Papua New Guinea Police Arrest Top Executive for Mismanagement of Trust Fund
Police have apprehended Lawrence Stephens for allegedly conducting capital market regulated activities illegally in Papua New Guinea.
James Joshua, Chairman of Taskforce Shield, announced that the National Executive Council (NEC) is committed to protecting the investments of Papua New Guineans. To this end, Taskforce Shield was established in May 2024 to investigate the alleged mismanagement and illegal misappropriation of over K200 million from the Pacific Balance Fund by its former Trustee and Fund Manager, Melanesian Trustee Services Limited.
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| Papua New Guinea Police Arrest Top Executive for Mismanagement of Trust Fund [Photo by Police Media] |
The Pacific Balance Fund, created in 1973 through investments by Papua New Guineans, is one of the country's largest trust funds. With nearly 20,000 unit holders, the fund evolved from the Investment Corporation Fund of Papua New Guinea during the 2001 privatization of state-owned enterprises.
Joshua revealed that Taskforce Shield was set up following initial findings by the Securities Commission of Papua New Guinea. The task force has been diligently working to meet its objectives within a three-month timeframe from its inception. Joshua expressed satisfaction with the progress made so far.
On July 8, 2024, Taskforce Shield launched its first criminal investigation by arresting Lawrence Stephens, Co-Chief Executive Officer of Melanesian Trustee Services Limited. Stephens is accused of failing to transfer control of bank accounts and assets worth hundreds of millions of kina to the interim trustee appointed by the Securities Commission. Additionally, Stephens allegedly managed cash transactions for subsidiary companies of the Pacific Balance Fund.
Taskforce Shield, overseen by Richard Maru, Minister for International Trade & Investment, is also tasked with initiating processes to recover assets belonging to the Pacific Balance Fund both within Papua New Guinea and internationally. The primary goal is to ensure justice is served to those responsible for these offenses.
Despite the enormity of the task and the limited timeframe, Joshua emphasized the commitment to delivering a thorough report on this critical investigation to the NEC by mid-July 2024. He expressed gratitude to Minister Maru and the Marape-Rosso government for their courageous initiative in reclaiming assets for ordinary citizens. Joshua also underscored the pivotal role of financial institutions in the nation's future, especially as mineral deposits and other non-renewable resources diminish over time.
Joshua highlighted that strong financial institutions, supported by sound monetary policies and prudent financial management, are crucial for economic stability. He pointed out that successful economies worldwide rely on the stability and reliability of their financial institutions.
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