DSIP AND PSIP ARE MPS' POCKET MONEY: A SYSTEM DESIGNED FOR ABUSE
- Kolly ALANGE
- May 5
- 3 min read
My fellow Papua New Guineans, since 2001, I have been writing and advocating about the real issues hindering our nation’s progress. Though only a handful of you read, share, and follow my articles, I urge those who have ignored them to start paying attention. My writings expose the deep-rooted problems stifling our development, and more importantly, I propose concrete solutions to address them.

Today, I will reveal one of the most cunning and well-executed scams in our country’s history—a system that has allowed millions of kina meant for development to vanish without a trace. Have you ever wondered why, despite every Member of Parliament receiving District Services Improvement Program (DSIP) and Provincial Services Improvement Program (PSIP) funds annually, our country remains underdeveloped? Why do some electorates show signs of progress while others stagnate, even though all MPs receive the same allocations?
The answer is simple yet disturbing: DSIP and PSIP funds have effectively become MPs’ personal pocket money, handed over with little to no oversight or accountability. These funds are disbursed directly to MPs, who then decide how and where to spend them—without any obligation to justify their decisions. There are no stringent monitoring mechanisms to track whether the money reaches its intended beneficiaries or is squandered on political allies, relatives, or personal interests. As a result, MPs operate with impunity, treating public funds as their private wealth.
This lack of accountability explains why so many electorates remain underdeveloped despite millions of kina flowing in every year. In districts where MPs are honest and committed, some portion of the funds may reach the people, resulting in basic services and infrastructure. However, in most cases, the money is misused, leaving communities without roads, schools, healthcare, or clean water. The tragic reality is that MPs now control the delivery of basic services through DSIP and PSIP funds. If they choose not to spend the money on their people, entire districts suffer neglect. Development is no longer a right but a privilege granted at the whim of politicians.
Worse still, successive governments have weaponized these funds, turning them into tools of political manipulation. The ruling party uses DSIP and PSIP allocations to coerce MPs into loyalty, ensuring their support remains intact. This is why so many MPs abandon their principles—and even their own parties—to join the government. The fear of losing access to these funds keeps them obedient, allowing corrupt and incompetent governments to remain in power for full terms. No matter how poorly a government performs, MPs will cling to it as long as their "pocket money" keeps flowing.
This system perpetuates a cycle of underdevelopment, where progress is dictated not by national planning but by the personal interests of politicians. The people suffer while those in power enrich themselves, knowing there are no consequences for misusing public funds.
If we want real change, we must recognize this scam for what it is and demand systemic reforms. Follow my articles as I continue to expose these injustices and propose alternative models that channel development funds directly to the people—bypassing the politicians who have turned public money into their personal slush funds. Only then can we break free from this cycle of exploitation and build a Papua New Guinea that works for all its citizens, not just a privileged few.
Thank you for taking your time to read my articles.
By LUCAS KIAP
I am a writer and critic on government policy and advocate for accountability since 2001
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