News and Public Notices

The Autonomous Bougainville Government (ABG) has announced temporary changes to its financial processes as it upgrades its PGAS system. The recent upgrade to version 25 has encountered an error in the database, preventing the printing of cheques.

The Division of Information and Communication Technology (ICTD) of the national Department of Finance, responsible for the upgrade, has referred the matter to CHALKSTONE Pty Ltd, the developer of the program, for resolution. CHALKSTONE Pty Ltd has committed to providing support and maintenance to the ABG upon settlement of the annual license and maintenance fee, but the timeline for resolution remains uncertain.

In the interim, it has become necessary to explore options available now to the ABG Department of Treasury & Finance to discharge its mandated responsibility to pay service providers for works, goods and services provided to the ABG which includes members and officers of Parliament, the ABG Administration and other government agencies.

The Secretary for the ABG Department of Finance & Treasury has now issued the following Financial Instructions pursuant to section 75 of the Bougainville Public Service Finance (Management and Administration Act 2014, that all payments from here on will be processed through BSP Kundu Pei services and protocols.

Procedures to adhere to in this interim period:

1. Department or Agencies submitting claims

Departments or agencies preparing claims for payment after the works, goods or services have been procured, must ensure that the bank account for the service provider is shown in the invoice or in the letter of verification which will be submitted together with the claim.

2. Claims processing

All compliant procedures relating to the registration, examination, commitment and certification of all will remain as provided for in the finance management manual and must be strictly adhered to.

Kunde Pei will be negotiated with the bank upon all claims meeting the due diligent processes. Only claims for service providers who have bank accounts will be processed. Claims for those who do not have bank accounts will remain until the system is restored.

3. Kundu Pei

Instead of printing of cheques, the Expenditure Accountant or her staff will prepare the Kundu Pei document, have it duly signed and then transfer the funds through BSP directly to the service provider’s bank account.

When the issues are rectified and the system is restored, all cheques for payments done through Kundu Pei will be printed, but will not be signed and will be used for bank reconciliation purposes only.

These instructions will remain in force until the issues giving effect to the imposition of these new financial instructions are rectified. The ABG further ensures that it is committed to ensuring minimal disruption to service providers during this period.

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