A Memorandum of Understanding was recently signed between the Department of Finance and BSP Financial Group Ltd at the APEC haus Port Moresby (15th May, 2021) to initiate a digital payment solution for all non-tax revenue collection.
Secretary Dr Ken Ngangan while appreciating the continued partnership between the Government and BSP Financial Group Ltd at the signing said this has been all part of the Public Finance Management reform that the Department has carried out with the Department of Treasury under the Medium Term Revenue Strategies.
“The Department of Finance is not only doing expenditure work but greatly improving and expanding the work relating to collecting revenues for the state,” he said.
“This digital process will see the non-tax revenue collection via BSP payment gateway including online service systems, kiosk payment mode and mobile phone banking.
“Given times like this when we have much of our revenue generating opportunities diminish as a result of Covid-19 and other down turns in the economy.
“Such innovative arrangements partnering with commercial banks, financial institutions and other agencies that already have the platform to help us do our work better.
Digitalising non-tax revenue collection at various state collecting agencies and cash offices at provinces and districts will result in improved and timely revenue collections and those will be automatically transferred to the Consolidated Revenue Fund.
This will also mean improved customer services (avoiding queues and long travels to cash offices), elimination of fraud and thefts at the collection points, eliminate operational weaknesses of punctuality and attendance, improve cash collection receipting, and reporting and bank reconciliation.
BSP Financial Group Ltd CEO Robin Fleming emphasised that this payment system makes collection, reconciliation and budget planning more efficient not only beneficial to Department of Finance and BSP but also to everyone.
He said the transparency that is associated with Government revenue collection not only assists from a reconciliation perspective but also from a process and budgeting perspective at the same time identifying leakage ensuring effective and timely processings.
“The challenge for BSP is to deliver our commitments and in the past we’ve been able to do so and I have all the confidence that our digital team of women will deliver on behalf of me,” he stated.
Secretary Ngangan noted that the digital payment process will not work immediately until the infrastructure work is put together this year and will go live by end of the year or early next year.
Minister for Finance and Rural Development Sir John Pundari during the signing pledged his support as the political leader saying this will achieve good governance, minimise corrupt practices, and ensure good stewardship not only through the collection but the use of public money.
Present at the MoU signing were other state revenue collecting agency heads, secretaries and deputy secretaries including DoF senior management and staff.