PNG PM Marape Removes Minister Win Daki from Commerce Portfolio Pending SME Fund Probe

Prime Minister James Marape has stripped Minister Win Daki of the Commerce and Industry portfolio as the Government launches an independent investigation into allegations involving the administration of Papua New Guinea's Small and Medium Enterprise (SME) Fund.

The move also requires Commerce and Industry Secretary David Ganaii to step aside while inquiries are carried out, with Finance Minister Thomas Opa taking over responsibility for the Commerce and Industry Ministry until the investigation is completed.

Mr Daki will continue to serve in Cabinet as a Minister without Portfolio during the investigation.

The Government has also approved the appointment of a reputable independent audit firm to conduct a full forensic audit of the SME Fund to ensure the investigation is carried out without political or departmental influence.

The audit will scrutinise budget appropriations, Treasury cash releases, payments made to partner financial institutions, acquittals and every financial transaction connected to the SME programme. The review is expected to determine whether Government policies, financial management laws and other legal requirements were properly followed.

Prime Minister Marape said the Government's commitment to supporting small and medium enterprises across Papua New Guinea remained unchanged despite the investigation.

He said the exercise was necessary to protect the integrity of the SME programme and provide the public with a clear account of how public funds had been managed.

"I have also directed that a reputable independent audit firm be engaged to undertake a full forensic audit of the SME Fund. The auditors will independently establish the facts, determine whether Government policy, the Public Finance Management Act and all other relevant laws have been complied with.

"Had the full K200 million allocations been released, the intended distribution would have been K80 million to BSP, K70 million to NDB, K30 million to Mama Bank, and K20 million for administration, supervision, monitoring and programme management," Mr Marape said.

The Prime Minister said investigators would establish how much funding Treasury had released over successive budgets, the amounts transferred to participating financial institutions and whether there had been any departures from Government policy or the law.

Mr Marape also reassured Papua New Guineans that his Government maintained a zero-tolerance approach towards corruption and the misuse of public funds, adding that Ministers and public servants were expected to comply fully with the Public Finance Management Act.