The Papua New Guinea Public Service Minister says Daru in Western Province isn't on the verge of collapse, but has already collapsed.
Bart Philemon was reacting a recent article in the Post Courier newspaper which said the town had a hospital with no doctors, no jail or court and schools have closed.
He says since the provincial government moved its headquarters to Kiunga in the north of the province about 10 years ago, Daru has been in, what he calls, a sorry state.
Mr Philemon says the region makes enough money from investment in the Ok Tedi mine to sort out its issues, however the money is being misspent.
"It's all about provincial government and national government not doing the right thing in terms of not using the huge inflow of income to address the basic issue fo maintaining the hospital, maintaining the prisons, maintaining schools, and maintaining health centres and so forth."
Mr Philemon says he is currently in dialogue with the governor of Western Province, Bob Danaya, who he says isn't running the province according to due process.