By DALCY LULUA
THE National Department of Health (NDoH) has signed a Memorandum of Understanding (MoU) with the Department of Finance (DoF) to implement the Provincial Capacity Building Program (PCaB).
This initiative aims to strengthen financial management across all Provincial Health Authorities (PHAs) to improve healthcare service delivery in the provinces.
PCaB supports the Financial Management Improvement Programme (FMIP) in provinces, districts, and local-level governments through capacity building and enhancement initiatives. It focuses on addressing provincial and district financial management issues to improve service delivery and enhance public service programme effectiveness, with the goal of sustainably strengthening sub-national financial management capacities.
Secretary for Health Dr. Osborne stated: “Today, we mark a historic moment in our efforts to bring a high degree of accountability and responsibility to our health financing and management practices. This MoU will provide an opportunity to improve financial performance and outcomes in our health sector.”
Dr. Osborne also noted that the MoU will institutionalize financial guidelines, providing a comprehensive framework for managing the financial aspects required by the Public Finance Management Act, 1999 (PFMA).
“The MoU between the parties involved in the Provincial Health Authority ensures clarity, accountability, and efficiency in handling financial resources. This will facilitate the smooth execution of the PNG Government’s Public Health Sector Agenda as outlined in the MoU,” Secretary Liko said.
Acting Deputy Secretary for Finance Tom Tiki assured PHAs that the DoF will provide ongoing support and ensure that the program builds and sustains capacity over time, aligning with PFMA requirements.
“The project capacity building program, managed by the Department of Finance, will coordinate this support by working closely with each PHA to identify training and capacity needs,” Mr. Tiki added.
“The success of one PHA in a province will be documented and replicated in other provinces moving forward.”
Mr. Tiki reiterated Secretary Liko’s commitment to transparency and accountability, emphasizing that the MoU is a step forward in achieving these goals.
Financial Management Improvement Programme National Manager Sam Erepan expressed his enthusiasm for the MoU, noting that PHAs will now receive direct support from the DoF. “I’m delighted that we are now able to focus support specifically on PHAs,” Mr. Erepan said.
“Previously, PHAs were part of a larger group and didn’t receive direct support. Now, we can provide targeted assistance to enhance financial management effectively.”
The four pilot provinces for this programme are the Central Provincial Health Authority, East New Britain Provincial Health Authority, East Sepik Provincial Health Authority, and Simbu Provincial Health Authority.
