Direct minor claims and bills to state agencies, says Marape

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FINANCE Minister James Marape says the Finance Department is no longer a pay office for every little claim of State, saying “claims are paid by agencies of state.”
He said this when announcing in Port Moresby on Friday the closure of government accounts.
Marape said the designated 32 offices and respective departmental heads were the ones who issued contracts and were the paying agents.
He said any Integrated Local Purchase Order Claim (ILPOC) and for the corresponding entry of commitments to the Government’s Integrated Financial Management Systems and PNG Government Accounting System were closed.
“No new 2018 ILPOCs can be issued.”
He said payments for goods and services provided to Government that were covered by valid ILPOC and authority to pre-commit would continue to be processed and paid up to December 31, and in accordance with the law.
Only an officially approved ILPOC can be recognised as a commitment and a valid claim against the State.
“In December, do not bring in claims, there are no funds here to pay claims. If you have claims outstanding, take it to respective agency heads who have issued contracts.
“Finance Department has no more left-over money to spend during the close of accounts days.”
Marape cautioned all departments and agencies to spend consistently whatever little money left, with the application of the Public Finance Management Act.
“Do not make commitment beyond, there is no more commitment on your government programmes,”
“For the first time in the last two or three years, we have tried to reopen accounts very early and for next year on January 7.”
Finance Secretary Dr Ken Ngangan says all cheques written in 2018 and the prior years must be presented by December 31.
“Any cheques presented after that, the banks will not accept, but referred back to the issuing agencies,”
“We have assembled our team that is now put together to manage the processing of all the close of a accounts payments and we have a separate team to do the bank clearance,”
Whatever that has not settled and are continuing, we will do an early opening on January 7, so there is no need to panic. Whatever we cannot do in 2018, we will move them over to 2019.”

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