23 Aug 2011

PNG government stymied in attempt to remove financial powers from provinces

7:14 pm on 23 August 2011

The Papua New Guinea national government has courted more controversy by trying to remove the financial powers of two provincial admnistrations, Morobe and East Sepik.

The move severely restricts the ability of the provinces to operate and is also being considered for Oro Province.

Our correspondent in PNG, Oseah Philemon, says people are mystified by the government's actions, which have been done without investigations by the finance department or the auditor general.

"Normally these investigations would be carried out first and the reports compiled and presented to the government and then based on the recommendations of the investigators, the government then can take whatever action it sees fit, such as withdrawing the financial powers of those provinces. But that hasn't happened."

Our PNG correspondent, Oseah Philemon.

The Morobe governor, Luther Wenge, has successfully won a court battle to stay the government's move.