PNG treasurer sacked by PM O'Neill

PAPUA New Guinea's treasurer has been sacked for creating instability within government, Prime Minister Peter O'Neill says.

Don Polye was sacked on Monday along with industrial relations minister Mark Maipakai.

"Mr Polye's conduct as Minister for Treasury and a senior partner in the government has been ongoing concerns for the government," Mr O'Neill said in a statement on Monday.

"The sacking of Polye has been done in the best interest of the government and the country."

Mr Polye is leader of Triumph Heritage Empowerment (THE) party, the second largest party in Mr O'Neill's 105 MP strong coalition government.

Mr O'Neill said the sacking of Mr Polye would not effect the role of THE party in government.

Mr O'Neill last week sacked long-serving energy minister William Duma and replaced him with former aide Nixon Duban.

It is uncertain what long-term ramifications the sacking of Mr Polye - long thought of as a potential prime minister - will have on the O'Neill government.

Mr O'Neill will assume the Ministry of Treasury and Deputy Prime Minister Leo Dion will hold the Ministry of Labour and Industrial Relations until permanent appointments are made.

Comment is being sought from Mr Polye.

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