fraud in other state owned entities in the past?
    Look at what sparing them the punishment has brought our country to.

  • We the common people are suffering because of poor decision of our political leaders in terms of the K3 billion loan. We are feeling the pain of this K3 billion loan on daily basis. Please make sure that this inquiry ends in total prosecution of those held responsible of breaching the constitution in the process of obtaining the loan.

  • we cannot just sit down or hide away in our comfort zone and comment and comment on the issues affecting everyone of us in this country. Its about time that we as a nation need to take new approaches – this country needs protest with some blood shading and couple has to die and that is for the real economical freedom for tomorrow and our future generations to live .
    Otherwise nothing will happen….for better tomorrow you have to battle the war today… Most of the successful countries they first fought, shade blood and more have injured and death.

  • This is a real test to see the independence of the judiciary and the parliament when politicians are implicated in the UBS Loan saga. Polye, the former treasurer is saying that laws and constitution were breached and it is self evident and what does the Royal Commission of Inquiry need to look for before recommending those implicated to be arrested and charged.
    The former PM PO and the current PM JM were directly involved in the UBS Loan and if they are not treated like any other citizens, then PNG has two sets of laws for commoners and the high class citizens in the likes of politicians. This will really proof to the nation (PNG) that politicians and people with money are immune to the law and common people suffer from the injustice. Over to the Judiciary to proof its independence and strength of our vibrant democracy.

  • Why is this Government hell bent on wasting it’s time digging up false allergations continually against the past government of which half of them were in…. While this new Government slides deeper into the worst economic recession ever experienced by any past government.

    • Gary, what are your alternative advice then? If you have nothing to offer, it is wiser to keep quiet.

    • One can not cover up the shit and cook on it , if you know that it was not wright , then the people demand to know. Which side are you on.??

  • Hi guys out there,
    This are serious crimes that are called “white-collar crimes” that people with power and money commit. These criminals commit the crimes and freely get away unpunished. They have the power and money to influence the weak ones (police, magistrates, investigators, and who ever) who try to track the crimes and prosecute them.

    These criminals can not be dealt with like the poor ordinary PNGeans. These criminals can hide away and talk smart on the mass media to cover up. Therefore, like one said above, PNGeans will have to physically fight to find the good for the future.

    Over to you guys

  • Thank you Don Polye. Your statement is profoundly substantial in the inquiry since you played bigger role especially in rejecting the loan as it was not healthy in the long term which we are facing the implications now.

  • Hi Citizens,
    What a tragedy for PNG! It’s too easy to talk all kinds and make comments of all kinds BUT all is a waste of time. Can this Government do something in the Name of TAKING BACK PNG?


  • If 8 to 9 laws of the country were broken for the UBS loan saga, then there is corroborating sufficient evidence to prosecute the offenders. Poly’s written statement should be the hard evidence for RCI to speed up the report and make recommendation for prosecution.

  • Thank you Prime Minister James Marape for taking this bold initiative into inquiry of the 2014 USB Loan.
    K3 billion USB loan was the main drama in which many UPNG students of 2016 went into and across the mouth of many machine guns at UPNG main campus. The poor police officers with limited knowledge who were manipulated by politics at the time had been blindly shoot-out at Uni campus injured many knowledgeable and courageous students during our protest against this K3 billion USB loan. Despite badly wounded and shedding our blood at the cost of USB loan from the hands of heavily armed police officers, there were no good feed back or positive outcomes had been resulted so as to satisfy our suffering, but only time and energy waste. The trauma of our battling with heavily armed police officers with armed-less students is still fresh in our mind and we hardly forget at this present time. The commission of inquiry that initiated by current prime minster James Marape is the continuation of our battle. Thus, we are awaiting to hear a good result from this inquiry, else its a waste of time and money.

  • Leaders Tribunal ACt to be repeal
    We are now jumping up and down for this UBS loan but let me shed some light on leaders Tribunal act that serve as a guarantor for this crime to be committed. Peter O’Neil knew all along that the decision he made was wrong and knew very well that if he commits this crime he won’t be guilty until for it until he’s proven guilty by law.

    So now you can see though he has committed a crime through ill informed decision, which caused the lives of many people of this nation, he’s still roaming freely, I am now suggesting that we have to do away with leaders tribunal act.

  • In PNG Criminals are Not Guilty until Proven by Courts.
    In the UK criminals Are Guilty until Proven by Courts.

    Same Westminister judicial system, different interpretation and applications.

  • The country (PNG) owes to Don P. Polye a big thank you though. Should DPP did, no one would have rattled the bubble at the political corridors of Waigani.

    DPP had the courage to boldly stand up against the tyrant Peter O’Neill and refused not to sign. For that, DPP not only decommissined but rival elements coerced in ousting him from his safe seat of Kandep in a blood bath election.

    He risked everything. Saw it coming but vehemently stood his ground and resisted. Not one single MP supported DPP. A lone man, risked everything for the country whilst all in government stood in fidelity and continued to enjoy the perks and privileges.

    They are elected back whilst DPP’s leadership was wrestled away from him in cleverly and methodothically calculated fashion. Every resources were employed towards unseating DPP for it was THE only pathway to silencing him and have the issue (UBS) buried.

    Gratefully, DPP is out of office and down but not yet out. He is coming back to shake the tree and remaining monkeys hanging on will fall. The nature, for the greater good of the common people, will balance the equation in its own way.

    Human deeds of mischievous acts can have fatal consequences in due process of time. One can maneuver by applying all the tricks in the book to evade indictment, however, how prowess one can try to be but the forces of nature will have the telling blow.

  • PNG Judicial system is corrupted by the fomer PM and His Successor JM. Now Marape is asking for investigation for what he knows about. This invesgation another shits to cover of what these two had done. These 3billion loan MARAPE has no Option but he invloved in it. These two ONEILL and Marape had enough good time and they done some damage thing to this Nation. Now this Current PM is asking for investigation. Too much of interfering the Judicial system in which many laws are bend. Country need the complete turn for such PM.

  • It’s easy to criticize with benefits of hindsight. If you were a leader and the burden is on you to make decisions, then you must take the decision. O’Neill government had to decide whether to lose shares to the Arabs to own our oil or we buy the share and keep ownership of our oil. Arthur somare made the deal, and O’Neill government was put on the spot to decide within two weeks. So O’Neill did what he thought was best at that time. He had to decide then and there, to. Lose out or retain ownership of our oil and gas

  • People like Micka knew in depth in K3m saka from in PO Cabinet so they must give it was K3m loan. Don spokout so was sacked while MP and others knew it was wrong but they gambled between Cabinet position and for the nation(PNG). Thumbs up for DON POMB POLYE Leader stood up for PNG when Government was wrong. My request to Chairman CoI SIR SALOMA have this report must KARIM KAIKAI na noken putim lo parliament house na ol cockroaches putim kio (egg).

  • I congratulate the current government on its bold decision to proceed on the enquiry. Even the PM himself will be implicated. His boldness to carry on by speeding up the enquiry shows he respects the country he was mandated to rule.
    Honesty and Transparency Survives.

  • 3 billion has done big job.forget about it.
    If thiis part of money was transfered to O’neils account sent him to Bomana.if there was nathing just waste of time.

  • How much of the K3 billion was deposited into PO’s personal bank account? Does anyone have any evidence to this effect? Please provide it to the Commission of Enquiry.

  • For Polye to come out and say it bluntly like this raises eyebrows. I guarrantee you if the investment made turned out positive Polye would not say anything. Anyway, James Marape need to step down as well. All of those who are implicated should be at the back bench for now. I am tired of wishy-washy Politicians who transition between the light and darkness seeking the favour of all. Woe to them!!

  • If PO benefited personally from the loan then he be sent to jail. If he did not, then this CoI is waste of tax payers money. How much is this CoI costing the tax payers. It unimaginable that if it costs tens of millions for lawyers and judges to just sit in the office and earn millions. PNG is confused

  • tungu and kinz,
    there is, but indirectly. business partnership, share holder, using other people to run their business for coverup,
    Black swan, wild cat, Monier, hebou( constatinou)china rail way(commision)etc, he oniel has break the great wall of png to build his own empire.
    marape was in it, he knew every piece and pieces of the ubs loan, he will face the law.

  • hey guys…the current PMJM is honest enough to be present at the Commission of Inquiry, while the former PMPO, is pointing figures and keep on avoiding to answer to COI, and hiding away, and

    Don, you a spot on…good on you!!

  • Its not about how much money being deposited into individual accounts or who benefited from the K3 billion. Its about the manner in which the loan was obtained.
    If 8 or 9 laws were broken as claimed by the former treasurer in obtaining the loan, then it is illegal and criminal in nature.
    Those responsible must be prosecuted…

  • Thank you Don Polye to raise the voice of all the PNG’s citizens.
    There has to be some right and honest leaders in our country, and those culprit has to face the law.

  • Japheth Kobol, you and your boss O`Neil when in power, you guys have manipulated the system to override the judiciary powers and were in control so it was really hard for people like former treasurer to talk out. Now the timing is right for former treasurer to come in with valid evidences to hold your neck pipe to check and find out whether everything that you and your boss had done were in order according to the laws of this land or not.

  • If the 10% share bought then it is well good that it should generate revenue and pay off the loan. Oil search and the current and Former should check.

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