Category Archives: Finance

No Evidence of Development from the more than K40 Million in DSIP Delivered to the Kavieng District

*** Serious Questions Remain About the Use of Kavieng K40 Million DSIP ***

The Prime Minister, Hon. Peter O’Neill CMG MP, has raised serious questions about what happened to more than K40 million delivered to the Kavieng District over the past four years.

PM O’Neill said District Services Improvement Program (DSIP) funding has delivered great change for many other districts around the Nation, but not in Kavieng.

“It is within my right to say that there is no evidence of development from the more than K40 million in DSIP delivered to the Kavieng District over the past four years,” PM O’Neill said.

“Why has the K40 million given to the Kavieng District not been spent on improving Kavieng?

“Ben Micah’s focus should be on serving the neglected people of Kavieng, instead he is being driven by selfish grandstanding that is driven by ego. A leader should be able to accept any criticism leveled against them based on fact, instead of crying foul and lashing out with unsubstantiated criticism against others.

“A leader should be able to take criticism, learn from it, and strive to do a better job at delivering development and services for the people.

“When I went into Parliament in 2002, the Somare Government did not give any support to districts in the country. Not even a Toea went to Kavieng District, not a Toea from the Government went into my district of Ialibu-Pangia.

“That is why all the services were run down right around the country. All the roads were run down, law and order was a big issue, schools were run down, health services and everything was run down.

“But when we went into government in 2012, we changed all this and now all districts receive direct funding in our country.

“For the first time in the history of our country, funding is going straight to the districts because I want it to reach people.”

The Prime Minister said the personal attacks by the Kavieng member are unfortunate, but that is the way he has handled himself since leaving Government.

“Ben Micah really should remember that in 2011, when he was bankrupt and jobless, I picked him up from nothing and gave him a second chance.

“The bad decisions he has made in recent years have led him to where he is today – alienated in his own party and disowned by his people.

“His troubles today are a demonstration of disloyalty and ego, and he has a price to pay.

The Prime Minister said despite questions over the use of Kavieng’s DSIP, the National Government has continued to directly fund projects in New Ireland Province.

“We are about to finish work on the road going down to Buluminski, and we have completed renovations of the Kavieng Hospital and airport fencing, and many roads and jetties and other projects were directly funded by the National Government. All school fees and hospitals have been funded by the National Government.”

 

PNC People’s National Congress June 5, 2017 at 7.38 pm

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Tertiary Students to borrow money [Interest-Free ] Themselves to Pay their School Fees

A tertiary education assistance fund will be established to support students whose parents are unable to pay for their tuition fees.

Prime Minister Peter O’Neill said his People’s National Congress Party will push for the funds establishment if it forms government in September.

He said the fund will be built on the Free Education Policy the Government has funded in the last 6 years.

“Also, we want to expand the program up to the tertiary education, we cannot only educate our kids up to year 12 and allow them to run around and do their own thing, which is what our system has been doing in the last 40 plus years,” O’Neill said on FM 100 Talk Back show on Thursday.

“So what we have to do is expand on it, and we have our team to look at some of the examples around the world, and we have come up with a new issue of establishing a ‘Government Endeavour Fund’.”

O’Neill side the fund will be independently managed and will be self-financing.

“If parents are unable to afford to send their kids to universities or technical colleges, their children can borrow the money themselves and will be interest free, and most flexible repayment term when they start working and earning income over their life time,” PM said.

“This means that they repay the original amount of money back to the fund and the fund will be able to educate future kids because the funds money are not been depleted.”

Loop PNG Charles Yapumi May 26, 2017 at 12.12 pm

 

Public Warned On Circulation Of Old Bank Notes

THE Bank of Papua New Guinea (BPNG) has strongly warned that K160 million in paper money it had designated to be destroyed had been hijacked, and some of it have found their way back to the country.
The bank said of the total amount, only K1 million has been recouped and now held in custody to be destroyed, while intense investigations are being carried out on the whereabouts of the rest.
The bank is also cautioning the public not be fooled by these old notes, which are illegal and cannot be used for business transactions.
With the national election in process and with large sums of cash in circulation, BPNG has urged members of the public to be wary and to report any sightings of these notes.
BPNG governor Loi Bakani said the demonitisation exercise had been undertaken by the Central bank to replace the paper money with the polymer or plastic notes.
Mr Bakani said the paper notes in denominations of K2, K5, K10, K20, K50 and K100 were sold to a recycling company in Europe in 2013.
They were loaded in a container for shipment to Europe but the container was hijacked.
He said the bank had yet to establish how this had happened.
“The border authority reported this was fake money that had come in from Indonesia. This is part of it. We have visited the boarder and we are also working with the banks and authorities on the Indonesian side on how best we can address this issue and get the money out of there.
“The unfortunate thing though is that some of it, mostly K20 and K100 are finding their way back into the country and people may think the polymer notes are fake money and won’t accept it. That is why awareness is vital.
“Because the paper money has been demonitised, it has no value and is not recognised as legal tender,” the governor said.
“The public is advised to check the serial numbers at the bottom of the bank notes. If you are receiving or are holding onto any of these paper notes with serial numbers that fall within the range of the serial numbers indicated, reject them outright.”
The serial numbers which will be published are as follows:
n K2, with a prefix’ of ABJ-AJS with numbers of a low 000001 and high of 003000;
n K10, with a prefix’ of AC-AY with numbers of a low 030000 and high 031000;
n K10, with a prefix’ of NBP-NES and numbers with a low 160000 and high of 173000;
n K20, with a prefix’ of BPNG with numbers with a low 0000001 and high of 3000000;
n K50, with a prefix’ of HTT-HUU with numbers with a low 080000 and a high of 090000; and
n K100, with a prefix of BPNG, with numbers of a low 0000001 and high of 6000000.
The governor said the demonitisation exercise had run for four years and those holding onto old notes had enough time to exchange them for polymer notes.
The time had lapsed and the bank would not be doing any exchanges because they are no longer legal tender.

 

 

http://postcourier.com.pg/public-warned-circulation-old-bank-notes/

State owes public servants an estimated K2 billion

BY: Cedric Patjole

The Government owes an estimated K2 billion in unfunded superannuation contributions for public service members of Nambawan Super Limited (NSL).

This was revealed during NSL’s employer conference held in Port Moresby on Friday.

NSL Manager Legal, George Koi, during his presentation on ‘unfunded liability said they estimated around K2.1 to K2.2 billion in employer contributions is owed by the State for many public servants.

He said they range from teachers to members of the disciplined forces.

Koi said after a reform in 2003, the State was required to contribute 8.4 per cent as employer contributions towards public servants superannuation’s.

However, between that year and 2009, the state did not fully meet its end of the bargain, and only provided partial payments.

It was only after 2009 that the state began paying in full employer contributions, but recently fell behind again.

“This is not an issue for those in the private sector. This is only for those of us in the public service, and for those of us employed prior to 2009. So for teachers, our service men in the corrections service as well as the police force are most of those affected in that category.

Nambawan supa

Koi added that between November 2014 and November 2015, NSL paid and the state didn’t pay their bill totaling to K135 million.

He said of the K135 million outstanding, only K75 million has been received while K66 million is yet to be paid to the fund.

However as of January 2017, NSL has calculated again the outstanding which has increased again to K113 million.

NSL Chairman, Anthony Smare, announced last month that the fund had begun legal proceedings against the state to recover the funds on behalf of its members.

Koi clarified that NSL is seeking orders to determine the exact amount owing to the fund and orders for the state to pay.

In the meantime, NSL is negotiating with the state to find an amicable solution to pay the outstanding claim.

 

http://www.looppng.com/business/state-owes-public-servants-estimated-k2-billion-55364

2017 Leaders Summit Program

PRIME Minister Peter O’Neill will host the 2017 Leaders’ Summit in Port Moresby

This year’s theme is “Our five years’ achievements: Next five years in the balance”. It will be the last summit before the National Election in April.

Leaders’ Summit, originally planned for Feb 8 and 9, was rescheduled for Feb 27 and 28 due to the lack of attendance of ministers holding office.

It was than re sechduled again due to the National Petroleum and Energy Summit being scheduled for the same dates and at the same venue,

Mr Lupari said they would work with all the leaders to agree on the most suitable dates.

The new dates are as stated below and the program has been published in Wednesdays Post Courier. (attached)

PNG 2017 Leaders Summit 

Hosted by Hon. Peter O’Neil, CMG , MP

Prime Minister 

27 – 28 March , 2017,

Venue: Stanley Hotel

Day 1 Program  commences at 8:00am – 6:30pm

Day 2 Program commences at 8:00am – 2:00pm

IMG_20170323_170016

Audited Financial Accounts for the 2016 Financial Year -NasFund Press Statement

PRESS STATEMENT – Feb 23, 2017

At its meeting today the NASFUND Board considered and accepted its audited financial accounts for the 2016 financial year.

Chairman Hulala Tokome, on behalf of the Board stated that the results were positive in yet another challenging year. External factors such as the slowdown of the global economy and limited access to foreign currency continued to impact the revenue streams of PNG based companies in which the Fund had investments in. In addition, surplus of high quality property buildings resulted in valuation losses across the property portfolio. However this was mitigated by valuation gains in fixed income securities and equities. Chairman Tokome stated that the Fund had demonstrated a strong resilience to attain positive outcomes with an over budgeted performance in cash returns from its investments and controlled expenses.

Against this back drop the highlights of 2016 are as follows:

1. Gross Asset Value of K4.34 billion representing a growth of 7.2 % from K 4.05 billion recorded in 2015.

2. Net Asset Value of K4.22 billion representing a growth of 7.4 % from K3.93 billion recorded in 2015.

3. Net profit of K 283.47 million representing an increase of 87% over 2015 audited results of K 150.9 million.

4. Increase in total membership by 4% to 537,520 from 515,535 members recorded in 2015.

5. Employer base of 2,540 establishments representing a 5% growth from 2015.

6. Contribution receipts being member and employer contributions of K 451million.

7. Payment of K 456 million in superannuation entitlements in over 74,000 members transactions.

8. 983 educational and public awareness shop floor presentations to employers and members throughout the country compared to 773 presentations conducted in 2015.

9. Upgrading of Lae branch to a 66 seat capacity with a modern touch.

10. Upgrading of Boroko service centre to a 90 seat capacity with a modern touch.

11. Upgrading of Lihir branch to a prime location.

12. Opening of a new service centre in Bialla and Wabag.

13. Better management of liquidity to ensure withdrawing members were paid their rightful entitlements.

14. Completion of a new ERP platform to upgrade our core business and financial systems.

15. Decisions on new investments in property and equities totalling over K 81.2 million.

16. Investments in Fixed Income (Treasury Bills, Government Inscribed Stocks) of K1.46 billion.

17. Ongoing education processes for members to understand the importance of long term savings to provide for comfortable living in the later years of life after active employment.

On the back of these achievements the Board approved a crediting rate of 7.25% equating to over K 265.5 million to be paid to members accounts for the 2016 financial year.

The Board further agreed to hold reserves of K 91 million or 2.36% of member funds as a matter of prudency.

Looking ahead in 2017, Mr Tokome reminded members that their NASFUND savings were for the long term and about of quality of life after active employment or in retirement. Members should be actively thinking and planning their future. I also remind members, while returns from the investment portfolio are subject to market forces and vary from year to year, real returns after inflation to member accounts increase significantly over a long period through the effect of compound interest and a dedication to investing in assets that provide secure long term returns. This is where the real benefits is derived for members.”

16730214_1780774735574779_1277929502806463426_n-png

“Above all, striving to be better than we are now and continuing to uphold members’ interests is your Board’s focus. This is what we are all about,” said Mr Tokome.

On this note I would like to sincerely congratulate our CEO, Ian Tarutia, management and staff of NASFUND for their commitment and hard work over 2016 in delivering these results.

Approved for release by:

________________
HULALA TOKOME
CHAIRMAN
23/02/2017

///////////////////////////////////////////////////////

Note: members can expect their accounts to be credited by next Tuesday 28th February 2017.

Photo (left to right): CFO, Rajeev Sharma; Chairman, Hulala Tokome, CEO, Ian Tarutia OBE

Nasfund February 23, 2017 3.55 pm

EDUCATION TUITION FEE FREE POLICY STATEMENT

Joint Statement by Minister and Acting Secretary

We are pleased to announce that we now have a single integrated Tuition Fee Free policy that will provide further clarity and direction in the implementation of tuition fee free.

Education is a right for all children, both boys and girls, in Papua New Guinea and we are very thankful that this Government had made one of the boldest decisions ever made by any government when it introduced the Tuition Fee Free (TFF) policy in 2011.
This landmark policy is benefiting all children irrespective of background across our country. We have had challenges in implementing and monitoring this massive agenda as we remit over K2billion to over 10,000 schools each year and aim to ensure accountability.

We would like to commend our officers and stakeholders for their continuous work to ensure that the TFF policy is rolled out and implemented in all schools throughout the country.
We are now making this policy available to all our schools and institutions and also our stakeholders including the general public so that they understand it and help us to implement it successfully. We believe that this policy will give opportunity to many more children to have complete education from Prep to Grade 12 and thus contributing to the human resources that will develop our great country.

1. POLICY STATEMENT
The Government of Papua New Guinea will provide tuition fee free funding to schools registered under the National Education System to enable all school aged children to access universal quality education from Preparatory grade to Grade 12, including students in Technical Vocational Education and Training (TVET), Flexible Open and Distance Education (FODE) and inclusive education.

2. POLICY INTENT
The TFF Policy means that:
1. All school aged children will have access to free tuition in elementary, primary and secondary – 13 years of complete education.
2. Students will not be discriminated against on the grounds of economic circumstance – with equal opportunity for all.
3. All people in PNG will be educated.
4. Parents, guardians and stakeholders are engaged and take shared responsibility for education in PNG

3. POLICY: INTENDED OUTCOMES
1. All children and youth have access to elementary, primary and secondary – 13 years of complete education – leading to compulsory education.
2. All people in PNG will be educated and be able to contribute to the country’s development and future growth.
3. Equity is enhanced. Education is available to all children in all communities across PNG irrespective of gender, economic or geographic background.
4. Parents are relieved from the burden of fees. Hence savings are invested to improve the quality of life of Papua New Guineans, towards achieving Vision 2050. 

4. SCHOOL FEES & COMPONENTS
4.1. Scope of TFF
1. A grant covering the maximum fee limits set by the National Education Board is paid by the National Government for the learning needs of students attending registered Elementary, Primary, Secondary and Vocational Schools and Inclusive Education Resource Centres and FODE and also approved and registered Permitted schools. All employees of the Department of Education must comply with this policy and the accompanying TFF Implementation Guide.

4.2. TFF Components
TFF has three (3) components.
I. Cash Administration 40%
II. Infrastructure  30%
III. Teaching and Learning  30%

I. Cash Administration Component (40%)
Cash grants are paid directly to school accounts registered with the DoE.

II. Infrastructure Component (30%)
Grant to schools for the provision of infrastructure – both for routine works and new capital works. This component will be held in Trust by District Treasuries and released to schools (with a corresponding District Service Improvement Program component where provided) based on scope of works and quotes.

III. Teaching and Learning Component (30%)
Government will assist in the provision of teaching and learning materials. This includes consumables and capital assets, equipment and curriculum materials.  This component will be centrally managed through the regions.

4.3. Project Fees
Additional fees may be imposed by schools for special purposes as approved by the National Education Board and Provincial Education Board. Students will not be denied an education for non-payment of this fee.

Maximum Project Fee limits may change from year to year. Project Fee Limits for 2016 are as follows:
Level – Maximum Fee
Elementary – K50
Primary – K100
High Schools/Vocational K200
Secondary Schools K250

4.4. Church Agency Fees
Additional fees may be imposed by Church Agencies through their schools for special purposes as approved by National Education Board and Provincial Education Board. Students will not be denied to education for non-payment of this fee. Public notices will put out to advice on the fee limits.

5. POLICY DIRECTIONS
5.1. Responsibilities
1. The TFF policy and funding will remain a national function, whilst implementation, monitoring and reporting will be provincial and district administrative functions.
2. The National Government will provide 100% of Tuition Fees for school aged students enrolled in schools registered within the National Education System.
3. The National Government will pay a proportionate subsidy of the total Tuition Fees for school aged students enrolled in permitted and approved and registered schools with the Department of Education.
4. Parents, guardians and other stakeholders will have the responsibility to provide additional basic requirements such as, but not limited to, school uniforms, sports equipment, lunch, transportation, toiletries, and additional stationery.

5.2. Right to Education
No child can be refused enrolment or restricted in her/his place in a school or learning program if unable to contribute project fees, church fees, or any other form of fees including tuition fee free grants.

5.3. Project and Church Agency Fees Rules
Schools may collect project fees within the national fee limits set by the NEB, but must follow the following rules:
1. Schools may propose projects fees to the PEB for specific school infrastructure projects or a project that will contribute to students’ education. The Parents and Citizens of the school must approve such projects through formal Meetings, recorded in Minutes.
2. The NEB will set annual maximum limits for project fees and church fees, with PEBs authorizing local limits within the nationally established maximums.
3. PEBs will only approve projects fees where they are demonstrated to be educationally sound and viable projects, approved by minuted meetings of Parent & Citizens and School Boards. Such fees must be at or below the national NEB approved limit.
4. PEBs will only approve church agency fees, which are education related and will contribute to the spiritual growth of students. Such fees must be at or below the national NEB approved limit.
5. No student will denied access to schools or classes for non payment of project or church agency fees.

5.4. Finance
1. TFF will be paid to qualifying schools on an annual basis, according to the TFF Implementation Guide that will accompany this policy.
2. TFF grants will be paid into one specific Cheque Account opened with a Commercial bank approved by the School Board and endorsed by the Provincial Education Board. This bank account must never change. This bank account must hold a minimum balance of K100.00 and remain open at all times. Closure of accounts will stop banks from sending funds into school accounts.
3. TFF funds must be spent according to the Public Finance Management Act and Financial Instructions issued by the Department of Finance and other authorities.
4. District and Provincial Treasurers will sign and approve expenditures of all schools as stipulated in Financial Instructions. Thresholds of expenditure approval limits for each level of school are prescribed in the Implementation Guide and must be complied with by all head teachers of institutions.
5. TFF funds must be spent according to the approved procedures for planning, expenditure and acquittal attached to this policy.
6. School management must maintain and submit quarterly transparent financial reports for acquittal and audit purposes.

5.5. Schools Register and Enrolment Data
1. TFF will be paid to qualifying schools on an annual basis, according to the Implementation Guide. Accurate Real time data is critical.
2. The Head teacher of each school will be responsible for submitting accurate real time data and required information, twice a year, to be eligible for annual TFF payments as prescribed in the Implementation Guide.
3. Head teachers will submit enrolment data to the District Education Implementation Committee (DEIC) twice a year.
(a) Complete a school census form and submit by June 30 each year.
(b) Complete ONLY part one of the school census form and submit by November 30 of each year.
4. The District Education Implementation Committee will provide real time verified data to the Department of Education Corporate Data Branch with copies to the Provincial Education Planning Office.
5. Provincial Education Offices will submit verified data according to procedures as set out in the Implementation Guide.
6. The data submitted by schools to the DEIC must be signed off and stamped only by the authorised school inspectors. The Inspector or Standard Officer will be accountable for any inaccurate data he or she endorses.
7. DEIC will complete a new District School Register Form and submit to the Department of Education – Corporate Data Branch twice a year.

5.6. TFF Implementation Guide
The TFF Implementation Guide that accompanies this Policy is equally important and therefore it must be read, implemented and complied with concurrently.

6. GOVERNANCE AND MANAGEMENT
6.1. The Minister
The Minister for Education is responsible to the government for setting the policy guidelines and ensuring the implementation of the TFF policy by the Department of Education and other education authorities under the Education Act 1983.

6.2. Inter Departmental TFF Steering Committee
Provides oversight and advice to the Minister and Secretary on the TFF policy implementation and monitoring of this policy. This Committee includes Secretaries of the Departments or delegates at the Deputy Secretary level:
i) Secretary of Department of Education; (Chairman)
ii) Secretary or Delegate at Deputy Level – Department of Finance;
iii) Secretary or Delegate at Deputy Level – Department of National Planning;
iv) Secretary or Delegate at Deputy Level – Department of Treasury
v) Secretary or Delegate at Deputy Level – Department of PM; and
vi)  Deputy Secretary for Education – Policy & Corporate Services

6.3. The Secretary
The Secretary for the National Department of Education is responsible for the implementation of the TFF Policy. Monitoring and evaluation of the policy is the responsibility of the Deputy Secretary, Policy and Corporate Services.

6.4. TFF Secretariat
A TFF Secretariat within the DoE will be created with additional capacity to provide administrative support to the Secretary for Education and will assist the work of the Inter Departmental TFF Steering Committee. Provincial Coordinators will be appointed to assist the Secretariat to implement the policy. The Inter-Departmental TFF Steering Committee will report to the Minister for Education.  All other stakeholders’ responsibilities are covered in the TFF Implementation Guide.

6.5. District Education Implementation Committee
The DEIC will be established in each district to approve School Learning Improvement Plans, ensure proper use of TFF funds by each school and will verify school and enrolment data collected through every School Census.
The membership will consist of a church representative, CEO of District Development Authority, community representative and the District Education Administrator and District Standard Officer/Inspectors.

7. MONITORING AND REPORTING
The Policy is implemented, monitored and reported on a regular basis.  The mandatory reports are as follows;
Report  Recipient/ Report by/Type of Report/Frequency/ Deadlines

– Parliament/ Minister/Parliament Statement/Annual/March 30.
– NEC/Minister/NEC Information paper/Bi Annual /June  31, Dec 31
– Inter – Departmental TFF SC/ Secretary for Education. Administration and Financial Report/ Every Quarter/ March, June, September, December.
– NEB/ Deputy Sec PCS/ Administration and Financial Report Every Quarter March, June, September, December.
– TMT/ TFF Secretariat/Administration and Financial Report/Every two months/ Feb, Apr, June, Aug, Oct, Dec.
– Heads of Schools School Boards and PEBs/ Administration and Financial Report/ Each term/ March, June, September, December.

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