Former PNG PM Peter O'Neill Accuses Marape Government of Misusing Ok Tedi Mine Funds
Port Moresby, Papua New Guinea — Former Prime Minister Peter O'Neill has criticized the government for mismanaging Ok Tedi Mine, leading to over K800 million in corporate debt.
O'Neill explained that in 2013, Ok Tedi Mining Limited (OTML) was handed over to the State of Papua New Guinea and the people of Western Province. This change aimed to ensure that the local people, who were most affected by the mine, received the benefits.
"The people of Western Province have been lagging in development despite hosting the mine for decades," O'Neill said. "Previous efforts, like the PNG Sustainable Development Program, did not help enough. My government decided to transfer ownership of the mine to the local people to improve their situation."
O'Neill accused Prime Minister James Marape's government of using OTML as a source of money to support its spending. He pointed out that in 2021, OTML said it had no debt, but now it reportedly has K800 million in debt. This is despite OTML paying K1.2 billion in dividends since 2021, with K450 million in 2021, K300 million in 2022, and K450 million in 2023.
"In the last five years, the Marape government has taken money from OTML to support its spending," O'Neill said. "How can OTML now have K800 million in debt? Is it borrowing at high interest rates while also paying large dividends to the government?"
O'Neill also mentioned that OTML recently supplied JetA1 aviation fuel when the government failed to secure it, showing that OTML is stepping in to fix government problems. He argued that the mine should focus on its operations and helping the people of Western Province, not on supporting the government.
"The mine should not be used by Marape this way," O'Neill said. "It should stay focused on its work and on helping the local people. Hearing about the mine's massive debt is very concerning. The state is already in debt and struggling to pay basic expenses, and now OTML is also borrowing large amounts and paying big dividends, which the government is misspending."
O'Neill called on the government to stop using OTML for its financial needs and instead invest in improving the lives of the people, especially those in Western Province.
"OTML and other state-owned companies are not the government's piggy bank," he said. "The government should keep its hands off the people's assets."
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