PAC Chair Criticizes Finance Ministry for Budget Transfers Between Ministries Without Parliamentary Consent.
The Chairman of the Public Accounts Committee (PAC) has called out the Ministry of Finance and Treasury for reallocating funds between ministries without parliamentary approval. Central Honiara MP and PAC Chairman Gordon Darcy Lilo expressed his concerns during a PAC session last week that reviewed the 2023 Supplementary Appropriation Bill 2024.
Lilo criticized the Ministry of Finance, stating that it had no right to reduce the budget of one ministry and transfer the funds to another without first seeking approval from Parliament. “It is irresponsible of the ministry to implement such transfers without the consent of Parliament,” Lilo said during the hearing.
The PAC session was convened to deliberate on the supplementary appropriation bill when Lilo made his remarks, accusing the Ministry of Finance of overstepping its authority. He argued that while the Constitution may be silent on such matters, this does not grant the ministry the freedom to manage budget allocations at its discretion.
“As I understand it, supplementary appropriations are intended solely for budget increases, not for reductions of already approved allocations,” Lilo said. He indicated that he intends to raise these issues during the parliamentary debate on the bill, which is set to commence following the finalization of the PAC report.
The Finance Minister, Manasseh Sogavare, has already presented the bill for its second reading in Parliament, with debates expected to follow soon.
The 2023 Supplementary Appropriation Bill 2024 seeks to authorise additional expenditure of $113.4 million to cover supplementary needs for the financial year ending December 31, 2024.
