TIPNG Report Assesses Risk of Corruption in Mining Licences Process

TIPNG Report Assesses Risk of Corruption in Mining Licences Process

Transparency International Papua New Guinea (TIPNG) in a new report has identified 7 areas within the process of issuing Mining Leases that need to be addressed urgently to minimise the risk of corruption occurring. The report comes from TIPNG’s participation in a global research initiative called the Mining for Sustainable Development (M4SD) Programme.

This programme brings together 17 chapters of the Transparency International movement, in countries where mining is a major component of the national economy, to identify risks in the process of awarding Mining Licenses. The awards process is the start of the mining value-chain and any effects of corruption there will be passed along, eventually impacting a countries’ sustainable development.

The TIPNG Corruption Risks In Mining Awards Country Report highlights weaknesses in cross-institutional capacity, human resources capacity in regulators, coherence of feasibility studies & MOAs, the lack of a national geo-spatial agency, consultation with community representatives, Corporate Social Reporting and issues surrounding the inclusion of women and vulnerable members of communities.

“We believe that national agencies benefit from having an external party like TIPNG assessing the processes to ensure that they are of a world-class standard” said Lawrence Stephens, Chairman of Transparency International on the launching of the report, “Mining is a steady driver of the economy of our country and is key to ensuring future sustainable development. We hope this report and its recommendations will be part of the discussion going forward about how the minerals sector can be better able to address the risk of corruption in the issuing of mining licenses in PNG.”

TIPNG as a local CSO and national chapter of the global Transparency International movement has been supportive of efforts promoting transparency in the resources sector such as being an active member of the multi-stakeholder group within the PNG Extractives Industries Transparency Initiative (PNGEITI) Secretariat. While the recently launched report has been funded separately from the PNGEITI’s activities, it will certainly inform TIPNG’s work within this initiative.