Clarification on speculations made against payments to various contractors by Department of Works and Highways under the Connect PNG Program

The Ministry of Works and Highways categorically refutes recent misleading and unfounded claims circulated on social media alleging irregularities involving involving the Minister for Works & Highways and Secretary in relation to payments made under the Connect PNG Program. 

All payments processed under the Connect PNG Economic Road Infrastructure Development Program are executed in full compliance with the Public Finance Management Act 1995, as amended) and through the Integrated.

Financial Management System, the national digital platform which has the oversight transparency system that is auditable with prudent management of public funds.  

1. Legal and Institutional compliance 
   Every payment processed by the department undergoes multi-tiered verification and approval, including 

   • Certification by the project engineers and supervisors for works completed 

   • Endorsement by internal audit, accounts and Technical Divisions 

   • Vetting up the National procurement Act 2018 through the National Procurement Commission 

   • Final approval and release through the IFMS system under the Finance Department oversight 

   
   Under this system no single  person not event the Minister or Secretary can unilaterally approve or authorize payments. All transactions are traceable within the IFMS, consistent with section 4, 5, and 15 of the of the PFMA ensuring accountability and Transparency. 

2. Integrity of the Connect PNG Program 
   Connect PNG is the flagship National Infrastructure Program of the Marape- Rosso Government aimed at Connecting provinces, districts, and economic corridors across PNG. 
   All contractor payments are  made only once it's certified, verified, and work is completed following stringent quality and financial assurance procedures.  
   Each project payments follows this sequence, 

   • Contractors submits progress of completed milestones 

   • Verification and certification by supervising engineers 

   • Internal audit and accounts division clearance 

   • Approved through the IFMS payment authorization process

   This control ensures that the payments are lawful, justified, and aligned with the Government fiscal policy accountability standards. 

3. Clarification on Helicopter Hire and Project Logistics 

   There have been further misconception regarding the hire of Helicopters under the Connect PNG projects. To clarify, the Department hires aircraft Tribal Aviation, Heli Niugini, Heli Solutions, Helifix, Lama Choppers, and Pacific Helicopters etc..depending on operational needs for each project site. 
   This hires are not exclusive to a single operator but are made based on availability, safety, and cost effectiveness to support project logistics - especially  in extremely remote areas such as Kotidanga (Gulf Province), Kanabea (Gulf), Karamui (Chimbu), and Simbai (Madang Province), where no roads or sea access exists. 
   Fuel, cement, steel and heavy equipment parts must be airlifted by Chopper to sustain on-site works and workforce operations in this isolated locations. Without such logistical support construction progress will be impossible. 
   Let it be stated clearly; 
   " If one has never built a road in a remote and inaccessible area where there is no fuel or material supply access one should refrain from making uninformed comments on social media."
   These Helicopter Hires are project driven operational necessities duly procured and paid for through lawful processes under the PFMA and IFMS just like any other approved logistic expenditure under Connect PNG. 

4. Clarification on specific allegations at NCDC roads and Mr John Kaio

   The payment to Garet Construction Ltd properly process as part of the Port Moresby Road development project, implemented under the Connect PNG framework in partnership with NCD management. We deny any impropriety or double payment in that regard as all claim payments where certified by the NCDC management and confirmed that there was no double payments for the invoices paid. 
   This is part of the Government's broader urban infrastructure initiative which includes similar projects in Lae, Mt Hagen,  Madang and Kokopo cities. In fact my department just secured funding through Asian Development Bank (ADB) loan financing to improve the Bus Transit System (BTS) for public transport system in Port Moresby and also secured loan from BSP to improve key aterial roads under the city roads upgrading Program including Port Moresby. 
   As for Mr. Kaio records confirmed that he has not been a public servant since 2011. However he serves as a policy and engineering consultant with over 16 years of experience supporting the transport sector. He has contributed significantly to national reforms, including,  

   • Public Private Partnership reforms 

   • Design and Built , contract lumpsum contract models 

   • National roads standards and specifications 

   • Connect PNG Program design and delivery

   His Technical advisory role has been fully transparent performance based, consistent with government policy frameworks. He is just one of our project management consultants (PMC) engaged to project manage major design and contracts under Connect PNG Program across the country. We have publicly tendered through NPC to engage competent PMCs to provide project management roles and procurement is in progress at this time.

5. Addressing misleading information 

   The Ministry acknowledged the value of public scrutiny but condems the spread of misleading and defamatory information that undermines the confidence in lawful government process. The matter has been formally referred to the cybercrime directorate of the Royal Papua New Guinea Constabulary for investigation under the Cybercrime Act 2016.

6. Commitment to Transparency and Accountability

   The Minister and Secretary reaffirms their commitment to Transparency, Integrity,  and adherence to all legal and financial obligations. The Department continues to cooperate fully with Government sanctioned audit on Connect PNG Program and welcomes any independent review by mandated oversight agencies. 

Ministry remains focused on delivering tangible development outcomes, connecting communities, opening up markets, and enabling National Economic Growth in full alignment with the Connect PNG Act 2021, the National Road Network Strategy, and the Vision 2050. 

The above information is provided for clarity of the reports on social media implicating the Secretary for Works and Highways and myself as the Minister responsible for Works and Highways and one of our project management consultant Mr. John Kaio.

Authorize by 
Hon. Solan Mirisim, MP 
Minister for Works and Highways