Prime Minister Hon. James Marape has welcomed the commencement of one of the most significant Public Finance Reforms undertaken by his Government, with the Centralisation of Government Warrant Authorities and Payment Processing under the Department of Finance.
The Reform, which took effect on Monday, 3 August 2026, follows a Decision of the National Executive Council (NEC) and marks a major step in the Government’s ongoing PNG@50 Reset Agenda aimed at strengthening accountability, improving efficiency and restoring discipline throughout the Public Service. Under the Reform, the Department of Finance now becomes the single Authority responsible for issuing Warrants, processing Government Payments and managing Cash under the Public Finances (Management) Act, while Treasury and National Planning return their full focus to their respective core mandates. Prime Minister Marape said the changes were not merely administrative but represented a fundamental restructuring of Government Financial Management designed to ensure that every Kina of Taxpayers’ money is properly accounted for. “This is one of the biggest machinery Reforms we have undertaken in Government. We are restoring order, strengthening accountability and ensuring that every Department concentrates on the work it was established to perform.” The Prime Minister said that for too many years Government Financial Functions had become fragmented across several Agencies, creating unnecessary duplication, overlapping responsibilities and weakening accountability. “For too long, Treasury, Finance and Planning Departments have all been involved in Payment Processing and Warrant Functions. That arrangement blurred responsibilities and weakened financial discipline. We are now restoring clarity of purpose.”
Prime Minister Marape explained that under the new arrangements:
* The Department of Finance will become the sole Authority for Government Payments, Warrant Issuance, Cheque Processing and Cash Management.
* The Department of Treasury will concentrate on Macro-Economic Policy, Fiscal Management, Revenue Strategy, Taxation and growing the National Economy.
* The Department of National Planning and Monitoring will focus exclusively on National Development Planning, implementation of Development Priorities and alignment with Vision 2050 and Medium-Term Development Plan IV. “We want Planning planning, Treasury managing the economy, and Finance managing Government finances. Every Department must concentrate on the responsibilities Parliament created it to perform.” Prime Minister Marape said this clearer Separation of Responsibilities would improve efficiency across Government while providing stronger oversight over the Expenditure of Public Funds. He stressed that this Reform was about building stronger Institutions rather than concentrating power. “Good governance requires clear responsibility. When responsibilities overlap, accountability becomes difficult. When responsibilities are clearly defined, performance improves and those responsible can be held fully accountable.”
The Prime Minister also highlighted the enhanced role of the National Monitoring and Coordination Authority (NMCA), which will independently monitor the implementation of Government-funded Projects after monies are released. “The role of NMCA is not to duplicate Treasury or Finance Departments. Their responsibility is to follow the money trail and verify that Public Funds reach their intended destinations and produce the results approved by Government.”
Prime Minister Marape further confirmed that he has directed Chief Secretary Ivan Pomaleu to oversee implementation of the NEC Decision through a high-level Inter-Agency Taskforce comprising Senior Representatives from the Public Services Commission, Department of Personnel Management, Department of Provincial and Local Level Government Affairs, Office of the State Solicitor, National Monitoring and Coordination Authority and other Central Agencies. The Taskforce will oversee compliance with the Constitution, the Public Services (Management) Act and all relevant Laws, review Annual Performance Reports, Disciplinary records and supporting documentation, obtain legal advice where necessary, assess Officers acting in key Positions and recommend Appointments or Legal Action where appropriate. These Measures are intended to ensure that the Reforms are implemented professionally and consistently across Government. Prime Minister Marape said the Financial Reforms complement his Government’s broader Public Sector Reform Agenda, which includes strengthening Performance Management, enforcing Ethical Leadership, modernising Government Systems, improving Service Delivery and eliminating complacency within the Public Service. “We are building a Public Service that serves the people—not itself. Every Public Servant entrusted with Public Resources must understand that Accountability is no longer optional.”
The Prime Minister said the Reforms also build upon the Government’s ongoing efforts to improve Fiscal discipline, reduce unnecessary Expenditure, strengthen Public confidence in State Institutions and ensure greater transparency in the management of Public Funds. He noted that Papua New Guinea has previously experienced significant Financial Management challenges over many years, making Institutional Reforms essential to safeguard Taxpayers’ money and protect the integrity of Government Financial Systems. Strengthening internal controls and establishing clear accountability lines are critical to preventing financial leakages and improving governance across the State. Prime Minister Marape concluded by calling upon all Heads of Departments, Provincial Administrations, Statutory Authorities and Public Servants to fully cooperate with the implementation of the Reforms. “These Reforms are about leaving behind stronger Institutions for future generations. As we move beyond our nation’s 50th Anniversary and prepare Papua New Guinea for the next fifty years, we must build a Government that is disciplined, accountable, transparent and focused entirely on delivering better services for our people.”