Allies vow to fight aid fraud

AUSTRALIA and Papua New Guinea yesterday agreed to ensure there would be no fraud in the delivery of Australian aid to the country.
The governments pledged to ensure that aid was transparently programmed, managed and delivered for the benefit of every PNG citizen.
The agreement was signed in Port Moresby by Planning and Implementation Minister Sam Basil and the    director general of the Australian agency for international development (AusAID) Peter Baxter.
The agreement would ensure:
lAny suspected fraud within the Australian aid programme in PNG be thoroughly and comprehensively investigated with perpetrators prosecuted to the full extent of PNG’s laws;
lPNG’s investigative bodies will provide progress updates to AusAID on investigations within one month of  receiving reports of suspected fraud;
lEvery effort is accorded by PNG authorities to recover any funds lost due to fraud or corruption;
lThere will be improvement of PNG procurement and financial systems to ensure that aid funds are disbursed effectively and efficiently; and
lAustralia will provide assistance to PNG agencies to fight corruption.
The zero tolerance on aid corruption approach was discussed during the ministerial forum in Canberra last October.
The forum agreed that fraud and corruption presented significant impediments to development and agreed to weed out
corruption.
They acknowledge the negative effect that fraud and corruption could have on the effective delivery of crucial services and on economic growth and poverty reduction.
It often impacts on the poorest members of PNG society by diverting funds away from essential services.
“Fraud and corruption can result in fewer drugs and medical supplies in hospitals and health posts, fewer textbooks in schools, and a lack of confidence in the rule of law,” a joint statement said.