Former leader says PNG needs rescue plan

12:32 pm on 19 July 2016

A former Papua New Guinea Prime Minister, Sir Mekere Morauta, says the country needs a well planned economic rescue plan, properly funded by its international friends and agencies.

Sir Mekere, a long time opponent of the current Prime Minister Peter O'Neill, said PNG could no longer afford Mr O'Neill's raids on public institutions to keep himself in power.

Mr O'Neill is facing a vote of no confidence this week after weeks of turbulence in the country.

Sir Mekere said Mr O'Neill had raided the National Provident Fund, the Papua New Guinea Banking Corporation and other key national institutions.

He also said Mr O'Neill was this week paying out tens of millions of dollars in District Service Improvement Program funds.

This money goes to MPs to use largely at their discretion within their electorates.

Sir Mekere said PNG urgently needed another mini-budget to correct mistakes in the original 2016 Budget.

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Photo: RNZI / Koroi Hawkins