The Falcon jet that was disposed by the Papua New Guinea Government.
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| The Falcon jet that was disposed by the Papua New Guinea Government. |
K30 million debt forces PNG Govt to dispose jet bought at K170 million
PORT MORESBY: The Falcon jet that was bought by the Government during Sir Michael Somare’s tenure for close to K170 million has been disposed to Air Niugini after incurring debts of up to K30 million.Prime Minister James Marape disclosed this on his Facebook page on Wednesday (Jan 29, 2020).
The National has reported the details of the disposal and also former prime minister Peter O’Neill’s immediate response:
Jet disposed of over K30mil debt
By GYNNIE KEROPRIME Minister James Marape says the Government has disposed of its K120 million Falcon jet to Air Niugini after incurring debts of up to K30 million.
In a posting on his social media page (Facebook) yesterday, Marape said: “I am disposing Falcon formally to Air Niugini after my predecessor (Peter O’Neill) rounded up bills (of) over K30 million owed to Air Niugini by using it.
“I remember in 2012 an announcement was made to sell this but it never happened and many trips were made that racked up this bill.
“I am getting rid of this bird (Falcon) from Government books to PX (Air Niugini) for them to make business from it.”
He said since taking up office on May 31 last year, “I have used it five times and I will stop now and take commercial flights unless it’s urgent.”
In response, O’Neill told The National yesterday that the K30 million bill charged to Government was “for the past 12 years”.
He explained that Air Niugini was charging bills “for a plane they did not pay for”.
“This plane was purchased by (Sir Michael) Somare for close to US$50 million (K170 million),” he said.
“I tried to sell it, and the closest offer we received was close to US$20 million (K68 million).
“So it was decided that we transfer ownership to Air Niugini and deduct what Government paid for as we charter the plane.”
O’Neill said the Government should not be owing money to Air Niugini “because it did not pay the plane from its balance sheet”.
In 2011, then PM O’Neill announced the Government’s decision to give the Falcon jet to Air Niugini to use or sell.
“We are transferring ownership to Air Niugini and Air Niugini can dispose of it on the market or do charter business with it.”
At that time, O’Neill said Air Niugini was already owed K40 million by the Government for its management, crew, fuel and food.
He said should the aircraft be sold, Air Niugini could take what it was owed and the balance be given to the Government to be used in health and education.
The government was free to charter the jet if it so wished at a rate of US$10,000 per hour (about K24,000).
In a posting on his social media page (Facebook) yesterday, Marape said: “I am disposing Falcon formally to Air Niugini after my predecessor (Peter O’Neill) rounded up bills (of) over K30 million owed to Air Niugini by using it.
“I remember in 2012 an announcement was made to sell this but it never happened and many trips were made that racked up this bill.
“I am getting rid of this bird (Falcon) from Government books to PX (Air Niugini) for them to make business from it.”
He said since taking up office on May 31 last year, “I have used it five times and I will stop now and take commercial flights unless it’s urgent.”
In response, O’Neill told The National yesterday that the K30 million bill charged to Government was “for the past 12 years”.
He explained that Air Niugini was charging bills “for a plane they did not pay for”.
“This plane was purchased by (Sir Michael) Somare for close to US$50 million (K170 million),” he said.
“I tried to sell it, and the closest offer we received was close to US$20 million (K68 million).
“So it was decided that we transfer ownership to Air Niugini and deduct what Government paid for as we charter the plane.”
O’Neill said the Government should not be owing money to Air Niugini “because it did not pay the plane from its balance sheet”.
In 2011, then PM O’Neill announced the Government’s decision to give the Falcon jet to Air Niugini to use or sell.
“We are transferring ownership to Air Niugini and Air Niugini can dispose of it on the market or do charter business with it.”
At that time, O’Neill said Air Niugini was already owed K40 million by the Government for its management, crew, fuel and food.
He said should the aircraft be sold, Air Niugini could take what it was owed and the balance be given to the Government to be used in health and education.
The government was free to charter the jet if it so wished at a rate of US$10,000 per hour (about K24,000).
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