Report of the Auditor-General Part IV 2016 on the Accounts of Public Authorities and Statutory Bodies

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    Auditor-General's annual report for 2016 on the Accounts of Public Authorities and Statutory Bodies

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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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  • PARA SUBJECT PAGE
    NO. NO.

    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. ……………………………………………………………………………&