Prime Minister Hon. James Marape has issued a strong year-end warning to all public servants holding financial authority, particularly Section 32 officers, to immediately stop the traditional “mad rush” of December spending and strictly comply with budget rules, approved work plans and financial laws.

In a firm address delivered ahead of the close of the 2025 financial year, Prime Minister Marape cautioned departmental heads, finance officers, cheque signatories and payment authorities against rushing to pay claims, contractors and service providers simply because the calendar year is ending.

“There is a false notion that one year’s money must be spent before 31 December or it is lost. That is a fallacy,” Prime Minister Marape said.

He explained that the transition from one financial year to the next is a technical accounting process, not a justification for reckless or rushed expenditure.

“Public funds remain public funds. The work continues. Government does not come to a standstill on 31 December. We resume work on 2 January, and the country continues to function,” he said.

Prime Minister Marape said Papua New Guinea has, for decades, suffered losses, audit issues and financial leakages due to irresponsible year-end spending — a culture he said must now end as part of the Government’s broader PNG@50 Reset agenda.

He warned that incomplete paperwork, unsigned contracts, illegitimate claims or expenditures outside approved work plans must not be processed simply to “clear accounts”.

“If contracts are not issued, if paperwork is incomplete, if claims are not legitimate, then there should be no rush to pay,” he said. This includes unnecessary expenditure such as excessive hire cars and other non-essential costs. This behaviour must stop.”

The Prime Minister confirmed that he has issued firm financial instructions to the Secretary for Finance, as the Government’s chief financial authority, to formally notify all Section 32 officers that they will be held personally accountable for any misuse or misapplication of public funds.

“Section 32 officers will be the point of reference for accountability,” Prime Minister Marape said.

He said that from next year, the Government will intensify monitoring and oversight, including the involvement of the National Monitoring and Coordinating Authority, to strengthen scrutiny of expenditure across all departments and agencies.

“Next year, we will work closely with the Department of Finance to closely examine government expenditure,” he said. “Section 32 officers will be placed under strict scrutiny in relation to spending and compliance.”

Prime Minister Marape stressed that all claims and payments must follow due process, and where compliance requirements are not met, payments must wait.

“There is no excuse to bypass the law or procedure,” he said.“If compliance is not complete, leave it and pick up the work next year.”

He warned that as auditing and national monitoring are ramped up, any officer found to have spent outside approved budgets, outside work plans, or without proper documentation will be dealt with in accordance with the law.

“Work consciously. Be cost-conscious. Be resource-conscious. Spend only what is allocated, for what it is allocated,” he said.

Prime Minister Marape reassured public servants that funds not spent due to compliance issues would not be lost.

“Funds in the bank will not rot or disappear. If compliance is not complete, do not rush — the work continues into the next financial year,” he said.

He also confirmed that formal written instructions have been issued through the Chief Secretary’s Office to departmental heads, and that Cabinet — including the Minister for Finance — has been fully informed of the directive.

Prime Minister Marape said the warning forms part of a broader effort to reset financial discipline as Papua New Guinea marks its 50th year of Independence.

“This is about protecting public money, restoring discipline, and ensuring expenditure aligns with government priorities and departmental mandates,” he said.

He called on all public servants to act with integrity, professionalism and responsibility as the country closes one financial year and prepares to enter the next.

“Our people deserve better stewardship of public funds. That responsibility rests with every officer entrusted with financial authority,” Prime Minister Marape said.