Corruption Killing Papua New Guinea's Progress


Last Thursday, Planning and Monitoring Minister Paul Tiensten called a press conference to talk about how the MP for Telefomin Peter Iwei was “stupid” and “naïve” when he was conned into depositing K10,000 into someone’s bank account. It surfaced that Mr Iwei was “authorised” to make the deposit to receive a K12.4 million cheque for works on a hospital and a market in his electorate. Minister Tiensten said Mr Iwei’s action amounted to corruption because he should not pay for a cheque to be cleared if he followed proper procedures and processes.

And the cheque he was given was not a registered cheque of the National Planning and Monitoring Department. So, MP Iwei now knows what it is like to be conned.
There are two very important issues that have risen out of this debacle. The first is the corruption in the National Planning and Monitoring Department. Why should members of parliament, government institutions or contractors to government pay public servants who are already paid by the taxpayers of this country to get project funds? The MP Iwei’s case, the New Erima Primary School case and the follow up investigation, are examples of the deeply rooted corruption, involving public servants in this department, specifically tasked to manage millions of kina in project funds for electorates in PNG.

In this instance, we are of the view that instead of blaming, Mr Iwei, Minister Tiensten should deal with the bigger problem he has on his hands right now. What more evidence does Mr Tiensten need? He and the government, for that matter, cannot continue to pretend that all is well in that department. This business has to stop. It is time, this department is cleaned up. Public servants and their agents who are making commissions on the side must be dealt with severely. Only then will MPs like Iwei or others stop paying commissions.
The second matter that has come up is the payment of cheques directly to MPs. In recent months, the media has reported MPs picking up their District Services Improvement Program (DSIP) funds in cheques. In some cases, we are told, the MPs go to the B2 Conference Room in Parliament House, to collect the cheques.

Now, why are the DSIP cheques or any other electoral funds directly “paid” into the hands of the MPs? All MPs are, after all, human beings, and like any human being, they will make mistakes. They will carry the cheques and travel in public transport, walk into a bar for a drink, visit friends and do things normal human beings do. In any case, these cheques, which are usually in millions or thousands of Kina are exposed to unnecessary risks. The MPs can lose them or they can be held up and robbed by criminals. To hand out project cheques, in the manner that is done now, is taking a big risk as their safety is not guaranteed.
There is, however, a system already in place in PNG that can protect all funds earmarked for the electorates. Under the District Treasury Roll Out Program, initiated by this government in 2005, district treasuries were opened up and there was much celebration. 

Under this program, banking and postal services were also introduced to work together with the treasury offices and today, many of the 89 districts in PNG have their own treasury offices that are fully staffed and operational. The main reason for the district treasury roll out program was for Finance and Treasury Department to transfer money from Waigani into the district treasuries accounts directly and to do away with middlemen like the MPs. Five years later, and MPs are still collecting the DSIP and other electorate funds directly from National Planning and Finance Departments? Why?
Mr Peter Iwei may be “stupid” and “naïve” like Mr Tiensten claims but he is not alone here. No. we think not.

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