Watchdog wants to establish Kua’s advice on loan

 ATTORNEY-General and Minister for Justice Kerenga Kua will appear before the Ombudsman Commission today to provide  information on the K3 billion loan.
Under the Attorney-General Act 1989, Kua has a duty to offer legal advice to the Government.
The commission wants to find out from him what advice he gave the State on the loan.
The Commission under Section 21 of the Organic Law on the duties and responsibilities of leadership summoned Kua to give information relating to the matter being investigated. According to the summons, the Commission is investigating:

• The State’s acquisition of 149,390,244 (10 per cent) shares in Oil Search Ltd;
• The USD1.239 billion loan from UBS Investment Company AG (Australia Branch) which initially comprises A$335 million bridge loan facility and A$904 million collar loan facility; and,
• The engagement of UBS as advisers on the financing and the acquisition of the Oil Search shares, including that USB implements on behalf and upon the request of the State, a sovereign bond issues to replace the bridge loan.

Kua is summoned to explain where and when the loan was executed and whether or not the National Executive Council sought, obtained and considered any legal advice from the State Solicitor’s office.