PNG govt calls for Australian aid review

ILYA GRIDNEFF - AAP

Papua New Guinea's Foreign Affairs Minister Sam Abal wants an overhaul of Australia's $414 million annual aid to PNG because he says too much is wasted on costly consultants. AusAID figures reveal that nearly half (46 per cent) of all Australian aid in PNG goes to advisers, contractors or experts providing "technical assistance" for "capacity building". That's twice the rate of other countries' aid programs. And despite delivering billions of dollars in aid to PNG over the years, a 2009 AusAID report found PNG is not meeting any of its human development goals despite strong economic growth and political stability. Foreign Affairs Minister Sam Abal wants aid effectiveness discussed at the joint Australia PNG ministers meeting scheduled for later this year. "We feel that the large portion of aid being used for consultants can not be allowed to continue," he said in Tuesday's Post Courier.

"The government is calling for a review of the landmark projects which are delivered, which the people of PNG can proudly call gifts from the people of Australia. "We have to critically assess to ensure that the impacts of the aid money from Australia are seen and felt by the PNG people." In February, AAP revealed Victorian John Dinsdale cost Australia $1,077,463 over two years as a tax-free AusAID law and justice adviser in PNG's capital Port Moresby. Paulinus Sikosana, AusAID health adviser to PNG, will cost tax payers $742,711 for his tax-free work between January 2009 to January 2011.

Documents obtained by AAP in May last year proved consultants in PNG were earning more than Australian Prime Minister Kevin Rudd's base annual salary of almost $335,000. Mr Rudd flagged his concern when speaking in April last year at a press conference with PNG counterpart Michael Somare. "... too much money has been consumed by consultants and not enough money was actually delivered to essential assistance in teaching, in infrastructure, in health services on the ground, in the villages," Mr Rudd said. AusAID represents 83 per cent of Australia's annual $3.8 billion aid budget, spending $3.2 billion a year on programs in the Pacific, Asia, Latin America and Africa, with PNG and Indonesia the largest recipients.

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