Admit PNG in financial crisis: MP tells Govt

Source:The National, Wednesday August 5th, 2015

OPPOSITION leader Don Polye has urged the Government to admit that the country is in financial turmoil.
“The Government is so secretive about this cash flow shortage problem, thus keeping government institutions, business houses, financial institutions and even the people in suspense,” he said in a statement.
“The Government is irresponsible in failing to tell the truth so as to prepare the people to adjust to the financial crisis at hand.”
He said schools in Morobe were closing down and soon schools in East Sepik and in other provinces would follow suit.
Polye said the signs of a financial crisis included:

·      K200 million budget cut to the Health Department;

·      forcing the National Fisheries Authority to declare half-year profit and pay dividends to the Government contrary to set procedures of declaring profit at the end of a financial year;

·      forcing the National Petroleum Company to declare a half-year profit to pay dividends to the Government to boost cash liquidity;

·      lack of funding for the National Development Bank; and,

·      Mismanaging PNG Power Ltd, resulting in its bankruptcy.

Polye said the solution should be introducing a revised budget to correct the 2015 Budget figures, then advise the country of strict belt-tightening measures to follow.