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WELLINGTON, New Zealand (RNZI, Oct. 30) – Papua New Guinea has received a dressing down from its second biggest aid donor.

The European Union has told the PNG government during the Post-Forum Dialogue in Port Moresby that it has to improve a number of its activities if it is to foster development.

The European Commission’s Director for the Pacific, Anders Henriksson, says the organization has concerns about governance, the poor use of resources and the level of transparency and efficiency in the public service.

"If there could be a number of important reforms undertaken here, such as strengthening of the budget process, strengthening of the national planning process, and a better co-ordination between national resources and those that are coming from international partners, more transparency in how resources are used, probably our relations could be taken to another level," he said.

Mr Henriksson says a closer relationship doesn’t necessarily mean more assistance, but rather direct budgetary support, instead of project aid.

October 31, 2005

Radio New Zealand International:

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