Provincial administrations and District Development Authorities (DDAs) have been encouraged to work closely with the Department of Finance to ensure timely access to the Government’s K304 million in El Niño disaster relief funding.
It is understood that the Department of Finance is responsible for administering the financial instructions, banking arrangements and procedures governing access to the approved disaster relief funds.
Minister for Health and National Disaster Services Hon. Dr Billy Joseph confirmed in Parliament that K304 million had been released by the Department of Finance into a designated trust account at the National Banking Corporation (NBC) to support drought-affected provinces and districts.
The clarification follows concerns raised by Abau MP Sir Puka Temu over difficulties experienced by districts in accessing the funds due to financial instructions and banking arrangements involving the Integrated Financial Management System (IFMS), NBC and Bank South Pacific (BSP).
The Provincial Administrators, District Administrators, DDA Chief Executive Officers and Finance Managers are expected to liaise directly with the Department of Finance to clarify the necessary requirements and facilitate access to their approved allocations.
Under Financial Instruction FI 03/2026, issued pursuant to NEC Decision No. 154/2026, eligible provinces and districts can reprioritise K10 million from their Provincial Services Improvement Programme (PSIP) and K5 million from their District Services Improvement Programme (DSIP) allocations respectively for drought and frost emergency responses.
The funding forms part of the Government’s K1.165 billion El Niño response package approved under the Supplementary Budget, comprising K665 million in reallocated funds and K500 million in additional funding.
While Dr Joseph’s ministry oversees national disaster coordination and emergency response, the Department of Finance administers the financial processes governing access to and expenditure of the funds.
Provinces and districts are also required to submit updated situation reports, costed response plans and supporting documentation to ensure funding is directed towards communities most affected by the drought.
According to the latest national situation report dated October 9, approximately 1.812 million people are living in drought-critical areas across nine provinces.
The Government’s immediate priorities include safe drinking water, food assistance, essential medical services and support for vulnerable communities.
There must be close cooperation between provincial administrations, DDAs and the Department of Finance will be critical in resolving administrative and banking issues, avoiding unnecessary delays and ensuring approved El Niño relief funds reach affected communities promptly.