Govt to fix dishonoured cheques

FINANCE Minister Charles Abel, pictured, says the Government will re-issue cheques dishonoured by the banks.
He made the assurance to East New Britain Governor Nakikus Konga, who was concerned about cheques for disaster funds being dishonoured by the bank.
Abel said in Parliament MPs should refer the cheques back to the Finance Department.
“Once the bank dishonours the cheque, you cannot get it back,” he said.
“The bank should give you a dishonour notice and you return that to the Finance Department and we will reissue the cheque.”
Abel explained that years ago, there had been issues with bounced cheques forcing the Government to review the process of cash management in the government system.
It resulted in the establishment of a budget management committee chaired by the chief secretary.
It met weekly with secretaries of Finance, National Planning and Treasury to address these issues.
“They are advised by the debt management committee which comprises deputy secretaries of the relevant departments.
“They liaise with the Bank of PNG and they ascertain on a weekly basis what the cash at bank is and the cash that is coming in and on projection basis,” he said.
Abel said it was done to ensure that there was a centralised process in cash management. “We don’t continue the process of departments and agencies issuing cheques when there isn’t cash available,” he said.
“That process improved the system and the issue of bounced cheque was resolved.
“Unfortunately, lately, we have seen it happen again.”