ABG Minister for Treasury & Finance outlines major policy initiatives for 2024
The Minister for Treasury and Finance, Hon. Robin Wilson, delivered a comprehensive Ministerial Statement outlining major policy initiatives for the Department of Treasury and Finance in 2024.
Minister Wilson delivered his statement to the to the Bougainville House of Representatives in its March sitting this week, and highlighted key areas of focus aimed at enhancing financial management and transparency within the ABG.
Speaking on the Auditor General’s Reports for the ABG, Minister Wilson informed the House that the reports for 2014 and 2015 have been completed, however reports for 2017 to 2023 are yet to be completed by the Auditor General’s Office.
“My Department in the meantime has sent requests to the Auditor General’s Office to conduct those outstanding audits as soon as practicable,” he stated.
Additionally, efforts are also underway to establish the Audit Committee, as mandated by the Bougainville Public Finance (Management and Administration) Act 2014, to enhance accountability and transparency in financial matters.
Minister Wilson also highlighted the need to address the long-standing issue of roll-over funds, which have been a result of capacity issues and late remittances of funds from Waigani. He says in response to this his Department will develop a policy framework to manage unused or carried-forward funds.
“The ABG will be required to develop policy framework on unused or carried forward funds (both recurrent and development), which will also include a very clear separation of National and ABG controlled funds. This is one major policy initiative that I want to undertake this year.”
Minister Wilson also addressed the misappropriation of funds in January 2024 during the close of accounts period, where certain officers colluded to use balances of Restoration and Development Grant projects unlawfully. The Department has taken responsibility for this incident and is pursuing disciplinary proceedings against the officers involved.
“The Department has requested for an audit investigation on the matter, with ABG officers involved in the unlawful debts’ payment served Show Cause Notices and referred to the Disciplinary Committee for further disciplinary proceedings and possible termination,” he explained.
“After having said this, it must be noted that the same officers have been subjected to immense pressure and intimidation by inconsiderate service providers who at most time aggressively demand to be paid for services rendered to Government.”
Minister Wilson advised the House that plans are underway to develop a long-term Public Debt Management Strategy to mitigate outstanding debts of the ABG.
“My intention is that, based on the Debt Management Strategy policy framework, legislation will be developed and passed by this Honorable House, to provide protection and relief to both the ABG and Service Providers, including contractors.”
Speaking on the tax legislation framework for Bougainville, Minister Wilson informed the House that the ABG, through the Internal Revenue Commission (IRC) has sought technical support from the World Bank to assist in developing a tax legislative framework.
“The specific areas of support we are seeking include (1) drafting and reviewing tax legislation tailored to the unique needs of the Autonomous Region of Bougainville, (2) providing guidance on international best practices for tax legislation and regulatory frameworks, and (3) assisting in the establishment of an effective and transparent tax administration system.”
The involvement of a legal expert from the World Bank is expected to greatly assist in the development and implementation of suitable tax legislation for Bougainville and is also aligned with international standards.
“Moreover, we are committed to ensuring a collaborative and inclusive approach, fostering knowledge transfer and capacity building within our local government. We anticipate that the support provided by the World Bank will not only enhance Bougainville's fiscal governance but also contribute to the region's economic development, particularly the huge challenges that we face in our efforts to generate revenue for the ABG,” he said.
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