The fight against corruption in Papua New Guinea requires a united, whole-of-society approach. This week, the Independent Commission Against Corruption (ICAC) held its first formal engagement with the private sector, as part of its ongoing efforts to promote integrity and accountability across provincial and district levels of government.

“The private sector is a cornerstone of Papua New Guinea’s economy and national development,” Acting Commissioner Thomas Eluh made this statement during his opening remarks this morning at the Commissioners’ Business Breakfast at Lae International Hotel.

He emphasised that businesses play a vital role by:

• Driving economic growth and employment
• Delivering essential goods and services
• Partnering with government in infrastructure, procurement, and service delivery

“Given this close and continuous interaction with government systems—through licensing, taxation, contracting, and service delivery, the conduct of businesses directly impacts the integrity of those systems,” Mr Eluh said.

“When businesses operate ethically, governance systems are strengthened. When unethical practices occur, those same systems are weakened, creating space for corruption to thrive.”

Corruption is not confined to the public sector. In many cases, it involves both public officials and private sector actors.

Common risk areas include:

• Procurement and contracting processes
• Infrastructure development projects
• Resource sector operations (such as mining and logging)
• Licensing, customs, and tax administration

Unethical practices such as bribery, collusion, inflated invoicing, and facilitation payments:

• Distort fair competition
• Increase business costs
• Discourage legitimate investment
• Damage industry reputation
• Divert public resources away from development

Ultimately, corruption harms not just government, but also businesses, the economy, and the people of Papua New Guinea.

Acting  Commissioner Eluh said that Integrity in business is more than a legal requirement, it is a strategic advantage.

Ethical businesses:

• Build trust with government and partners
• Strengthen their reputation locally and internationally
• Reduce legal and financial risk
• Contribute to stable and predictable markets

“Every interaction between business and government either strengthens or weakens national systems,” he said adding that strong systems limit corruption opportunities, while weak systems allow them to persist.

“The ICAC was established to address these very challenges, closing integrity gaps, strengthening oversight, and ensuring that governance systems function effectively in practice, not just on paper.”

The ICAC is a constitutional body established under Section 220B of the Constitution and governed by the Organic Law on ICAC (OLICAC).

Its mandate focuses on four key areas:

• Prevention: Identifying and reducing corruption risks
• Education : Promoting awareness and a culture of integrity
• Investigation: Examining allegations of corrupt conduct
• Enforcement: Ensuring accountability through appropriate legal action

Speaking on the establishment of the ICAC  and its mandate, ICAC Acting Deputy Commissioner Ellenas Batari (retired judge) emphasised that the ICAC’s work extends beyond the public sector. He said the Commission actively collaborates with the private sector as a critical partner in preventing and addressing corruption.

The ICAC is committed to working collaboratively with businesses to strengthen systems and reduce risks.

This includes:

• Identifying high-risk areas in business–government interactions
• Supporting improved internal governance and compliance systems
• Promoting ethical standards and responsible business conduct
• Delivering training and awareness programs

Acting Commissioner Don Sawong also alluded similar comments stating that  the ICAC aims to create a transparent and accountable environment where both public and private sectors can operate effectively and fairly.

He stressed that the ICAC has the authority to investigate private sector actors where corruption intersects with public systems.

This may include cases involving:

• Misuse or improper receipt of public funds
• Collusion or bribery involving public officials
• Procurement fraud or irregularities
• Links to corrupt activities within government

Accountability applies to all parties. Where sufficient evidence exists, ICAC will take independent, professional, and evidence-based action.

Papua New Guinea continues to face systemic corruption challenges driven by:

• Weak procurement systems
• Lack of transparency in contracting
• Political and administrative interference
• Informal influence networks
• Financial misconduct and illicit flows

Recent developments, including Papua New Guinea’s placement on the FATF Grey List, highlight vulnerabilities in financial systems and the increasing risks associated with corruption.

For businesses, these risks translate into:

• Reputational damage
• Legal exposure
• Reduced investor confidence
• Higher compliance costs

Acting Commissioner Eluh said “In this context, integrity is no longer optional, it is essential.

“The business community is not separate from the fight against corruption; it is at its centre.

“Every decision, transaction, and standard adopted by businesses contributes to shaping national systems.”

By choosing integrity, businesses:

• Protect their reputation and long-term viability
• Strengthen institutions and governance
• Promote fair and competitive markets
• Contribute directly to national development

ICAC stands ready to work alongside the private sector as a regulator, a partner, and a catalyst for change.

A continuation from the ICAC’s engagement initiatives for the Momase Provincial leaders yesterday, the ICAC hosted the Commissioners’ Business Breakfast with the private sector in Lae, through the Lae City Chamber of Commerce.

The support of partners, including the United Nations Development Programme (UNDP), has been instrumental in making these engagements possible.

Together, we can build a Papua New Guinea where systems are strong, institutions are trusted, and development truly reaches our people.