Papua New Guinea is reeling from a fuel crisis that, according to Deputy Leader of the Opposition and Chauve MP, James Nomane, is a deliberate, man-made catastrophe, allegedly driven by greed and political manipulation.
Nomane has called for the Prime Minister to address critical questions regarding the crisis.
The Deputy Opposition Leader, who is the Shadow Minister for Treasury, Finance, Economy, and Rural Development, said the root of the crisis appears to be a conflict between Puma Energy and the Central Bank, raising concerns about the State’s directive for Kumul Petroleum Holdings Limited (KPHL) to act as a de facto Central Bank.
He said this move has led to speculation about whether the Central Bank has exhausted its US Dollar reserves, with further questions about the role of the International Monetary Fund (IMF) in restricting the Central Bank, potentially causing kina devaluation and inflation.
Nomane has highlighted troubling connections between key political figures and entities involved in the crisis, further demanding clarity on the relationship between Prime Minister James Marape, Hela Governor Philip Undialu, Hela Investments, Arafura Energies, and Puma Energy, over serious claims that Hela Provincial Government is using taxpayer and landowner funds through Hela Investments and Arafura Energies to allegedly meddle in the fuel industry without fulfilling contractual obligations, leading to significant financial losses.
Nomane also raised additional questions about the role of Petroleum and Energy Minister Jimmy Maladina, who is accused of pressuring Puma Energy and acting beyond his regulatory powers to benefit Arafura Energies.
It is alleged that the Prime Minister directed KPHL to intervene to prevent a US$6 million loss for Arafura Energies, raising concerns about how KPHL will recover these funds.
The situation is further complicated, allegedly by Arafura Energies’ failure to meet a second order, potentially incurring penalties and damages totaling US$11 million, which Nomane insists is imperative to determine whether the State or Hela Investments will bear these costs.
He said these serious allegations point to possible impropriety and demand an immediate investigation.