1. Is there a ban on donations from foreign interests to political parties?

80.           CONTRIBUTIONS FROM INTERNATIONAL ORGANISATIONS.

1. An international organisation may contribute to the Central Fund.
2. An international organisation shall not contribute directly to a registered political party

Source: Article 80, Organic Law on the Integrity of Political Parties and Candidates 2003, No 0 of 2003

   81.        CONTRIBUTIONS FROM NON-CITIZENS.

(1) Subject to this section, a non-citizen may contribute to –

(a)          the Central Fund, to an unlimited extent; and

(b) a registered political party, to an extent provied by Subsection (2)(a); and

©           a candidate, to an extent provided by Subsection (2)(b).

(2) Subject to Subsection (4), contributions made by a non-citizen –

• under Subsection (1)(b) – shall not exceed the sum of K500, 000.00 in total in any calendar year; and
• under Subsection (1)(c) – shall not exceed the sum of K500, 000.00 in respect of any one election.

(3) Subject to Subsection (4), a non-citizen shall not –

• contribute, directly or indirectly, to a political party which is not a registered political party; or
• enter into any scheme to defeat the provisions of Subsection (2) or of Paragraph (a).

(4) Subsections (2) and (3) do not apply to a loan made to –

• a political party; or
• a candidate at an election,

by a non-citizen corporation which is licensed as a bank or financial institution under the Banks and Financial Institutions Act 2000, where the loan and the terms of the loan are similar to those available in the normal course of business of the bank or financial institution.

(5) A non-citizen, who makes a contribution to –

• a registered political party; or
• a candidate at an election,

shall, within 30 days of making the contribution, inform the Registrar of –

• the amount of the contribution; and
• the name of the political party or candidate, as the case may be, to which or whom the contribution was made; and
• the date on which the contribution was made; and
• such other matters concerning the contribution as may be prescribed.

(6) A person, who fails to comply with Subsection (5), is guilty of an offence.

Penalty: A fine not exceeding the amount of the contribution in relation to which the offence was committed.

(7) A –

• registered political party; or
• candidate at an election,shall, within 30 days of receiving a contribution from a non-citizen, inform the Registrar of –

• the amount of the contribution; and
• the name of the non-citizen from whom the contribution was received; and
• the date on which the contribution was made; and
• such other matters concerning the contribution as may be prescribed. (8) A –

• registered political party which; or
• candidate who,

fails to comply with Subsection (7), is guilty of an offence.

Penalty: A fine not exceeding the amount of the contribution in relation to which the offence was committed

Source: Article 81, Organic Law on the Integrity of Political Parties and Candidates 2003, No 0 of 2003

274. We answer in the affirmative to Question 16. It is conceded by the Interveners for the negative. It is not difficult to understand why s 81 is inconsistent with ss129 (1) (c) and130 (1) (b) of the Constitution. Section 129 (1)(c) provides for an Organic Law to make provision for prohibiting non-citizens from holding membership of political parties and contributing to the funds of those parties or any political party. Section 130 (1) (b) provides for an Organic Law to make provision for prohibiting a candidate or former candidate for election from accepting from a non-citizen any assistance (financial or otherwise) in respect of his candidate. OLIPPAC, s 81 allows those matters which are expressly prohibited by ss129 (1) (c) and130 (1) (b). An Organic Law provision in respect of a matter that is not authorized to be made by an Organic Law is inconsistent with the Constitution and therefore invalid: Constitution, ss 10,12 (1) (a) and (b).

275. Section 81 is therefore unconstitutional and invalid.

Source: Judgment by Waigani: Injia, CJ; Salika Dep.CJ; Sakora J; Kirriwom J & Gavara-Nanu J., Papua New Guinea Supreme Court of Justice, in the matter of MATTER OF THE ORGANIC LAW ON THE INTEGRITY OF POLITICAL PARTIES AND CANDIDATES, REFERENCE BY THE PROVINCIAL EXECUTIVE COUNCIL OF THE FLY RIVER PROVINCIAL GOVERNMENT OF WESTERN PROVINCE.Referrer AND:THE REGISTRAR OF POLITICAL PARTIES First Intervener AND: THE INTEGRITY OF POLITICAL PARTIES COMMISSION Second Intervener AND: DR ALLAN MARAT, MP, ATTORNEY GENERAL Third Intervener AND: THE HON. JEFFREY NAPE, MP; SPEAKER OF THE NATIONAL PARLIAMENT Fourth Intervener AND: THE NATIONAL PARLIAMENT Fifth Intervener AND: THE HON. FRANCIS AWESA, MP Sixth Intervener AND: THE HON. BART PHILEMON, MP Seventh Intervener judgment delivered 10 July 2010

Ban in the law  applies only to international organisations contributing directly to an individual  political party. International organisations may contribute to the Central Fund which is distributed between all eligible political parties. The law states Individual and legal non citizens may contribute directly to a political party (subject to the same limits as domestic contributors)  or to the Central Fund. The Supreme Court in 2010 determined that these provisions allowing non-citizens to contribute directly to a politcal party or the Central Fund  were unconstitutional.