TREASURY and Finance Minister Peter O'Neill described the parliamentary Public Accounts Committee report to parliament yesterday as "embarrassing", The National reports.
O'Neill said this after PAC chairman Martin Aini presented its report.
"It is quite embarrassing. We all know of the systematic breakdown in the public service and it is a matter that the government is addressing," O'Neill said.
"We will take the PAC recommendations very seriously and we will deal with certain officers implicated in the report."
He said the national government was updating the public government accounting system, had transferred all trust accounts back to the Central Bank and was strengthening the internal audit for checks and balances.
O'Neill said the report cited serious cases of mismanagement and clear breaches of the Public Finance (Management) Act.
"We have disciplined one or two officers already to show that this government is serious in weeding out mismanagement of funds," he said
"This government is taking pro-active action and we will take all the recommendations and address them one by one," O'Neill said.