PNG MPs Face Hurdles Accessing K304 Million El Niño Relief Funds

Members of Parliament in Papua New Guinea are facing difficulties accessing El Niño disaster relief funding following conflicting financial instructions governing the release and distribution of the money.

Abau MP Sir Puka Temu raised the concern in Parliament yesterday, saying districts were unable to access the funds because of a reported communication breakdown between the Integrated Financial Management System (IFMS) and the National Banking Corporation (NBC).

Sir Puka told Parliament during Question Time that his District Finance Manager had informed him of the problem, which he said was preventing districts from carrying out the required financial processes.

 PNG MPs Face Hurdles Accessing K304 Million El Niño Relief Funds : Photo : Abau MP Sir Puka Temu/supplied

He explained that although the disaster relief money had been placed in an NBC trust account, the financial instructions circulated to District Financial Managers last week required suppliers to open accounts with BSP.

Under the instructions, districts were also required to establish trust accounts to facilitate payments in accordance with the approved financial procedures.

“Because all the funds are parked in NBC, the financial instruction says suppliers must open up their BSP, no other banks, and then the district must establish trust accounts as per the financial instruction that was delivered to all the DFMs last week,” he said.

Sir Puka said the arrangements had created a structural problem that needed immediate attention, warning that other electorates could be experiencing similar difficulties.

He called on Finance Minister Thomas Opa and National Disaster Minister Dr Billy Joseph to work together to resolve the issue and ensure the relief funds could be accessed without further complications.

Responding to the concerns, Dr Joseph confirmed that K304 million had been released by the Department of Finance into a trust account held with NBC.

“I know that K304 million has been released from the Department of Finance to a trust account in the NBC bank. We all have seen the financial instructions, and we are following that, and we are accessing the funds,” he said.

Dr Joseph advised Sir Puka to take the matter directly to Mr Opa, saying the issue fell within the Finance Minister's responsibility.