The Department of Prime Minister and National Executive Council (DPMNEC) has transitioned from cheque payments to an Electronic Funds Transfer (EFT) system, marking a major step towards modernizing government financial operations.
Finance Secretary Samuel Penias and Chief Secretary to Government Ivan Pomaleu launched the new EFT payment system last Friday.
Mr. Pomaleu said the reform follows his directive issued on March 13, 2025, for DPMNEC to become the first pilot government agency to move away from manual cheque payments and adopt electronic payment arrangements.
Mr. Pomaleu said while the change may appear to be a small administrative adjustment, it represents a significant move towards improving efficiency, transparency and accountability in the management of public funds.
“Today marks the successful implementation of a reform direction that I issued to transition away from manual cheque payments and adopt modern electronic payment arrangements,” he said.
Under the previous cheque system, government officers had to collect cheques, physically visit banks, wait for clearance and provide receipts before payments could be completed, creating delays for both the Government and service providers.
The introduction of EFT will allow payments to be transferred directly into verified supplier bank accounts through secure banking channels, reducing processing time and improving payment services.
Mr. Pomaleu said the benefits include faster payments, improved security, stronger financial tracking, better cash flow management, reduced costs associated with cheque printing and handling, and support for paperless government operations.
He said the transition also eliminates risks associated with lost, misplaced or stolen cheques.
However, the Chief Secretary stressed that the reform is not about making payments faster at the expense of proper controls.
“The objective is not simply to move money electronically, but to ensure that every payment is properly authorized, properly verified, properly recorded and paid to the correct recipient account,” he said.
Mr. Pomaleu said all existing verification and vetting processes will remain in place, with supplier banking information required to undergo Know Your Customer (KYC) checks and approval procedures before payments are processed.
He said supplier bank details must be supported by proper documentation, independently verified and approved by authorized officers before being entered into the payment system.
Any changes to supplier banking information must also go through formal documentation, verification and management approval, he said.
“Electronic transfers make payments faster. They do not justify haste. Speed must never come at the expense of control,” Mr. Pomaleu said.
He added that DPMNEC will continue to conduct periodic reviews of EFT transactions and compliance procedures to ensure safeguards remain effective.
The reform aligns with the Government’s broader digital transformation agenda and supports the Reset PNG @ 50 reforms, including Big Bet No. 10 and Quick Win No. 41, which aim to enable all government payments through banking and mobile platforms.
Mr. Pomaleu said the move demonstrates DPMNEC’s commitment to leading by example and embracing reforms that improve public sector efficiency and service delivery.
“Today we are retiring a process of the past and embracing a system fit for a modern public service,” he said.