OEPARTIiENT OF FINANCEMadang Provinclal Adtninistration

Inbnm rudt conmltte Metl.eIdedm tr nutes ol meerrno No. 1/?012

xE.{aryE|iah.d||(.mmlnd€9eii€iriei'b€rxi Gd.n x.96, ^djm D.p!t ^drd cffir.

I Audd, comdb@ arand', rnErur MiaM condi|n DM*. (hcD)

Ml'samans{aikru,Adingcn|.lInt.m!Aud||ol

tdr, MrdBnqPrcvn.a

drtor, Inr.m. Audrr uiit

n how d'e .onbad rere awaded by rhe PsrBrneaeqd0nwashsenbyd3l" l r 'P

ompaiy, tu connrudn res a majtr

biect to 4 ee in lhe @r tuturc.

t die re.ms of Refss.e aroR) w n e dEpn uprNR,pA/prandbechbnval iqabthe

hehhh|4elofab*nktsmbyhtsotr.eElhd

caiela|ordeEloapolydidpieome6

b h rr Aud t conmtl€ Metris 0fter m) ror

b be dBtu by rn. F4n,clAandDinftrHRandupdate

iapomp{ab hhavor oi frr Paur tro (a/DeputyadmintstEtor) wtu ud inapprcpd*e aoguaqe on 6 ranuary 2014 b ttu Prcun.bl

dnor (cla). fre r.!ns ch was o,en a*d b(mpprclrab behaior) by xr r1! bwads ure Pmvin.a

Mminjlalqandpovdeanupdate0

|anguag. 'byMiP.u| Ibandp'ov ideUpd'bon6.

.6d|vryhosorcndytnedasanalcdate

Mado q Pt.!h.b) rudi cahnitt,-p tueeths I iat 2

Mccarthy b ds for reideE aid r sn be

@mplny (s.awio

dsb*td.ntcfiroaq6FrdKro,000aidksiyEdd*n@ddlM6hd*t b h.jltu dF B'd. H€ xr.d 6 th. s?crq r2 offter b iqn dE.@fus'ftHemnsdkeF,kilgch.i|nt.@|Audi|raE.lffidDt|Ets$nd$.Fyld|@*h6lEE6np'€nin0bffidEdtjdE|d€d.l's'

^dl6 n.n 3: ft€ rndn a.iiwith aininrl .hrr!.. ..d urc.

p.rromn.e r€!€rs ifrrd b. m.hbin n. PA +drd be ardr€d m any absrcEd by6rG @.id rcsst pd. mna4.'ht.id

n sriqaR da duty. k e@r€d dBt p !ho/d 6Ir€r ,E a/o ''d ab .d'dldfudN|'l'4mdp'due

Dbb|.hwh.rE@fua'n$0q6td|hdenr{, .nd ,n dusk €r rE2ds ro b€ ad6.d to

rhe .omDik @mm.id.d thrt:

(a) PA b condud al.w of tnt6

(b) P to o.erder .pFlntn..t for dr€.ur6t ^/ cI^

(.) P b oldds xPr ..d r^u b-d .l di,tloDl h€dr b b. adn

mmih*, ro met on mnthv bdss wth the pA,IA|la.dEdaitftff,tommid;id

Modo 9 Pt.vn tat au. |..nnittee deetina | /2412

MPAC'N.add.dd,BtkFdmit6'tharlod! ' ia- i@@drd$e4i

|BtDoFba,gintbbmngasUE.n6io'

sB d'*d br PAc drar and he al$ suqq6tea

y wirh r idnc.r Manaqement Acr (PFr.tA)i as t 5very difiir! t ro .hrq. 6e eisoinq PA

Dtu r€G In rh€ @i6 $d dr cEo/t or t@ a4do6 in dE FUIE Efutmhbyh,Flrynbco!dthedto'|.€|,H€agt.d{id'P^!@iHtA a vJid @h and sqslff n $turd b€ (b.r ar a E0h6 r€vd, N. tudb

.Eve,nU.dat. . t th. i .n

a D.dr.dd or cdnd or r'l|*t

m€ddi'6ofifud..|addbrytrE

. ' {a | ld . - | '1 .9 'bhd| . |d ' |d in l

tuttuL n tu4te b* tE 4 Pf dn m 4w& w*.bt,baa'6dEifu0f@.erld.dAbgrc'h.*]eg&fu]RbEbl.dagaieol||rasandprotile tu u@a he M M4

tarc,ewsdonebyNRoncjshlddT6vg

orcE, sMn p) h,€ '.qd@ rher adEn.es wh e arehi G) otr@E'!.qutt 5 'roetn ouEbidi9. sh. rdded 6ar HR is odpa.ed ro su(halle th@ eight (3) offieEand omme e !ry d.d!.lroN b dtu E ndx6.

sdnq of aiy Oubbnd n0 equihk (t€sh advane, for w.6 2009 ro 2

Btld bv th. hredm .omni@ ihat st dndagRd b @.ry roRard b rhe ne aldit .omm te.

(r) .R b r.oird. 6r.a ot ru'ri.q. d6.e deh. (t)

{b} E t pr.ear. ! [n ot .n(hvd ,[N.n.6 .nd orh .deaic ) ior xP rbn

upd.honth.plolE'*then€t^c''np tbntu 4r8d tlDt Pf atu@t b Lke 2c49 adt @Ns@r tu. ard d]. q arLta

6'*.rte,d'tEe'p6|,dnbkPA6a'dEP,

fu dl,..lg bd€d' Hr sob U'i.' imnhgminee rha rh€E B m 'rrE rsid @

br€@r ddE rdr dE dEoi4 [ and.dvr.d tbr he srr*.* arxE "it'

P^ andmelig. rhc hlerin @mrrb skiDr.d rh.

h*rig 5r@ PA ad I weru iobbr.

rt th€ nd m.tlns tol.th.r *lth di. E ons rDm tl'.

tlP ffi 4td ne oOTs ao nM @i* d qd.haBaB]w|u^EdEftofl4Dth@'JdfuorH|wtu\e@ffi r@)4tuMRtt4.

M<c€9..ds€dsaiDoFlliEha|rp€ndho ror ti. a/s6e6ry: endo6e

bn to .wnEab L',ts Esue. r he comn he

!!999!E!!a!)!!9!4!tr c.hhdee Meerna tlra D

rh€iffM9.,..dth@hdPin€ds'|trbEId'o'Ift|fudt&complbmsroft n'. alk!.d Ge .fiming th. or

^!dn & conptrrne Dlvhloi'. Indigadd mr pEprEd

EelrB of d'. nndrict

the ctuas@ tut Bp6 tui@..q, /oraEfu iqn*d ' 'E l ' 'a@tdndE,EF*.anepdanu@ Ppr e n M'64

tHntsF|b@F|eafuI@i,sh. ! ( t ! .d

m*dn p@ded di sPA to ompla rlre '€d

submit rNr r.p.ne rnd rhe rve '€ar tahhs phi rnd pflrde an update ar rh. €nrc[trg. rn. hr.dh comnit€ asreen that thr ldon ibm e i! v dr{s*n 't n].

h . .d .b Ih tn^EFb. Idd ip.!' '€5tlFtdb.nd'||d4

he tunite as@d ttd ht rwe M tdtu t4 x&' dt asPMMoE44h@daa@b''Ektehfufunfu

TMt ent and @d1e n uPt b dt dte M mhs,

d fo, rh. bn fe ac, and a*€n P b ras.i$ rhe Br{ or sonh hlf, pdt hoE$y a6mh d pnrd€ rh. .eqrddi'tmtu at oE d ft€rrE. nE lfum cmnrk tffmdided d'ar rhc o^

lh, l tEw.f t&dbo.| | .n io in€D t* of enr sdnn %dft b nfu rF d.larr ra mrhi@ ts da.p br d'. Prorndll

fre Depuv Aud w Gene€l Mr. Godo Ge€a quoEd rhli drerc ts abrbd al drd.n.ee commtle ch.Inan h empoweed by rh.

s€.rcbid relis arron to refe offend* io rha PA who an rcref them ro f6ud {urd ro

Ih€inbim.mn|n€.Eoa'e.ddbl

rcf i idout l rcmthessdlatLaqjdon,

Adion ibm 1o(!) rhe comhire asssP Pod r.Esby hdd offie b o

dUDdlt€th€menb.6at

(b) fie tntsrm c.'Di@ .rred

*6datregi'|ationtofindo

{.) the lih'im commib asEd 6ar M., YoE.h4r with

apFintmtofthCPsrB.ndupd&

11panfu|leajre.ntfut:

MskMjblnalldpaudtandhE4gsbEqr]tand|he'bfuofdp@BbPAfu|

fucmnite2gE.7dbtM|ahgepapa, awor.Ed atu

Lae b.nthe @atauB t t%s1 and lavbe an LgdaE at tE

fte drmm r€ noted dre audit o6*d

i{|o+cflnlomadoniotheMPc'no@idG

@ DaFs aa b aist cu EbrE copa of $E odrke

ful,igatkeMndh?'

m 6 (b) h8 ben addrc$ed sder acto ited 6(a) add mnmended rhd 8rts adroi item 6(b) b€.rosed. fe fuidid advin dre

(1) audit rcporis and 6r*d $ue ar $e rclt

denl @.R o @lk0on or itemar rftnue n

or.do,'s pGrrron s he faldlrenry bren d'e

thepres3ndprcVdeJ]Update'tthen0{netng

a) Mi r.iF wourd

b) cr^ to d. . erud€ dl.{ o

m any Ge tu vanous (R.mibRs .qlinn rctumt wlrh the cdmmisbi.

c) P^sho,rdorbd.lywn toI*c..y 6* rb. 6'lo!e (Rd.tt nc a..r6t d!n.) ad;

d) P^. chal wiB b ? ro. drcd€ rd ur6b d tn

fuc@xnn@4dd!|dP/.nd'En4fudafiajffi

uB'aEeEqEsalheeding'

h!!ngdlfftu!€3|d'ljnoliBfubohinb fo, Aco' nl hnd* .onhd b end

dvsoi Policy c@diDlon and hpemenratmDvsbn (Po) b prcvde a bddm th

d dled by PA. Mr ar rlther mendoned thrl MDC ow.d ene DrcFda :nd al$ owesq hri nirncll'(o'!5 eE datry€d n ihe firc

hecadbk*| 'naqiqDlf t tor toexolanwhy

fawilroire ale qustmed why iihcar statenenE @urd Dt b€ dbbined fiom be

owned by MDc, Mr A

byth€Mnqorief lnbmaAudtorth

(a) r.dns.sDsholrd.rbnitfn

saleofMDc|ani|.nd@4of'ub'i$idtoEb|n

upd.bo 'DEglc ' t the

Didarqavcean*pl,brtfuMtEfu,andM61?kehvhdl@|/@dEnenrcdE

6bbed,Mrssakerc@]nbdout lheaudi t

that despib an MoU of 2005, no dswhy dE Ntudons had beef qnoredft Dabn hed 6sh ofr the wekend3 bknqs. Mr Hadhode advsea ft s€ kse ro

tt€! nobnq Mr uah slqqested sat d'e PA

(.) /h. a@ cwtu pd a .@ta&hevhmdEnaoe@adEd||4ap'

(b) PA th.tu ffia .be, *ik a@ b lpdaE dE m.'! DstPp]ag|.nandN"?'eaN9@dpna|h'ere'tndh@'

sbd€dldi's'Mt^coo.ieshoxp.o'id€mUpd3bddFnfrfuj@'fi.b4idde Ramq Slnka and usrb Bundi DsbrE wsrc in p.0965 hene a pr0!6s

rhe 6hrrb asE d tnt xr s€lriE.h.dd dnlt a

Er!..t.!r..tDridin |dnetLa,,Ecoonn.fu4ledha,|rlaaq.'Ifujdeta.qy0r6Etunntq Epott d tN cta Mt tbr petutu (E9di4@vmrt pM 'tu @tut t coun t pAtdenb'w*sr.p lot the tu"dtut tutu a .E @ nddw,

(a) rh. rco sholrd pt€*nt. EF.d n th.ruro66 on thc audit rlndlngr rrDm d!.

(b) PA CldE nd. doerv wrtft ̂ Go b uDd.r. itE

1|p.bnrne4!edn'|hfu'ndoFov;*a@|ottu ,l'rvitt t twr @ E tj Mb4'a@.,iliq}elo|*.fr'M|AI'ftacon,pad@Ditieth nit dke tE rest tock b D.rt cavtu sAaa.csDvs.n n savice a Lpdab e r* @ at the Mt tulrhq.

was|,b].dd''emednq,M6'c.9.'d,s.dD v sion wrd forrow up w th c.roo..t seMceaidUodatethenenb€6atdiene*mednq.

arcft'wl,lfunejnreum

r.trEFFl ib. .kbhF<cor'oai.s6viaDhisio||Id'.wn..n!,d&

(.) wo*r Divtuion rh.uld k*D I

I{i€ an uldrb *

}cl]br|@13:|hecdfunfuaqEedtlfu:

(a) b*t tr,Eb st't*J k@ * @ b d. d tlgea anddp'd#ft

tutbtut nod.c,(b) ltE cla MM b.iet tfE ac 'mb$ @ nE sdut af ttE

@@aa!;da.]nFaveeug|,Ead.]p1

puthagorf tea*6b'a| fu,bcKhjfuandmnpwF.,d.manddlr6t n!'dnq. H. ri6s @t3r.d b hm an ofi.er b lfuhb m a4ts ahE

hiqhBkof@.onhol**puEhisedfor

tsbr on whrr ine bran.h hA .omdr.d wlr b€hnr.ntd tu rlE drb b6€. Itr cmnik @mnEq,€d rh.l rh PA shdld qdii.cI^66.*fE,dminadio:F@d0l!eli'6.

&ddEfuvftEi^drconfrinedeehg,x,2

11p Cannit . .sd dEt tu srekeE to hx.s

hWaud|cpdta|'dzrol$e&uptbc.|

itrcgdts@€tdt'.d.ltii!fEcunqaidsuqqsbd rhat dre ardr rcp.r6 b€ @.p :|d d $u$€d !t dre E,1 medns. iEinledm.onmifuw,9adl!.dbYdiecLA

totn.{.Gffilne.Ud|tE'ot..d'did..nUpd.r.

(a) tu brgE wh dtaw up @ tta bw ar M DonttJ r@3ath 4@.tt qE bet4 cM ty a dd Bty t n

(b) k r2n9e Nutl tbi* aith dE tu Bde. (k ,@ addL.dt ot tAtN' oititb.) b e.ottb e e'p*a, e ^E

*as bbrd- & bnq€ adi6.d rh€ @n'aErhat dp i* G q romdidted, d ttE ad!@ @Ft ms 6 !.d und* r1l ToEtn. ne and th. moni.s were .xpeftre! by d,e orrccior or Hsld' iE c.mmltt . nohdrh.t i was nbsal r.. r bd b €5h lhtd pdty .r'€qE rd ltffrs'd.d dRr tAr.i* $d' oE M! p.,rB ''d Fdd6 r erdao[d d $. d metns. th. hh6c.mni@ was advs.d by th€ cra rhat rhe€ !d a puEh*e d o h!id€n(200) plu3

ud ror lhe hl.ided 4r'c. 11L Inc,ldcmm|n64di l 'eD|dT@b.,€i |ad.df tdtrsEdft thts

(a) tr bry. muld rollfl uD

by a b|'n Frr' rd fiin l+ hd b '6lp dr

(b) r|r rr'r. gqrd llr* *lth $. rvo F d6 (rilrr@ and ol'tfu of {dld! Dllldd} to mvide .ncrpl'nrdon on rh. #tor or tn. two-*.Y ndd

e Meths tnot2

@ h. ca 4lrib qE pdity b dtarts dE R.aFtnd tw! en M t* t b p"ie pu44 b

tu tEn tr: tleMq@r.tr kbuc@)*ttu tbE taiiEDlE tote to pblbe a ieta+ d de stattt an dE grgd"tut aipajl|deanupd.l.atkeM|ne.hh?'

@) h"PA st&bEtt tle Eeat dt dE tu acetus,(.) IE pa cafr poyi* d dE d nedg wd,

i|1h||fufuMhfuhein@ebE'p|'dbd|c/#,-t ilttlttnp htu b ded *nJt .ficeR #a turlEEbkgpank'p|d9.4ofwM6

$atErulor lmRglpl .gamBb.. ..omp]e|!d'ndTab.fol.ommtt€!

re@{ rered bar rh.re was d.{ tcld i}rtbuirdh$ lerc d .ond.ed and trr onFny s.er'e h @n d '' h (di.[r,'e and

Faud squad. Tni hHs c.mmnta 4€ed ihrt he acdm it m be dinssed at rh.

Eed ini o^ b hdg|dinRengd.do.' R.d ltlm irctadn' EF.t rnrur!.rbd tfirt lt is r dlnhrr d* t mou|n b. E.n d b

tul|. rraud tqut4.ndp6v|d...U'd.batth..drodno'

w ev{nft qsdad d'd pA {uld *de ro iabd'J oisi.r b pqid. a Eoodon ft n nn and d,. |( rb'strig.'- hr5 cnqtu arn p.oide ai upaft d lna

pFddltsddonlemtobecdenfoRa'd|o

eionlh20:lt.cdtrn|b.-.edDl- . tJbDBld€aE@ndih.Bdtr .nsh. lid rEvid. .n upd,i.

i hhd ^!dit un.tt (I^u) utd.B

'i pdin briody.nd rs'dds 0@d'i. REsr Plltd nestlsatd

& Hawrhom. adli*a the @mnitte. that thft onpl€ied (p.ds b€ a6r*. and

MdddnE Pro! iacior ̂ !d, conm e

'EdEh: i fugbddy

Mmdnd.dfutHrsm*oe!ougda

commrn . E.oMd.dsmikse to upd.t. th. onnltt erour audhs a3 p€rt oa o.p.B lbr th. mrt ndltns,

,EmtuagE dha:(a) HR nid p.vl& M ud'b M tu htf bthg aNE@7bfurt,i@frE'

(b) HR tutt tu6R . en * atr* b.e ^4EdadP m,adxhhllt d dp m10 4z6t4,wt hd tu'

Hts'AnUiadvigddBral'@kupotapglv.dronpo€@{nqort00dE.a|ot.|gsfm5ftl'sd'''l2ib'bnM'ocddhorr623rrccand179

MlH.doea*dNRbup.aEtr inainrng Mnty (20) va6dr Dosituus d dre mt

(al HR ro upd.r. th. .onnttn

(b) HR.hq'td !rd.i. dE mnto 'Ed F iffi t rne 'd

,rctu4dtarewshtuAFso,Nfsfup*|.ta'tb.dEPA'

lradan1 ka\)n )d \tdt cahnnee Meen@ t/nt2

s6 c€9. infonn€d rrE conn*re. d'd o.9.nDeit or Fi€E ord d odd€ aIArdtac. f i0tamo' |cdisMi iE

& shd.,n Dditu ofuso). Ml Yft ifti.n€dd'e c.nmtu d'* Frr b.rnd' ha.

.qE n det rDlolln9 fids b.r€nt.t ror Audt & cdtrrrb'E Di,icd .rd rdu|nE

Snd.'dr Dircdrl Di..hat orF{..8 s{rd r@td.. Ep..tf..rh. r,

f iecomminohnth' t ioresponerem 20: (b) ts rerd€d b r.t m le aid h

(.) 6m!rer.d i.rorrsr) Prdhda rendeE Bsrd

Aful@m:iAc.|fulfuagr.cdllulcafub5h.ghdp@adt6.kc|lfuddPMn..|vg'

@sbu.d,Headviseddf,cl^bEorbanLpd't.mp.lFs'ft.cmniEeeaq

D coneo6ii6 or eDi@r sumt re,n 6 e'd

lh.cdnniknoled|h{'Er.9odcofimi|t..agdtoE'1.}utercoot

postdofd]eh'nm lhe Conmeru bo:rd m.nbs E he vi be

rcol&ed by dre nomh€ or Prd tuar oranber of commde.

r. R5 FEid r'crqrM-

be ditutu a dE @t rcr.s F4 aaan rEn 16)

closed Sessionrnb€6thnq|.&Fdpo'on|Y\

(.) Mr (on.i 'h.urd 6mD|.bx.nq(ons|o'R.ndDr6dd.|t'3b'EPA6'dndd6to.'.fdEDn+Idis||.+indudi4 FdHe Erl,se to d: hud

|ndbMohb| .^ ' 'do ! ' |h .Mi r4hj [-i 6ndd !i rfr. hdgqr

hd iMrt kr i$d b 6. r66.c lmhrfrr h Ali an. & qu.nd by 6.MdrqP^qft4kdt.,lffr6hf hrmi rdb. ro dre oo Qt

lhM,r'lnertlfr, '|.d,4^D'|,0'{5

snpkhd ddde hm4.m.dr d*{ML)

ro dF io trpt ia &er Edrd, ok

rhd or rh. tudiq a6sr5 ffiK! n:n

roi.d5 bmiiin s*sq afe h:dddrews 0!Pntrn.ehrrudoi r.rmsrd ehwd l4 5 *oi

10crhr.!F Frd)

The audlt resDontlbllitv of DSIP has been tranrfeded to anoth€rb6nch wirhin Audltor General's offi.e ln Mar.h 2012, AuditorGeneral Ir expected to rable DslP Audlt R€port In the NatlonalParliahent after J!.e 2013. which could include sone or all