Public Finance Accountability

Transparency International Papua New Guinea (TIPNG) is monitoring the approval and establishment of Trust Accounts as gazetted by the Department of Finance. Trust Accounts is a financial instrument to manage public funds. In 2020 to 2021, TIPNG has advocated for accountability and transparency in the management of specific Trust Accounts for COVID 19 and the Connect PNG Trust Accounts.

The Trust Account Division within the Department of Finance takes carriage of Trust Account oversight. There are other government agencies that manage and provide oversight for the respective Trust Accounts housed under them.

In tracking overall creation of Trust Accounts in 2024 and 2025, TIPNG recorded over 46 Trust Accounts in 2024 and 40 in 2025, all of which will be open for multiple years, across the lifeline of multiple different projects, overtime garnering interest.

WHAT IS A TRUST ACCOUNT?

A Trust Account is a special bank account approved by the Minister for Finance and established to manage public or donor funds for specific purposes or projects.

Created through a Trust Instrument, a legal document defining usage, management, reporting obligations, and audit requirements.
Intended to strengthen transparency and accountability in the management of public funds.
Trust Accounts are governed by the Public Finances (Management) Act 1995 (PFMA).

when are trust accounts set up?

Trust Accounts can be established anytime funds need to be managed for a project or purpose

Trust Accounts are open for multiple years and may earn interest over time.

how are trust accounts managed?

Each department or agency responsible for a Trust Account must:

Authorize payments correctly — only signatories listed in the Trust Instrument or Gazette notice can approve withdrawals or expenditures.
Maintain accurate records — agencies must keep detailed documentation of all transactions, receipts, and expenditures for audit purposes.
Comply with audit requirements — accounts are subject to audits by the Auditor-General’s Office, and agencies must cooperate fully by providing reports and evidence.
Adhere to PFMA provisions — specifically Section 19 of the Public Finances (Management) Act 1995, which places accountability on Department Heads for proper financial management.

for more information:

Click here to read more information on the following topics under Trust Accounts:

Specific provisions for the Management of Trust Accounts
Expenditure Reporting
Audits of Trust Accounts
Trust Account Lifespan
Expiry or Closure of Trust Account
Key findings: Trust Accounts Tracked by TIPNG (2024-2025)

You can access records of 2024-2025 Trust Account Information here.