The recent high-profile resignation of Sam Koim from Internal Revenue Commission PNG has drawn a public outcry from Papua New Guinea.
Koim is a prominent PNG lawyer and staunch corruption fighter. He is best known for his hardline stance on corruption, particularly as Chairman of the now-disbanded Task Force Sweep. This team handled and prosecuted high-profile corruption cases, including the infamous Paragate scandal.
He is also recognized for his work raising billions in tax revenue with Papua New Guinea’s Internal Revenue Commission. Sam Koim’s resignation has negatively impacted the country’s international image.
This comes at a time when PNG is already struggling with extreme levels of poor leadership, corruption, and mismanagement in national affairs.
To lose a leader of Koim’s caliber drives the dagger deeper into the already bleeding country in the eyes of the international community.
The questin many in PNG are asking is -Is the aInternal Revenue Commission about to lose its independence under a new IMF oversight plan, or is this just another step in a long line of reforms that could reshape the country’s institutions?
For years, PNG has worked to strengthen its public agencies, with the IRC making notable strides in improving revenue collection and boosting integrity. Yet, now there’s a warning from Commissioner General Sam Koim that the latest proposal could change everything.
Koim says the idea of an IMF oversight committee overseeing the IRC isn’t just about tightening controls; it’s a potential erosion of PNG’s institutional autonomy that could spill over to other state agencies.
“This is not about me or my position. The IRC is a statutory institution, larger than any individual who temporarily occupies the office,” Koim stresses. “We are yet to see a convincing argument as to why an additional oversight board is necessary or what policy deficit it intends to address.”
The IMF frames the oversight committee as a way to increase transparency and bring in additional funding and technical support, amid ongoing programs like the ECF-EFF arrangements that have eased foreign exchange shortages, reduced fiscal deficits, and improved governance since 2023.
In PNG specifically, these efforts have driven economic rebound, with strong performance noted as making it the best in its region under IMF support, including doubled IRC revenue from K8 billion in 2020 to nearly K17 billion recently.
However, Papua New Guinea also has a history of IMF programs triggering significant public backlash. In the late 1990s and early 2000s, IMF-imposed structural adjustment programs led to widespread dissatisfaction due to austerity measures and public service cuts, which contributed to social unrest and riots. These experiences have left lasting skepticism about the trade-offs between economic reform mandates and the social impact on vulnerable communities.
The current IMF oversight proposal could lead to international actors making key decisions that should remain inside PNG’s government. IMF interventions in emerging economies show mixed results: successes like Rwanda’s sustained 8% GDP growth post-2000 through governance-focused aid contrast with failures such as Zambia’s rising debt and default despite 2016 programs due to weak implementation, or Bolivia’s social backlash against neoliberal conditions in the early 2000s.
The IMF itself commends PNG’s progress under current ECF-EFF programs for fiscal consolidation and revenue gains, urging continued revenue mobilization and governance enhancements. Detractors, led by IRC leadership, question if deeper oversight justifies ceding control: is it worth trading away autonomy for short-term gains? Can a country truly thrive when it cedes authority over its own institutions?
PNG’s leaders now face a tough choice. Prioritize sovereignty and risk slower access to international support, or accept deeper external involvement to secure funding and reforms.
This debate taps into a broader struggle faced by emerging nations: how to engage with powerful global institutions without undermining self-determination.
As PNG approaches critical budget decisions, all eyes will be on whether this IMF proposal strengthens the country’s institutions or quietly diminishes their independence and what that means for the nation’s future.
Is this the reform PNG needs, or just another step in a complex dance between sovereignty and aid?
