Prime Minister James Marape says the Government has begun one of its biggest public finance reforms by centralizing all government warrant authorities and payment processing under the Department of Finance.
He said this is a move aimed at strengthening accountability, eliminating financial leakages and improving the management of public funds.
The reform took effect on Monday, August 3, following a National Executive Council (NEC) decision under the Government’s PNG@50 Reset Agenda.
Under the new arrangements, the Department of Finance becomes the sole authority responsible for issuing warrants, processing government payments and managing State cash, while the Departments of Treasury and National Planning return to their core responsibilities.
PM Marape said the reform is designed to restore financial discipline by clearly separating the responsibilities of key government agencies, ensuring every kina of taxpayers’ money is properly managed and accounted for.
“This is one of the biggest machinery reforms we have undertaken in Government. We are restoring order, strengthening accountability and ensuring that every department concentrates on the work it was established to perform.
“For too long, Treasury, Finance and Planning Departments have all been involved in payment processing and warrant functions. That arrangement blurred responsibilities and weakened financial discipline. We are now restoring clarity of purpose.”
The Prime Minister explained that under the new arrangements:
* The Department of Finance will become the sole authority for government payments, warrant issuance, cheque processing and cash management.
* The Department of Treasury will concentrate on macroeconomic policy, fiscal management, revenue strategy, taxation and growing the national economy.
* The Department of National Planning and Monitoring will focus on national development planning, implementation of development priorities and alignment with Vision 2050 and the Medium-Term Development Plan IV.
“We want Planning, Treasury managing the economy, and Finance managing Government finances. Every department must concentrate on the responsibilities Parliament created it to perform.”
PM Marape said the clearer separation of responsibilities would improve efficiency across Government while providing stronger oversight of public expenditure.
He stressed the reform was intended to strengthen institutions rather than concentrate power.
“Good governance requires clear responsibility. When responsibilities overlap, accountability becomes difficult. When responsibilities are clearly defined, performance improves and those responsible can be held fully accountable.”
The Prime Minister also highlighted the enhanced role of the National Monitoring and Coordination Authority (NMCA), which will independently monitor government-funded projects after public funds have been released.
“The role of NMCA is not to duplicate Treasury or Finance Departments. Their responsibility is to follow the money trail and verify that public funds reach their intended destinations and produce the results approved by Government.”
In a statement this week, PM Marape also confirmed that Chief Secretary Ivan Pomaleu will oversee implementation of the NEC decision through a high-level inter-agency taskforce comprising senior representatives from the Public Services Commission, Department of Personnel Management, Department of Provincial and Local Level Government Affairs, Office of the State Solicitor, NMCA and other central agencies.
The taskforce will oversee compliance with relevant laws, review annual performance reports and disciplinary records, obtain legal advice where necessary, assess officers acting in key positions and recommend appointments or legal action where appropriate.
The Prime Minister said the financial reforms complement the Government’s broader public sector reform agenda, including stronger performance management, ethical leadership, modernized government systems, improved service delivery and greater accountability across the public service.
“We are building a Public Service that serves the people—not itself. Every public servant entrusted with public resources must understand that accountability is no longer optional.”
PM Marape said the reforms also support the Government’s efforts to improve fiscal discipline, reduce unnecessary expenditure, strengthen public confidence in State institutions and improve transparency in managing public funds.
He said stronger internal controls and clearly defined responsibilities are essential to preventing financial leakages and safeguarding taxpayers’ money.
The Prime Minister called on heads of departments, provincial administrations, statutory authorities and public servants to fully support the implementation of the reforms.
“These reforms are about leaving behind stronger institutions for future generations.”
“As we move beyond our nation’s 50th Anniversary and prepare Papua New Guinea for the next fifty years, we must build a government that is disciplined, accountable, transparent and focused entirely on delivering better services for our people.”