Papua New Guinea's Trade Congress Union has told a parliamentary committee that prostitution and trade in guns for drug trade are booming with the influx of foreigners.
President, Michael Malabag, told the committee, which is looking into the anti-Asian riots, there was widespread knowledge of prostitution involving Asian women and exploitation of female shop assistants by their Asian employers.
The Post Courier newspaper says Mr Malabag spoke of reports of collaboration between national leaders, bureaucrats and Asian businessmen and women in illicit activities.
Mr Malabag said the situation associated with the influx of Asians in the country had frustrated locals who responded with riots, such as those that broke out in May.
