The UBS loan comprised two components, a bridging loan of A$335 million (K844 million) and a collar loan, (where the value of the parcel of shares on any day supported the loan itself), of A$904 million (K2.82 billion).
The divestment was executed after the market close on Thursday 1st September.
Political leaders have been at odds over the sale of the shares.
Prime Minister, Peter O’Neill, says the PNG state had made about US$30 million (K96 million) from the sale, and the loan action had been necessary. He said the investment had a positive influence on the direction of Oil Search, and had boosted investor confidence in PNG.
But former Prime Minister, Sir Mekere Morauta, claimed the total cost was likely to be more than K1 billion. The former Treasurer Patrick Pruaitch reportedly claims the cost could total K1.5 billion.
Kumul Petroleum Chairman Sir Moi Avei told The Post-Courier that under the current oil and LNG price environment oil prices are likely to stay ‘about the same for next few years’, so maintaining the loan was not sustainable for Kumul Petroleum.
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Now we have the answer, thanks not to the hopelessly corrupted Post Courier, National, EM-TV and other PNG media, but rather because of the Australian media and Australian reporters who have managed to get PNG and other documents on the UBS loan leaked to them so that at last the truth can be reported.
It turns out that the LNG monies are not coming into PNG. Yes, read that again. The LNG monies are not coming to PNG at all. The reason for this is Peter O’Neill and it all has to do with the always controversial UBS loan.
Peter O’Neill was advised by more than one government body not to sign that UBS loan because it wasn’t in PNG’s best economic interests. O’Neill ignored all the advice and all the advisors. He seemed desperate to push through the UBS loan. Thus he illegally bypassed parliament. He tried to coverup his illegal bypassing of NEC by having them approve the loan after the fact. Like the good little morons our Ministers all are, they didn’t question a thing. They approved the loan but after it had already been signed and couldn’t be withdrawn.
To conclude Sir Mekere and Mr Pruaitch have got more secrets to tell PNG at this point in time as our economy is at stake.
By Blogger Dwaightz…