Elizabeth Genia has been appointed as the governor of the Bank of Papua New Guinea (BPNG) despite being under police investigation for suspected money laundering. Although she has not been charged with any crimes, the circumstances surrounding her appointment raise significant concerns about the governance of the nation’s financial institutions.
Court documents indicate that Genia was subject to an investigation beginning in August 2023, shortly after her initial appointment as acting governor earlier that year. Police executed several searches at the BPNG offices during this timeframe, gathering evidence regarding allegations of suspicious financial activity, including the deposit of a substantial sum of money from unverified sources into her bank account.
Additionally, Genia’s legal push to halt the investigation has been met with limited success; a temporary freeze she achieved was overturned by the National Court in April 2024. The director of the National Fraud and Anti-Corruption Directorate declined to comment on whether the investigation remains active, raising further questions about accountability.
In addition to the money laundering allegations, Genia has also faced scrutiny over a questionable contract related to a gun procurement deal for the BPNG’s security team. This investigation was prompted by a whistleblower complaint stating that the bank had improperly engaged a local company without proper bidding procedures. The claims assert that this contractor failed to deliver the firearms on time, despite full payment.
Genia’s appointment comes at a time when Papua New Guinea is at risk of being placed on the Financial Action Task Force’s (FATF) “grey list,” due to acknowledged deficiencies in its financial governance, particularly regarding anti-money laundering practices. These revelations compound the challenges Genia faces as she tries to steer the Bank toward a more transparent and accountable operational model.
Previous reports highlighted that her predecessor, Benny Popoitai, had advocated for reforms to combat corruption and enhance oversight within BPNG before being sidelined himself. The ongoing controversies surrounding Genia signal a troubling trend regarding the oversight and management of Papua New Guinea’s critical banking and financial systems.
Despite the tumultuous backdrop, there is hope that increased public scrutiny and pressure from international financial institutions could drive necessary reforms within BPNG, fostering greater accountability and integrity within the financial sector.
In summary, while Elizabeth Genia takes the helm of the Bank of Papua New Guinea amidst serious allegations and challenges, the broader implications of her tenure could lead to a renewed focus on financial integrity and governance reform in the country.
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