Papua New Guinea Police Arrest Lawrence Stephens for Illegal Capital Market Activities

Papua New Guinea Police Arrest Lawrence Stephens For Illegal Capital Market Activities[Photo Police Media]

​Lawrence Stephens has been apprehended by police in Papua New Guinea for allegedly engaging in illegal capital market activities.

James Joshua, Chairman of Taskforce Shield, announced that the National Executive Council (NEC) is dedicated to safeguarding the investments of Papua New Guineans. In line with this commitment, Taskforce Shield was established in May 2024 to investigate the alleged mismanagement and illegal misappropriation of over K200 million from the Pacific Balance Fund by its former Trustee and Fund Manager, Melanesian Trustee Services Limited.

The Pacific Balance Fund, established in 1973 through investments by Papua New Guineans, is one of the country's largest trust funds. With nearly 20,000 unit holders, the fund originated from the Investment Corporation Fund of Papua New Guinea during the 2001 privatization of state-owned enterprises.

Joshua disclosed that Taskforce Shield was formed following initial findings by the Securities Commission of Papua New Guinea. The task force has been diligently working to achieve its objectives within a three-month timeframe since its inception, and Joshua expressed satisfaction with the progress made thus far.

On July 8, 2024, Taskforce Shield initiated its first criminal investigation by arresting Lawrence Stephens, Co-Chief Executive Officer of Melanesian Trustee Services Limited. Stephens is accused of failing to transfer control of bank accounts and assets worth hundreds of millions of kina to the interim trustee appointed by the Securities Commission. He is also alleged to have managed cash transactions for subsidiary companies of the Pacific Balance Fund.

Taskforce Shield, overseen by Richard Maru, Minister for International Trade & Investment, is also tasked with initiating processes to recover assets belonging to the Pacific Balance Fund both within Papua New Guinea and internationally. The primary goal is to ensure justice is served to those responsible for these offenses.

Despite the enormity of the task and the limited timeframe, Joshua emphasized the commitment to delivering a thorough report on this critical investigation to the NEC by mid-July 2024. He expressed gratitude to Minister Maru and the Marape-Rosso government for their courageous initiative in reclaiming assets for ordinary citizens. Joshua also underscored the pivotal role of financial institutions in the nation's future, especially as mineral deposits and other non-renewable resources diminish over time.

Joshua highlighted that strong financial institutions, supported by sound monetary policies and prudent financial management, are crucial for economic stability. He pointed out that successful economies worldwide rely on the stability and reliability of their financial institutions.

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