EDUCATION DEPT MIGRATE FROM CHEQUE PAYMENT TO EFT

BY FLORIN YAPO

THE Department of Education has officially transitioned from cheque payments to 100 percent Electronic Funds Transfer (EFT), in line with the government’s public finance reform to modernize payments by 2027.

The launching ceremony was held this morning at Vulupindi Haus and witnessed by senior officials from the Departments of Education and Finance, including Education Secretary Dr. Uke Kombra.

“The Department of Education fully supports the reform, which took effect on October 1st, as it will improve accountability, transparency and efficiency in service delivery,” said Dr Kombra.

He said Education was one of the first departments to adopt the Integrated Financial Management System in 2014 and remains pro-technology.

Dr. Kombra also confirmed the full K904 million Tuition Fee Free funding for this year has been warranted and released, with the final K226 million expected to hit school accounts this week.

He thanked the Department of Finance for its long-standing partnership in delivering free education.

He admitted staff will need time to adjust to the new system and called for clear turnaround deadlines for electronic payments so service providers know when to expect payment.

Speaking at the official onboarding of Education to the Electronic Funds Transfer system at Vulupindi Haus this morning, Deputy Secretary for Support Services Mr. Tom Tiki said the move is a major step in PNG’s public financial management reform.

Mr. Tiki said the National Payments Council and Bank of PNG have directed a complete phase-out of paper cheques in the public sector by 2028, following the private sector.

“Onboarding Education, one of the state’s largest spending agencies, to EFT will eliminate administrative backlogs, payment delays, and the need for service providers to travel to collect cheques,” said Mr Tiki.

He added the system will strengthen controls against errors, fraud and abuse, while meeting anti-money laundering and counter-terrorism financing compliance, as every payment will be tagged to verified bank accounts with a real-time digital trail.

Mr. Tiki commended both departments for completing the required training in August and the successful trial phase, and officially declared Education fully onboarded to the IFMS EFT framework.

Meanwhile, first assistance secretary for the Department of Education Finance Division Nigl Zerike described the launch as a significant milestone.

Mrs. Zerike revealed the department processes 30 to 50 cheques a day, or up to 8,000 cheques a year, making it one of the government’s biggest spenders. She said a trial on September 29th successfully processed 16 EFT payments from the main drawing account.

“The department is 90 to 100 percent ready for the rollout, with trust accounts to follow once formalities with the Department of Finance and Bank of Papua New Guinea are completed,” said Mrs Zerike.

The shift to EFT is part of a government-wide move to phase out manual cheques and strengthen public financial management.