PNG Education Department Shifts From Cheques To Electronic Payments

Suppliers dealing with the PNG National Department of Education will no longer have to rely on the traditional cheque system after the department introduced electronic fund transfers for its payments.

The new system was formally launched at Vulupindi Haus on October 5 by Education Secretary Dr Uke Kombra and Department of Finance Deputy Secretary for Sub-National Tom Tiki, setting the department on a new path for processing government payments.

 PNG Education Department Shifts From Cheques To Electronic Payments/Photo supplied

The move forms part of broader reforms aimed at improving public financial management and reducing inefficiencies associated with paper-based transactions.

Dr Kombra welcomed the transition, saying technology had an important role to play in improving government operations and strengthening financial accountability.

He said the close cooperation between Education and Finance had already supported major government initiatives, including the Government Free Education Policy.

“We are pro-technology, and we appreciate the change that’s being implemented right across the government system,” Dr Kombra said.

Dr Kombra also called for predictable turnaround times so companies and other service providers could better plan around the timing of payments.

Mr Tiki said the electronic system would remove several difficulties associated with the former process, including payment delays, administrative backlogs and the physical collection of cheques.

Once payments are approved, funds will be sent directly to verified bank accounts. The electronic process will also provide a digital trail of transactions and strengthen controls over government expenditure.

He praised the Education Department for taking up the technology and highlighted the cooperation between the two departments during training and the EFT trial.

The scale of the change is particularly important for the Education Finance Division, which handles thousands of transactions every year.

First Assistant Secretary Nigl Zerika said the division had been processing between 7,000 and 8,000 cheques annually.

“The Finance Division processes between 7,000 and 8,000 cheques annually, with about 30 to 50 cheques processed each day,” Ms Zerika said.

A trial conducted on September 29 saw 16 payments successfully processed through the department’s main drawing account.

Ms Zerika said preparations for the full rollout were well advanced, with the department estimated to be between 90 and 100 per cent ready.

The remaining work involves integrating the department’s trust accounts into the new arrangement before EFT becomes fully operational throughout its payment system.