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• Part IV
  Report of the Auditor-General
  2016

  on the Accounts of Public Authorities and Statutory Bodies established
  under the Act of Parliament and Government Owned Companies
  established under the Companies Act

  __________________________________________________________
  Public Bodies and their Subsidiaries

  National Government Owned Companies

  National Government Shareholdings in Other Companies

  Auditor-General’s Office of Papua New Guinea

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• Phone: (+675) 3012200 Fax: (+675) 325 2872 Email: agopng@ago.gov.pg Website: www.ago.gov.pg

  11 August 2017

  The Honourable Job Pomat, MP
  The Speaker of National Parliament
  Parliament House
  WAIGANI
  National Capital District

  Dear Sir,

  In accordance with the provisions of Section 214 of the Constitution of the Independent State
  of Papua New Guinea, I forward herewith a copy of my report signed on 11th August 2017
  upon the inspection and audit of the financial statements of the Public Bodies and their
  subsidiaries and National Government owned companies for tabling in the National
  Parliament. This Report (Part IV) also contains information on companies in which the
  Government does not hold majority interest. Section D of this Report contains information on
  the status of certain entities whose audits have been in arrears.

  Yours sincerely,

  PHILIP NAUGA
  Auditor-General

  Level 6 PO Box 423
  TISA Investment Haus WAIGANI, NCD
  Kumul Avenue, NCD Papua New Guinea

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• 2016 AUDITOR-GENERAL’S REPORT – PART IV

  TABLE OF CONTENTS

  PARA SUBJECT PAGE
  NO. NO.

  General ……………………………………………………………………………………………………………………………… v
  A. Foreword …………………………………………………………………………………………………………………………… v
  B. Authority to Audit ………………………………………………………………………………………………………………….vi
  C. Audit of Public Bodies ………………………………………………………………………………………………………… viii
  D. Appointment and use of Authorised Auditors ……………………………………………………………………………ix
  E. Executive Summary …………………………………………………………………………………………………………….. x
  Attachments A – F ……………………………………………………………………………………………………………… xix

  SECTION A – PUBLIC BODIES AND THEIR SUBSIDIARIES

  PARA SUBJECT PAGE
  NO. NO.

  1. Foreword …………………………………………………………………………………………………………………………… 1
  2. Bank of Papua New Guinea …………………………………………………………………………………………………. 3
  3. Border Development Authority and its Subsidiary …………………………………………………………………….. 5
  3A. Papua New Guinea Maritime Transport Limited ………………………………………………………… 12
  4. Civil Aviation Safety Authority of Papua New Guinea ………………………………………………………………. 13
  5. Climate Change and Development Authority … ………………………………………………………………………. 14
  6. Cocoa Board of Papua New Guinea and its Subsidiaries …………………………………………………………. 20
  6A. Cocoa Pod Borer Project Fund…………………………………………………………………………………. 28
  6B. Cocoa Stabilisation Fund ………………………………………………………………………………………… 31
  7. Cocoa Coconut Institute Limited of Papua New Guinea……………………………………………………………. 32
  8. Coffee Industry Corporation Limited and its Subsidiaries ……………………………………………………….. …39
  8A. Coffee Industry Fund………………………………………………………………………………………………. 46
  8B. Patana No. 61 Limited…………………………………………………………………………………………….. 48
  9. Government Printing Office ………………………………………………………………………………………………….. 51
  10. Independence Fellowship Trust …………………………………………………………………………………………. ..57
  11. Independent Consumer and Competition Commission …………………………………………………………….. 59
  12. Industrial Centres Development Corporation ………………………………………………………………………….. 62
  13. Internal Revenue Commission. …………………………………………………………………………………………….. 67
  14. Investment Promotion Authority …………………………………………………………………………………………… 72
  15. Kokonas Indastri Koporesen and its Subsidiaries ……………………………………………………………………. 73
  15A. Papua New Guinea Coconut Extension Fund …………………………………………………………….. 75
  15B. Papua New Guinea Coconut Research Fund …………………………………………………………….. 76
  16. Kumul Consolidated Holdings and its Subsidiaries …………………………………………………………………. 77
  16A. General Business Trust …………………………………………………………………………………………… 80
  16B. PNG Dams Limited ………………………………………………………………………………………………… 84
  16C. Port Moresby Private Hospital Limited ………………………………………………………………………. 86
  17. Legal Training Institute ………………………………………………………………………………………………………… 88
  18. Mineral Resources Authority ……………………………………………………………………………………………….. 89
  19. National Agriculture Quarantine and Inspection Authority …………………………………………………………. 96
  20. National Agricultural Research Institute ……………………………………………………………………………….. 104
  21. National AIDS Council Secretariat……………………………………………………………………………………….. 107
  22. National Broadcasting Corporation ……………………………………………………………………………………… 113
  23. National Capital District Commission and its Subsidiaries . …………………………………………………….. 125
  23A. National Capital District Botanical Enterprises Limited . ……………………………………………… 132
  23B. Port Moresby City Development Enterprises Limited . ……………………………………………….. 133
  23C. Port Moresby Nature Park Limited . ………………………………………………………………………… 134

  -i-

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  24. National Cultural Commission …………………………………………………………………………………………….. 136
  25. National Economic and Fiscal Commission ………………………………………………………………………….. 139
  26. National Fisheries Authority ……………………………………………………………………………………………….. 143
  27. National Gaming Control Board and its Subsidiary ………………………………………………………………… 149
  27A. National Gaming Control Board Community Benefit Fund Trust. ……………………………….. 150
  28. National Housing Corporation …………………………………………………………………………………………….. 152
  29. National Information and Communication Technology Authority (NICTA) ………………………………….. 160
  30. National Maritime Safety Authority ………………………………………………………………………………………. 165
  31. National Museum and Art Gallery ……………………………………………………………………………………….. 169
  32. National Narcotics Bureau ………………………………………………………………………………………………….. 175
  33. National Research Institute ……………………………………………………………………………………………….. 176
  34. National Road Safety Council …………………………………………………………………………………………….. 182
  35. National Roads Authority……………………………………………………………………………………………………. 185
  36. National Training Council ………………………………………………………………………………………………….. 191
  37. National Volunteer Service …………………………………………………………………………………………………. 195
  38. National Youth Commission ……………………………………………………………………………………………….. 198
  39. Oil Palm Industry Corporation ……………………………………………………………………………………………. 199
  40. Ombudsman Commission of Papua New Guinea ………………………………………………………………….. 203
  41. Pacific Games (2015) Authority …………………………………………………………………………………………… 208
  42. Papua New Guinea Accident Investigation Commission …………………………………………………………. 210
  43. Papua New Guinea Customs Service ………………………………………………………………………………….. 212
  44. Papua New Guinea Forest Authority ……………………………………………………………………………………. 213
  45. Papua New Guinea Immigration and Citizenship Service Authority ………………………………………….. 215
  46. Papua New Guinea Institute of Medical Research …………………………………………………………………. 221
  47. Papua New Guinea Institute of Public Administration …………………………………………………………….. 225
  48. Papua New Guinea Maritime College …………………………………………………………………………………. 229
  49. Papua New Guinea National Institute of Standards and Industrial Technology …………………………. 235
  50. Papua New Guinea Sports Foundation ……………………………………………………………………………….. 240
  51. Papua New Guinea University of Technology and its Subsidiaries …………………………………………… 243
  51A. National Analytical and Testing Services Limited. ……………………………………………………… 248
  51B. Unitech Development and Consultancy Company Limited …………………………………………. 249
  52. Parliamentary Members’ Retirement Benefits Fund ………………………………………………………………. 250
  53. Public Curator of Papua New Guinea…………………………………………………………………………………… 251
  54. Security Industries Authority ……………………………………………………………………………………………….. 252
  55. Small Business Development Corporation …………………………………………………………………………… 257
  56. Tourism Promotion Authority ……………………………………………………………………………………………… 258
  57. University of Goroka and its Subsidiary………………………………………………………………………………… 260
  57A. Unigor Consultancy Limited …………………………………………………………………………………… 269
  58. University of Natural Resources and Environment (Vudal) ……………………………………………………… 270
  59. University of Papua New Guinea and its Subsidiaries ……………………………………………………………. 276
  59A. Unisave Limited …………………………………………………………………………………………………… 283
  59B. Univentures Limited ……………………………………………………………………………………………… 284
  60. Water PNG ………………………………………………………………………………………………………………………. 285

  SECTION B – NATIONAL GOVERNMENT OWNED COMPANIES

  PARA SUBJECT PAGE
  NO. NO.

  61. Foreword …………………………………………………………………………………………………………………………. 295
  62. Air Niugini Limited and its Subsidiary …………………………………………………………………………………… 297
  62A. Link-PNG Limited ………………………………………………………………………………………………… 305
  63. Kumul Petroleum Holdings Limited and its Subsidiaries …………………………………………………………. 306
  63A. Eda Oil Limited. ……………………………………………………………………………&