Cabinet to make a decision to control teacher debt owed to finance companies

Papua New Guinea’s Education Minister, has drawn attention to the debt owed by teachers all over the country to finance companies.

While figure has not been put on the amount owed, there are indications, it is a widespread problem affecting public servants all over the country who are struggling to keep up with high costs.

Nick Kuman has since made a submission to the National Executive Council that he says “will affect public servants all over the country.”

“We got to find a way to solve all these problems. We had a similar situation in 2014 when all the finance companies got together and took us to court and there is a court order in place. Only yesterday, I was served another court order to prevent us from not allowing teachers from obtaining loans,” he said.

“We want to see that they must be managed from the teachers accounts themselves.”

“For any other deductions, the Minister for Finance, the Minister for Public Service and I will make a joint statement and inform the country on what our position is.”

Kuman made the statement in Parliament as part of an explanation of the pay cuts to teachers salaries.

Kuman said salary deductions that had left many teachers with less than K100 in their accounts over three consecutive fortnights.

Investigations by the Education Department have indicated that many of the deductions experienced by teachers were due to loans that teachers took out, against the temporary salary increases

As part of an agreement between the government and the PNG Teachers Association, the Education Department was supposed to pay a 3% increase. However, it didn’t happen earlier because of cash flow problems in 2017. The Government did eventually pay the promised increases in 2018 over several

It has also become apparent that many teachers may not have understood how the amounts were reached or that it was only temporary.

“Because of cash flow problems, the NEC directed that we will make these payments over six and a half pay periods commencing on pay 13 and terminating on pay 19,” Kuman said.

“I want to assure the teachers all over the country that the 3% increase was approved in 2016, over six and a half fortnights. Unfortunately, we had a problem with the Alesco payroll system and the final payment was made in pay 20.”

Kuman gave examples of how teachers would have seen an increase in their salaries over the course of six fortnights followed by a drop after the temporary increase

“For instance there is a teacher  at Omili Primary School in Lae got loans from six finance companies and this left her with only K7 in her account.”

2 comments on “Cabinet to make a decision to control teacher debt owed to finance companies

  1. If the teachers were not aware of this payment arrangement then someone has failed to communicate with them.


  2. Teachers cannot even access their payslips online, like they use to last year. They would have at least confirm whether Mr. Kuman is telling the truth or not.


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