Cash crises needs addressing: Polye

Opposition Leader, Don Polye said the country’s current economic management crisis shows that the country’s economy is being run on an ad-hoc manner without much understanding on contemporary condition today.

Polye in a press conference last week Thursday said that ordinary Papua New Guineans are experiencing the consequences while the government continues to ignore the situation.

He said vital Departments like Heath and Education are paying the price as cash shortages continue to hinder basic goods and services to the people.

“Statutory organizations and state bodies have not received their full operational funds. Members of Parliament have not been paid their full salaries as well for more than three months.

“Public servants are suffering silently as fortnights have gone by since last September and they have not received their full pay.

“Embarrassingly, PNG’s diplomats and their staff overseas have not received full pays and other funding as well,”

He said he had spoken to the Bank of South Pacific (BSP) which had informed him that the late payment of public servants salaries into the bank is a first of its kind.

He said the Bank of PNG ‘s monthly economic report for November and December last year, and January this year had illustrated the government’s cash flow to remain in significant deficit, for some time, makes sense now after IMF’s revision of global economic growth and continued sliding of oil prices.

“The problem gets worse when you see that the Mineral and Petroleum prices are to remain low this year.”

Polye expressed concerns that such situation in the country is not favorable as crime, committed by both good and well-to-do citizens and the bad, chronic criminals will escalate.

“Human rights and justice can be undermined when living in such conditions become difficult and people’s well-being are abused.”

Thus, the shadow cabinet resolved that the executive government;

1.       Reviews the 2016 National Budget and make urgent adjustments to concentrate on basic needs of citizens.

 

2.        Address liabilities to the state such as the UBS Loan and other commercials loans taken as matter of urgency. The K3 billion UBS Loan was a big mistake that has a bad impact on PNG’s economy today. The 10.1% shares in Oil Search Limited share be sold to free up PNG of this liability to prevent immediate deprivation of PNG of the much needed cash from the PNG LNG sales.

3.       To establish immediate programs to facilitate manufacturers and urge locally produced items like the building materials and gradually cut down on imports. SME’s should be given the task to produce and supply local products.

 

4.       Call on the Speaker and GG to recall parliament earlier than scheduled to address fiscal/cash flow crisis at hand. According to the Constitution, any decision to recall parliament is a prerogative of the Cabinet which could discuss the option with the PM. These are times the leaders need to think outside of the box in the best interest of the country.

Polye added that the opposition is concerned with the current situation and is saddened that lies have been continuously and forcefully fed to the people.