Elizabeth Genia has been appointed as the governor of the Bank of Papua New Guinea (BPNG) despite being embroiled in a court battle to block a police investigation into alleged money laundering. According to court documents, although Genia has not been formally charged, she has faced scrutiny since her time as acting governor, when police began an investigation in August 2023.
During the inquiry, detectives from Papua New Guinea’s National Fraud and Anti-Corruption Directorate conducted searches of BPNG’s offices, collecting evidence amid allegations that Genia deposited large sums of money from undeclared sources into her bank account. The investigation was initiated based on intelligence from the bank’s own security department, which flagged Genia’s financial activities as suspicious.
In response to the police investigation, Genia attempted to halt the proceedings by filing legal challenges, asserting that the inquiries violated her privacy rights. However, these efforts were ultimately dismissed by the National Court in April 2024, which described her legal actions as an abuse of the court process.
The pressure on Genia has intensified as PNG faces the threat of being placed on the Financial Action Task Force’s (FATF) “grey list.” This designation signifies significant deficiencies in the country’s ability to combat money laundering and terrorist financing. Paul Barker, director of the Institute of National Affairs, highlighted that such investigations into Genia reflect a broader decline in the standards of governance within the nation’s financial institutions.
Additionally, Genia has been implicated in a separate investigation related to a controversial deal involving firearms for the bank’s security team. This inquiry was initiated following a whistleblower report, which revealed irregularities in how a local company procured and delivered firearms to the BPNG.
Genia’s appointment comes at a critical time for Papua New Guinea’s financial governance, following the sidelining of her predecessor, Benny Popoitai, who had strongly advocated for measures to combat corruption and money laundering within the bank.
While the situation surrounding Genia poses significant challenges for the bank, there remains hope for positive change. Increased scrutiny from civil society and international bodies may foster accountability and encourage reforms in the BPNG, paving the way for a stronger, more transparent financial system in the country.
This unfolding narrative surrounding leadership and transparency emphasizes the critical relationship between governance and public trust in financial institutions, particularly in nations grappling with corruption.
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