Prime Minister Hon. James Marape today announced a series of major structural reforms across Government aimed at improving accountability, strengthening financial management and modernising the administration of Papua New Guinea.
The Prime Minister said the reforms were designed not only to improve the performance of the current Government but also to establish stronger systems that would serve future governments.
Tough Action On Non-Performing Departmental Heads
Prime Minister Marape announced that every minister has been directed to immediately review the performance of departments, statutory authorities and agencies under their responsibility.
“Every departmental head and agency leader who has failed to submit the required 2025 Annual Performance Report is now formally on notice.
“Beginning tomorrow, every departmental head and agency leader who has failed to comply with this legal obligation will be asked to vacate the office they currently hold while the Government commences the necessary legal processes to effect their removal.
“We appointed these leaders to deliver results and uphold the law. If they cannot meet the statutory obligations of their office, they must make way for those who can.”
Finance, Treasury And National Planning Reforms
Prime Minister Marape announced sweeping reforms to clearly define the responsibilities of the Departments of Finance, Treasury and National Planning, strengthening accountability while improving the efficiency and integrity of public financial management.
Under the new arrangements:
• The Department of Finance will become the sole authority responsible for processing all National Government payments and exercising all government warranting functions.
• The warranting function will be transferred from the Department of Treasury to the Department of Finance, making Finance the Government’s central financial management and cash management agency
• The Department of Treasury will concentrate exclusively on budget formulation, fiscal policy, budget management and budget oversight, ensuring the integrity of the national budget while no longer processing payment warrants.
• The Department of National Planning will cease issuing development payment cheques or processing development fund payments.
• Public Investment Programme (PIP) funds and all other development allocations will be channelled directly to the appropriate implementing agencies, departments, provincial governments, district administrations and statutory authorities through established financial management processes.
• National Planning will return to its core functions of national development planning, project coordination, monitoring and evaluation.
Prime Minister Marape said the reforms would eliminate duplication, strengthen internal controls and create a seamless financial management system without compromising budget integrity.
“Finance will now be the only department authorised to process government payments and issue payment warrants.
“Treasury’s responsibility is to protect the budget process, maintain fiscal discipline and provide oversight of Government finances. It will no longer undertake warranting functions.
“National Planning must focus on planning and coordinating national development—not on printing development cheques. The days when everyone travelled to Planning to obtain development cheques are over.
“Development funds will now flow directly through the proper implementing agencies, departments, provinces, districts and statutory authorities using established financial management systems.
“These reforms strengthen accountability, improve financial discipline, remove duplication and create a more transparent and efficient system of government.”
The Prime Minister said the reforms would modernise Papua New Guinea’s public financial management framework and leave stronger institutional arrangements for future governments.
State-Owned Enterprise Reforms
Prime Minister Marape also announced reforms to the management of State-Owned Enterprises. These include:
• PNG Power Limited transferring to the responsibility of Minister for International Trade and Investment Hon. Richard Maru.
• Kumul Agriculture Limited transferring to the Ministry for Agriculture.
• Trustee responsibilities for Kumul Minerals Holdings Limited transferring to the Minister for Mining.
“PNG Power requires focused leadership to improve operational performance and governance while exploring appropriate opportunities for strategic private sector participation.”
Forestry And Climate Change Reform
The Prime Minister announced that responsibility for the Climate Change and Development Authority (CCDA) will transfer to the Ministry of Forestry.
“Whether our forests generate value through sustainable harvesting or through conservation and carbon markets, they remain one national forest resource.
“Bringing climate change and forestry together under one minister will improve policy coordination, strengthen governance and maximise both the economic and environmental value of our forests.”
A Government Focused On Results
Prime Minister Marape said ministers had also been instructed not to rush appointments involving departmental heads and statutory office holders, with all senior appointments to be carefully reviewed.
“The months ahead will be defined by results.
“Every minister, every departmental head and every public servant must understand that performance matters.
“We will finish this term by delivering on our commitments, strengthening our institutions and leaving Government in a stronger position for the future.”