Funds abused

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The National, Friday August 2nd, 2013


MILLIONS of kina are disappearing into thin air to pay a large number of ‘ghost employees’ in the provinces, Treasurer Don Polye says.

He told a Port Moresby Chamber of Commerce and Industry breakfast yesterday that there was an ongoing problem of over expenditure in personnel emoluments in the provinces.

“These are expected to exceed their appropriation once again,” Polye told a full house at the Royal Papua Yacht Club.

“This year, we estimate that this will be by K78.9 million.

“Unfortunately, much of this overspend is on ghost employees, non-existent staff or those who retired long ago,” the treasurer said.

“We have started to take action and have arrested some people for such fraudulent practices, but we must do more to address this issue.”

Polye said the formal bottom line was that the fiscal position for 2013 was expected to be a deficit of K2.7 billion, which was an increase of K151.7 million compared to the initial deficit forecast of K2.5 billion in the 2013 Budget.

“As mentioned, this is attributable to slightly lower revenue receipts and an expected expenditure overrun in the personnel emoluments in provincial governments,” he said.