Papua New Guinea prime minister Peter O'Neill faces leadership tribunal over loan
Papua New Guinea's prime minister, Peter O'Neill, has been referred to a leadership tribunal over allegations of misconduct in office relating to a $1.3 billion loan.
The tribunal will consist of three judges and will have the power to dismiss, suspend or fine Mr O'Neill.
The first sitting is scheduled for January 26.
Former New Zealand Supreme Court judge Sir Peter Blanchard will chair the tribunal, which will also include Australian John von Doussa QC and Papua New Guinean judge Salatiel Lenalia.
The allegations against Mr O'Neill relate to a loan the PNG government took from the Australian branch of UBS investment bank in order to purchase shares in the petroleum company Oil Search.
A statement from the chief justice said the allegations were "that the prime minister failed to comply with administrative and financial processes including the normal borrowing process" for the loan.
"It is further alleged that the purchasing of the shares was in the interests of Oil Search Limited and not in the interests of the independent state of Papua New Guinea," Sir Salamo Injia said.
Mr O'Neill welcomed the announcement of a leadership tribunal, saying he was keen to clear his name.
"It is best that this tribunal is convened sooner rather than later," he said.
"The referral by the Ombudsman Commission is not on a decision on a personal matter, it relates to a government decision by the cabinet of which I am chairman."
Mr O'Neill also claimed there had been a large amount of "politically motivated misinformation" as well as "blatant lies" relating to the purchase of the Oil Search shares by the PNG government.
"The purchase of these shares is an investment in the key resource infrastructure of our country," he said.
"Without such investment we continue to be bystanders in our own resources sector, which has been the case in decades past."
Mr O'Neill has been a staunch supporter of Australia's offshore immigration processing policy, agreeing last year to host a detention centre for asylum seekers on Manus Island.
In June police issued an arrest warrant for Mr O'Neill on unrelated corruption charges, but the prime minister refused to be questioned by police and is challenging the matter in multiple court cases.
He has strong support in the coalition government and is protected from PNG's notoriously common no-confidence motions until February, when a constitutional grace period expires.
In 2011, then-prime minister Sir Michael Somare faced a leadership tribunal and stepped down while the matter was heard, appointing a deputy.
PNG's chief justice said that issue would be dealt with next year.
"The question of suspension pending investigation into the question of misconduct in office of the prime minister is to be determined by the tribunal in its discretion," Sir Salamo said.
