Key PNG issues 2: Governance & corruption
22 January 2011
BY RICHARD MARLES
Late last year, PNG Attitude asked readers to nominate the issues they’d raise if given the opportunity to speak with Australia’s Parliamentary Secretary for Pacific Island Affairs, Richard Marles. We’re publishing his statements in four ‘Key PNG Issues’ segments
THE BASIC RESPONSIBILITY for improving governance and addressing corruption in Papua New Guinea resides with the Government of PNG. That said, Australia is strongly committed to supporting our closest neighbour to address these challenges.
Through the $150 million PNG-Australia Law and Justice Partnership, Australia and PNG are working together to achieve measurable improvements in law and justice services at local and national levels. We are assisting PNG to build accountable and transparent government, and to implement anti-fraud and anti-corruption activities.
At PNG’s request, Australia is also supporting the PNG Ombudsman Commission to strengthen its investigative functions and improve its human resource management, planning and case management.
We also support a twinning program between the Australian Commonwealth Ombudsman and the PNG Ombudsman Commission.
Australian support has also resulted in achievements in strengthening aspects of governance in PNG, such as strengthening the anti-money laundering and proceeds of crime capacity of the National Fraud Squad. In 2009, Papua New Guinea’s National Fraud and Anti-Corruption Directorate made 41 arrests for alleged offences totaling a monetary value of K44 million, almost 30 per cent more than in 2008.
On top of this, we are supporting civil society organisations, particularly Transparency International PNG, to improve community knowledge of corruption and build demand for improved governance.
Some of your readers have raised concerns about the impact of foreign investment in PNG. Investment by foreign companies is an important component in building PNG’s economy and can contribute significantly to development outcomes.
Although corporate activities in PNG are governed by PNG legislation, Australia has legislation that governs the activities and reporting of those companies registered in Australia.
Hon Richard Marles MP is the Parliamentary Secretary for Pacific Island Affairs in the Australian Parliament
PNG Attitude welcomes readers’ comments on the Parliamentary Secretary’s views
Thanks to Paul and Phil for explaining to us the mind of the bureaucrat. Getting bureaucrats to feel for the country that they are trying to help is half of the problem. The other half is getting the PNG leaders, who meet with them to discuss aid, to be honest and not corrupt.
Last night I watched that wonderful film "Bran Nue Dae" on the ABC. What a thrill it was to see that production. I bought a copy of the musical when it first came out, many years ago, thinking "this is marvellous".
In PNG, I had been involved with promoting PNG culture, all part of the struggle to get the PNG people to be proud of their own race and culture.
To be proud of your own people there must be personal pride, high morals and honesty. From what Lydia is saying, this is what seems to be lacking in PNG today.
The people who have joined Sir Paulias Matane on his many Walks Against Corruption are obviously keen for the corruption to stop. The people working with Transparency International are struggling to find out ways to get it to stop.
Now Sir Paulias Matane is going back to his village to help the people there, who will lead the fight against corruption?
In Australia the Aboriginal people have had a long struggle to reach the point where they can all join together singing, "There is nothing I would rather be than to be an Aborigine". But isn't it wonderful to hear them sing this!
In PNG they need leaders who can still sing the old song:
Our land is the land of the high mountains,
Of sunlit palms and coral seas,
Where the people sing, while the drums are beating,
For our land is strong and free.
Papua Papua, New Guinea New Guinea
Papua New Guinea, our motherland,
Let us join our hands, let us work together,
United we shall stay.
PNG leaders who somehow accrue large fortunes and rush off to buy expensive houses in Cairns are probably not singing this wonderful song today. Pity!
Posted by: Barbara Short | 24 January 2011 at 07:22 AM
Spot on Paul. I've fielded a few parliamentary questions in my day too. As I recall the question comes down the line to the area of responsibility.
If it happened to land on your desk the response was usually: (1) What's this crap? (2) Oh hell, why do they want to know that? (3) I'd better cook something up to make them happy; and (4) I hope that will confuse them enough to keep my job.
In short, the sort of responses we're seeing from Mr Marles are totally unreliable.
But where else do you go to get answers?
Posted by: Phil Fitzpatrick | 23 January 2011 at 11:26 AM
As someone who has had in the past to write responses to Parliamentary questions, the old phraseology and use of percentages sounds all too familiar.
I can remember an old WO2 in Defence who was responsible for producing statistical reports. He had a large sign over his desk that said: "Lies, Damn Lies and Statistics".
With due respect to those who have to prepare benign yet seemingly positive responses for release by politicians, it's hard not to be a tad cynical when one reads the following statement:
"In 2009, Papua New Guinea’s National Fraud and Anti-Corruption Directorate made 41 arrests for alleged offences totalling a monetary value of K44 million, almost 30 per cent more than in 2008."
What does that statement mean in reality? That each of the 41 arrests was for slightly over K1 million? Was there 30% less fraud and corruption in 2008 than was detected in 2009? Does that therefore mean fraud and corruption are on the increase?
And how many of those cases where arrests occurred ended in convictions? How much of the fraudulently obtained money was recovered? How many reported cases remained unresolved in both 2008 and 2009? How has the National Fraud Squad actually been strengthened?
Exactly what did Australia and PNG get for 150 million (kina or dollars)? This is not a small sum of taxpayers’ money. What were the claimed benefits and how were they assessed? Were there agreed benchmarks to be met before the money was handed over?
If indeed there is an effort to build 'accountable and transparent government', why not release how this is being achieved?
If, as is stated, the 150 million expended is to 'achieve measurable improvements in law and justice services at local and national levels', then what measurable improvements were actually achieved? Who actually received these funds and how were they disbursed?
When examined in detail, statements such as these by the Parliamentary Secretary create huge credibility gaps that generate more doubts about our overseas aid program rather than dispelling them.
Posted by: Paul Oates | 23 January 2011 at 09:18 AM
C'mon, didn't Somare take a rather large delegation of his cronies/friends to Copenhagen for the summit on climate change?
It was reported that he had a long discourse with the best of the corrupt and pilfering leaders, the one and only Robert Mugabe!
I guess Somare was a very good listener. I am just so sad for PNG.
Posted by: Colin Huggins | 22 January 2011 at 03:17 PM
The present government in PNG cannot be trusted to negotiate contracts with aid money. Everything is used as an opportunity to steal what was meant for development of the nation and the benefit of the people.
If you are wondering where the money comes from for luxurious properties in Cairns for certain ministers, you may need to look no further!
Barbara's suggestion regarding an Independent Commission Against Corruption is a very good one.
It is one that the Australian government should insist on before any further funds are handed over. Further, they should be insisting that offenders be prosecuted and cases be dealt with quickly and without favour.
Australian taxpayers have a right to demand that the Australian government takes steps to stop the corruption.
Posted by: Lydia Kailap | 22 January 2011 at 02:00 PM
Maybe there should be some ethical conditions and basic audit measurements applied to major contracts.
Perhaps I'm being naive, but fundamental accountancy disciplines combined with some ethical preconditions might help reduce corruption?
The problem is how to enforce this, when even the Ombudsman is under attack from vested interests?
Posted by: Peter Kranz | 22 January 2011 at 12:23 PM
I have heard that the PNG company criticised for its incompetence in the K7 million so-called renovation of Keravat National High School in 2009 is out to get the contract for building a new highway in East New Britain.
This company is capable of doing anything it seems. It is also said to be running a shipping service and is interested in gold mining. I've also heard the PNG owner lives in Cairns.
Maybe the PNG government is trying to stop "boomerang aid" but, if PNG companies are just wasting money and not getting jobs done properly, surely it is better to get overseas companies to come in and do the job properly.
At the same time these overseas companies should employ local people, as far as possible, so they can improve their skills in the long run.
Posted by: Barbara Short | 22 January 2011 at 11:15 AM
Mr Marles, Hello! What is AusAID doing about this?
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ROAD PROJECTS FACE THREAT
Source: The National, 21 January 2011
KEY aid donors, partnering the government in infrastructure development, are threatening to re-direct their aid program unless the national government moves swiftly to restore integrity and transparency in its tender procurement and financial accountability systems and processes.
Sources within the donor community revealed last night that AusAID was not particularly keen to continue with the current manner of engagement with the government after a three-year major road maintenance contract under its transport sector service improvement program (TSSIP), which would have started in 2009, fell through due to political heavy-handedness and interference.
The project involved the resealing and maintenance of a part of the Highlands Highway between Lae in Morobe and Goroka in the Eastern Highlands.
Reports said in 2009, AusAID’s “no objection letter” recommended a K53 million bid by Shorncliffe, a well established and reputable road sealing company in PNG, to undertake the road maintenance project. The technical evaluation committee also affirmed AusAID’s recommendation.
However, between the Central Supply and Tenders Board (CSTB), which considered and approved the donor recommendation, and the national executive council (NEC), “the figures changed to K65 million, an increase of total contract cost by an unreasonable K13 million which is exorbitant and well outside the tender process consideration”.
“To our surprise and dismay, the names of the recommended contractors also changed. The implementation of the project has been delayed and no work has started. We have tried to salvage the project through re-tendering but this has deliberately been delayed without any real work being done.”
The same practice had been identified in a number of other key contracts in the country. Deputy Prime Minister and Works Minister Sam Abal had stopped all projects which were of questionable status pending a thorough review. The awarding of two road maintenance contracts, valued at K20 million in the highlands, had also come under question.
Reports claimed that two contractors with no equipment and financial capacity had been awarded the projects.
It was understood that Abal had directed Works secretary Joel Luma to convene an urgent reconciliation meeting of aid donors within the infrastructure sector in a bid to streamline the various development aid packages and leverage them against the government’s overall development strategic and plans relating to infrastructure.
Posted by: Paul Oates | 22 January 2011 at 10:42 AM
I, and many of my PNG friends, would like to see an Independent Commission Against Corruption set up in PNG.
The one we have in NSW is always busy and has found many people guilty of corruption over the past few years. The PNG people need a court like this where they can see justice in action.
Sometimes an Ombudsman is not enough. An ICAC court and an open trial, with press allowed to report on all matters, would be a welcome addition to life in Port Moresby.
I am not qualified in legal matters so I'll leave it up to others to put it as a submission.
Posted by: Barbara Short | 22 January 2011 at 09:45 AM