PNG Opposition concerned with landowner equity

PNG LNG Vessel

OPPOSITION leader Don Polye says the 4.27 per cent landowner equity in the PNG LNG Project should not be used by the Government to raise funds.

He said there were fears that the Government would use the landowner equity as collateral to raise US$1.025 billion.

He said that Bank of PNG Governor Loi Bakani and Treasury Secretary Dairi Vele were tasked to raise K3.106 million (US$1.025m) as a syndicated loan or sovereign bond. 

The purpose of the fundraising exercise was to finance the purchase of 4.27 per cent in the LNG project by five provincial governments and landowners from the Government at K727.27 million (US$240m) per one per cent, for a total of K3.0681 billion (US$1.0125b). Polye said there was a “real possibility” that the Government would float the shares.

“The problem is the landowners are not getting any benefits. “I feel an injustice is being done to the landowners while they are suffering,” he said.

“It’s not right, it’s cheating on people and depriving the landowners of their rights.”