Dr. Ken Ngangan OBE PhD CMA CPA SecretaryIt gives me great pleasure to again announce this month’s Newsletter- Issue #2.The Department’s newsletter will continue to provide monthly updates on the latest developments and drive on financial management reforms.As the custodian of the PFMA we are guided by our values which provide the foundation of integrity and accountability on the use of public resources including public monies. The values underpin what we do and therefore we want to stay focused on our mandate to prudently manage the public resources ensuring there is improved service delivery for the well-being of our people.In doing so the challenges are huge and real but we will make every effort with the allocated resources to embrace and enhance the government policy objects of Service Delivery and continue to provide that leadership now and into the future.Let me also take this time to express my gratitude on behalf of the executive management team and the staff of the Department to farewell and thank the former Finance Minister Hon. Charles Abel for his leadership and oversight as the political head of the Ministry over the last five months and at this juncture welcome, Hon. Rainbo Paita, Member for Finschhafen as the new Finance & Rural Development Minister With these few remarks I commend this

month’s newsletter to all staff and stakeholders, and hope you will enjoy the read.

THE newly appointed Finance Minister and Member for Finschhafen Rainbo Paita is confident to administer and provide political leadership to the Ministry of Finance. Minister Paita said that his appointment as the Minister for Finance & Rural Development at this crucial time of difficult economy is a huge challenge that he is confident to take on the leadership.“It is my administrative duty as the Minister to ensure the public purse of the country is managed prudently”, Paita said. “I am happy to see a lot of reforms being led by former Ministers including Prime Minister James Marape and also the outgoing Finance Minister

Our target is to provide sound financial policies for the achievement of sustainable growth and development in Papua New Guinea” - Finance Minister Rainbo Paita

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Paita confident to lead Finance and Member for Alotau Honorable Charles Abel as Secretary Ngangan continue to drive these reforms forward”, he said.“These reforms are massive such as modernisation of Public Finances Management Act and the roll-out of the Integrated Financial Management System, District Treasury Rollout Program and the new National Procurement Act”, he said.Meanwhile, Minister Paita thanked the outgoing minister Charles Abel for the focus on payroll reform, IFMS rollout to districts and provinces, APEC audit and asset disposal exercise. He said the Ministry of Finance has the overall responsibility

for developing the Government’s sound financial policy framework; collecting and allocating of public revenues and playing an important role in the socioeconomic development of the country in creating a society where every citizen has the right to a better & quality life. “The Marape-Steven government is currently embarking on sustainable growth and development through sound policy, planning and quality service delivery”, he said.The handover takeover ceremony was held on Wednesday 13th November, 2019 at Vulipindi Haus with outgoing Minister Abel and chaired by Secretary Ngangan.

Right: Out-going Finance Minister Abel congratulates incoming Minister Paita on his new role.

Secretary’s Kona

Dept launches Governnance Performance ScorecardSee Page 04

Three new staff houses for Huon Gulf districtSee Page 03

Issue No. 2, November, 2019

See Page 02

Driving reforms for better Service Delivery

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The new Minister Rainbo Paita takes tour around HQ (Vulupindi) to meet staff on his first day in office. He was warmly welcomed by all staff and was said to have been the first Finance Minister to visit the ICT Division data center.This data center like other vital operational platforms of the Department hosts the IFMS roll-out program enabling smooth flow of financial transactions throughout the Department as well as the overall back-up.

Image left: Minister Paita (third from left) with FAS- OSD, Daltron and DoF ICTD staff. Image right: Minister Paita and Secretary Ngnagan.

The Department has successful hosted the Momase and Highlands Regional Financial Management workshop on November 6-7 at the Lae International Hotel. The workshop themed “Driving Financial Reforms for Better Service Delivery at the Sub-National Level” aims to get collective ideas and feedback to drive reform in public

service delivery and keeping everyone informed on the financial reforms that the Department is implementing. Secretary Dr Ken Ngangan in his introductory remarks said, “The Department has undergone a lot of transformation at the national level and it is timely that we bring you all together to keep everyone informed about these

Driving Financial Reforms for better Service Delievery

(L-R) Morobe Governor Hon. Ginson Saonu, Secretary Dr Ken Ngangan and Hon. Charles Abel welcomed by local singsing group during the opening of the regional workshop in Lae International Hotel

financial reforms”.“One of the biggest reforms that the Department has taken is the rollout of the Integrated Financial Management System (IFMS),’’ he said.“The IFMS rollout has a lot of impacts in the way we conduct our work serving the provinces and the districts.“We have completed the rolled at the National Level and now our focus is at the sub-National level.“You would have noted that the IFMS consolidate a lot of functions that we have played out, meaning one person can do the work of two or three people”.He assured them that with the new reforms no one will lose their job, but be prepared for the new changed roles.The Department has also started the roll out of Public Expenditure Financial Accountability (PEFA) at the Sub-National level. The four regions have been selected to pilot these assessments include New Ireland, East Sepik, Western Highlands and Central provinces.From this exercise a road map will be design for the next three years to change and strengthen the program in the provinces and the districts.

All smiles for the camera...

Retirement & Retrenchment awareness program

Three new Staff houses for Huon Gulf district

Hon. Charles Abel, Secreatary Dr Ken Ngangan, Morobe Governor Hon. Ginson Saonu (fifth from left), Huon Gulf MP Hon. Ross Seymour (fourth from right) in front of the three staff houses after the commissioning.

As a way to improve public service delivery at the Sub-National level the former Finance and Rural Development Minister Charles Abel officially opened three staff houses at Huon-Gulf district, Morobe on

November, 6, 2019. Also present at the commissioning of the staff houses were Secretary Dr Ken Ngangan, Morobe Governor Ginson Saonu, Huon Gulf, MP Ross Seymour, and other provincial and

districts heads.Secretary Dr Ken Ngangan said the role of the Department is to look after the public funds as much as we want to support service delivery at where people are.“On that note the Department has supported the local MP to build three houses for the staff over three years,’’ he said.“These houses are for the staff to reside and go to work. “I appeal to the locals to look after the public servants working in the district and also the infrastructure that has been built.’’Morobe Governor Ginson Saonu thanked the Department for funding the houses and urged the people to work in unity. “We must respect the infrastructure so that it will benefit us,” he added.Meanwhile The Huon Gulf District also presented their Five-Year Development Plan to Mr Abel.

The Organisational Strategy Division (OSD) has successful conducted an awareness program on Retirement and Retrenchment for the aging officers from the Momase and the Highlands region that coincided with the regional workshop in Lae. This exercise aims to inform those that have reached and are close to the retiring age on the process and what should be done. Secretary Dr Ken Ngangan who was there at the Regional workshop opening said, “One of the reasons of this exercise is to bring together some of our senior officers in the department

who have serve the people for a long time.’’“From the record more than 56 staff is set to retire from the Momase and the highlands region and most of them are here with us at the workshop.”“Our partner agencies, the DPM and Nambawan Super Fund Ltd are also here with us to take us through the retirement program and what we can do after leaving our jobs,” Dr Ngangan said.Dr Ngangan said the Department will support you and ensure that you get what you are entitled to. PDFMD First Assistant Secretary

(FAS) Max Bruten told the officers that they have given their best in their various capacities in serving the people of Papua New Guinea.“The Department will make sure you exit satisfied.’’Partner agencies including, Nambawan Super Fund Ltd and Department of Personnel Management also made presentations to help officers when they retire from formal employment. Organisational Strategy Division is looking forward to host the same exercise for the NGI and Southern regions. 3

Retiring officers listening to the presentation during the workshop at the Lae International Hotel

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The Department has launched the Governance Performance Scorecard to enhance good governance and accountability for improved public service delivery and a way forward for the Papua New Guinea public service. The Scorecard will be used to measure

the performance of public institutions, departments and

Dept launches Governance Performance Scorecard

At the table far left: UNDP Resident Representative Dick Wagener, DoF staff and rest of Government agencies and partners at the workshop.

government agencies.Secretary Dr Ken Ngangan thanked the Department especially the Internal Audit and Compliance Division (IACD) for making this a success.“Everyone including the public have the right to report what we are doing. Everyone has the right to provide public opinion and these opinions

must be guided,’’ he said.“The Audit team has a vital role to play in terms of good governance, the risk management, and the internal control of the organisation.“In Government, we need to make sure there are laws covering the work that we do such as the Public Financial Management Act, the National Procurement Act and other acts that govern management practices.He reminded other stakeholders and partner agencies that we all have important roles to play in our respective organisations for the good of the people of Papua New Guinea.“We also have other bigger plans for the department that we are working on.“However, we are open to critics and scrutiny as this will help us to make improvements in each of our organisations,’’ he said.Deputy Secretary Support Services Samuel Penias said this program will give confidence to the Government in what we do therefore we are engaging other partners, stakeholders and partner agencies to be part of the program so that they can support in funding and technical assistance.

The Department’s executive management & staff joins and warmly congratulate Secretary Dr. Ken Ngangan on receiving the Order of The British Empire (OBE) from Her Majesty The Queen for his contribution to public services and financial management and governance reform. Governor General, His Excellency Grand Chief Sir Bob Dadae made the presentation at the Investiture Ceremony at the Government House on October 31, 2019. IMAGE left: Dr Ken Ngangan OBE PhD CMA CPA, G-G Sir Bob Dadae and Mrs Miriam Ngangan

CONGRATULATIONS!

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In light of the annual International Fraud Awareness Week (Nov 17-23), Department of Finance PNG Phones Against Corruption (P@C) team presented its result since inception in August 2014 at the Public Sector Audit Program Workshop.The DoF P@C campaign joins the global event with one aims to promote anti-fraud awareness and education to reduce occupational fraud and corruption to improve public service delivery.Speaking at the workshop on Monday October 28, 2019, Appala Saripalli UNDP consultant to DoF P@C revealed that a total of 1074 cases reported since inception.“There was a total of 344 text message case reports on basically any suspicious fraud conduct in the public space, 431 text message case reports on other Departments and a total of 299 text message case reports on DoF alone.”“This report includes both genuine and non-genuine cases which have been taken into account accordingly,” Mr Saripalli explained.“This result shows that sending a

simple anonymous free text message to 16321 has been effective and can make a change in the fight against occupational fraud,” he added.Mr Saripalli encouraged participants to utilise this simple yet effective platform to report suspicious fraud cases.Meanwhile, speaking also at the workshop Secretary Ngangan said he was happy the PNG Phones Against Corruption (P@C) has been selected as a 2019 Fraud Week ambassador by the Association of Certified Fraud Examiners (ACFE), USA. Secretary Ngangan said this initiative is also extended to all Audit Committee Agencies in joining the fight against corruption and fraud.“I am confident that this initiative together with all efforts (audit committee agencies) will help curb corruption and enhance transparency and accountability of public finance management in PNG and delivery of public services to our people,” he added.The P@C campaign is a joint initiative of PNG Department of Finance, UNDP and AusDFAT.

Komni Kesnga of FRCD and Wesley Boas of FMIP (currently assisting IFMS rollout program). They will leave for Australia early January, 2020.

Komni Kesnga and Wesley Boas are the successful applicants for the 2020 PNG DoF Officer Placement Program with Australia - DoF.Both lads hold a Bachelor’s Degree in Accountancy from Divine Word University. Mr. Kesnga joined DoF in 2017 attached with FRCD - Statutory Bodies & Monetary Branch. Whilst Mr. Boas joined in 2018 through the graduate program under FMIP (IFMS project) and is now a permanent officer attached with OSD.When asked how they feel about being the successful duo, Mr. Kesnga replied “I am privileged to have been selected and I thank the Department for giving me this opportunity. I hope to observe and learn how government businesses are conducted in the international best practices so I can bring back the experiences and implement in PNG DoF.”Sharing the same sentiments Mr. Boas said “I am excited and humbled for the opportunity and I am looking forward for this great experience as this will be my first trip overseas.”Since the inception of this annual 11month Program in 2014, a total of 8 officers have successfully completed the program and are now contributing immensely to their respective Divisions and the Department as a whole.

Duo geared for 2020 OfficerPlacement Program in Canberra

Preventing corruption through citizen participation

Left: Mr Saripalli speaking to Public Finance heads, auditors and officers from various Government Departments and partner agencies at the Public Sector Audit Program Workshop. Top right: DoF P@C campaign logo.

nCommissioning of District Staff Housing in ENBnClose of accountsnEnd of the year functions by sectors

For any stories or events contact the Communications & Reporting Branch at OSD

Up Coming Events For December;

Staff from the Momase-Highlands region taking a break after the workshop at the Lae International Hotel

It’s not about winning the game but the physical fitness and friendship that builds on - 2019 Public Service Sports Program6

A birthday shout-out to Deputy Secretary Nukuitu & those who have turned a year older this month. Cheers!

The IACD team all smiles after a month of tireless preparation and a successful host of the 2019 Public Sector Audit Workshop

Government hands down 2020 budget

The Government has handed down the 2020 budget of K18.725 billion in Parliament on Thursday 28th November.The budget will see fluctuate in expenditure including free education support reduced to K309 million, DSIP (K890) /PSIP (K220 million) remains unchanged, increase in alcohol and tobacco taxes up to 25 per cent whiles transport sector receiving a bigger slice of K1600.65 million which makes up 26.8 per cent of the total budget.K1 million was allocated for prison programs, and also Correctional Service has been given K32 million for the 2020 budget. The Police Department was given K178 million to renovate infrastructure around the country.The Government has also committed K30 million to boost free Health Care.Other revenue measures in 2020 include the reviewing of bank licensing fees and additional profits tax on banks; review of telecommunication licenses and

universal levy regime, passing legislation for revised Income Tax Act, introducing SMEs tax regime and tariffs on imports of refine petroleum products.Treasury Minister Ian Ling-Stuckey stated that the major expenditure of the Government included K430 million for service retirees, K300 million for capital arrears, K390 million in Tuition Fee Free, K221 million to rental and utilities, K120 million to 3 per cent of the 2019 wage increments and K100 million for SME funding in agriculture.The halving of the TFF of the primary education sector will see the establishment of tertiary students scholarship scheme that will provide great relief for the high unit-cost of the education sector and put responsibility on parents to meet half of the fees.Citizens will now have access to K100 million funding in agriculture to create revenue for themselves and wealth for the nation.