Police freeze K4 Million in suspected stolen DDA funds

Police have frozen K4 million in suspected stolen public funds held in the bank account of a foreign-owned company.

This pushes the total value of assets and funds restrained under anti-money laundering investigations to more than K200 million.

Police Commissioner David Manning said the money was allegedly paid by a District Development Authority [DDA] to a company owned by a foreign national for the supply of infrastructure components.

Commissioner Manning said a total of K7 million had been paid to the company, with K3 million withdrawn in cash, while the remaining K4 million has now been frozen.

He said the case is one of several active investigations aimed at recovering stolen public funds and prosecuting those responsible.

"The message is simple, if you steal public money, we will find it, freeze it and take it back. If you helped move it, hide it or ignored the warning signs, you are also on notice," Commissioner Manning said.

He said the Proceeds of Crime Act 2022 has strengthened the powers of police and partner agencies to trace, restrain and recover corrupt funds, particularly money stolen from government agencies.

Commissioner Manning said Papua New Guinea is determined to exit the Financial Action Task Force [FATF] Grey List, adding that there can be no tolerance for dirty money, weak compliance or deliberate blindness.

He said the Royal Papua New Guinea Constabulary, the Bank of Papua New Guinea's Financial Analysis and Supervision Unit, and the Office of the Public Prosecutor are working together under ARROW using modern analytical systems to identify unexplained wealth, suspicious transactions and financial movements that do not match lawful income.

The Commissioner also placed financial institutions on notice, saying banks and reporting entities must know their customers, question suspicious transactions and immediately report any red flags to police.

He warned that where public funds move through financial institutions without proper scrutiny, negligence, wilful blindness or facilitation will be investigated and criminal charges will follow.

"We are squeezing the corrupt and those who enable them. The money trail is no longer a safe place to hide," Commissioner Manning said.