PRESS RELEASE – 15 NOVEMBER 2024
The Chief Ombudsman has announced that the Ombudsman Commission has used its constitutional powers to prevent further release of public funds pending investigations that it is carrying out into the possible misapplication of those funds.
Information with the Ombudsman Commission suggests that a total of sixty-four (64) claims were raised through the Ministry of Finance and submitted to the Department of Finance for payment. The Commission was informed that the claims submitted dated back to 2011 and that the claims were submitted without confirmation by the Arrears Verification Committee (AVC) and with missing supporting documents and that the claims are excessive and that they do not have the necessary documentation required to justify such payment.
On 12 November 2024, the Ombudsman Commission issued the constitutional direction to the Minister for Finance, the Secretary for Finance, the Minister for Works and Highways, the Minister for Treasury, the Secretary for Treasury, the Governor of the Bank of Papua New Guinea and to all the heads of commercial banks and their servants and agents to stop the disbursement of sixty-four (64) claims totalling K254, 686,201.24.
The direction was issued under section 27(4) of the Constitution to attain the objectives of the leadership code and to protect the integrity of the leaders who were involved in the payments. The direction effectively stopped all payments, transactions, release, clearance or disbursement of each of the sixty four claims that were listed in the table submitted to the Department of Finance for processing.
All commercial banks including the Bank of Papua New Guinea have just been directed not to process any of these claims except upon final approval granted by the Ombudsman Commission.
The claims will now be submitted to the Ombudsman Commission for verification and clearance and the service providers are required to attend to the Commission and provide all the supporting documents for purposes of verification.
The Ombudsman Commission will only issue clearance and uplift the direction upon being satisfied that all the processes and procedures set out under the Public Finances Management Act 1995 have been complied with and that the claims had been cleared by the Arrears Verification Committee and the necessary legal clearances have been obtained.
The Chief Ombudsman stated that it has been inundated with an unprecedented amount of queries, complaints and information concerning irregularities and inequalities in dealing with public funds hence it was necessary for the Commission to move to put a halt to what may appear to be widespread and flagrant breaches of financial procedures.
The Ombudsman Commission has evidence that once such “ Claim is for K5,000,000.00 by a Construction Company which was never involved in the work but raised Claims for the construction of the particular Road, which was allocated to another Contractor. This conduct is clearly wrong and may be criminal.
The Chief Ombudsman said that a direction of this nature is necessary to ensure the attainment of the objects of the Leadership Code which is spelt out in Section 27 of the Constitution and in particular to preserve the integrity of government in Papua New Guinea.
“The public financial accounting system of Papua New Guinea has over the years shown itself incapable of properly dealing with the release of public funds in various forms”.
The Ombudsman Commission is not asserting that all expenditure is illegitimate.
The Commission is the last institution that would want to impede on economic development but the manner, form and magnitude of the claims unfortunately provides ground for believing that some of the money is intended to be used to fund other intentions for which it cannot lawfully be applied, hence in breach of the Leadership Code.
Anyone or administering authority that feels aggrieved by this direction is at liberty to apply to the Ombudsman Commission for the approval to release the claims. Alternatively, if the application of any money complies with normal financial procedures and is the subject of a written approval by the managing agent of the grants then the money can be used.
The direction will continue to apply until further notice from the Ombudsman Commission.
APPROVED BY THE CHIEF OMBUDSMAN
The poor people of this beautiful country Papua New Guinea is getting hard time survive but Political supporter are enjoy with their continues of false claims with people’s money.
Our Heavenly Father is watching on us, definitely every individuals will give an account.