Posted By Staff Reporter
By Raymond Kuai
Central Bank of PNG is an important State institution. FASU is an important directorate within the Central Bank. Our FASU is an affiliate of similar institutions under reserve banks globally to detect and control money laundering, terrorist funding, etc. That is why the Deputy Governor of Central Bank, Mr. Benny Popoitai is the Director. The facts, the evidence of complicity against BSP Limited in allowing high risk transactions involving high risk customers, the reasons provided for those fundamental breaches of various provisions of the governing law against money laundering and lack of transparency around scrutiny within the bank itself, were explicitly stated by Deputy Governor and Director Popoitai.
Instead of backing FASU in order to maintain institutional integrity and preserving its independence, Governor Loi comes out openly firing at FASU in defense of a private bank (BSP) that is implicated in this elaborate investigation. The question on everyone's mind would be why did he question an important agency within the institution he heads? Has Governor Loi compromised the institutional independence of the Central Bank, thereby allowing politicians and vested interest groups to dictate how the reserve bank and its people function? Governor Loi provided no material evidence for his defense of BSP nor did he show any malice or wrongdoing perpetuated by Director Popoitai and FASU. Similarly, the Prime Minister speaks highly of BSP despite the glaring evidence in his face proffered by FASU. Again, why? BSP is a successful commercial bank in PNG and no one questions its success story. What is damaging is that this commercial bank allowed high risk transactions to proceed through without raising red flags. It has been complicit. It has become negligent. It has helped laundered money. It is unbecoming of a Central Bank Governor and the Prime Minister of a country to not stand behind an institution such as FASU to police commercial banks complicit of alleged money laundering.
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