Prime Minister Hon. James Marape has launched one of his strongest attacks yet on former prime minister Peter O’Neill, accusing him of “decades of reckless economic behaviour, cronyism, and the single greatest erosion of Papua New Guinea’s economic wealth in modern history.”

Speaking in Port Moresby, Prime Minister Marape said it was time Papua New Guineans clearly understood that Mr O’Neill “cannot lecture anyone on economic management” given his role in events dating back to the 1990s and extending through his tenure as Prime Minister from 2011 to 2019.

“Those Who Know His History Know He Is Not a Good Economic Manager”

Prime Minister Marape said O’Neill’s public portrayal of himself as a successful businessman did not match the historical record.

He pointed to Mr O’Neill’s role in the former Pacific Finance company and his influence during the collapse in value of the Papua New Guinea Banking Corporation (PNGBC) in the late 1990s.

“Those who truly know his history know how he started, how he rose within Pacific Finance, and how PNGBC’s value was eroded under that era,” PM Marape said.

He said the period between 1997 and 1999, when O’Neill was a senior figure in the People’s National Congress, was one of the worst in PNG’s economic history.

He noted that during that period, O’Neill was President of the PNC Party and was appointed Chairman of the PNGBC Board — under whose watch the bank’s balance sheet was severely eroded.

Allegations of Plunder During the 2011 Takeover

Prime Minister Marape delivered a detailed recollection of the eight months between August 2011 and April 2012, when O’Neill took office after replacing Grand Chief Sir Michael Somare.

He said this short period was enough to “deplete hundreds of millions of kina of trust funds” that had been accumulated through a decade of economic restructuring.

“Those were the savings built under the Somare Government from 2002 to 2011 — savings meant for the country’s future. They were plundered in just eight months.”

Prime Minister Marape added that it was during those same eight months — before he later joined the O’Neill Government — that controversial payments such as the first Paraka transactions were made in January 2012. “This all happened under his watch during that chaotic eight-month period,” he said.

UBS, Pacific Games Borrowing, and the 2018–19 Fiscal Blowout

Prime Minister Marape said the UBS loan scandal — already condemned by an inquiry — was one of the clearest examples of “scheming and corruption that cost this nation over K2 billion in lost wealth”.

“Because of the UBS disaster, PNG lost what we should have earned from PNG LNG in 2014.”

He also cited:

•        the expensive 2015 Pacific Games,

•        the APEC 2018 spending spree, and

•        short-term commercial borrowings such as the Credit Suisse loans.

“These were loans at 8.8% interest — reckless, expensive, and left for us to repay when we took office.”

He said the Motukea Port arrangement alone left PNG with K1.3 billion in obligations.

“He Gave Away the Country’s Birthright”

Prime Minister Marape accused O’Neill of undermining PNG’s long-term resource ownership interests, including attempts to reduce the country’s legal equity rights at Wafi-Golpu.

“By 2018, he was signing agreements overseas that reduced PNG’s rightful 30% equity in the project down to 20%. We reversed that immediately on taking office.”

He said the same behaviour was evident in O’Neill’s handling of the Porgera negotiations — a major factor behind his resignation from the O’Neill Government in April 2019.

“My resignation was principled — I saw decisions being made that were not in the national interest. That is why I left.”

“He Will Never Be Prime Minister Again”

Prime Minister Marape said he was speaking now because the country was approaching the 2027 General Election, and Papua New Guineans needed clarity.

“I have been too diplomatic for too long. But I must be honest with the nation — Peter O’Neill is not fit or proper to return to public office.”

He also questioned Opposition MPs who have nominated O’Neill as their preferred Prime Minister.

“It defeats every principle of good governance they speak about. You cannot condemn corruption and then nominate the very person who presided over some of the worst economic decisions in our history.”

The Prime Minister said he welcomed leadership from younger MPs across the political spectrum.

“There are many capable leaders — in Opposition and in Government — who can take the country forward. But not the same hands of recklessness that crippled this nation before.”

A Final Warning

Prime Minister Marape concluded with a blunt message: “For as long as I remain in politics, Peter O’Neill will never return to the office of Prime Minister.”

He said that while some may try to forget or rewrite history, those who have lived through PNG’s political evolution cannot ignore the damage done.

“Others may forget, but people like me — who have been students of PNG politics from the 1990s through the 2000s and right up to today — will never forget the generation that squandered this country’s wealth. I lived through that period, and I am committed to putting Papua New Guinea back on a path of stability, growth, and prosperity for our people.”