K1.4b lost through corruption

National, Normal

The National, Monday November 11th, 2013


THE country would have lost about K1.4 billion this year through corrupt practices, the Task Force Sweep team says.

It said since 2007, the Government had allocated K19 billion for development projects. 

The Task Force Sweep team said at least K7.6 billion was lost through fraud and corruption.

“Papua New Guinea is yet to develop its corruption detection mechanisms to fully measure the scale of the problem,” spokesman Nikints Tiptip said.

Tiptip said new trends of corruption were emerging and mostly law firms were being used to launder funds obtained through corruption.

He said PNG’s international development partners were managing their own funds for projects in the country as a result of corrupt practices in the country.

The taskforce said around 40% of the development budget was lost through mismanagement annually.

“Most of the fraud-related corruption is orchestrated in secrecy. What has been reported to ITFS is a small proportion of the corruption detected,” it said.

“Though we have fought hard to deter further corruption under the political will committed by the O’Neill government, habitual corrupters are like leeches that feed off from the government coffers and are becoming more adept at devising new ways to steal and avoid detection.”