Dairi Vele

According to the leaked internal memorandum, the Public Debt Committee was advised by an officer from the Bank of PNG that they will be “struggling to pay salaries on time due to issues relating to the cashflow situation”.

The memo went on to say about K60m-K70m is needed to allow payroll to be processed.

On the other hand, Secretary Dairi Vele said: “Let us be clear that public service salaries will be paid.

“The Government Auction is one way that we use to raise funds. It is NOT the only way.

This was revealed by Secretary for Treasury, Dairi Vele yesterday in Port Moresby during the National Parliament Induction Programme.

Vele announced this when questioned by East Sepik Governor, Allan Bird, why over the last five years there was a significant increase in borrowing while many hospitals were not upgraded.

Bird questioned this after Vele said in his presentation to members of Parliament that health was one of the priority areas justifying the borrowing.

“My question is where were those borrowings expanded? Bird asked.

She made these statements after her case at the Waigani National Court got discharged on Monday.

A week-long trial against Twivey was to commence on Monday, however that did not eventuate after the office of the public prosecutor filed a document called a nolle prosequi, withdrawing the information and charge against her.

She was arrested and charged for perverting the course of justice on April 11, 2016.

Treasury Secretary, Dairi Vele, said during the 2017 Leaders Summit that the Government must move its focus to the non-resource sector over the next five years.

“In the early part of your (O’Neill-Dion) administration, you were looking at oil and gas and mining that were providing much of our growth, now it’s come down a little bit and we’re focusing on some of the other non-resource areas.

That’s according to Secretary for the Department of Treasury, Dairi Vele, during the 2017 National Budget Press Lock Up at Parliament House.

Vele referred to a ‘Cash In/Cash Out’ equation stating the projected revenue of K11, 088.9 million and an expenditure plan of K12,623.3  million resulted in a budget deficit of K1.876.5 million (K1.9 billion)

The budget deficit equates to 2.5 per cent GDP, while the total Government debt of K21, 623.3 million (K21.6 billion), equates to 28.8 per cent of GDP.

The Treasury Department’s 20-16 Mid-Year Economic and Fiscal Outlook, provided early warning signals on the need for an urgent Government action on a sustainable budget.

In a statement this afternoon, Treasurer Pruaitch said an urgent early Supplementary Budget will demonstrate the Government’s commitment to prudent and disciplined fiscal policy, and maintenance of macro-economic stability.

Treasury Secretary Dairi Vele has recommended that the 2016 Budget spending be reduced by 1.9 billion kina to bring it in line with revenue shortfalls.

He says the government is seeking a sovereign bond in foreign capital markets in the order of $US1 billion.

Vele says the budget made for next year is only on paper and that the government will need to secure funds to execute the allocations.

He says foreign capital markets was an area the government had not used for a while but now they were  confident PNG could succeed in getting a sovereign bond.

This is due to a stay order that was issued by the National Court on October 14 by Justice Ere Kariko.

Police Commissioner Gari Baki’s lawyer, Nicholas Tame, moved for the adjournment just after lunch today when the matter returned to court after it was adjourned from September 22.

Tame and Vele’s lawyer Tiffany Twivey both appeared before Magistrate Cosmos Bidar where they agreed to an adjournment to November 26.

Tame said the application before Magistrate Bidar relates to other matters before the National Court.

Vele’s lawyer Tiffany Twivey went to the District Court on Tuesday (September 22) with the application to set aside the warrant of arrest that was taken by Director of National Fraud and Anti-Corruption Directorate Detective Chief Superintendent Matthew Damaru and his deputy director Timothy Gitua.

Damaru and Gitua on July 22 obtained a warrant of arrest against Secretary Vele.

Commissioner Baki says that Secretary Vele’s arrest is in regards to his alleged involvement in the release of funds to an Israeli company for the purchase of two generator sets in 2014.

Baki confirmed this by stating that the warrant of arrest was obtained by Chief Inspector Timothy Gitua of the National Fraud and Anti-Corruption Directorate.

The warrant was obtained at the District Court on July 22^nd.

Baki says that on Sunday the 26^th he directed for the court order obtained by Chief Inspector Gitua to be executed immediately.