Australia’s 400 million dollar aid program in Papua New Guinea is under fire after an independent review found half the money is being spent on private companies and consultants, rather than community projects.

The inquiry reported that some consultants were paid six-figure, tax-free salaries to provide ‘technical assistance.’

Foreign Minister Stephen Smith defended the aid program, but said the government was looking into how to address the problems.

Natalie Muller spoke with Gary Lee from the independent NGO, AID/WATCH.

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