GOVERNMENT SPENT K10 BILLION ILLEGALLY THIS YEAR
by PNGBLOGS
Prime
Minister Peter O’Neill and Treasurer Patrick Pruaitch have been caught out in a
massive Constitutional breach over state borrowings and repayment of the
national debt in 2015 and 2016.
Their
failure to comply with Section 209 of the Constitution means all domestic debt
– Treasury Bills and Inscribed Stock - issued in both years, and repayment of
that debt, is technically illegal.
The
unlawful amount involved will be about K10 billion by the end of this year.
The
Constitutional breach and the failure to acknowledge and correct it highlights
the incompetence and lack of integrity of the Prime Minister and Treasurer.
It
highlights the complete disregard by the Prime Minister and his Regime for the
laws of Papua New Guinea, including the Mama Law.
The
Constitutional breach was identified by blogger Kessy Sawang, a financial
analyst and former Deputy
Commissioner of Papua New Guinea Customs Service, and Head of Secretariat of
the Tax Review Secretariat at Department of Treasury.
Ms Sawang disclosed the
Constitutional breach in a comprehensive and very astute analysis on her blog http://pngwoman.com/unlawful- spending-of-k9-9-billion-in- 2016-by-national-government
“This
is an extraordinary mistake to have made and I am puzzled and shocked as to why
it has not been corrected,” she says.
“I wonder if
the Prime Minister and his Minister for Treasury are aware of this but have
chosen to deliberately ignore this constitutional breach.
“I wonder if
the Departments of Treasury, Finance and National Planning & Monitoring
were aware of this but failed to bring it to the attention of Government.
“Who is accountable for this shocking
breach?”
The
simple answer is that the Prime Minister is directly responsible for all
legislation before the House, and under him the Treasurer.
Constitutional
breaches of this magnitude, especially when they have deliberately not been
corrected, require Pruaitch at least to resign.
Treasury
is aware of the breaches, but has not been able to say why they were not
corrected in the 2016 Supplementary Budget or the 2017 Budget.
They
must immediately be corrected by a retrospective Appropriation Bill, and the
Prime Minister and Treasurer must apologise for the breach of the Constitution
and their deception.
The
Treasurer’s deception extends to misleading Parliament in his 2017 Budget
speech when he stated that there was a K1.1 billion reduction in expenditure in
2017.
That
is untrue.
Ms
Sawang points out that there was actually an INCREASE
of K7.3 billion over the 2016 Appropriation of K13.8 billion.
Section
209 of the Constitution requires Appropriation Bills for the three arms of
government – the Executive Government, the National Parliament and the
Judiciary.
Specifically,
Section 209 requires all spending of public funds to be authorised by
Parliament.
Ms Sawang says
Volume 2a of the 2016 Budget shows that the total
payments to be made by Government (i.e. Executive Government, National
Parliament and Judiciary) are K23.8 billion but the sum of the Appropriation Acts (after the
2016 Supplementary Budget) is only K13.3 billion.