Prime Minister Marape directs independent investigation into SME fund

Prime Minister, James Marape has announced the withdrawal of the Commerce and Industry portfolio from Minister Win Daki pending an independent investigation into allegations surrounding the administration of the Government's Small and Medium Enterprise (SME) Fund.

Minister Daki will remain as a Minister without Portfolio, while Minister for Finance, Thomas Opa assumes responsibility for the Commerce and Industry portfolio until further notice.

The Prime Minister also confirmed that Commerce and Industry Secretary David Ganaii has been directed to step aside to enable the investigation to proceed without interference.

To ensure complete independence and transparency, the Government will engage a reputable independent audit firm to undertake a comprehensive forensic audit of the SME Fund.

The audit will examine all budget appropriations, Treasury cash releases, transfers to partner financial institutions, acquittals and all related financial transactions to establish the facts surrounding the administration of the programme irregularities should they exist.

Prime Minister Marape said the Government remained fully committed to supporting Papua New Guinea's small and medium enterprises.

He stressed that the investigation is intended to safeguard the integrity of the programme while establishing the facts.

"I have also directed that a reputable independent audit firm be engaged to undertake a full forensic audit of the SME Fund. The auditors will independently establish the facts, determine whether Government policy, the Public Finance Management Act and all other relevant laws have been complied with.

"Had the full K200 million allocations been released, the intended distribution would have been K80 million to BSP, K70 million to NDB, K30 million to Mama Bank, and K20 million for administration, supervision, monitoring and programme management.” Mr Marape said.

Prime Minister Marape said the investigation would establish how much funding had actually been released by Treasury over successive budgets, how much had been transferred to partner financial institutions, and whether any departures from Government policy or the law had occurred.

PM Marape affirmed the public that his government is zero tolerance on corruption and misuse of public funds and all Ministers and public servants are expected to comply with the Public Finance Management Act.