Sir Moi unaware of UBS loan details

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SIR Moi Avei says he was unaware of the details of the Union Bank of Switzerland (UBS) K3billion loan until he became chairman of the Kumul Petroleum Holdings Ltd (KPHL) in 2017.
The loan was obtained by the Government to buy shares in Oil Search Ltd in 2014.
He told the commission of inquiry looking into how the loan was obtained that he only became aware of the loan details when he took over as chairman.
The KPHL had taken over the loan repayments from the State by securing two collar loans from UBS and JP Morgan.
He said the UBS and JP Morgan were the two banks KPHL was dealing with during his time as chairman and director.
He was responding to questions by the commission on the novation of the K3bil loan responsibility to the KPHL.
“When I became aware of the obligation, I asked the KPHL management for further information about how (it) was to be managed, and how KPHL should deal with the Oil Search shares,” he said.
“I relied on KPHL managing director Wapu Sonk and financial adviser Greg Heaney to provide me information to help me and the board make decisions that were in the best interests of Kumul Petroleum Holdings Ltd in relation to managing the repayment obligation, dealing with or disposing of the Oil Search shares and investing in future petroleum assets directly or indirectly.”
After reviewing the information provided by the Kumul Petroleum Holdings Ltd management, the board decided to proceed with the recommendations.
“So on Sept 21, 2017, the board’s resolution to exit the collar loan and sell the Oil Search shares was implemented.”