Cheques being dishonoured by bank unfair to businesses: Treasurer

THE Government is concerned about the number of its cheques being dishonoured when deposited in the bank by legitimate businesses.
Treasurer Ian Ling-Stuckey said government cheques had been vetted and endorsed by the administering government agency and approved for payment by the Department of Finance and recently, the Department of Treasury.
“This experience is unfair for our local businesses and quite frankly, the Government,” he said in a statement.
He said there were sufficient funds in the bank.
“The economic recovery from the Covid-19 pandemic depends on businesses and farmers being able to re-start and sell their produce to local markets,” he said.
“We have provided K211 million through support packages to be spent by district and provincial administrations.
“We are moving to a more decentralised process with more funding going to the local level.
“However, these reform and recovery efforts are being under-mined by the regular embarrassment of government cheques being dishonoured when they are being deposited.”
He plans to call a meeting with the banks, the Governor of the Bank of PNG, the secretaries of Finance, Treasury, Finance, National Planning and any other relevant departments to see how the PNG system can be modernised.
“The business of government is being forced to slow down at a time when support for economic recovery is required.
“The Government is attempting to help but is being frustrated by excessive red tape,” he said.