Financial Crime World

Title: PNG Government Launches Formal Investigation into Allegations of Corruption in Australia-Funded Refugee Support Program

Background

Port Moresby, Papua New Guinea - After reports of widespread corruption and mismanagement within the Australia-funded refugee support program in Papua New Guinea, the Port Moresby government has announced it will formally investigate the matter.

Allegations of Corruption

  • Reports of potential misuse of millions of dollars
  • Originating from a whistleblower within PNG’s immigration authority

Government Response

  • Deputy Prime Minister and Minister for Immigration, John Rosso, orders an audit into the exact whereabouts of the funds
  • Investigation should cover current management, bilateral funding, and process of managing and distributing funds

Whistleblower’s Concerns

  • Allegations include fraudulent use of private cars, nepotism in contract awarding, and inappropriate use of front companies

Current Situation

  • Remaining 64 refugees and asylum seekers have been in PNG for ten years
  • Australian funding depleted due to slower-than-expected resettlement and Covid travel restrictions
  • Service providers owed substantial debts
  • Some refugees faced eviction, essential services businesses owed millions

Hulahau’s Response

  • PNG’s Chief Migration Officer, Stanis Hulahau, dismisses allegations as falsities motivated by malice
  • Claims no evidence presented of corruption

Funding and Context

  • $303m irregular maritime arrival “offshore management” budget
  • Program provides essential services for refugees and asylum seekers exiled to PNG as part of offshore detention regime
  • Some remaining refugees wish to stay in PNG after marrying locals and building families

Political Response

  • Concerns expressed about potential suppression of investigations into the whistleblower’s complaint
  • Uncertain future for remaining refugees and asylum seekers

Next Steps

  • PNG’s plans for resettling most refugees in New Zealand while accommodating a few sick individuals in Australia for treatment
  • Continued investigation into reported corruption within the refugee support program