NEW IRELAND PROVINCIAL GOVERNMENT UNDER SPOTLIGHT OVER MISSING K2.7 MILLION

by PNGNEWS

Blatant misuse of public funds totaling over K2.7 million by the New Ireland Provincial Administration in 2014 has not gone down well with the Auditor- General’s Office.

The annual audit report on the accounts of the New Ireland Provincial Government for the year ending 31 December, 2014 has seen K2,749,989.00 misused and completely breached certain provisions of the Public Finances (Management) Act.

PNG Auditor-General Philip Nauga in a recent letter to the Governor, Sir Julius Chan, dated July 08, 2016 in highlighting the audit report called for immediate investigation into the misapplication and misuse of the public monies.

The auditor’s report which was submitted to the Minister for Inter-Government Relations with copies to the Minister for Finance and the Chairman of the National Economic and Fiscal Commission highlighted several discrepancies incurred by the New Ireland Provincial Administration.
According to the auditor general’s report the following has been uncovered:


  • Payment of twenty-four (24) outstanding claims in respect of the 2012 PNG Games totaling K75,745 were not supported with duly examined and certified payment documents except for manual invoice/statement and verification letters from managers and CEOs;
  • Consultants engaged and attached to the Autonomy Secretariat & Commerce are paid a total of K72,000 (K36,000 per person) as monthly consultancy fees tax-free. Similarly a Planning Consultant was also engaged and paid on a fortnightly basis or an annual salary of K1,314,000. The Auditor General was not provided evidence to suggest that the engagement of the consultants were duly sanctioned and approved by the appropriate authorities such as the Consultancy Steering Committee of the Department of Personnel Management.
  • The Retrenchment/Retirement Benefits Calculation Forms for two (2) retrenched employees of the Provincial Government who were paid their final entitlements totaling K138,787.00 were neither signed nor stamped by a competent authority from the Department of Personnel Management to authenticate the legitimacy and validity of the payouts. The Auditor General further noted that the retrenched employees were still on the Payroll Register or Pay No. 26/2014;
  • The lump sum payments of cash advances to officers ranged from K11,375 to K200,000. The Auditor General observed however, serious lack of proper monitoring and recovery exercise on the management of cash advances resulting in an un-acquitted amounts totaling K1,325,202 (K1.3 million) as at 31 December, 2014.


Mr Nauga said the findings of the audit report raises significant concern, adding that:

  •  The New Ireland Provincial Government did not maintain proper accounts and records and has consequently breached section 68(1) of the Public Finances (Management) Act 1995; and
  • The receipts and payments and investment of moneys and the acquisition and disposal of assets during the period covered by the financial statements have not been in accordance with the Public Finances (Management) Act, 1995 and Organic Law on Provincial Governments and Local Level Governments.

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