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The Almighty Buck Software

'Technical Glitch' In Payroll Software Sparks Riots In Papua New Guinea (theregister.com) 40

Papua New Guinea declared a two-week state of emergency following riots and multiple deaths, triggered by a payroll system error that incorrectly applied higher tax rates to government employees' salaries. The Register reports: The pacific nation recently extended COVID-era tax reductions into 2024, but the payroll system used for government employees was not configured correctly and in the first pay run of 2024 reverted to older and higher tax rates. Government workers were therefore taxed at a higher rate and their pay packets were around $100 less than expected -- about half the pay for many employees. That situation was misinterpreted as a surprise tax hike and some workers, including Police, went on strike to protest the situation.

Some saw the absence of law enforcement as an opportunity, and riots quickly spread across the city, accompanied by looting. Prime Minister James Marape described the situation as a "technical glitch," before later declaring a state of emergency that has seen troops stationed in the capital to restore order. Commissioner general of the Internal Revenue Commission, Sam Koin, apologized "for the loss of lives and properties during these regrettable and avoidable incidents."

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'Technical Glitch' In Payroll Software Sparks Riots In Papua New Guinea

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  • by FeelGood314 ( 2516288 ) on Monday January 15, 2024 @05:53PM (#64161525)
    Getting half your pay one month seems bad but I think in most places you would wait a day to get an explanation. Could the government not respond in 24 hours? Was there no way for the government to reliably issue a response? Did people not believe the response? Did a large portion of the population just want to riot? 16 dead and large amount of destruction seem to indicate this wasn't small scale riots but a general failure of civil order.
    • by NFN_NLN ( 633283 )

      In America the average person is 1 paycheck away from homelessness.
      In Papua New Guinea you're half a paycheck away from civil unrest and 16 dead, apparently.

    • by NotEmmanuelGoldstein ( 6423622 ) on Monday January 15, 2024 @06:13PM (#64161605)

      Did people not believe the response?

      It's difficult to know what additional mistakes were made by the government but the first problem is tribal culture: Every perceived slight and injustice is caused by one person belittling and insulting the whole tribe, and must be remedied with bloodshed or murder.

      The government is not seen as protecting the people, so dishonesty and violence towards it is excused by ordinary townsfolk.

      • PNG is only barely a country.
        The first time anyone from outside had even seen parts of the island was in the 1930's when aircraft flew over the highlands and discovered several million completely unknown people.
        Those people don't even really share a culture and there are more than 800 languages in PNG.
        I'm surprised that sort of stuff doesn't happen more often.
    • Getting half your pay one month seems bad but I think in most places you would wait a day to get an explanation.

      It shouldn't take a day. It shouldn't take even an hour. A knowledgeable worker (let alone supervisor) in the treasury department should have been able to figure out the problem literally with a brief glance at a single pay stub from an affected worker. When you work with figures all day they start to become familiar. You will literally see the same numbers over and over again all day and come to expect them, and when they are not what you expect it is obvious.

      In order for this to get out of hand so quickly

      • You might be right about the whole thing. Does not look like New Guinea had been a modern country for to long. In fact I am betting there are a bunch of "little things" that the government does on the day that might might explain the situation more. You don't go zero to riots just because the governments shutdowns for a day.
    • Comment removed based on user account deletion
    • Getting half your pay one month seems bad but I think in most places you would wait a day to get an explanation.

      Perhaps the government has pulled similar antics in the past. According to the article, they mistakenly taxed at the pre-COVID tax rate, so the employees have in the past seen their paychecks at this size, so it didn't sound as unbelievable as it would to someone in the US getting half their pay. Then again, most governments don't wait for explanations on half payments either, try to submit only half the taxes you owe on tax day in the USA, you instantly owe penalties and interest, nobody waits for any expl

  • I just took a look and and seems like PNG is not a healthy state to begin with. From what I'm reading, this seems to be the norm.
  • As Professor Frink https://en.wikipedia.org/wiki/... [wikipedia.org] from the Simpsons would say: "Oops forgot to carry the one!" https://www.youtube.com/watch?... [youtube.com]

    JoshK.

  • Comment removed based on user account deletion
  • This wouldn't have happened with a flat income tax. (ducks)

    I wonder what would happen where everyone votes for the same tax rate (lower), with no more deductions--even churches pay. No more loopholes/corruption. And less class warfare (arguably the focus of the article)? ...Plus the Amazons of the world would have payed from day one.
  • Anyone else work in an IT department where if ANYTHING happens to the payroll department, we're marking it as P1 and there off the clock on a Sunday at midnight fixing that shit lol.

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