The Opposition is urging the Prime Minister to resign, after slamming the three-billion Kina loan deal, between the Government and U-S-B bank in Singapore.
Mr. O'Neill signed off on an agreement with the private bank, to secure the loan to buy back 10 per cent shares of Oil Search. Opposition Leader, Belden Namah told a Port Moresby news conference yesterday, the loan is unconstitutional and not in the best interest of the State and its people. Mr. Namah said, borrowing of these monies, will raise the country's debt of three-million to six-million Kina, which means an increase in the G-D-P ratio from 35 per cent to 47 per cent. Quoting the former Treasurer, Don Polye, who courageously advised against the loan, Namah, said, the agreement clearly infringes on the constitution. "That such a proposed loan should be subject to constitutional requirements.In the simplest form,it would be a breach of section 209 of the constitution which requires parliament's approval for breach and collar laws.The government would be in breach of the physical responsibility act which limits the debt to GPT ratio to be below 35 percent this year." Mr Namah said, the State Solicitor advised that the deal also violates the Organic Law on Sovereign Wealth Fund, which requires all proceeds from the L-N-G to be paid to the fund and the Fiscal Responsibility Act. Comments are closed.
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