Prime Minister James Marape has pledged greater transparency in tax credit and Connect PNG spending, responding to East Sepik Governor Allan Bird’s call for annual parliamentary reports on financial commitments and future government revenues.
Prime Minister Marape gave the assurance in Parliament on Tuesday while responding to questions from Governor Bird, who called for annual reporting on financial commitments made under both programmes, particularly those involving future government revenues.
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Governor Bird asked whether proposed amendments to the tax credit legislation, expected in November, could include provisions requiring annual reports to Parliament on the value of tax credits utilized and their implications for future government revenues.
Prime Minister Marape acknowledged the importance of parliamentary oversight and undertook to examine appropriate reporting mechanisms.
“On the tax credit projects, we will give an undertaking, whether through annual performance reporting or a separate report,” Prime Minister Marape said in a statement.
“We will look at the policy mechanisms around this, and I will certainly address Parliament at a later date.”
On Connect PNG, Governor Bird also sought annual reporting on the value of contracts entered into by the Government, including outstanding commitments extending into future financial years.
Prime Minister Marape said the annual national budget process already provided Parliament with opportunities to scrutinize government expenditure and financial commitments.
“The budgetary process every year is part of the way in which every government is open for scrutiny,” he said.
“Our Treasurer reports every year through the Final Budget Outcome on how we spent funds in the previous year.”
Prime Minister Marape explained that Connect PNG expenditure was governed by the Connect PNG legislation, which provides for an annual allocation of 5.6 per cent, subject to parliamentary budget appropriations.
He said the programme’s three stages were incorporated into the annual budget process, ensuring that Parliament continued to exercise oversight of funding allocated for roads and other essential infrastructure.
Prime Minister Marape also reaffirmed the Government’s commitment to independent scrutiny, noting that the Government had engaged international accounting firm Deloitte to undertake a review relating to Connect PNG.
He said the Government had nothing to hide and remained open to independent examination of its expenditure.
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“Our Government is not ashamed, shy or hesitant about scrutiny,” Prime Minister Marape said.
The Prime Minister reiterated that transparency, accountability and responsible financial management remained central to the Government’s approach to delivering major infrastructure projects while safeguarding the nation’s future financial commitments.
