Tuesday, 31 May 2016

Time to consider abandoning the “Service Improvement Grants”


By Busa Jeremiah Wenogo

Joe Sungi’s blunt response to why MPs are not interested in toppling the O’Neill-Dion Government[1] gave us an insight into why DSIP, PSIP and LLGSIP grants are now seriously undermining good governance in this country. It is no longer about MPs using their conscience above all else to make decisions on the floor of parliament to advance the nation’s interest. Instead it is really about securing the DSIP and PSIP money to implement projects in their districts and provinces. While service delivery is a primary responsibility of our elected leaders they are to be reminded that they are foremost legislators tasked with the responsibility to make and pass laws that are in the best interest of our country. The public servants who they have unfairly criticized for not delivering are the “engine of service delivery”. These are people whether one likes them or not employed by the State to be “implementers” and not “brief case” carriers.

In saying the above the introduction of DSIP was purposely to improve the delivery of services in the districts. Yet systems and processes of accountability have always been a teething problem. Administrative guidelines and financial instructions are not being adhered to as per the Public Finance Management Act. As such the current review on the Public Finance Management Act needs to “tie the loose ends” to ensure that these “public funds” are properly utilized and reported. Unlike the District Support Grants like the Discretionary and Non-Discretionary funds which are constitutional grants as per the Organic Law on Provincial & Local Level Government (OLPLLG); DSIP, PSIP and LLGSIP for that matter were created by an NEC Directive. This means that the Prime Minister and his NEC colleagues ultimately make decisions regarding its disbursement. In this regard Mr. Sungi’s comment is a testament to this unfortunate reality.  

Most MPs don’t see the necessity or importance of providing acquittals on time eventhough this is a key requirement to be eligible for the next lot of funding.  For most of them DSIP is a “political money” given to them for their loyalty to the government of the day. Afterall it’s a “numbers game”; a well-know adage in our parliamentary system of democracy. Governments are made and broken by the movement of MPs on the floor of parliament. Subsequently the ruling government is prepared to allow “rogue MPs” to continue accessing their DSIP so long as they pledge allegiance to them. On the flipside; the government is even prepared to suppress any opposition by withholding DSIP funds from their opposing MPs (Opposition MPs). Subsequently, the government’s use of the DSIP money to muster or bolster its numerical strength to hold onto power is undermining the strength of the opposition and parliamentary democracy as a whole. The MPs on their part know that the government needs their support to pass the national budget or important bills. They are prepared to be “bought off” with those DSIP funds. It is now becoming a common practice that the very first thing that most MPs look out for in the budget book is the allocation of DSIP. Such practice is becoming a norm that no wonder MPs don’t properly debate the details of the budget and are prepared to vote for a budget they have never thoroughly analyzed. Now that the government through its Finance Minister has announced that DSIP Funds for all provinces have been slashed to K1 million[2] it will be interesting to see the MPs response during the current parliament session.     

Another interesting observation is that this statement from Mr. Sungi seemed to indicate that MPs are “free riders” not willing to use their experience and knowledge to explore alternative means to advance the delivery of services in their districts. If this is so then this is a major slap on the face to their constituency. For instance, MPs have the opportunity to explore counter-part funding arrangement with donor partners to initiate community projects yet this is hardly the case in most districts. It seems our political leaders are more interested in putting up grand projects that can only be afforded by the DSIP Money and can yield “kick backs”.   

In the past we had problems with money but the processes and systems of governance governing the use of those funds were far more effective than today. The situation today is a total contrast to those former years. A “golden decade” led initially by the booming commodity prices and then the PNG LNG Projects have created a pool of funds that can boost service delivery in all our districts. Regardless most of the districts in the country are still the same prior to the introduction of the DSIP. Makes you wonder why the government decided to create PSIP for the provincial governors. This warrants the people of this country to reconsider the impact of these “Service Improvement” grants. It’s obvious that the people need to now demand the government to remove this program all together and instead call for the government to channel money earmarked for service delivery through the normal budgetary process. Through this funds can be properly tracked and put to use for its intended purpose and not be at the discretion of the ruling government to advance its own political agendas.       
  

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