Strengthening Transparent and Accountable Governance in Papua New Guinea Transparent and accountable governance, the rule of law and gender equality are core values of the EU, key elements of the EU¿s global strategy and essential for a democratic, thriving and peaceful society. Poor governance is PNG¿s main obstacle to translate its immense natural wealth into sustainable development outcomes and to achieve its national development objectives. By reinforcing EU¿s existing governance support in PNG and in line with MIP Priority Area 3 ¿Transparent and Accountable Governance¿, this action will contribute to the Overall Objective of improved management of public resources, better service delivery and reduced poverty, through (a) improved public financial management (PFM) (pillar 1) and (b) enhanced integrity, transparency and account-tability (ITA) systems and practices (pillar 2), at national and pilot subnational levels. Through support to mandated institutions based on existing policies, involving multi-stakeholder platforms and enhanced use of digital tools, the action will anchor institutional capacities, policy enforcement and increased demand for transparency and accountability by the population in the anti-corruption space. Building on PNG¿s PFM diagnostic and analysis (PEFA) and policy instruments (PFM reform roadmaps), and aligned with ongoing external support by various development partners in coordination with the EU, pillar 1 of the action focusses on strenthening PNG¿s public sector audit function. Pillar 2 focusses on intergrity, transparency and accountability (ITA) mechanisms and practices, embedded in PNG¿ policies to enhance the fight against corruption, notably the creation of the Independent Commission Against Corruption (ICAC), the whistle-blower legislation and the adoption of the National Anti-Corruption Plan of Action (NACPA) 2020-25. PNG is signatory to the convention against corruption and was peer-reviewed in May 2022. The EU is the PNG¿s lead partner in promoting ITA, notably through the 11th EDF EU-PNG Partnership for Good Governance Budget Support. The implementation of reforms resulted in an improvement of PNG¿s ranking in the Transparency International Corruption Perception score in 2021 from 142 to 128, but much more needs to be done to ensure that PNG¿s wealth is translated into inclusive development outcomes for all. Sustaining PNG¿s current anti-corruption drive against deeply entrenched vested interests requires continued efforts. Issues related to governance in the environmental sector will be taken into account.While focussing mostly on supporting mandated state institutions, the action will also provide critical and targeted complementary support to the bottom up demand side of integrity and accountability, and will contribute to the progressive achievement of SDG Goal 16: ¿promoting peaceful and inclusive societies for sustainable development and providing access to justice for all and build effective, accountable and inclusive institutions at all levels¿, and SDG 5 ¿Gender Equality¿. Complementarities exist with the other actions of AAP 2022, notably under priority area 1. The action contributes to the EU Gender Action Plan III (GAPIII) and particularly to the thematic area of engagement ¿Promoting equal participation and leadership¿. It supports Papua New Guinea¿s gender equality policy and its National Strategic Plan ¿Vision 2050¿ which aims to increase equality between people, more equal distribution of resources and opportunities, particularly emphasizing women and youth roles and enhanced participation in the society.