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 Cook Islands will not pursue membership in the United Nations and the Commonwealth due to its inability to meet the criteria for UN membership and existing relationship with New Zealand, which fulfils Commonwealth membership requirements.

Prime Minister Mark Brown has clarified that the Cook Islands is not qualified for UN membership, a long-standing government proposal that has remained uncertain.

In an exclusive interview with Cook Islands News, Brown was asked to provide an update on the government’s plans for a UN membership.

“That’s old news now, I mean we’ve been around the block with that a few years, and a few times,” Brown said.

“So that’s again another one, we haven’t pursued that. There are a number of criteria that the UN requires for membership and according to them, we don’t meet those requirements.”

Cook Islands has maintained diplomatic ties with the UN since the 1990s. It is not currently a member of the UN.

Earlier this year, the Cook Islands government applied for membership with the International Monetary Fund (IMF), a first step on the road to becoming a member of the UN.

Cook Islands Minister for Foreign Affairs Tingika Elikana then told RNZ that the decision to become a UN member would ultimately need to be decided by the general population of the Cook Islands through a referendum.

The Cook Islands is part of the realm of New Zealand, which makes Cook Islanders also New Zealand citizens. If the Cook Islands joins the United Nations as a separate member to NZ, it would potentially forfeit its citizenship rights under the current treaty which binds the nations.

“I don’t think short-term elected politicians should decide on that. I think a referendum would need to be run and then we will enter into discussions with New Zealand,” Elikana then said.

When asked about the possibility of joining the Commonwealth, an international association of 56 member states, primarily comprised of former British territories, Brown said the government would not be making another effort to try and become a member.

“We did enquire a number of years ago about it, but the understanding was because we’re part of the realm of New Zealand, that is considered our membership in the Commonwealth, even though we don’t have any place at the table, and we don’t speak at the Commonwealth,” Brown explained.

“So, they consider that our realm relationship is where we are in terms of Commonwealth membership.”

Cook Islands News understands the Ministry of Foreign Affairs and Immigration has written to the Commonwealth Secretariat about the country’s membership.

Brown confirmed that a letter had already been submitted to the Commonwealth for that purpose, but he was uncertain whether a response had been received.

“But from what I understand, that is the response that we’ve had from officials at the Commonwealth, is that they consider us through New Zealand as part of the realm of New Zealand as already being covered in the Commonwealth, even though we don’t have a seat or a voice there.”

When asked if this would be considered the government’s final attempt to gain Commonwealth membership, the Prime Minister responded “yes”.

“I think so, I mean I’ve got to weigh it up as well with what benefit we get from being part of the CHOGM (Commonwealth Heads of Government Meeting),” he said.

Brown added that there were areas where the Cook Islands did receive support from the likes of the Commonwealth Secretariat.

“We have had support from the likes of the Commonwealth Secretariat in the past with things like technical assistance that they provided for us in the early stages of our development of our Seabed Minerals Authority office.”

Republished with permission from the Cook islands News.

Article by AsiaPacificReport.nz

Papua New Guinea’s deputy opposition leader James Nomane has accused the government of “reckless economic management” that has forced devaluation to manage loan repayments in foreign currency and placate the International Monetary Fund (IMF).

Prime Minister James Marape “must stop lying to the people of Papua New Guinea”, he said in a statement responding Marape’s message that devaluation was inevitable and good for exports.

“The devaluation of the kina was planned — not inevitable. Although the kina devaluation makes PNG exports cheaper, we have not invested in agriculture to increase production and export volumes that will improve our trade deficit,” said Nomane, a former minister in Marape’s government.

He was responding to a report by an ANZ economist forecasting that the unpegged the kina was expected to continue its depreciation until 2026. The lack of significant new foreign currency inflow was pushing down the kina’s value, with the currency already losing 2.1 percent against the US dollar since the end of 2023.

Nomane said the devaluation would increase the cost of imports and directly increase domestic prices.

Continued price increases in basic goods and services such as rice, tinned fish, fuel, water, electricity would raise inflation and make the cost-of-living crisis worse.

“Marape has been fixated on borrowing to fund Connect PNG and other dubious investments that enrich a small group of his cronies at the expense of the nation,” Nomane said.

‘Dubious state guarantee’
“Sovereign guarantees that will not create jobs or spur economic growth have become the Marape modus operandi.

“For example, the dubious K2.4 billion (NZ1.4 billion) state guarantee for a solar-power project in Gusap, Madang province, without any due diligence to a K2 Singapore company.

“Marape seems to imply that the government can tell the Central Bank what to do.”

This inferred control was dangerous and an affront to Sir Mekere Morauta’s exemplary reforms for total independence of the Central Bank.

By melding the Treasury and Central Bank, the Prime Minister was preempting the decisions of the Central Bank in terms of interest rates and monetary policy.

“Devaluation will raise inflation and the cost-of-living, lower creditworthiness, and reduce investor confidence.”

Republished from the PNG Post-Courier with permission.

Article by AsiaPacificReport.nz