Minister Sawang Backs IMF-Driven Shake-Up of PNG IRC Governance

The resignation of Commissioner-General Sam Koim has reignited debate over the future of tax administration in Papua New Guinea, with Labour and Employment Minister Kessy Sawang reaffirming her support for an independent Revenue Administration Board (RAB).

Sawang said structural concerns were flagged nearly ten years ago, stressing that her 2015 Tax Review found that the existing “Commission” model—where oversight is managed internally—left the Internal Revenue Commission without adequate external supervision.

 Sawang Says PNG IRC Reform Long Overdue as Governance Debate Intensifies

She said the governance arrangement introduced in 2013, allowing IRC and PNG Customs to effectively self-report, is not consistent with international practice. The review she co-led under the late Sir Nagora Bogan recommended adopting a model similar to those used in Singapore, Malaysia and Fiji.

Sawang also noted that the IMF has encouraged the same shift, calling for greater independence and clearer accountability through amendments to the IRC Act.

She said the absence of strong external governance has created ongoing vulnerabilities.

“This lack of external oversight and strategic direction has created systemic governance weaknesses: no independent accountability, inconsistent leadership discipline, and minimal performance monitoring,” she stated.

According to Sawang, the commission meant to guide the IRC has been inactive.

“In the case of IRC, the Commission itself has not met for several years, effectively leaving the organisation without a functioning governing body.”

She said international consultations during the 2015 review proved that independent boards provide a more robust accountability framework.

“As part of our review, we engaged with RABs in countries such as Singapore, Malaysia, and Fiji, which demonstrated how external boards strengthen oversight, provide strategic direction, and hold management accountable for revenue performance.”

Koim, however, said the IRC has delivered sustained results under its current structure, nearly doubling annual collections in recent years.

“Where is the evidence that our current mechanisms are failing? None has been presented,” Koim said.