By SEPKOLIN WALNE
The Parliamentary Public Accounts Commission (PAC) hearing into the implementation of the Connect PNG Program has revealed that there is no fully operational trust account for the multi-billion-kina nationwide roads initiative.
Works and Highways Secretary Gibson Holemba told PAC members that while a trust account was meant to hold funds, the main issue was the funding shortfall.
“By the technicality of the law, the budgetary process allocates funds to the Department of Works under agency code 264, which departmental heads oversee.
“There’s no funding in a trust account where the board can make decisions.
“Unless we establish the trust account and direct Connect PNG funds into it, the board can not operate independently,” Mr Holemba said.
PAC member and Kiriwina-Goodenough MP Douglas Tomuriesa questioned why the trust fund had not been established since the 2021 legislation.
“Parliament passed that legislation in 2021. Why did you not establish the fund?
“The Connect PNG Act of 2021 clearly stipulates that the trust account must be established. You cannot operate outside of it,” Mr Tomuriesa said.
Mr Holemba clarified that the trust account was a holding facility and allocations would follow the normal budgetary process.
“The Department of Works and Highways develops budget submissions for the Connect PNG Program,” he said. “Parliament, through Treasury and DNPM, allocates funding, and expenditure follows the Public Finance Management Act.
“Creating the trust account does not solve the funding shortfall. Importantly, there is no illegal expenditure because no development trust account exists, and no funds have been misused,” Mr Holemba said.