He said UBS should pay back the money it overcharged PNG, which the commission estimated was $175 million.
“This money should be returned to the people of PNG,” he told parliament.
PNG prime minister James Marape strongly criticised UBS in parliament. Alex Ellingahusen
However, UBS said it “strongly disputes assertions that it overcharged PNG”.
The commission’s report, which was tabled in parliament on Wednesday morning, gave a damning assessment of the 2014 loan arrangement, describing it as “entirely unnecessary”, according to Mr Marape, with “no satisfactory justification or rationale”.
PNG used the proceeds of the loan to buy a 10 per cent take in ASX-listed Oil Search via a placement. Oil Search in turn used the funds to buy a 23 per cent stake in PNG’s Elk Antelope gas field from Canadian oil firm Interoil and PAC LNG a private company.
But a plunge in oil prices and Oil Search shares triggered an effective margin call for PNG. The commission said it resulted in losses to the state of more than $340 million.
Nation littered with losses
The circumstances, legalities and the disastrous financial outcome for the Pacific Island nation has meant the so-called UBS Loan Affair has remained a highly controversial and politically charged saga that took place under former prime minister Peter O’Neill.
“Our nation is littered with so much losses that is the result of this executive government decision,” Mr Marape told parliament.
“Those are hundreds of…
