Prime Minister James Marape has ordered an independent audit of Papua New Guinea's small and medium enterprise (SME) funding programme following allegations over the management and disbursement of public funds, while reaffirming the government's commitment to supporting local businesses.
Marape said concerns raised by members of the public and other stakeholders regarding the administration of SME funds had prompted the government to commission an external review to establish the facts.
He stressed that the claims circulating publicly remain allegations and should not be treated as proven until the audit has been completed.
"SME development remains one of the cornerstone policies of my Government because it is central to creating jobs, empowering Papua New Guineans, and building a stronger domestic economy," Marape said.
He said the government has prioritised SME development since taking office in 2019, describing the sector as a flagship policy designed to increase local business ownership, generate employment and expand Papua New Guinean participation in the country's economic growth.
According to the Prime Minister, substantial public funding has been allocated to SME programmes over recent years, making it essential that every kina reaches its intended beneficiaries.
Marape said he had instructed the National Monitoring and Coordinating Authority, together with the Department of the Prime Minister and National Executive Council through the Chief Secretary, to engage an independent external audit firm to conduct a comprehensive reconciliation of the SME funding programme.
The review will determine the total amount of public money allocated to SME initiatives, how much has been released, where the funds have been disbursed and whether those disbursements complied with government policy and approved processes.
"I want an independent, professional and transparent assessment so that the facts are established beyond doubt," he said.
"The purpose of this audit is not only to establish the truth regarding the allegations but also to safeguard the integrity of one of the Government's most important economic empowerment programmes."
Marape said the audit findings would determine the government's next steps.
"If the audit confirms that everything has been managed properly, then that will provide assurance to the public. If shortcomings or irregularities are identified, appropriate corrective action will be taken in accordance with the law," he said.
The Prime Minister also urged the public to avoid speculation while the audit is underway, saying the government would publicly release the findings once the review is completed.
"I acknowledge the concerns expressed by the public. Your concerns have been heard and are being taken seriously. These matters remain allegations, and we will establish the facts through an independent process," he said.
Marape said SME development remains a central pillar of the government's economic agenda, aimed at broadening private sector participation, encouraging entrepreneurship and reducing reliance on public sector employment.
He reiterated the government's long-term objective of creating one million economically productive Papua New Guinean families through SME development, agriculture and entrepreneurship, describing the audit as necessary to protect public confidence in the programme.
The announcement comes as Papua New Guinea continues to promote SME growth as part of its broader strategy to diversify the economy beyond the extractive sector and strengthen locally owned businesses, with government support programmes intended to improve access to finance and expand opportunities for entrepreneurs across the country.
