The Independent Consumer and Competition Commission (ICCC) of Papua New Guinea has welcomed the government’s decision to return the functions of vehicle registration and driver’s license issuance to the Motor Vehicles Insurance Limited (MVIL).
ICCC Commissioner and Chief Executive Officer Paulus Ain said the intervention demonstrates the government’s decisiveness and commitment, reflecting a strong focus on efficiency, stability, and consumer-centered public service delivery.
Ain noted that MVIL had, for over two decades, been responsible for driver licensing, vehicle inspection, registration, and number plate insurance, amassing extensive experience, a nationwide service network, and a well-established operational system — making it the most capable agency to ensure smooth delivery of these services.
In contrast, while the Road Traffic Act (2014) granted the Road Traffic Authority (RTA) the relevant statutory powers, its recent attempt to reclaim control exposed serious shortcomings — including inadequate infrastructure, weak internal management, a shortage of skilled personnel, and minimal presence outside the capital. These deficiencies led to delays and confusion in service delivery, sparking widespread public dissatisfaction, particularly in Port Moresby.
He criticized the joint announcement by the RTA and MVIL on May 19 for failing to provide the public with clear information, which instead deepened confusion and frustration.
The ICCC has recently received a large number of consumer complaints relating to prolonged delays in vehicle registration and driver’s license issuance, as well as poor customer service standards.
Of particular concern, Ain said, is that some vehicles fitted with number plates issued by the RTA have been operating on public roads without having purchased insurance — a violation of Section 50 of the Motor Vehicles (Third Party Insurance) Act — posing a risk to public safety.
Ain emphasized that the Prime Minister’s directive was timely and has won widespread support and approval from drivers and the general public. “It reflects the government’s swift response to public sentiment and ensures the continuity and reliability of this essential public service,” he said.