Finance Secretary Dr Ken Ngangan

When asked by journalists, Finance Secretary Dr Ken Ngangan confirmed that some allowances and payments are still outstanding, hence they have asked the APEC Authority to compile a list.

“We want to know exactly how much is outstanding so that we can seek some funding through the budgetary process,” Ngangan said.

He highlighted that the planned public tender of APEC assets and vehicles is an income-generation exercise.

In a press briefing today, Finance Secretary Dr Ken Ngangan said those still in possession of motor vehicles and assets have to return them before the deadline.

“Any assets that still remain outside of this team after the date will be deemed illegal and stolen,” stated Ngangan.

“I’ve just given directions to the Department of Finance officers who are in possession of APEC assets, and the APEC Authority, to surrender all the assets immediately before Thursday.

“The same applies to everyone. No one is exempted from this request.”

The Finance Secretary said the media statement released by Electoral Commissioner Patilias Gamato was misleading.

“The statement is made with complete ignorance of the government’s budget management processes which are embedded in law,” Dr Ngangan said.  

“It is not in law to randomly transfer funds from one appropriation to another and there is an established process to do that. Both TFF and Electoral Commissions are high priority funding for the government this year.

Secretary Dr Ken Ngangan revealed during the launching of the amended Public Finance Management Act (PFMA) that warranting is now done through the budget management committee.

“Previously we just issued warrants based on the budget.

“Now what we are doing, we are issuing warrants in line with cash availability. So that when we issue warrants and cheques are written, there is cash there to clear the cheque,” he said.

Dr Ngangan said this was one of the basic control measures in the PFMA but was never complied with previously.

Dr Ngangan says they have received instructions from Chief Secretary, Isaac Lupari, through the Budget Review Committee to release some funding to both universities.

“By tomorrow (Dec 14) I will get a report where the universities have underspent what is left in their own budget.

“If they’ve overspent we’ll see what other funds are available. But the assurance is that the two universities will get some funding this week,” Dr Ngangan said.

This is the warning from Finance Secretary Dr Ken Ngangan, during the announcement of the revised Act in Port Moresby today.

The PFMA 2016 contains wholesale changes to the PFMA 1995 which aims to improve compliance and clearly stipulate functions and procedures dealing with public finance. 

Dr Ngangan said the revised PFMA has set clear guidelines and anyone seen to be circumventing or not complying with the stipulated regulations in the Act will be dealt with accordingly.

Electoral Commissioner Patilias Gamato said the National Government with the support of Inter-Department Election Committee (IDEC) has established a 2017 election trust account which will facilitate funds coming into PNGEC.

He said in the past, PNGEC used the integrated financial management system (IFMS) to manage funds but what normally happens is that after all government accounts are closed, unused funds are returned to the Consolidated Revenue Funds (CRF).

“With the trust account, PNGEC funds will be held back and used during the shut-down period,” Gamato said.

Dr Ngangan said government accounts will be closed on 12 December; no payments will be made by the Finance Department.     

He warned all government departments and statutory organisations to follow the Finance Department circulars because no unsettled warrants will be made after the closure of the accounts.

This is so the 2016 audit can be done in preparation for the 2017 financial year.      

The government accounts will be opened in the first week of Janaury.