Solomon Islands Prime Minister Jeremiah Manele Embarks on First State Visit to Australia

Former Prime Minister of Papua New Guinea, Peter O'Neill, has delivered a scathing critique of the financial stewardship of the current Prime Minister, James Marape. O'Neill claims that the nation's K1.5 billion Kina Credit Limit has been completely exhausted under Marape's leadership, highlighting a series of financial missteps.

O'Neill accused Marape of failing to address the pressing financial issues facing the country and instead resorting to lashing out at journalists who question his decisions. He drew a parallel between the situation and the embarrassment of a declined bank card, underscoring the need for prudent financial management.

Mr.O'Neill

According to O'Neill, while most would reduce spending under such circumstances, Marape has continued to overspend, depleting the K1.5 billion Temporary Advance Facility (TAF) credit limit. Originally intended as a temporary measure, the facility has been consistently overextended and is now fully utilized, causing delays in payments and a frantic search for funds.

O'Neill provided a timeline of the TAF limit increases, noting that it rose from K200 million in 2019 to K300 million in early 2020, before surging to K1.5 billion later that year. He criticized Marape for lacking a contingency plan, which has led to the government raiding state agencies for dividends and hurriedly organizing revenue collections.

Contrasting his administration's economic management with Marape's, O'Neill highlighted investments in free education, universal healthcare, and infrastructure during his tenure. He stated that his government borrowed responsibly, leveraging support from multilateral institutions like the World Bank and Asian Development Bank (ADB), and avoided bailouts from the International Monetary Fund (IMF) or loans from neighboring countries.

O'Neill emphasized that the debt-to-GDP ratio was below 35% during his administration, whereas under Marape, it has surpassed 53%. He pointed out that in 2024, PNG will face over K3 billion in interest payments before any other expenditures, referencing a recent statement from the Australian Government about more than K500 million in interest due on a secretive K6 billion loan accumulated by Marape.

 O'Neill urged Marape to adopt a more financially responsible approach, live within the nation's means, and make decisions that serve the best interests of Papua New Guinea, rather than using public funds to maintain power.

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Solomon Islands Prime Minister Jeremiah Manele Embarks on First State Visit to Australia