POST-COURIER | NOVEMBER 11, 2025 at 4:06 am
THE country’s audit office has failed to audit over K5 billion in district, provincial, statutory, and departmental budgets since 2024 due to chronic underfunding and management challenges, including the head of the office reportedly being sick.
And the Ombudsman Commission has called for all Members of Parliament, including Governors, to acquit their 2024 PSIP and DSIP funds by March 31, 2025, to ensure transparency and accountability
Reports reaching the Post-Courier for the last two months detailed that the country’s audit office has not audited more than K5 billion worth of district and province, statutory and department books since 2024 because of lack of resources and management issues in the office.
Post-Courier was told the head of Audit has been ill for the past year, however, yesterday the Auditor’s office confirmed that Gordon Kega was ill for a few months but has been back at work.
Reports detailed Auditor General’s Office has not audited any government, statutory or department books since 2023 because of financial constraints, resources and also the office was not in order.
Mr Kega has highlighted challenges in auditing provincial and district SIPs due to limited resources and remote locations, with only six out of 439 targeted institutions audited between 2017 and 2022.Nothing on 2023 to 2025.
According to him, the AGO has conducted audits on significant government initiatives, such as the “Connect PNG” infrastructure program and the APEC 2018 events, where alack of proper documentation and incomplete records were significant issues.
He said audits consistently find a need for improved internal controls and better quality of financial information across many government agencies to reduce the risk of misstatement, error, or fraud.
“Despite the challenges, the AGO is embracing digital transformation, including implementing a paperless document management system and aiming to fully replace manual auditing processes with advanced software (Teammate Plus) to enhance efficiency and effectiveness,” he said.
“The AGO faces challenges including insufficient funding, limited resources, and the need to strengthen internal procedures within the audited entities.
“Audit findings are reported to Parliament and subsequently reviewed by the Public Accounts Committee (PAC), a crucial step in the accountability process, which had not been carried out.”
“It is important to note that the PSIP funding is part of a larger allocation of “Services Improvement Program” (SIP) funds, which also includes the District Services Improvement Program (DSIP) and the Local Level Government Services Improvement Program (LLGSIP),” Mr Kega said.
“There have been reports and concerns that the actual disbursement of these funds can be irregular, and sometimes the full amount is not released to all provinces, particularly to those whose Governors are in the Opposition.
The funds have also been subject to fluctuations and occasional reductions in the past, depending on the national economic situation and government revenue.”