François Valerian, the Elected Chair of Transparency International (TI), raised concerns surrounding the long-term value of combating corruption within the business sector globally, including in Papua New Guinea. He noted that ethical practices are essential for sustainable growth. "The benefit of shareholders and stakeholders lies in the sustainability and long-term reputation of the company," he stated, stressing that short-term profits gained through corrupt practices ultimately harm businesses.
Valerian made these remarks during the Port Moresby Chamber of Commerce and Industry (POMCCI) breakfast meeting at the Royal Papua Yacht Club in Port Moresby. The presentation, focused on the theme "Fighting Corruption: What’s in it for the Business Sector?" saw POMCCI members, government agencies, business leaders, and industry professionals gather to discuss the pressing issues of corruption and its impact on the business environment.
The meeting underscored the critical need for businesses to adopt anti-corruption programs and to cultivate a culture of integrity within their organisations. Valerian called on top management to lead by example, asserting that "There has to be a culture of compliance within companies. No head of a company can say that corruption is behind us—it is not true."
TI’s presentation also highlighted the impact of corruption on local businesses in PNG. Valerian contextualised the global fight against corruption within the PNG setting, where businesses bear significant costs related to power supply, security, and interactions with government entities due to the prevalence of corrupt practices. He emphasised the importance of maintaining a level playing field in both the public and private sectors.
He also pointed out that since the establishment of Transparency International 31 years ago, the focus has expanded to tackle corruption on a global scale. "We are fighting the global economy of corruption. With all that money being stolen and bribes paid, public resources are embezzled, fueling immense transnational illicit flows," he remarked.
TI addressed the role of offshore financial centres in perpetuating global corruption. Valerian criticised the ongoing secrecy in such jurisdictions, where money flows vastly exceed the economic output of the countries, creating a haven for illicit funds. "We are asking for beneficial ownership transparency," he said, advocating for greater clarity on who owns and controls legal entities, including subsidiaries in offshore centres.
Valerian also underscored the need for strong whistleblower protections within corporations. He stressed that whistleblowers are vital to improving systems and making them more sustainable, rather than being seen as threats to the organisations they expose. “What is extremely important as well is for corporations, like for the government, to have systems that adequately protect the whistleblowers. The whistleblowers are not enemies of the systems, the entities they are working for.”
The meeting concluded with a call to action for the business community to support Transparency International PNG’s efforts. Valerian praised the role of smaller companies and state-owned entities in this fight, highlighting the importance of ethical behaviour not just for corporate success, but for the overall well-being of society.
Valerian’s visit to PNG is part of a broader regional tour, with subsequent stops planned in Vanuatu and Fiji. His insights have provided a powerful reminder of the ongoing challenges and the critical role businesses must play in fighting corruption both globally and locally.
