NewzIntel.com

Category: Corruption

  • MIL-Evening Report: Internal tensions throw PNG anti-corruption body into crisis

    By Scott Waide, RNZ Pacific PNG correspondent

    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.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: PNG faces deadline for fixing issues with money laundering and terrorist financing

    ANALYSIS: By Scott Waide, RNZ Pacific PNG correspondent

    Papua New Guinea has five months remaining to fix its anti-money laundering and counter-terrorist financing (AML/CTF) systems or face the severe repercussions of being placed on the Financial Action Task Force’s (FATF) “grey list”.

    The FATF has imposed an October 2025 deadline, and the government is scrambling to prove its commitment to global partners.

    Speaking in Parliament, Prime Minister James Marape said Treasury Minister, Ian Ling-Stuckey had been given the responsibility to lead a taskforce to fix PNG’s issues associated with money laundering and terrorist financing.

    “I summoned all agency heads to a critical meeting last week giving them clear direction, in no uncertain terms, that they work day and night to avert the possibility of us getting grey listed,” Marape said.

    “This review comes around every five years.

    “We have only three or four areas that are outstanding that we must dispatch forthwith.”

    PNG is no stranger to the FATF grey list, having been placed under increased monitoring in 2014 before successfully being removed in 2016.

    Deficiencies highlighted
    However, a recent assessment by the Asia Pacific Group on Money Laundering (APG) highlighted ongoing deficiencies, particularly in the effectiveness of PNG’s AML/CTF regime.

    While the country has made strides in establishing the necessary laws and regulations (technical compliance), the real challenge lies in PNG’s implementation and enforcement.

    The core of the problem, according to analysts, is a lack of effective prosecution and punishment for money laundering and terrorism financing.

    High-risk sectors such as corruption, fraud against government programmes, illegal logging, illicit fishing, and tax evasion, remain largely unchecked by successful legal actions.

    Capacity gaps within key agencies like the Royal Papua New Guinea Constabulary and the Office of the Public Prosecutor have been cited as significant hurdles.

    Recent drug hauls have also highlighted existing flaws in detection in the country’s financial systems.

    The implications of greylisting are far-reaching and potentially devastating for a developing nation like PNG, which is heavily reliant on foreign investment and international financial flows.

    Impact on economy
    Deputy Opposition leader James Nomane warned in Parliament that greylisting “will severely affect the economy, investor confidence, and make things worse for Papua New Guinea with respect to inflationary pressures, the cost of imports, and a whole host of issues”.

    If PNG is greylisted, the immediate economic fallout could be substantial. It would signal to global financial institutions that PNG carries a heightened risk for financial crimes, potentially leading to a sharp decline in foreign direct investment.

    Critical resource projects, including Papua LNG, P’nyang LNG, Wafi-Golpu, and Frieda River Mines, could face delays or even be halted as investors become wary of the increased financial and reputational risks.

    Beyond investment, the cost of doing business in PNG could also rise. International correspondent banks, vital conduits for cross-border transactions, may de-risk by cutting ties or scaling back operations with PNG financial institutions.

    This “de-risking” could make it more expensive and complex for businesses and individuals alike to conduct international transactions, leading to higher fees and increased scrutiny.

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

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Plea for UN intervention over illegal PNG loggers ‘stealing forests’

    RNZ Pacific

    A United Nations committee is being urged to act over human rights violations committed by illegal loggers in Papua New Guinea.

    Watchdog groups Act Now! and Jubilee Australia have filed a formal request to the UN Committee on the Elimination of Racial Discrimination to consider action at its next meeting in August.

    “We have stressed with the UN that there is pervasive, ongoing and irreparable harm to customary resource owners whose forests are being stolen by logging companies,” Act Now! campaign manager Eddie Tanago said.

    He said these abuses were systematic, institutionalised, and sanctioned by the PNG government through two specific tools: Special Agriculture and Business Leases (SABLs) and Forest Clearing Authorities (FCAs) — a type of logging licence.

    “For over a decade since the Commission of Inquiry into SABLs, successive PNG governments have rubber stamped the large-scale theft of customary resource owners’ forests by upholding the morally bankrupt SABL scheme and expanding the use of FCAs,” Tanago said.

    He said the government had failed to revoke SABLs that were acquired fraudulently, with disregard to the law or without landowner consent.

    “Meanwhile, logging companies have made hundreds of millions, if not billions, in ill-gotten gains by effectively stealing forests from customary resource owners using FCAs.”

    Abuses hard to challenge
    The complaint also highlights that the abuses are hard to challenge because PNG lacks even a basic registry of SABLs or FCAs, and customary resource owners are denied access to information to the information they need, such as:

    • The existence of an SABL or FCA over their forest;
    • A map of the boundaries of any lease or logging licence;
    • Information about proposed agricultural projects used to justify the SABL or FCA;
    • The monetary value of logs taken from forests; and
    • The beneficial ownership of logging companies — to identify who ultimately profits from illegal logging.

    “The only reason why foreign companies engage in illegal logging in PNG is to make money,” he said, adding that “it’s profitable because importing companies and countries are willing to accept illegally logged timber into their markets and supply chains.”

    ACT NOW campaigner Eddie Tanago . . . “demand a public audit of the logging permits – the money would dry up.” Image: Facebook/ACT NOW!/RNZ Pacific

    “If they refused to take any more timber from SABL and FCA areas and demanded a public audit of the logging permits — the money would dry up.”

    Act Now! and Jubilee Australia are hoping that this UN attention will urge the international community to see this is not an issue of “less-than-perfect forest law enforcement”.

    “This is a system, honed over decades, that is perpetrating irreparable harm on indigenous peoples across PNG through the wholesale violation of their rights and destroying their forests.”

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

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Speight’s Fiji coup had more to do with power, greed than iTaukei rights, says Chaudhry

    Today marks the 25th anniversary of the May 19, 2000, coup led by renegade businessman George Speight.

    The deposed Prime Minister, Mahendra Chaudhry, says Speight’s motive had less to do with indigenous rights and a lot more to do with power, greed, and access to the millions likely to accrue from Fiji’s mahogany plantation.

    On this day 25 years ago, the elected government was held hostage at the barrel of the gun, the Parliament complex started filling up with rebels supporting the takeover, Suva City and other areas in Fiji were looted and burnt, and innocent people were attacked just because of their race.

    Chaudhry said indigenous emotions were “deliberately ignited to beat up support for the treasonous actions of the terrorists”.

    He said the coup threw the nation into chaos from which it had not fully recovered even to this day.

    Chaudhry said using George Speight as a frontman, the “real perpetrators” of the coup, assisted by a group of armed rebels from the Republic of Fiji Military Forces (RFMF), held Chaudhry and members of his government hostage for 56 days as they plundered, looted and terrorised the Indo-Fijian community in various parts of the country.

    The Fiji Labour Party leader said that, as with current Prime Minister Sitiveni Rabuka, who led the first two coups in 1987, so with Speight in May 2000, that the given reason for the treason and the mayhem that followed was to “protect the rights and interests of the indigenous community”.

    Chaudhry said today that it was widely acknowledged that the rights of the indigenous community was not endangered either in 1987 or in 2000.

    He added that they were simply used to pursue personal and political agendas.

    Prime Minister Sitiveni Rabuka with former prime minister Mahendra Chaudhry . . . apology accepted during the Girmit Day Thanksgiving and National Reconciliation church service at the Vodafone Arena in Suva. Image: Jonacani Lalakobau/The Fiji Times

    The FLP leader said those who benefitted were the elite in Fijian society, not ordinary people.

    Chaudhry said this was obvious from current statistics which showed that currently the iTaukei surveyed made up 75 percent of those living in poverty.

    He said poverty reports in the early 1990s showed practically a balance in the number of Fijians and Indo-Fijians living in poverty.

    Prisoner George Speight speaking to inmates in 2011 . . . he and his rogue gunmen seized then Prime Minister Mahendra Chaudhry and his government hostage in a 2000 crisis that lasted for 56 days. Image: Fijivillage News/YouTube screenshot

    The former prime minister says it was obvious that the coups had done nothing to improve the quality of life of the ordinary indigenous iTaukei.

    Instead, he said the coups had had a devastating impact on the entire socio-economic fabric of Fiji’s society, putting the nation decades behind in terms of development.

    Chaudhry said the sorry state of Fiji today — “the suffering of our people and continued high rate of poverty, deteriorating health and education services, the failing infrastructure and weakened state of our economy” — were all indicators of how post-coup governments had failed to deliver on the expectations of the people.

    He said: “It is time for us to rise above discredited notions of racism and fundamentalism and embrace progressive, liberal thinking.”

    Chaudhry added that leaders needed to be judged on their vision and performance and not on their colour and creed.

    Republished with permission from FijiVillage News.

    2000 attempted coup leader George Speight with a bodyguard and supporters during the siege drama in May 2000. Image: Fijivillage News

    Article by AsiaPacificReport.nz

    MIL OSI Analysis – EveningReport.nz –