A sum of K214 million held in a trust account was recently successfully frozen by the police in light of suspicion of corruption and money laundering.
The money believed to be rightfully belonging to the people of the Western province was about to be moved into subsidiary accounts when upon intelligence, police moved in to freeze the trust account.
This move by police has been commended by Prime Minister James Marape, who described the action as a major step forward in the government’s ongoing fight against corruption.
The Prime Minister confirmed that police obtained a court stay order under the Proceeds of Crime Act (POCA) to prevent the transfer of the funds.
“I want to commend the police for acting swiftly and decisively. From the reports I have received, this K214 million belongs to the people of Western Province, and police have successfully stopped it from being transferred or dissipated,” Prime Minister Marape said.
He said the onus is now on those holding the account to explain the source and purpose of the funds.
“Police have informed me that those involved have six months to account for the money — where it came from, why it is being held, and for what purpose. If the court is not satisfied, the funds will be recovered and returned to their rightful beneficiaries,” he said.
The restraint order was secured under the Proceeds of Crime Act, Papua New Guinea’s principal legislation for freezing, seizing and forfeiting assets suspected to be derived from criminal activity, including corruption and money laundering. The POCA framework allows law enforcement agencies to act swiftly to preserve suspected proceeds while investigations and court processes are ongoing, preventing funds from being concealed, transferred offshore, or dissipated.
Police investigations indicate that the restrained funds were held in a professional trust account and were at risk of imminent movement into subsidiary accounts, triggering urgent action to preserve the money pending further examination. Under POCA provisions, the restraint does not determine guilt, but ensures that funds remain secured while authorities establish whether the money constitutes proceeds of crime and whether forfeiture proceedings should follow.
If the court ultimately determines that the funds are state monies or proceeds of unlawful activity, the legislation provides for recovery and forfeiture to the State, with potential prosecution of individuals involved— including professionals entrusted with managing such accounts — where breaches of the law are established.
Prime Minister Marape emphasized that the fight against corruption is not a one-off event, but a sustained process that requires long-term investment in law enforcement capability.
