million to us $ 1. 85 billion today. economic activity as measured by gdp growth is projected by the bank to be high at 4. 5 percent this year. sir rabbie, in your recent presentation of the mid year economic assessment and fiscal outlook, gdp growth is project at 5. 25 percent for the year. we are encouraged by this optimism and we all want to ensure that the great majority of the population is benefiting from the mineral boom. to ensure this, we have to generate a 6 to 7 percent growth. i have stated this in my recently released july 31st 2007 monetary policy statement. i am sure that following the consolidation, and the stability period, we are moving into a fast growth phase in the years ahead. the authorities must strive to continue removing some of the impediments to investment by improving the efficiency and reducing the very high cost structure of public utilities and basic infrastructure services and that will enhance private sector investment and economic growth. there is nothing like wanting to be on the winning team. just look at the state of origin games and see the value of competition. if privatization or corporatisation or right sizing is such an unpalatable approach, let us not mark time. lets get on with competition in the telecommunication, power and public utilities industries. right honourable minister, we also take care of our stakeholders. today marks another occasion when the central bank pays its due to its shareholder, the government, on behalf of the people of papua new guinea. the due this time is the payment of our dividend to the government from our 2006 operating profit. we want to encourage other similar organizations to do the same. i would like to take the opportunity to thank the board to which i am most privileged to be the chairman ; the management and staff of the central bank for the support and commitment they continue to display in their various roles. i also wish to thank the auditor general and his staff for their assistance over the years. honourable minister with these few remarks, i now present to you our dividend payment for the 2006 financial year of k33. 0 million. thank you.

to achieve those objectives ; while at the same time making sure that the structure functions to maintain the organization's integrity, reputation, and accountability to its relevant constituencies. enforcement alone cannot guarantee good corporate governance. whilst measures to enhance corporate governance are primarily aimed at boards of directors, who are seen as the agents responsible for protecting shareholder value, the internal audit fraternity is another industry group that is of particular importance. it is evident that the significance of internal auditing as a key contributor to corporate governance has emerged as a theme. this new paradigm in internal auditing will see the profession becoming a front player in ensuring good corporate governance structures. in this demanding environment, boards and senior management need quality advice from sources that can be trusted and that can offer an objective viewpoint. much of the focus of sarbanes - oxley in the united states and basle committee has been on the external audit function. equally, however, there is a need to ensure that internal audit is organised, resourced and empowered so that it can provide competent, impartial and fearless advice. in contrast to external auditors, however, our sense is that internal audit is still evolving as a profession and has further to go in promoting its own professional standards and profile in papua new guinea. we in bpng observe that internal audit in our supervised institutions is not based on widely utilised standards, recognised by audit committees for example, and it is not always focused on the same set of issues. internal audit functions vary from a narrow concern with compliance or financial accounts to a broader remit reviewing efficiency and effectiveness or acting as an internal consultant. my address today offers a prudential perspective on the role of internal audit. it starts with the separate roles of internal audit in the corporate governance framework. specific references will be made to the internal audit setup in the bank of png. it then sets out the expectations of internal audit held by prudential regulators at the international level and how the regulator assesses whether internal audit in the institutions it supervises meets these expectations. finally, i discuss some regulatory issue, the problems and challenges. my comments are offered in a constructive spirit to encourage debate within the internal audit profession. i will start by borrowing the definition of internal audit approved by the board of directors of your institute : “ internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation ’ s operations. it helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and