Page 14 - IB FEB 2020

Politics Politics

Peter Aitsi UBS signage Photo: Supplied

2020: THE YEAR FOR AN PNG

ANTI-CORRUPTION COMMISSION?

By Kevin McQuillan It is widely regarded as a ‘slush fund’ for MPs, admits Aitsi.
“There are strict guidelines and reporting requirements
The Chairman of Transparency International PNG, Peter around these programmes,” he says, “but I must say if you
Aitsi, expects the Marape government to establish an oft- really drill down and look at the delivery of these programmes
promised anti-corruption commission to be set up by the end you’ll identify it as an avenue for corruption, it is an avenue
of 2020, paving the way for an improvement in the country’s for political vote buying and it’s an avenue for waste that
reputation, a boost for the economy and its people. goes through the public finance system.”
Last month (January), Papua New Guinea was once again When he came into office in 2012, Prime Minister Peter
listed as the most corrupt Pacific country in Transparency O’Neill outlined a twenty-year anti-corruption strategy.
International’s annual Corruption Perceptions Index. PNG now Because of prevalent corruption, and despite a budget
ranks 137 out of 180 countries, putting it in the 20 bottom surplus, the national wealth has failed to flow down to the
countries that were ranked as having the highest perceived people - a loss, O’Neill then said, of about K1 billion per
levels of corruption. annum.
By contrast, Solomon Islands is ranked 77th. Peter O’Neill then set up Taskforce Sweep to investigate
The head of TIPNG, Peter Aitsi, says corruption has allegations of corruption. Taskforce Sweep arrested about 60
a “significant impact on our country in many areas”, a business figures, senior bureaucrats and former and current
reflection of a steady deterioration of the public service since politicians in relation to various offences, including the
independence. misappropriation of many millions of dollars.
“These are the government systems that should be in But when evidence arose alleging that O’Neill himself had
place for the public to be protected and for the separation authorised the payment of $30 million of fraudulent legal bills
of political influence over the bureaucracy,” Aitsi told Islands to the country’s biggest law firm, Paraka Lawyers, O’Neill
Business. moved to shut down the taskforce, although the PNG National
Perhaps the best example of corruption is the District Court reinstated it.
Services Improvement Programme (DSIP), whereby each of So, O’Neill simply refused to fund the Taskforce and it no
the country’s 111 Members of Parliament is allocated money longer exists.
from the annual national Budget to spend as they see fit. A glimmer of hope the country may be starting to deal
The DSIP was introduced in 2007 to provide services at with alleged corruption is the Commission of Inquiry into a
a district level, with MPs consulting their constituents. K2.75 billion loan in 2014 from Swiss banking giant, UBS, to
Then, each MP was given K2 million (US$591K). It is now the (former) O’Neill government to buy a 10 per cent stake
K10m (US$2.95 million) per MP. It is not known how much in ASX-listed Oil Search. The inquiry is looking into whether
consultation goes on as few MPs file returns outlining how politicians broke the law by passing the deal.
that money is spent. PNG is estimated to have lost K1 billion kina on the deal
By 2014, the Auditor-General concluded there was after being forced to sell out of Oil Search in September 2017,
“ineffective spending of DSIP grants”, “potential misuse of as the company’s share price fell amid a broader slump in
DSIP funds”, “limited accountability” and “likely instances of commodity prices. Marape was Finance Minister at the time
fraud and misappropriation”. and told parliament he would resign if found to have acted

14 Islands Business, February 2020