Connect PNG: Inquiry reveals K4.5 billion spent without required Trust Fund

The Connect PNG program funded by government worth K20 billion will run for 20 years link rural areas and providing access for economic activities (Image: Supplied)

A parliamentary inquiry into the Department of Works and Highways has revealed that the government’s flagship "Connect PNG" program has been operating in breach of existing legislation for the past five years.

Under the Connect PNG Act 2021, a dedicated Trust Fund and oversight board are legally required to manage the K20 billion infrastructure program. However, evidence presented before the Public Accounts Committee [PAC] confirmed that K4.5 billion has already been expended despite the Trust Fund never being established.

PAC Deputy Chairman Keith Iduhu interrogated board members regarding the program’s total funding, completed works, and the legality of its current financial framework.

Public Accounts Committee conducting inquiry into the Department of Works and Highways today at the State Function room in Parliament (Image: NBC News / Bathsheba Sanau)

When pressed on whether the program was operating outside the law, Works Secretary Gibson Holemba declined to give a definitive "yes" or "no." Instead, Holemba maintained that funding for Connect PNG was made available through the general Appropriation Bill under the Public Finance Management Act.

The Committee’s findings highlight a significant lack of compliance, raising urgent questions regarding transparency and accountability in the nation’s largest road project. Consequently, the PAC has issued a two-week ultimatum to the Connect PNG Board to establish the Trust Fund and bring the program into legal alignment.