Three staffers from Papua New Guinea’s peak anti-corruption body are embroiled in a standoff that has brought into question the integrity of the organisation.

Police Commissioner David Manning has confirmed that he received a formal complaint.

Commissioner Manning said that initial inquiries were underway to inform the “sensitive investigation board’s” consideration of the referral.

That board itself is controversial, having been set up as a halfway point to decide if an investigation into a subject should proceed through the usual justice process.

Manning indicated if the board determined a criminal offence had occurred, the matter would be assigned to the National Fraud and Anti-Corruption Directorate for independent investigation.

Local news media reported PNG Prime Minister James Marape was being kept informed of the developments.

Marape has issued a statement acknowledging the internal tensions within ICAC and reaffirming his government’s commitment to the institution.

Long-standing goal
The establishment of ICAC in Papua New Guinea has been a long-standing national aspiration, dating back to 1984. The enabling legislation for ICAC was passed on 20 November 2020, bringing the body into legal existence.

Marape said it was a proud moment of his leadership having achieved this in just 18 months after he took office in May 2019.

The appointments process for ICAC officials was described as rigorous and internationally supervised, making the current internal disputes disheartening for many.

Marape has reacted strongly to the crisis, expressing disappointment over the allegations and differences between the three ICAC leaders. He affirmed his government’s “unwavering commitment” to ICAC.

These developments have significant implications for Papua New Guinea, particularly concerning its international commitments related to combating financial crime.

PNG has been working to address deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) framework, with the Financial Action Task Force (FATF) closely monitoring its progress.

Crucial for fighting corruption
An effective and credible ICAC is crucial for demonstrating the country’s commitment to fighting corruption, a key component of a robust AML/CTF regime.

Furthermore, the International Monetary Fund (IMF) often includes governance and anti-corruption measures as part of its conditionalities for financial assistance and programme support.

Any perception of instability or compromised integrity within ICAC could hinder Papua New Guinea’s efforts to meet these international requirements, potentially affecting its financial standing and access to crucial development funds.

The current situation lays bare the urgent need for swift and decisive action to restore confidence in ICAC and ensure it can effectively fulfill its mandate.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

The Bank of Papua New Guinea’s Financial Analysis and Supervision Unit has reported more than 5000 cases as a result of anti-money laundering and counter terrorist financing investigations still awaiting prosecution.

Acting governor for BPNG Benny Popoitai said the FASU had identified persons of interest and companies and referred them to the Police Fraud Unit for further investigation and prosecution. However, none have yet been prosecuted.

He said at this stage FASU, under BPNG, did not have the powers to prosecute these cases.

“We have a real issue, we have not been prosecuting anyone under the Anti-Money Laundering (AML) law.

“We have cases of leaders being prosecuted, that we have sent to the Ombudsman Commission and others to the police.

“If it’s a tax matter we refer them to the IRC [inland Revenue Commission], If it is Customs it goes to Customs.

“The issue is, we do not have the prosecution powers so we send the information to the law enforcing agencies to enforce,” Popoitai said.

Risk of being ‘greylisted’
He also cautioned that FASU was also at risk of being “greylisted” for doing business with corresponding banks.

“PNG joined the rest of the Anti-Money Laundering and Counter Terrorist Financing with the rest of the world in 2008.

“As a result of their review of our AML, they grey listed us in 2014 and so we got out of the grey list.

“They are going to visit us, to see if we are not ready, they will put us down [on] the grey list and doing business will be really tough because of the correspondence relationship with the banks.

“Some of the international correspondents will walk away,” he said.

Popoitai said the AML business was now under the National Coordination Committee chaired by himself and the Secretary for Justice to oversee what other government agencies do.

Marape calls for prosecutions
Prime Minister James Marape has asked if those who are found to be breaking the AML laws be referred to the Independent Commission Against Corruption Act (ICAC) for prosecution.

Popoita said they could only do that once ICAC was established.

AML law introduced a robust regulatory framework consistent with the Financial Action Task Force (FATF) standards to prevent money laundering and terrorist financing.

Under the Act, the Financial Analysis and Supervision Unit (FASU) collects, analyses and disseminates financial intelligence, and supervises financial institution and Designated Non-Financial Businesses and Professions (DNFBPs)

Members of Parliament under this Act are classified as the politically exposed persons (PEP) meaning their conduct of business for themselves, their family and employees are important as this is how the Act governs and ensures the PNG economy is protected.

Lorraine Wohi is a PNG Post-Courier journalist. Republished with permission.

Article by AsiaPacificReport.nz

Allegations of young women being traded for votes in several parts of the Highlands region during Papua New Guinea’s national general elections were raised yesterday in Port Moresby.

A high level conference held by the Governance and Service Delivery Sectoral Committee raised the concern of past experiences in parts of Highlands where young women and girls were taken away because community leaders wanted votes.

Government authorities have yet to act over this inhumane treatment of women and girls.

Independent Commission Against Corruption (ICAC) interim chairman Thomas Eluh said there was no freedom in the voting system in PNG.

He said 2012 was the worst election experience he had had in his career.

He was in charge of the security operations in Hela Province, while also being the chief of Bougainville Police Service.

“From past experiences of those involved during that time, there were speculations or some had seen young women being traded for securing votes and a large amount of money was used,” he said.

‘Threats were issued’
“Threats were issued. There are many ways to get leaders into Parliament.”

Eluh said PNG was at the top of the list of most corrupt countries in the world, and it started from “households to the top bureaucratic levels”.

He said the consultative meeting aimed to bring stakeholders together to generate discussions on safety, transparency, fairness and accountability in the upcoming elections.

He said even trying to minimise such practices is not easy with all the challenges the country is facing.

“We all can sit here and talk about various steps of the ongoing issues affecting people, it is the voters out there who will play their part, they will be ones who will be targeted through corrupt means, so we appeal to our voters top stand firm and to follow the right processes and system — say no to corruption,” he said.

Eluh said everybody needed to work together and understand the importance of delivering a safe, secure and fair election.

The writs will be issued on April 28, and voting is due June 11-24.

Marjorie Finkeo is a PNG Post-Courier reporter. Republished with permission.

Article by AsiaPacificReport.nz

Anti-corruption efforts in Papua New Guinea have received a major boost of €5.4 million (about K21.7 million) in funding from the European Union, to be injected over three years.

United Nation Development Programme (UNDP) country representative Dirk Wagener said during the launch of an anti-corruption project in Port Moresby on Friday that corruption had hindered Papua New Guinea’s development.

“The European Union will provide €5.4 million to this project, in addition to the funding which will be made directly to the government of Papua New Guinea to implement key components of the government’s anti-corruption strategy and plan of action,” he said.

Wagener said the strategy recognised that combating corruption was a necessary precondition for national development and was fundamental to ensuring that people could benefit from the services and goods due them.

“It is, simply put, a precondition for achieving Papua New Guinea’s national development vision and aspirations.”

He said that if not addressed, corruption would impact on PNG’s achievement of the sustainable development goals.

Wagener said the project had four outcomes designed to strengthen local capacities to tackle corruption effectively in which both government and non-governmental organisations would participate:

• Outcome one is designed to support the implementation and monitoring of the national government’s strategy plan of action;
• Outcome two will focus on establishing a fully operational Independent Commission Against Corruption;
• Outcome three will focus on strengthening existing anti-corruption investigation and prosecution actors; and
• Outcome four recognises the role of the public and civil society have to play in preventing corruption.

“The project will work with the Royal PNG Constabulary’s national and provincial anti-corruption and fraud units and the office of the Public Solicitor,” Wagener said.

Anti-corruption top of agenda
In November 2020, Loop PNG reported that Transparency International PNG congratulated Papua New Guinea on the passing of the Organic Law on the Independent Commission Against Corruption (ICAC).

“The campaign against corruption must be placed at the top of the agendas of our societies. Unless corruption is checked, it will poison our ways of life and corrode standards,” said chairman Peter Aitsi.

“At TIPNG, we welcome this law and the eventual establishment of the ICAC in our country. It is our hope that this body will further empower people in PNG to take action against corruption and work to protect the integrity of the people, society and nation of Papua New Guinea.”

He said that once established, the primary functions of the ICAC would be to:

• Prevent and reduce corrupt conduct, undertake research, recommend systems, strategies, practices and policies;
• Investigate and prosecute corrupt conduct; and
• Arrest a person of corrupt conduct.

Article by AsiaPacificReport.nz