The Papua New Guinea government under newly elected leadership continues to act swiftly regarding the A$1.2 billion UBS loan with Prime Minister James Marape announcing the commission of inquiry hours after the investigation was launched.
Marape named former Chief Justice Sir Salamo Injia as the commission of inquiry (COI), adding that he was a man of respectable standing and integrity to deliver «what the country and the people wanted to know concerning the UBS K3 billion ($847 million) loan».
«As I have promised to the people and the country, we need to have answers to how and why this UBS loan was obtained?» he said in a local media report. «Whether it was done properly in compliance with our country’s laws, who are the principal players and what benefit did the country gain from the loan transactions?»
Anti-Corruption Drive
Marape’s anti-corruption drive occurs as the economy is reportedly being hit by the loan due to contributions to foreign exchange shortage and subsequent impact to local businesses. According to an opposition leader Patrick Pruaitch, the loan was «one of the most lucrative deals ever done by UBS» with interest rates starting at three percent and surging to seven to 12 percent within a year.
«Growing the economy but without putting the check mechanisms to stop wastage through deliberate complacency in corruption or character complacency in attitude and recklessness is something that we must stop,» Marape added. «As prime minister, I intend to make my mark in the country.»
