Facing a string of cabinet resignations and a vote of no confidence, Papua New Guinea's prime minister finally stepped down on Wednesday. This caps a months-long political crisis for the country and puts a pin on the status of the multi-billion-dollar French and US-backed gas deal.
Peter O'Neill handed his letter of resignation to the country's governor general. "I hereby tender my resignation as Prime Minister of the independent state of Papua New Guinea, effective immediately" read the letter.
Neil had been criticised for endemic corruption and chronic underdevelopment. O’Neill, who has headed the culturally diverse country since 2011,initially said he would resign, on Sunday. He said he decided to step down "in the interests of ongoing political stability in our country" citing the need for "economic confidence and social unity."
Breaking point for his regime seems to be the recent $13 billion deal with Total and ExxonMobil to extract, pipe and ship liquefied natural gas (LNG) overseas. Tribal leaders who felt weren't getting a fair share from it were angered by the deal.
The deal angered powerful regional and tribal leaders, who suggested they were not getting a fair share.
One of the first ministers to resign was finance minister James Marape, from the Hela province in the highlands. He had said that the money would not go to ordinary Papua New Guineans, local firms or the regions.
A similar deal in the last decade has failed to bring wealth to a country where only 13 percent of citizens have regular access to electricity.
According to experts, O'Neill's departure could see an end to big-ticket infrastructure projects that many believe have benefited only Port Moresby and the country's connected elite.
The fractured opposition had rallied around National Alliance Party leader Patrick Pruaitch as their alternative prime minister. It is however not clear if the decision will get a consensus. Whoever takes power is likely to look again at how benefits are distributed from an LNG project that would almost double Papua New Guinea's gas exports.
The purchase of 40 Maseratis to ferry around foreign dignitaries by the government during an APEC summit became emblematic of O'Neill's tenure.
