By CLIFFORD FAIPARIK
HALF of public funds generated from our natural resources are lost through corrupt management of public funds in a year, Prime Minister James Marape says.
“With a Gross Domestic Products (GDP) of K88.9 billion ($28 billion), based on the International Monetary Fund estimate of money laundering being between 2 and 5 percent of GDP, the possible level of laundering in PNG would range between K1.8 billion ($560 million) and K4.4 billion ($1.4 billion.).
“These are estimation based on the PNG Money Laundering and Financing of Terrorism National Risk Assessment published in September 2017.
“These threats are compounded by many vulnerabilities.
“PNG has porous borders, a cash-based economy and a significant informal sector, which makes it easier to move cash and other items of value (such as illegally mined alluvial gold) in and out of the country.
Marape said that on Tuesday last week at APEC Haus in Port Moresby during the conference on National Anti-Money laundering. “Corruption is identified to be a problem that generates proceeds of crime and undermines efforts for development and good governance in a solid democracy.
“And PNG’s National Anti-Corruption Strategy (NACS) 2010-2030 outlines the PNG Government’s (GoPNG) priorities in tackling corruption, especially addressing Anti Money Laundering.
“So In November 2020, the Organic Law on Independent Anti-Corruption Commission was adopted with full majority.
“The Constitutional Amendment (No. 40) Law 2014,equips the Independent Commission Against Corruption (ICAC), equipped with investigation and prosecution powers.
“The process for selecting the ICAC commissioners has started on February 21, 2022 by publishing the call for selecting national and international commissioners.
“And Next week the Government will introduce amendments to the Proceeds of Crime Act to include provisions for Unexplained Wealth. The unexplained wealth provisions will apply to public officials as given the meaning under the Organic Law on ICAC”.
Marape also said that people involved in money laundering are very intelligent.
“The organizers and beneficiaries of financially motivated crimes are often very good at distancing themselves from criminal activity and concealing their source of wealth.
“The unexplained wealth is often gained through corruption.
“And so In December 2021, the law for criminalizing prohibited substances was adopted.
“The two legislated areas, unexplained wealth and prohibited substances are fundamental in the fight against corruption and organized crime.
“Effective Anti-Money Laundering and Combating the Financial Terrorism (AML/CTF)regime and recovery of proceeds of crime will contribute to further improvement on the international ranking list such as Transparency International Consumer Price Index and Global Corruption Index.
“And so The Government is committed to providing a solid institutional and regulatory framework and to develop capacity for the effective fight against money laundering and crime,” he said.
