Fraud squad storms Finance Department over withheld payroll fraud report

Members of the Fraud Squad this morning entered the Finance Department Office armed with a court-issued search warrant to obtain an investigation report of an alleged K1 million kina payroll fraud involving National Capital District Provincial Health Authority [ NCD PHA].

Fraud Squad officers demanded the immediate handover of the report, which has faced months of delays despite multiple formal requests via email.

Finance Secretary Samuel Penias arrived at the office about 30 minutes after police entered and expressed frustration over the presence of both police and media, ordering reporters to leave the premises. Media personnel were later informed that the report would be submitted to authorities before the close of business today.

The report relates to an internal investigation conducted between July and November 2023, which uncovered an illegal payment of over K1 million to a senior NCD PHA staff member.

Speaking to NBC News, Acting Director of Fraud, Senior Inspector Lucas Muka, said the Finance Department’s prolonged delay in handing over the report had stalled both the investigation and court proceedings.

“Its an ongoing investigation and the Secretary and his team have been avoiding the investigation, that is why, they (Fraud member) were there to ensure Finance Department comply with the court order,” Muka said.

Inspector Muka confirmed that four arrests have already been made, consisting of two staff from the Department of Finance and two from NCD PHA.

He urged all government departments and institutions to cooperate with police and comply with court directives.

Inspector Muka highlighted that policemen are doing their constitutional duties and urged that all departments and institutions to comply with court orders because everything they do are govern by systems and processes under the constitution.