DPM seeks direction to review PMMR

The Supreme Court has declared that the Public Money Management Regularisation Act or PMMR of 2017 is unconstitutional.

The decision was handed down on Wednesday 27th of May 2020.

Following the decision the Deputy Prime Minister and Attorney General Davis Steven, has written to the Prime Minister seeking direction on whether his department and the departments of Treasury and Finance can review the legislation.

The Public Money Management Regularisation Act, enacted in Parliament in 2017 under the O’Neill-Abel government, was to regularize the handling and management of public funds received by public and statutory bodies.

However in 2018, the Ombudsman Commission took the matter to the court to challenge its validity.

The court, in its decision, established that the Act was to ensure that the public and statutory bodies have only one operating bank account which the Secretary for Finance has direct control over and establishes the Strategic Budget Committee or (SBC), which determines how much funds are to be transferred back to the public and statutory bodies for operational funding.

However, it declared that the Act is invalid as it imposed restrictions on filling judicial reviews of the determinations of the SBC.

Deputy Prime Minister and Attorney General, Davis Steven, says in passing such important laws as the PMMR, the NEC must observe constitutional requirements. 

“The Supreme Court has come out clearly to inform and remind NEC and Parliament that in passing laws, especially an important law like the Public Money Regularisation Act which deals with Finance directly involving our revenues and how we expand our revenues of our country, we must observe the Constitutional requirements.”

He emphasised that from the Supreme Court decision, one can learn that proper and effective consultation in drafting the law is very important, so the Constitution is respected and the rule of law prevails.

“Too many empires in Waigani, we cannot allow too many secretaries and agencies running their own program outside the budget process. I want to emphasise this, corruption, inefficiency and public waste often occur when we move away from the budget process.”

Minister Steven says before any future bill is approved by NEC, it has to go through legal and administrative processes to avoid judicial scrutiny that raises questions about the diligence of the NEC and Parliament.

Author: 
Jemimah Sukbat