WHAT IS CORRUPTION?

Corruption is defined as ‘the abuse of entrusted power for personal ‘gain’ and it is a global
phenomenon.

In PNG, corruption is widespread and endemic, penetrating all levels of society. Although,
corruption flourishes in secrecy, the social and economic effects of it are visible and affect
everyone in the country.

Why it occurs ?
Corruption occurs because it is human nature to take the easy way out and to gain personal benefit from
whatever means possible. Both “nature” (Biological) and “nurture” (psychological) factors have a part in
corruption.

Corruption occurs because of self-interest. For example, when the United States of America invaded Iraq or
Afghanistan, the fact that the United States had an interest in obtaining the oil from those countries may
have influenced their decision, because those countries have oil and the United States of America needs it.
Maybe those countries were invaded for noble causes or perhaps it is an example of corruption.
 Corruption is rife in Papua New Guinea (PNG). According to The
Economist, “PNG's governments are notorious for corruption, and ever
run the risk of turning the state into a fully-fledged kleptocracy Papua
New Guinea is below the satisfactory levels set by the United Nations
Convention against Corruption (UNCAC), according to a report
submitted by Transparency International Papua New Guinea (TIPNG)
in 2012.

VARIOUS SOCIAL AND ECONOMIC INDICATORS DEMONSTRATE THE VISIBLE

EFFECTS OF CORRUPTION IN THE COUNTRY. ACCORDING TO TRANSPARENCY
INTERNATIONAL’S 2013 CORRUPTION PERCEPTION INDEX, PNG IS RANKED 150TH
OUT OF 176 COUNTRIES, WITH A SCORE OF 25 ON A SCALE OF 0 – 100, WHERE ZERO
MEANS THAT A COUNTRY IS HIGHLY CORRUPT AND HUNDRED MEANS A COUNTRY
IS VERY CLEAN.
The higher the number the lesser the corruption
Level .The lower the number the higher the
Corruption level .
 Understanding corruption
corruption refers to the misuse of entrusted power for private gain, thus encompassing corrupt practices in both the
public and private sectors. Survey results show varied conceptual understanding of what corruption means and
entails. With four choices, 27% of the surveyed respondents correctly defined corruption as specified by TI 4 but
limited to the public sector. Similar proportions of respondents (25%) thought that corruption is “any illegal
action” or “all actions that are wrong and immoral” while 22% defined corruption as “the stealing of money from
the government”. A further one percent of respondents were unable to define corruption. This is shown in Figure 1
below.
There are many Types of corruption practiced in Papua New
Guinea. However in here we will basically emphasize more on
one common point which greatly affect our economy as a whole

 POLITICAL AND COMMERCIAL CORRUPTION

1.BUSINESS AND POLITICS

2. CORRUPTION IN THE BUREAUCRACY
3. ROYAL PAPUA NEW GUINEA CONSTABULARY
 Political and commercial corruption

Political corruption in Papua New Guinea is largely enforced by political nepotism and the
patronage system of governance. Elected leaders are inclined to seize and distribute
resources amongst their electorates in order to secure and maintain popular support. This
system of governance is embedded in Melanesian traditions, where the credibility and
popularity of a leader amongst his electorate is defined, in part, by the wealth he is able to
distribute and the power he is able to wield.
 1. BUSINESS AND POLITICS
This problem has been compounded, in PNG, by the model of 'politician-turned-businessman'
which has dominated the post-1975 political landscape and has muddied the distinctions
between business and politics, allowing politicians to divert public monies into their personal
accounts. A review of medium-sized businesses in PNG showed that the majority are owned or
part-owned by current or former politicians. Misappropriation by public officials was
highlighted in a leaked cable by the US embassy in Port Moresby, which observed that
government revenues from industry had “served more to enrich the political elite than to
provide social services or infrastructure. There are no large-scale local businessmen, but
numerous politicians are relatively well off”
• It’s a type of corruption where we see politician turn into business men or women using the public funds or
their entrust power to make decisions for their own good, which will benefit them financially.
• They benefit from public funds through;
 giving contracts to companies they have shares in it.
 employing their relatives in key positions in the government.
 misappropriation of public funds (PSIP & DSIP)
 Business & politics affects the country economy in various ways depending on the type of corrupt action
the politician take.

1.Leakage in money circulation occurs when more funds are invested out of the country by greedy
politicians for their self-benefits for instance politicians buying real estate from overseas.
2.Misappropriation of funds leads to basic services not provided which increases the rate of poverty in
the country.
3 .Employment opportunities are limited, when the funds of creating the employment is hijack by selfish
leaders.
 2. CORRUPTION IN THE BUREAUCRACY
Administrative system: an administrative system, especially in a government, that divides work into
specific categories carried out by special departments of non-elected officials.
Frustrating rules; complex rules and regulations applied rigidly.
For instance; In 2012, Prime Minister Peter O’Neill, when introducing in parliament a twenty-year
corruption strategy, cited the following common corrupt acts by government officials and bureaucrats:

-Paying bribes to acquire preferential service or treatment;

-misappropriation of public funds
-Theft of public money and illegal acquisition of assets by abusing a position of authority, Breaching
procurement processes;
-Conflict of interest in decision making;
-Nepotism resulting in the recruitment and retention of unqualified staff.
 Because of prevalent corruption, and despite a budget surplus, the national wealth has failed to
flow down to the people.
I. Paying bribes to acquire preferential service or treatment;

Bribery is the main form of corruption in PNG

and is linked to nearly all public sectors and for
many has become a routine practise.

Bribery is the act of giving money, goods or other forms of

recompense to a recipient in exchange for an alteration of their
behaviour (to the benefit/interest of the giver) that the
recipient would otherwise not alter.
 misappropriation of public funds
TIPNG’s report found that in many cases, arises from misappropriation of
public funds within the past years.

Misappropriation of funds means the intentional, illegal use of the funds of another person
for one's own use or other unauthorized purpose. It can be by a public official, a trustee of
a trust, an executor or administrator of a dead person's estate or by any person with a
responsibility to care for and protect another's assets. It is a punishable offense which
occurs within our economy.
 Conflict of interest in decision making;

A conflict of interest is a situation in which a person or organization is involved in

multiple interests, financial or otherwise, one of which could possibly corrupt the
motivation or decision-making of that individual or organization.

Nepotism resulting in the recruitment and retention of unqualified staff.

.dishonestly persuade (someone) to act in one's favour by a gift of money or other inducement:
."they attempted to bribe opponents into losing" ·For instance;
they had bribed an official to sell them a certificate"
.a sum of money or other inducement offered or given to bribe someone.

 Because of prevalent corruption, and despite a budget surplus,

the national wealth has failed to flow down to the people
 CORRUPTION IN THE
ROYAL CONSTABULARY OF PNG
 4. Royal Papua New Guinea Constabulary

The Royal Papua New Guinea constabulary (RPNGC) has become

“ineffective, corrupt and often abusive” according to a leaked
diplomatic cable from the US Embassy in Port Moresby . One report
by National Integrity Systems reported gifts and favours being
offered to the police in order for cases to be ‘swept under the carpet’.
In 2011 the Police Commissioner took the unusual step of asking the
public not to offer bribes to police officers. The Commissioner
referred to the common practice of paying police officers to avoid
fines for minor offences, and urged the public to let themselves be
charged instead of contributing to the culture of bribery.
• CORRUPTION IS DIVERTING MUCH NEEDED
MONEY AND RESOURCES AWAY FROM THE
COMMUNITIES WHO, NEED THEM i.e. LACK
OF DEVELOPMENTS
• GOVERNMENT THEREFORE PLACES
ENFORCING AGENTS IN REGULATING SUCH
BEHAVIOURS
• AN EXAMPLE OF SUCH AGENCIES IS THE
ROYAL CONSTABULARY OF PNG
• TREATING CERTAIN GROUPS DIFFERENTLY,
PARTICULARLY MINORITY GROUPS, BECAUSE
THEIR INFLUENCE WITHIN THE POLITICAL
STRUCTURE IS NOT LIKELY TO CAUSE TROUBLE
FOR THE OFFICER

PM
PETER O’NIELL
• STEALING SMALL ITEMS FROM A STORE ON
ONE'S BEAT WHEN THE DOOR IS
ACCIDENTALLY LEFT UNLOCKED DURING NON-
BUSINESS HOURS OR DURING ROBBERY
• ACCEPTING AN UNSOLICITED CASH PAYMENT,
AS FROM A BAR OWNER OR A PERSON WHO
WISHES TO AVOID PROSECUTION
• LYING TO PROTECT A FELLOW OFFICER OR
ONESELF, IN A COURT OF LAW OR DURING AN
INTERNAL AFFAIRS DIVISION INVESTIGATION
 RECOMMENDATIONS

 Elect good leaders that are capable to serve with honesty in order to minimize corruption within our economy.

 Take greater actions to support school and community based civic education that can empower
citizens to better understand and fight against corruption.

 In these times when the economy is faltering – clearly see the debilitating cost that corruption is to
our economy and publically acknowledge and report it.
 Take genuine and effective actions to curb corruption including: implementing freedom of information
and whistle blower protection laws and making the Public Accounts Committee proceedings timely and
public!
 There must be strong task force t team in place to follow up on funds distributed for major
projects.
 As an elite of this nation we must advocate on corruption and enhance transparency across all levels.
THANK YOU FOR YOUR
CO-OPERATION

ANY QUESTIONS?