Slow treasury cashflow stalls provincial development

Delays in cash flow from Waigani to the provinces are continuing to affect development programs across the country.

Western Province Governor Taboi Awi Yoto says the Department of Treasury controls how and when funds are released during the financial year, limiting how much money reaches provinces at any given time.

Governor Yoto made the comments this week after the Western Provincial Administration travelled to Port Moresby to present its 2023 and 2024 financial reports to the Department of Implementation and Rural Development (DIRD).

He confirmed that the K10 million PSIP grant for the province has not been paid in full.

K10 million does not come in full. It comes in dribs and drabs throughout the year. So, it will come maybe K1 million in one month, then another K2 million in the second quarter. So, if you want to deliver a 3 or 4million project, then you would have to wait till all the money arrives", Governor Yoto said.

Western Provincial Administrator Robert Alphonse Kaiyun, who formally handed over the reports, said all spending by the provincial government was in line with its five-year development plan.

DIRD Secretary Aihi Vaki said the reports will now be carefully reviewed before being uploaded into the government’s Electronic Bilum financial system.