2 Aug 2011

Transparency International in PNG welcomes tightening of banking sector

7:33 am on 2 August 2011

Transparency International in Papua New Guinea is welcoming a proposed tightening of the PNG banking sector saying the problem of fraud is endemic and it needs to be stopped.

The chief executive of PNG's Bank South Pacific, Ian Clyne, says the stricter requirements are unworkable and would hinder public service projects.

Mr Clyne says banks would need to recruit large teams of lawyers, civil engineers and auditors to comply with the guidelines.

But TI's Chairman, Lawrence Stephens says the country needs people in all sectors of the economy to focus on fraud and the need to do something about it.

"If it takes tightening up on the way in which financial institutions transfer money, well so be it. But what we would like to see is a co-operative relationship between the state and enterprise, including financial institutions on making sure that public funds are not misused."

Transparency PNG's Lawrence Stephens.