11/05/2025
Auditor General Commissions Vehicle to Strengthen Audit Oversight in Highlands
Goroka, Eastern Highlands Province | 30 April 2025
In a bid to boost public financial accountability and audit coverage across Papua New Guinea’s Highlands region, Auditor General Gordon Kega officially commissioned a new vehicle in Goroka on Wednesday (30th April, 2025). The vehicle will enhance field audits and strengthen the presence of the Auditor General’s Office (AGO) in remote areas.
The event was attended by representatives from government agencies, development partners, civil society, and community leaders. The initiative reflects AGO’s ongoing efforts to improve transparency, service delivery oversight, and the effective monitoring of public funds.
“This vehicle is more than just transport, it is a symbol of our commitment to be present where audits are needed the most,” said Mr. Kega. “It represents our drive to reach rural districts, follow up on audit recommendations, and promote good governance.”
A Constitutionally Mandated Role
The Auditor General reminded stakeholders of his office’s constitutional mandate to audit all levels of government and report to Parliament on how public funds are managed. He acknowledged that the AGO’s operations have long been constrained by budget limitations.
In 2025, the AGO received K27.3 million in the National Budget, well short of the K97 million it requested. With an additional K4.1 million carried over from 2024, the total operational budget for 2025 stands at K31.4 million.
Despite financial constraints, Mr. Kega assured the public that the office is committed to expanding its audit footprint across the country, especially in underrepresented regions.
“We are determined to do more with less, ensuring that every kina is used wisely to carry out effective audits that serve the public interest,” he said.
Billions in Public Funds Need Strong Oversight
The Auditor General emphasized the importance of monitoring the Service Improvement Programs (SIPs), including the District Services Improvement Program (DSIP) and the Provincial Services Improvement Program (PSIP). These programs receive significant funding annually to support development projects in health, education, infrastructure, and law and order.
In 2025, K4.36 billion around 15.4% of the national budget was allocated to provinces, including K1.82 billion for capital investments. Eastern Highlands Province alone is expected to receive K120 million in SIP funds: K80 million through DSIP and K40 million through PSIP.
“These funds are critical for grassroots development. But without transparency and accountability, they can easily be misused or wasted,” Mr. Kega cautioned.
Audit Findings Raise Red Flags
The AGO’s recent audits of SIP-funded projects have revealed widespread weaknesses in financial management, documentation, and compliance with government guidelines. The Auditor General cited several recurring issues:
• Poor record-keeping and lack of supporting documentation
• Inappropriate use of funds and deviation from priority sectors
• Weak internal controls and lack of oversight
• Failure to submit timely financial reports and acquittals
A 2024 report by DDA Watch highlighted that out of 93 District Development Authorities (DDAs), only seven had development plans publicly available, and none had published financial reports or audit findings.
“The people deserve to know how their money is being spent. This level of non-disclosure undermines public trust and development progress,” said Mr. Kega.
Five Key Areas for Improvement
To address these challenges, the Auditor General called on all public offices, especially DDAs and provincial administrations, to improve governance practices. He outlined five priority actions:
1. Strengthening internal controls
2. Promoting accountability in financial management
3. Preparing and submitting accurate financial reports
4. Publishing key planning and budget documents
5. Complying with SIP and Finance Instructions
Transparency isn’t optional, it’s a requirement for effective service delivery,” he said.
AGO Strategic Focus for 2025
Looking ahead, the AGO plans to intensify its focus on:
• Increasing audit coverage across provinces and districts
• Following up on audit recommendations
• Strengthening engagement with Parliament and the Public Accounts Committee
• Investing in staff training and mobility
• Raising public awareness on the importance of audits
Mr. Kega acknowledged that limited resources have hindered audit coverage. From 2017 to 2022, only six SIP-related audits were completed out of 439 targeted institutions.
“We are working to change that. The commissioning of this vehicle is one step in a broader plan to extend our reach and improve public accountability,” he said.
Accountability in Action
Closing the ceremony, Mr. Kega encouraged government officers, civil society, and citizens to take ownership of ensuring good governance in their communities. He reaffirmed AGO’s commitment to conducting field audits and engaging with stakeholders to improve compliance and service outcomes.
“The public deserves value for every kina spent. This vehicle allows us to be present, to verify, and to ensure that services reach the people as intended,” he concluded.
The newly commissioned vehicle will immediately support AGO operations across the Highlands provinces, including Eastern Highlands, Western Highlands, Simbu, Enga, Hela, and Southern Highlands.