SoE debts need to be on the books: Polye

Opposition Leader Don Polye.

By MATTHEW VARI

Sunday, November 13, 2016 (Sunday Chronicle, PNG)

OPPOSITION Leader Don Polye has raised concern over the incurred debt of State owned Enterprises (SoEs) through loan arrangements with various financiers that have been kept out of the budget books.

Mr Polye said that despite SoEs operating as corporate entities, their debt were guaranteed by the state.

“If the mentioned SoE loans are spent effectively to commercially intended purposes then depending on managements of the businesses the state might achieve the returns,” Mr Polye said.

“The argument is that the loans are not taken by the State but by the businesses themselves, we are okay and we should not worry.”

“That is not true, when you see the term SoE stand for State owned Enterprises, state owns its and this parliament owns it on behalf of the State.”

He said if the country continues to build loans from the companies, the government cannot continue its argument that they are private owned businesses with the government and parliament doing another job.

“All those debts accrued from those companies must be added on then just cutting them off the budget books.”

“Because what will happen if Power PNG, Port PNG, or another State Owned Enterprise does not pay and defaults its loan and goes bankrupt. Who is going to pay its loan? It is the government that will pay,” Polye said.

“Because the state is the guarantor, so these are very important, because you must not cover the truth in there.”

He added that the PM and treasurer must come out and talk about the loan situations to make better decisions, more informed decisions based on what is the truth.