Tag Archives: Planning

Government taken measures to manage wild spendings by SOE’s

November 30, 2017


The Government has taken steps to centralise the budgetary process by cracking down on some public and statutory bodies collecting public monies and spend these outside of the Budget.

Deputy Prime Minister and Minister for Treasury and Finance Charles Abel said the Government is serious about improving the fiscal health of the country and this bill is a demonstration of that serious intent.

“Public funds that are raised by public and statutory bodies as non-tax revenue rightly belong in the Consolidated Revenue Fund so that they may be appropriated for expenditure by Parliament to meet the objectives of the Government.”

Opposition Leader Patrick Pruaitch interjected claiming that the bill is part of the budget bills and in normal tradition this bill must be passed along with the budget.

“Why are we dealing with Budget Bills separately when the debate on the budget has been adjourned to next week Tuesday? Can we stop sneaking in stuff? We need to be able to understand the bills and it is part of the budget papers. It is attached to the budget bills.”

Prime Minister Peter O’Neill had to intervene to allow Mr Abel to introduce the bill, make his speech and defer the passing to Tuesday next week.

Minister Abel then proceeded saying that for too long, it has been the practice of some public and statutory bodies to retain, without authority, this non tax revenue to meet operational and other expenditures.

“These expenditures have taken place outside the budget process and this is unacceptable to government. Some, but not all, public and statutory do have legislation in place that purportedly allows them to retain this non-profit revenue, but those provisions have always offended against the best principles of public financial management and this Bill remedies those matters.

The Bill binds all public and statutory bodies. State owned Enterprises are excluded as they are not statutory bodies.

The Bill does not apply to the Bougainville or any public or statutory body created by the Bougainville Government.

The Government has decided to explicitly exempt Kumul Consolidated Holdings, Kumul Petroleum Company and the Kumul Minerals Company from this law as fiscal arrangements to them are currently being reviewed.

Govt cracks down on out of budget spending by SOEs

Museum Planned For APEC Haus

August 18th, 2017 | Post Courier


Prime Minister Peter O’Neill yesterday announced plans to have the APEC Haus, converted into a museum after the country hosts the 2018 APEC summit.

Mr O’Neill, who was the guest speaker at the 2017 Prime Minister’s Breakfast organised by the Business Council of PNG (BCPNG). The event which was packed to capacity.

Prior to announcing these plans, Mr O’Neill clarified that, contrary to the assertions of critics that the government was spending billions of kina to host this event was not true.

“We don’t have billions to spend to host APEC summit. The government is trying to deliver this in a most cost effective manner possible.

“As I said some of the infrastructure which is APEC related is what we will use in the future, like the APEC Haus.

“Once the event is finished, we will convert it into a museum to display our culture, artifacts that our kids can go and visit rather than it be hidden out there at Waigani

“It will be on main treet so our kids can see what our country has to offer.

“We are working towards developing a world class museum. I am sure many business leaders travelled to places like Berlin and visited the museums and seen the PNG artifacts sitting there and the collection they have, they are world class.

“Rather than others having access, our people need to have access to a world-class collection so we are working to developing one. It will be something that will be here in 100 years time,” he said.

Business Breakfast Speech,17 August 2017

Speech by Hon. Peter O’Neill CMG MP Prime Minister of Papua New Guinea – Business Council of Papua New Guinea – Business Breakfast, 17 August 2017

Good Morning.

It is a pleasure to be with you this morning.

Engagement with the business community has always been a priority of our Government, and this will continue.

It is important that new Minister and Members of Parliament meet with you.

We have just come through a long election period, over three months.

The election had its share of challenges, in logistics and process, and we are undertaking a post-election review to make improvements in the way we conduct elections.

At the same time, this was one of the most peaceful elections of recent times.

There were disturbances and unfortunate incidents in some provinces.

But when you compare this to the violence in the 2012, 2007 and 2002 elections, we can see change taking place.

Right around Papua New Guinea we are seeing change – this is change in social and economic development, and change in community attitudes, in the electorate and the voters.

Our Government is proud to have the mandate to continue driving positive change.

We are grateful for the support given by our people to continue our core policy agenda.

We are also grateful for the support of the business community for our Government.

We will again be a business-friendly Government and consult with all stakeholders.

Current policies will evolve and new policies will be introduced.

There will be further regulatory reform to keep pace with changes in the global economy.

But we can promise you that we will continue to be a Government that does not impose unwanted surprises.

We believe in policy evolution, and we will always consult with business.


A very important factor in this is that the business community needs stability.

After decades where Governments changed every few years, and business never knew who would be in office one year after the next, that has all changed.

Over the past fifteen years, there has only been two Prime Ministers.

This is unprecedented in our country.

There are not many countries in the world who are able to maintain that level continuity in Government.

Now moving into the seventh year after our Government first came to office in August 2011, we will continue to deliver stability that the business community wants.

We know that maintaining political stability is key element in maintaining business confidence.


The concerns that confront business today are known to our Government.

We know that business wants to know how Government is addressing the availability of foreign exchange.

I understand the genuine concerns you have, and the impact that the availability of FOREX has on your businesses.

The Bank of Papua New Guinea continues to have our full confidence, and I believe, that they are managing this issue responsibly.

The Central Bank’s intervention in the foreign exchange market has been sensible.

Foreign Reserves are currently sufficient for 10 months of total import cover.

Our Government hears the concerns that have been raised by business, and we are working to ease these pressures and ensure this issue is attended to in a timely manner.

We are also redoubling our efforts to bring online major impact projects in our country.

These projects will positively impact foreign exchange reserves, they will also deliver much needed jobs for our people, and reliable contracts for our businesses.


Our attention to business engagement and empowerment is from the largest to the smallest businesses.

When it comes to large-scale projects, that will generate thousands of new jobs and create new revenue opportunities for our country.

Companies, including ExxonMobil, TOTAL and Oil Search, continue to maintain the highest confidence in our oil and gas sector.

Other investments are coming online, particularly in the mining sector.

The Government is fully committed to these developments, and the number of others at various stages of advancement and approval processes.

As we move forward, we also have a renewed focus on being more self-sustaining in manufactured products.

As a resource-rich nation, combined with a committed and better trained workforce, we must become more self-reliant.

Where we can produce more locally, and we must do so.

We will continue to diversify our economic base to create greater opportunity in sectors that include – Agriculture, Tourism, Forestry and Fisheries, to name a few.

We need to stop going through the boom and bust cycles.

We believe the downstream processing of our raw products offers opportunities to increase employment, and to add significant value to our exports.

We must make better use of our food produce to reduce our reliance on imported goods, and to enhance food security in our country.

We will widen the scope for manufacturing industries and create employment opportunities, and ensure we keep up with new technologies and access new markets.

Over the last 40 years, we have been slow to grow the formal SME Sector.

In the coming years we will deliver a comprehensive small business strategy, including the re-introduction of the Stret Pasin Stoa scheme that has been popular with our people.


During the election, we presented our core policy commitments, and refined these further into the Second Alotau Accord.

This built on our policies of the past term of Parliament, and will continue to be strengthened.

At the heart of our policy agenda is our people – the Men, Women and Children of Papua New Guinea.

We must be custodians for their economic wellbeing.

In Alotau, our Coalition partners agreed to policy initiatives that will drive real development for our people.


Over the past five years we have maintained positive economic growth, despite a very challenging global environment.

Our economic fundamentals remain sound, even when facing pressure, and continue to be maintained through careful and sensible management.

The National economy is projected to continue grow at 3 per cent this year, and build on previous years of positive economic growth.

At the same time, similar economies around the world are facing economic decline.

We are running a deficit budget, and that is the sensible considering the pressures on the economy at the current time.

We cannot sit and wait for the global economy to recover, we must continue to invest in our people, and we must continue to invest in infrastructure in key sectors.

The global economy is recovering, and we have to continue to ride the end of the storm as economic conditions improve.

Prices for our key mineral exports are still trending at low levels, but better than in 2016.

To mitigate the risks and ensure macroeconomic stability, our Government will continue to carefully monitor economic developments affecting revenue streams.

We will deliver a 2017 Supplementary Budget, as a natural course of action for any new Government.

The Supplementary Budget will ease financing pressures, while ensuring the ongoing delivery of essential services.

Particularly in core policy areas, we will make necessary adjustments to achieve the fiscal deficit target of this year’s budget.

We are not contemplating new taxes as part of the 2017 Supplementary Budget.

Our critics can say all they want, but in the previous term of Government we did not raise taxes.

We will continue to focus on achieving sustainable economic growth and maintaining a sound fiscal path.

Attention will continue on revenue generation to support social development objectives.

We will continue to enhance the quality of government expenditure and manage debt to maximise growth.

With support from the IMF and World Bank, we are currently reviewing a study of the medium term fiscal strategy to ensure that our budgets are framed prudently.

In the 2018 National Budget there will be a renewed focus on implementing a revenue system that is just, efficient, and responsive to the needs of our country.

We are not increasing taxes, but ensuring it is fair for all who should pay tax.


Over the coming year, Papua New Guinea will host APEC.

Over recent years the reputation of our country has been enhanced in the International community.

We will continue to strengthen relations with our close trading and cultural partners, and foster greater people-to-people exchanges.

The economies of APEC account for more than half of global trade, and we are expanding our access in these markets.

In November in 2018, the Presidents and Prime Ministers of APEC’s 20 other Member Economies will visit our country.

This creates a unique opportunity to showcase our country to the world.

Business leaders from the APEC region, and around the world, will be in Papua New Guinea and carry with them greater trade and investment opportunities.

Through APEC we have access to technical co-operation, capacity building and sectoral exchange that will help so many of our industries.

There will be more than 15,000 overseas visitors coming to Papua New Guinea for APEC over the coming year.

Collectively, delegates and their Governments will spend well over 100 million Kina on accommodation, air fares and other expenditure in Papua New Guinea over coming year.

This is additional stimulus for our economy, on top of National investment in APEC infrastructure and services.


Our door will always be open to business, we will consult fully on policy and regulation, and we will take your advice on creating jobs.

The future is bright for business in Papua New Guinea.

We are dealing with challenges, but there is light at the end of the tunnel.

Business and Government must work together in the interests of our Nation, and better outcomes for all participants.

I look forward to positive outcomes from this forum, and the continued expansion of business and investment in Papua New Guinea.

Thank you.

Housing Facing Shake-Up

16th August, 2017
Source: The National

THE eviction of tenants and sale of State housing properties have been put on hold while an audit is conducted into two government agencies entrusted with providing affordable housing to the people.

Minister for Housing and Urbanisation John Kaupa has ordered a major clean-up in the National Housing Corporation and the National Housing Estates Limited, starting with the audit to be conducted by the auditor-general.

“No more eviction orders to be carried out and no more sale of (NHC) properties,” he said.
“I am not here to hire and fire anyone. I want to make sure there are structures that support the initial notion of providing affordable housing for Papua New Guineans. We must be compatible in the market as well,” Kaupa said.
Kaupa said there were court cases pending against the NHC, and many investigations on-going which warranted the scanning of and adjustments to the institutions.
He said the NHC, NHEL and the Office of Urbanisation were formed to provide ordinary citizens working in urban areas affordable housing. But over the past decade, they had come under scrutiny “more than any other government institution”.
He put this down to “negligence, lack of prudent management and incompetency in the ability to deliver honestly” as the root causes of the problems.
Kaupa said auditors would be engaged to clean up and restructure the housing organisations.

“The Office of the Auditor-General will deal with the cleaning up of housing and NHEL,” he said.

Kaupa said work would continue during the audit. “NHC is obliged to build affordable housing for Papua New Guineans but over the years, they have not built one,” he said.
“Rather they have been doing the opposite by selling the properties.
“Almost 70 per cent of property around the country have been sold to maintain the corporation’s salaries and operations.”

He warned that NHEL would go back under NHC “if it hasn’t been functioning properly”.
Kaupa said the NHEL had been engaged in huge projects around the country and he wanted a report on those projects.

106 Districts Fail to Aquit K1.1 Billion

May 31, 2017


A total of 106 provinces and districts have failed to acquit for the funding that they received from the disbursement of SIP funding last year.

Reports from the Department of Implementation and Rural Development (DIRD) have shown that out of the 22 provinces and 89 districts in PNG, only five have submitted their acquittals and annual reports for the K1.11 billion released for the District Services Improvement Program (DSIP) and Provincial Services Improvement Program (PSIP) last year.

Only 5 out of 106 have acquitted for SIP funds

According to DIRD acting deputy secretary, Aihi Vaki, there has been a steep decline in the submission of annual reports and acquittals for DSIP and PSIP funding over the past four years.

“In 2013, we had 92 acquittals submitted and 19 not submitted. In 2014, we had 75 submitted and 36 not submitted. In 2015 we had 36 submitted and 75 not submitted and this year we have only received five so far. So you can now see the trend is that over this period, the acquittals and the level of reporting is dropping,” said Mr Vaki

“Although we have seen some development since the DSIP program was first implemented in the 2008 National Budget, irregular payments, and the non-submission of annual reports and acquittals have made both the DSIP and PSIP increasingly difficult to manage.

“It is not the sitting members fault. This is supposed to be the district administrators’ responsibility. But as the chairpersons of their respective District Development Authority (DDA) boards, they need to push for submission of acquittals because we need those reports,” Mr Vaki said.

It has become readily apparent that more stringent and transparent measures need to be taken in order to account for the sheer mass of funding that is being drawn down for DSIP and PSIP funding every year.

Tax payers deserve to know where their money is going and whether or not they are directly benefitting from it.