SUN ARTICLE DISTORTS TRUTH ABOUT ACCOUNTANT GENERAL AND GOV’T PAYMENT PROCESSES

-
The Ministry of Finance and Treasury (MOFT) has described the front-page article in the Island Sun newspaper on Monday 17th October regarding the alleged sacking of the Accountant General and the purported delays in payments as a “deliberate attempt to distort the truth and to mislead the Public”



The Ministry of Finance and Treasury (MOFT) confirms that the Accountant-General had not been “sitting on payments” for dubious reasons, which it claims to have compounded the situation. 

“This is far from the truth, if not a deliberate distorted account of the normal payment procedures in Treasury,” a statement from the Ministry said.

MOFT, through the primary roles of the Permanent Secretary for Finance and Accountant-General are responsible under the Public Financial Management Act to advice the Minister of Finance and the Government on measures that ensure financial stability and proper use of public funds for the purpose it was intended for.  

To date, the MOFT can attest that all payment submissions that have been assessed as meeting payment and procurement requirements, have been processed and released within the 4-5 day average turn-around period and are according to schedule.  

These include all payments for essential services and core government functions and responsibilities.  

These include payments for purposes such as, inter alia:

  • Grants for schools, hospitals, churches, health centers/clinics, provincial governments;
  • Utilities including electricity, water and telecommunications;
  • Medical supplies like drugs and dressing;
  • Rations for hospitals, schools and corrections;
  • Fuel supply for Government ministries’ operations;
  • House rent for public servants;
  • Government office rent and security services;
  • Maintenance of Government-owned assets used for operational purposes like office buildings, vehicles and equipment;
  • Pre-service, in-service, overseas and MPs’ scholarships;
  • Public servants leave, local fares and other costs;
  • On-going scheduled contractual payments for construction and civil works;
  • Grants for SI Diplomatic Missions abroad

For payments in the essential service or priority category as above that has not been processed as scheduled, the reason for delay can be due to any of the following three major reasons:

  • Ministries have not submitted or have delayed its submission;
  • The payment submission is subject to query from MOFT and still needs to be addressed by submitting ministry;
  • The payment has been rejected for not meeting proper payment and procurement requirements.  

It must be clarified that there are always payments, including those for essential services, being delayed for one or more of the reasons (i)-(iii) above, which MOFT has always sought to promptly apprise ministries of its position. 

These can also include payments for on-going or existing contracts which have yet to be fully vetted and verified by the Ministry concerned for issues like physical progress of works, delivery of goods and services, and etc. 

A number of these suppliers/contractors have been under scrutiny by MOFT for continuing default on their part to meet the terms of their contract with SIG or for transactions incurred without proper procedures. 

MOFT will not reveal nor go into these details since these are all part of MOFT’s query and subsequent due processes, and we respect the confidentiality of our dealings with vendors/suppliers/contractors unless and until it is substantiated enough for further investigations or referrals to proper authorities.

The Accountant-General is an important part of MOFT but the responsibility is just one of the many executing authorities of Government decisions in the ministry, including the Permanent Secretary, Under Secretaries and Department Heads of IRD, Customs, ICTSU and National Statistics. 

The policy on reservations was part of Cabinet’s decision to effect such a measure to ensure that expenditures were confined within revenue inflows from August thenceforth to end of 2016.  

This would enable Government to maintain adequate levels of cash reserves to unforeseen emergent needs, as well as keep Government finances on a stable footing moving into 2017.  The execution of this decision is the joint responsibility of the relevant authorities in MOFT, though the Accountant-General plays a principal role in this particular one.

MOFT has always availed itself to discussions with ministries that have payments issues and we will continue to do so.  The MOFT advises that the public should perhaps raise those specific instances they have concerns on with the relevant ministries so that they can discuss the matter with MOFT in accordance with proper process. 

Speculations that Mr. Paula Uluinaceva has been sacked as Accountant-General, insinuating that his actions has led to or exacerbated the cash flow situation is simply false, misleading and damaging not only to MOFT but Government and the economy as a whole.  

The fact is Government’s cash flow is stable and the reservations and other expenditure measures are part of a proactive strategy to ensure Ministries prioritize, given the challenging revenue trends.  It is also aimed at curbing wastage, abuse and unnecessary use of public funds. 

MOFT said good journalism does not whip up malicious, false and speculative stories intended to damage the reputation of authorities or persons they apparently have an embittered agenda against.  

“And ill-informing the public, making baseless remarks and casting false aspersions on MOFT in an unprofessional manner is in itself a self-ridicule and an embarrassment,” the statement said. 

Mr Uluinaceva’s appointment as Accountant-General has lapsed recently and a new appointment is now being considered by the relevant authorities.   MOFT will defer to the authorities and will respect and abide by its decision.  


ENDS///

Source:  Government Communication

Comments

Post a Comment

Popular posts from this blog

AUSTRALIA: A STEADFAST PARTNER AND FRIEND TO SOLOMON ISLANDS

-
Image
BY DR LACHLAN STRAHN, AUSTRALIAN HIGH COMMISSIONER TO SOLOMON ISLANDS Australia and Solomon Islands enjoy a close bond – indeed, we are Pacific family. The Blue Pacific is our shared home, our common region. The Coral Sea links us forever and continental drift is in fact pushing us closer together. But our deep friendship is based on much more than shared geography. We are bound together by our common values as democratic countries committed to peace, a rich spiritual life and a shared determination to give every individual, man, woman, girl and boy, the opportunity to reach their full potential. Family stick together, through the good times and the tough times. Australia partnered with Solomon Islands during some of the country’s darkest moments, including through RAMSI to help restore stability and law and order. And Solomon Islands has been there for Australia, with people across the country reaching into their hearts to raise funds for the communities ravaged by devastating bushfir...
Read more

VANUATU BIGGEST IMPORTER OF CANNED TUNA FROM SOLOMON ISLANDS

-
Image
BY GEORGINA KEKEA VANUATU is the biggest importer of canned tuna from Solomon Islands. National Fisheries Development (NFD) Limited Managing Director, Frank Wickham shared this information in a recent radio talkback show to mark World Tuna Day. Wickham says the biggest export destination for SolTuna’s canned tuna is Vanuatu. “Followed by Papua New Guinea, Fiji and the market is now open in New Zealand. There is a big move now to promote and market in New Zealand and Australia. We have containers going to Kiribati, Tuvalu with a few to Tonga and Marshall Islands. The biggest of them all is Vanuatu”, Wickham said. He says domestically the consumption of tuna is growing annually making Solomon  Islands one of the biggest canned tuna consumption per capita in the world. “Two years ago it was like more than 800,000 cartons a year. which means for every woman, man and child in the country, they consume one carton a year. So if you look at 48 tin cans in one carton, it is almost one ...
Read more

HOW A TINY PROVINCE IN SOLOMON ISLANDS REACHES OUT TO AUSTRALIA

-
Image
THE small island province of Temotu in the far eastern part of Solomon Islands is one of the nation’s most prone natural hazard areas. The tsunami in 2013 swamped through 20 villages With an estimated population of less than 25,000, Temotu often has its bouts of natural disasters. In 2015, tropical cyclone Pam left devastating effects on the tiny province where people were affected from damages to their fruit trees, food gardens and agricultural crops. People near the coast were evacuated. Then again in 2017, TC Donna in its wake and formation also impacted badly on the people of Temotu. Not to mention it was only seven years ago a tsunami claimed lives of more than 10 people, swamped more than 20 villages forcing the government to declare a state of emergency over the Santa Cruz Islands. Remains of household in Venga village after 2013 tsunami (Photo supplied) Their most recent bout of disaster was in January 2019 where bad weather caused people to face food shortag...
Read more