IMF Under Fire from PNG’s O’Neill Over K771 Million Payout as Anti-Corruption Body Fails
People’s National Congress Party Leader and former PNG Prime Minister Peter O’Neill has condemned the International Monetary Fund (IMF) for disbursing K771 million to the Papua New Guinea Government in June, despite the collapse of the Independent Commission Against Corruption (ICAC).
O’Neill, who represents the Ialibu-Pangia electorate, questioned how the IMF could approve such a significant loan when ICAC, a key governance requirement for previous loans, had reportedly stopped functioning. He accused the IMF of turning a blind eye to the realities on the ground in PNG.
From 1975 until 2001, PNG borrowed only US$163 million from the IMF, and avoided further borrowing for two decades. That changed in 2020, when the Marape government began taking on IMF loans that now total over K4.5 billion. Each was contingent on anti-corruption reforms, including a fully operational ICAC.
O’Neill said the IMF was misled by optimistic internal reports, ignoring the dysfunction within ICAC. He criticised the appointment of a Brisbane-based lawyer to lead the watchdog, calling it a misstep that undermined the agency’s credibility.
He urged international stakeholders — especially IMF shareholder nations such as Australia, China, New Zealand, Japan, and the UK — to demand transparency and accountability. O’Neill warned that continued international support without oversight risks fuelling public anger and unrest as millions of Papua New Guineans are left without basic services.
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