The Minister for International Trade and Investment has come out to respond to comments made by the head of the Papua New Guinea (PNG) Institute of National Affairs (INA) on the Special Economic Zone (SEZ) initiative of the government, which stated that SEZs encourage corruption. Minister Richard Maru said that the comments made by the PNG INA Director, Mr. Paul Barker in one of the daily newspapers yesterday, Monday 08th January, was simply misleading. “If the SEZs are encouraging corruption, then why have countries like China, Bangladesh, Indonesia, and t Philippines chosen SEZs as the major driver for sustainable and inclusive economic growth and continue to invest in SEZs right throughout their countries?” “These countries have proven that SEZs are a very successful vehicle for transformation of countries and creation of thousands of jobs. Where is the literature and your facts to prove this? You cannot just make a broad attack on SEZs,” Minister Maru stressed. The minister said Mr. Barker’s observations were reflective of a bygone colonial era. He gave an example of the current Paga Hill SEZ project, saying that if that land wasn’t acquired to be used for an SEZ, it would have been turned into a major settlement on a prime land of the city, rife with petty crimes instead of creating jobs. He said by the time the whole Paga Hill SEZ is put together, this one development will transform the city with 12, 000 new jobs and millions of Kina in Goods and Services Tax (GST) and personal income tax. “We are working to build a great nation and a great city. This is our capital, and you are asking us to go backward. Where is your alternative to the transformation of this city? You have never given us an alternative. You should be ashamed of the very insensitive comments you have made,” said Minister Maru. Minister Maru added that the SEZ was a signature policy of the Marape-Rosso Government, and as such, the State has put in measures to prevent any corrupt dealings. “We have a very good SEZ Act that was passed in 2019 and we are just finalizing the final draft of the new SEZ Foundation Policy. PNG’s SEZ Legislation provides a rigorous framework for evaluating potential SEZ Projects, as well as tightly monitoring their ongoing operation and fulfilment of stated objective.” He said Mr. Barker’s comments that SEZs somehow encourage corruption or establish an uneven playing field for companies, are ridiculous and have no basis. “Governments around the world frequently implement short-term incentives and even preferential treatment, such as allowing skilled migration for selected in-demand professions to address needs and achieve strategic objectives. PNG SEZs are no different,” he said. He further stated that the National Government is determined to implement the SEZs on the back of the success of many other countries and learning from best practice right throughout the world. “If there is any corruption in the implementation of our SEZ Policy then please provide us the facts so we can deal with such claims or refer such allegations to the appropriate authorities. The Marape-Rosso Government has nothing to hide, and we have no self-interest in the discharge of our responsibilities in driving SEZs as the main driver of economic growth in the non-resource sector.” “In the MTDP 4 we plan to create 1 million new jobs over the next five years and based on the experiences of so many countries, we are certain SEZs will be the major creator of new jobs,” said the minister.