Vele explains involvement

TREASURY Secretary Dairi Vele told the Commission of Inquiry into the Union Bank of Switzerland K3 billion loan that talks on the loan had already been in progress when he took up office in August 2013.
He said he was therefore not involved in the early stage of negotiations on the loan.
But he became part of the planning until the final Cabinet meeting on March 6, 2014.
He told the inquiry that had the loan not gone ahead, a decision would have to be made on whether to retain the Oil Search Ltd shares or to take another course of action.
Assisting inquiry counsel Dr James Renwick questioned Vele on his affidavit included the emails, notes and letters presented.
According to the affidavit, Vele said that there was a trip to Abu Dhabi by the then Minister for Public Enterprise Ben Micah which the Treasury Department was not a part off. “Part of the reason Treasury didn’t attend was that I was concerned that they didn’t have an option.
“They were going to be at the mercy of the International Petroleum Investment Company (IPIC),” he said.
“I would have preferred to go and have options.
“And whichever way discussions went, we could report back to the prime minister and Cabinet.”
Vele said he was part of a second trip in February 2014 which found out that the IPIC would not be returning shares in Oil Search
“We had some discussions on whether the IPIC management retain or return shares to us.
“Once it was clear that there would not be returning the shares, it brought on the other options whether the State wanted to retain shares in Oil Search,” he said.
They sought the view of then Prime Minister Peter O’Neill on which option was appropriate if the State wanted to have a share in Oil Search.
Vele will appear before the inquiry again today.