Concern over transparency and effectiveness of K5 million El Niño district funds

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Disaster Risk Financing Consultant for the Pacific Islands, Mr. Gibson Sil Gala. Picture supplied.

Disaster Risk Financing Consultant for the Pacific Islands, Mr. Gibson Sil Gala has raised concerns over the transparency and effectiveness of the K5 Million El Niño district funds.

In a press statement sent to Sunday Bulletin newspaper by Mr. Gala from the United States of America, he outlined the concerns that the El Nino funds might not be effectively used for its intended purposes which might result in a serious accountability issues for the country.

Below is a bold statement made by Mr. Gibson Sil Gala Disaster Risk Financing Consultant- Pacific Islands – MDRR, GradCert, BSc & PgD.

“I welcome the National Government’s commitment of K5 million per District, totaling K480 million for 96 Districts, to respond to the El Niño-induced drought and food security crisis,” he said.

“However, as a Papua New Guinean working in Disaster Risk Financing for the Pacific region, I hold serious concerns about the delivery mechanism and long-term impact of this approach,” Gala said.

He said history shows us that when humanitarian funds bypass the established National Disaster Management Office protocol and are channelled directly through District Development Authorities without strong oversight, the risk of mismanagement, relief fraud, and ineffective response is extremely high.

“No District or Province in PNG has a track record of managing emergency funds of this scale transparently,” he said. 

“With the National General Election only 7 months away, the exposure of these funds to political misuse is even greater. There is a real risk that funds intended for frontline emergency response, food security and water resilience will be spent on short-term rice and tinned fish distribution for visibility, rather than on genuine life-saving and livelihood protection,” Gala emphasised.

“El Niño is not just a food shortage. It is a livelihood and economic crisis,”he said.

“When coffee, cocoa, vanilla, and oil palm — the backbone of rural incomes are destroyed by drought, families lose their ability to survive for the next 12 months. Rice and water containers cannot solve that,” he added.

Mr. Gala is calling on the Government to:

1. Strengthen Oversight and Transparency: All DDA expenditure under this fund must be mandatorily reported through the National Disaster Centre and tracked on a public dashboard. Independent third-party verification must be put in place.

2. Balance Response with Anticipatory Action: A minimum of 40% of each District’s allocation should be earmarked for water resilience, early warning, and livelihood protection, not just food handouts.

3. Invest in Sustainable Risk Financing: The Government should urgently leverage its membership with the Pacific Catastrophe Risk Insurance Company and partner with United Nations Capital Development Fund and World Food Programme to pilot parametric insurance premium subsidies for smallholder farmers. This ensures direct, transparent, and timely payouts to farmers via mobile money when drought thresholds are breached — eliminating diversion risks and protecting our export economy.

“We cannot afford to waste K480 million on the same failed approaches. We must use this crisis to build a more transparent and resilient disaster financing system for PNG,” he concluded.

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