ISSUES DRIVE HISTORIC DIGITAL SHIFT FOR PUBLIC SERVICE PAYROLL

CAPTION: Wau Wari MP Marsh Narewec, Pomio MP and newly appointed Defence Minister Elias Kapavore, Oro Governor Garry Juffa, Kerema MP and Finance Minister Thomas Opa and Public Service Minister Joe Sungi during the launching of the Online Payroll system.

BY RAYLEEN WANJIMAN

THE Government’s new recently launched online payroll system follows 2023 Deloitte Payroll Diagnostic review that identified 27 issues classified as high impact and high priority, requiring urgent action to improve payroll governance.

The launch marks a significant milestone in Papua New Guinea’s public service history, with the Government introducing its first major online payroll system since Independence.

Speaking at the launch, Chairman of the Parliamentary Public Sector Reform Committee Governor Gary Juffa, said the Deloitte Payroll Diagnostic Review identified 53 findings and made 135 recommendations, with 27 findings rated as high impact and high priority, requiring urgent action.

Governor Juffa said the review, delivered in April 2023, exposed major weaknesses in the payroll system which shows deceased and terminated employees remaining on the payroll and individual payments of more than K100,000 in a single fortnight being processed without systematic review.

He explained that Deloitte also identified a critical conflict of interest, where the Department of Finance was at the same time the user, administrator and payer of the payroll system due to this concentration of power, payroll controls had little or no effect at all.

Governor Juffa emphasized that it took three years and three months for the Government to implement the review’s central recommendation by returning system administration to the Department of Personnel Management and establishing a dedicated payroll department.

He warned the Department of Personnel Management that is taking responsibility for the payroll system comes with a major obligation, as it now carries the livelihoods of more than 140,000 public servants and the trust of the people.

Governor Juffa said technology alone will not deliver reform, stressing that leadership, integrity and good governance will determine the success of the new system.

Also, he said that the Parliamentary Public Sector Reform Committee will has given the Department of Personnel Management to report within six months on progress of the cleansing payroll records, removing ghost and deceased employees, completing user access reviews, commencing audits and progressing the payroll system upgrade.

He urged that any irregularities identified under the new arrangements of ghost names, unlawful appointments and unjustified payments, must be referred to the appropriate authorities for investigation and action.
The online payroll system was officially launched in the presence of Prime Minister James Marape, Cabinet Ministers, heads of government agencies and development partners.

Following National Executive Council Decision 302 of 2024, the Department of Personnel Management has officially taken over the Government’s payroll functions from the Department of Finance and started working to improve the payroll system by working on moving to new online payroll system.

The reform replaces a long-standing payroll management arrangement and aims to improve efficiency, transparency and accountability in managing public sector salaries.

Meantime, Department of Personnel Management Secretary Taies Sansan said the transition has taken almost two years and involved establishing a dedicated Payroll Office, transferring and recruiting staff, upgrading infrastructure and training payroll officers.

Sansan clarified that the Department has also signed a Master Services Agreement to upgrade the national payroll system from version 12 to version 24, while CCTV cameras, Starlink internet and solar power systems will be installed to strengthen security and ensure continuous operations.