Foreign Currency situation consequence of spending spree: Basil

Caption:   Opposition Leader Sam Basil.

By MATHEW VARI

Sunday, May 22, 2016 (Sunday Chronicle, PNG)

OPPOSITION Leader Sam Basil claims the Government’s overpriced spending as a major factor in the foreign currency dilemma currently faced in the country.

He made the comments when asked about the Quarterly Economic Bulletin, December Quarter 2015, released on Thursday May 12, which reported also on key developments since then.

The reported highlighted clarification on the foreign currency situation where Central Bank Governor Loi Bakani clarified that despite current accounts recording a big surplus mainly due to the exports of LNG, it has not resulted in significant inflow of foreign exchange and Government tax revenues.

The revenue flows from the LNG exports are held in offshore accounts for debt services by the LNG project.

“We understand that all the proceeds of the LNG have been locked up in an Escrow account in Singapore and we may not see those monies in the 5 years and those are tied up and linked to the K3 billion UBS loan,” Mr Basil said.

“What has been done is that a private deal not sanctioned through parliament and is unconstitutional, with the case being re-registered with the former opposition leader, Don Polye, after it being thrown out and it has been brought back to be pursued to make sure that we get down to the bottom of this to prove that the loan is illegal.”

The unnecessary spending of the government through inflated costs of various infrastructure projects like Kookaburra and the Pineapple building and many other projects done unbudgeted, with extra costed and chewing up all the reserve money that we have and now we are almost broke.”

He said that it was a shame for BPNG Governor to take all figures to the Australia-Papua New Guinea Business Forum and Trade Expo in Cains, Australia.

“He should be reporting to Papua New Guineans- the shareholders the 8 million people.”

“We need the governor to come out and tell us the truth. There are many loans taken out of the system we do not have those figures to.”