29 Jul 2011

PNG's biggest bank says government anti-fraud moves won't work

6:40 pm on 29 July 2011

Papua New Guinea's largest bank says new anti fraud rules planned by police could seriously hinder public service roading, health and education projects.

The Bank South Pacific's Chief Executive Officer, Ian Clyne, told the National newspaper that guidelines from the fraud squad's Financial Intelligence Unit might be well meaning but are unlikely to reduce fraud and will delay development and infrastructure projects.

Mr Clyne says banks would need to recruit a large number of lawyers, civil engineers and auditors to comply with the guidelines which is not their role.

He says he's concerned about the lack of public debate on the police assertion that 25-40% of all government payments are defrauded.

Mr Clyne says it's the responsibility of the auditor-general, attorney-general, government department secretaries and the ombudsman commission to ensure there is transparency and accountability in government transactions.