The Papua New Guinea Parliamentary Committee on Public Sector Reform and Service Delivery is to enquire into the affairs of the Office of the Auditor-General.
The committee chairman, Goroka MP Bire Kimisopa, says this comes after the Auditor-General Philip Nauga last week said that his office lacked the powers to prosecute people who abuse financial processes, especially in state-owned enterprises and foreign missions abroad.
The Post Courier reports Mr Nauga had called for more powers for his office to audit state agency bosses because many of them ignore summonses knowing they will not be prosecuted.
Mr Kimisopa says these statements are a concern, as are the audits of the accounts of provincial and local level governments and associated entities, which were recently submitted to parliament.
He say these show the finance and accounting system was in shambles.
Mr Kimisopa says the Public Finances Management Act is being systematically and routinely ignored and abused by public sector employees.
