Prime Minister James Marape has announced that Direct Service Improvement Funds (DSIP) will be extended to wards across Papua New Guinea under a returned PANGU-led government, with the rollout tied to stricter financial accountability measures and national economic growth targets.
Speaking in Parliament yesterday in response to questions from Morobe Governor Rainbo Paita on councillors and ward officials being placed on the government payroll, Prime Minister Marape said the proposed ward-level funding arrangement would only proceed once local financial management systems are properly audited and the country’s economy surpasses the K200 billion mark.
The Prime Minister said the proposed reforms are aimed at empowering grassroots communities directly, while ensuring public funds are managed responsibly and sustainably before any nationwide implementation takes place.
Prime Minister Marape in a statement said the rollout of the proposed ward-level Service Improvement Funds will not be automatic, outlining two mandatory conditions that must first be met before funding is released.
The first condition is strengthening accountability mechanisms in local jurisdictions through proper financial management and auditing systems, while the second condition requires Papua New Guinea’s economy to officially grow beyond K200 billion to support the expansion sustainably.
While outlining future funding plans, Prime Minister Marape highlighted that his administration has already delivered on long-standing community leadership commitments by placing ward councillors, village court officials, and land mediators onto the central government payroll for the first time in the country’s history.
Under the arrangement, councilors now receive formal fortnightly salaries, replacing the previous ad hoc payment system that had existed for decades.
Prime Minister Marape said the move fulfilled a policy commitment that had remained outstanding since 2014 under the previous government.
He added that the payroll system formally recognizes and supports local leaders serving communities across Papua New Guinea’s 462,840 square kilometers and more than 800 language groups.
Addressing current administrative delays, the Prime Minister also placed the Secretary for Provincial and Local Level Government on notice over outstanding councillor payments.
He directed all Provincial Administrators to immediately exercise their Section 42 powers to process pending documentation, stressing that the national government has already allocated the required funding.
Prime Minister Marape said any further delays at the provincial level would be unacceptable.