PUBLIC ACCOUNTS COMMITTEE CHAIRMANS ADDRESS.
“….examine and report to the Parliament on the public accounts of Papua New Guinea and on the control of and on transactions with or concerning the public monies and property of Papua New Guinea”.

PUBLIC ACCOUNTS COMMITTEE - PREFACE
These Reports and speeches of the Permanent Parliamentary Committee on Public Accounts of Papua New Guinea were tabled or made either in Parliament or in Committee in the period 2004 – 2007.

INQUIRY INTO THE PUBLIC ACCOUNTS OF PAPUA NEW GUINEA
The Public Accounts of Papua New Guinea are drawn and presented by the Department of Finance and describe the allocation of funding and expenditure of public monies and also collection of revenues that the National Government Departments (and their agencies in the provinces), Provincial Governments, Governments arms, agencies and entities and other functionalities and instrumentalities are accountable.

PUBLIC ACCOUNTS COMMITTEES -
What is a Parliamentary Committee? - A Parliamentary Committee is a group of elected members appointed by Parliament to undertake certain specific tasks. They are normally a bipartisan group of members from both sides of the House who have considerable powers to undertake work on behalf of Parliament. Eg. In the last Parliament there were altogether 40 Parliamentary Committees as of April 2007. Of the 40 Committees, 17 were Permanent Committees, 14 were Referral Committees, 7 were Special Committees, and 2 were Select Committees.

INQUIRY INTO THE DEPARTMENT OF NATIONAL PLANNING AND MONITORING AND THE OFFICE OF RURAL DEVELOPMENT
This is a Report of particular national importance considering, as it does, the standard of performance in service delivery, management and coordination of national development budgets, projects and programs by the Department of National Planning and Monitoring and the Office of Rural Development.

INQUIRY INTO THE SEPIK HIGHWAY, ROADS AND BRIDGES MAINTENANCE AND OTHER INFRASTRUCTURE TRUST ACCOUNTS
The Committee has found serious continuous breaches of the Public Finances (Management) Act by Trustees and Officers of relevant Provincial Governments, the Department of Finance and the Office of Rural Development;

DRAFT SPEECH - CHALLENGES FACED BY THE COMMITTEE AND THE IMPACT OF THE COMMITTEE ON BUDGETING PROCESSES
The work and experience of the PAC is crucially important to the subject of this conference which is service delivery and the eradication of impediments to effective development and implementation of development budgets.

DEPARTMENT OF NATIONAL PLANNING AND MONITORING AND THE OFFICE OF RURAL DEVELOPMENT
So serious are the findings that I have taken the unusual step of distributing copies of this speech and the Executive Summary and Findings and Recommendations of the Committee to every Member of the House. I urge all Members to read and consider these documents.

INQUIRY INTO THE DEPARTMENT OF LANDS & PHYSICAL PLANNING
The Department of Lands and Physical Planning is incompetent and ineffective in carrying out its statutory obligations to manage land and fails to protect and further the fiscal interests of the State.

INQUIRY INTO THE PUBLIC SERVICE COMMISSION
The Committee finds that Commissioners of the Public Service Commission accepted large overpayments with no query or demur. The Public Accounts Committee considers that this reckless indifference to lawful entitlements is unacceptable by any Constitutional Office Holder – but particularly so by the superior Public Service controlling body in the country. The Commissioners should be relieved of their positions.

INTERIM FINDINGS FROM THE RESUMED INQUIRY INTO THE PNG NATIONAL MUSEUM AND ART GALLERY
A trustee of the museum described the institution as “a national disgrace” and this committee is inclined to agree.the museum & art gallery is responsible for the protection, preservation and management of the historical, cultural and scientific heritage of Papua New Guinea.

INQUIRY INTO THE NATIONAL MUSEUM AND ART GALLERY AND THE SALE AND EXPORT OF THE SWAMP GHOST AIRCRAFT
The Committee concludes that the NMAG has failed to fulfil its statutory duties, failed to comply with the Public Finances (Management ) Act, failed to act in a lawful manner when dealing with foreign “salvors” of War Surplus Materials, failed to co-operate with the Office of the Auditor General, failed to comply with its own Guidelines for the consideration of applications to salvage war surplus, failed to protect State property at all, illegally accepted money for the sale of State property, actively misled its own Trustees, failed to assert State ownership of War Surplus Materials, failed to comply with the National Museum and Art Gallery Act, failed to comply with the War Surplus Materials Act, failed to comply with Financial Instructions, failed to take reasonable steps to ascertain the bona fides of foreign salvors, was subject to external influence and threats, failed to account properly or at all for monies or “gifts” received from foreign “salvors” and 6 acquiesced in the on sale of State property by foreigners with no concern for the interests of the State.

INQUIRY INTO THE DEPARTMENT OF FINANCE
Given the number and detail of allegations of fraud, theft, malpractice and maladministration in the Department of Finance, this Committee is of the view that a formal Commission of Inquiry should be called to perform a full and complete investigation into the handling of, disbursement of, accounting for and protection of public moneys by the Department of Finance..

INQUIRY INTO THE PUBLIC ACCOUNTS OF PAPUA NEW GUINEA
In other words the accounts of the Government of Papua New Guinea are in such a poor state that they cannot be relied on and are not in accordance with Law.

SUMMARY SPEECH
It has become clear to all Members of the Committee that the Public Service is compromised. It has no leadership, little understanding of and less concern for its role and vital function in nation building.