Corruption drains the public purse of vitally needed funding for quality health, education and other government services, but its impacts are felt even more widely.
Corruption undermines the economy, our democracy, and the rule of law, it undermines trust in government, and erodes the effectiveness of government departments and service delivery. Corruption leads to environmental degradation, land grabbing and the exploration of natural resources; it also undermines our traditional laws, customs and our communities.
The Police Minister has estimated that between K2 and 3 billion are lost to white collar crime and corruption every year and approximately K1 billion of these funds end up in offshore bank accounts. Sam Koim, now Commissioner General for the Internal Revenue Commission, estimated in 2013 that around 40 per cent of the government’s annual budget was lost to corruption, waste and mismanagement.
The loss of government revenue is just one aspect of the total economic impact we as a nation suffer as result of corruption.
The global financial services company Price Waterhouse Coopers (PWC) has developed a simple algorithm that uses the annual Corruption Perception Index (CPI) published by Transparency International to estimate the effects of corruption on a country’s Gross Domestic Product (GDP).
ACT NOW! has used the PWC algorithm to show the profound impact that improving PNG’s CPI score could have on our economy and people’s livelihoods.
WATCH OUR SHORT VIDEO - THE ECONOMIC COSTS OF CORRUPTION
Just a one point improvement in CPI could be worth more than K1,000 for every woman, man and child in the country, that is equivalent to a US$3 billion boost to our economy.
Improving PNG’s CPI score, which is the worst in our region, to match that of the next worst country, the Philippines, could be worth US$24 billion a year.
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 Bryan Kramer, ‘K3 Billion a Year Lost in White Collar Fraud,’ PNG Attitude, 13 November 2019 (accessed on 24/2/2020): https://www.pngattitude.com/2019/11/k3-billion-a-year-lost-in-while-collar-fraud.html
 Pius Bonji, ‘PNG Loses Billions to Government Corruption,’ ABC News Online, 29 August 2013 (accessed on 24.2.2020): https://www.abc.net.au/news/2013-08-27/an-png-billions-lost/4916656