10 February, 2011

Community based campaign group ACT NOW!, is calling on Minister for the Environment Benny Allen to investigate claims of serious financial mismanagement and misuse of trust funds in his Department.

Four reports from international consultancy firm Deloitte have been published on the internet* that are highly critical of financial management within the Department of Environment and Conservation (DEC).

The Deloitte reports claim DEC’s finance branch complies with ‘almost none’ of the procedural requirements of the Public Finance Management Act, has seriously misused donor funds in its Biodiversity Trust Fund and compliance with procedures is ‘at a very low level’.

The reports claim most Biodiversity trust fund monies are used for unauthorized expenditure and large sums of money are unaccounted for.

"The Minister needs to tell the people of Papua New Guinea what he is doing about these serious allegations," says Effrey Dademo, Program Manager for ACT NOW!

“The PNG government is calling on the international community to give billions of kina for avoided deforestation measures, yet the evidence suggests DEC cannot be trusted with donor funds.”

The reports are also very critical of the Office of the Secretary, Wari Iamo, which it found to be largely ineffectual and suffering from inconsistent management, low standards and high absenteeism.

* You can access the Deloitte reports here