Papua New Guinea’s (PNG) central banking sector has been thrust into controversy following the permanent appointment of Elizabeth Genia as the governor of the Bank of Papua New Guinea (BPNG), despite her being the subject of a police investigation for suspected money laundering. This development, first revealed through court documents obtained by the Organized Crime and Corruption Reporting Project (OCCRP), has raised serious concerns over governance, transparency, and financial integrity in PNG.

The National Fraud and Anti-Corruption Directorate of PNG’s police force initiated a probe into Genia’s financial activities in 2023, leading to searches of BPNG offices in August and September of that year. Investigators alleged that Genia had deposited significant amounts of money from undeclared sources into her personal bank account. Additionally, she was suspected of receiving personal payments by check from two companies engaged by BPNG for unspecified services.

Rather than cooperating with the investigation, Genia filed a legal challenge later in 2023 to halt the probe, arguing that the police action violated her rights to privacy and protection against arbitrary searches. Her efforts initially succeeded in temporarily freezing the investigation, but the National Court ultimately dismissed her case in April 2024, describing her legal maneuver as “an abuse of the Court process.” Despite this ruling, there has been no confirmation on whether the investigation remains active.

Adding to the controversy, Genia has also faced scrutiny over a separate fraud squad investigation into a firearms procurement deal for BPNG’s security team. Reports suggest that, in 2017, BPNG contracted a local company-without a proper tender process-to replace three security pistols with ten new firearms. The contractor, allegedly unlicensed to deal in firearms, failed to deliver the weapons on time and did not provide proof of the destruction of the old guns. Although the case was initially reported in 2020, its current status remains........

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