A constitutional amendment to establish the ICAC was passed unanimously by Parliament last year, with Prime Minister Peter O'Neill saying cabinet had approved the drafting of legislation that would give the corruption-fighting body the ability to identify and investigate perpetrators.

"This should include particulars on the functions and powers, appointment of commissioners and staff relationship with other anti-corruption or law enforcement agencies, and both internal and external accountability measures to ensure that ICAC is also accountable to the people," he said.

"Both the constitutional amendments and the draft Organic Law have been drafted following an extensive public consultation process, including seeking views of experts and taking into account PNG's and other countries' experiences.

"With reference to previous submissions to cabinet, the National Anti-Corruption Strategy and the National Anti-Corruption Plan of Action 2012-2015, the government acknowledges that corruption has and will continue to hinder PNG's development prospects, especially the collective well-being of Papua New Guineans."

Cabinet also passed drafting instructions for the legislation that would implement the Kumul restructure, which would establish clearer roles and functions for the Independent Public Business Corporation and the majority of state-owned enterprises.

It would also result in the establishment of entities, including Kumul Petroleum Holdings Limited, which would hold the country's oil and gas interests, Kumul Mineral Holdings Limited, which would hold its mineral interests, and will rename the IPBC to Kumul Consolidated Holdings Limited.

"Cabinet also approved, directed and authorised the IPBC to provide all assistance as is required by the relevant ministers to give effect to the provisions of the Kumul Petroleum Holdings Authorisation Act 2015, Kumul Minerals Holdings Authorisation Act 2015 and the IPBC PNG (Kumul Consolidated Holdings Limited) Amendment Act 2015," O'Neill said.