Billions Lost in Public Sector Payroll Fraud Over the past several decades, Papua New Guinea is estimated to have lost between K20 billion and K25 billion to public sector payroll fraud. To put this in perspective, the country’s real GDP (excluding inflationary effects) is approximately K69 billion. This means that nearly 30% of the nation’s GDP has been effectively destroyed by fraudulent activities within the public payroll system. This staggering loss underscores the urgent need for reforms to ensure accountability and integrity within public financial management systems.
