Prime Minister announces establishment of Taskforce Shield to investigate retirement savings

The Government has established a Task Force to investigate allegations of losses totaling K222 million in retirement savings. Prime Minister James Marape announced the formation of the Task Force to safeguard national investments and ensure accountability.

Mr. Marape stated that preliminary investigations by the Security Commission of PNG into the Pacific Balanced Fund's activities from 2010 to 2023 have uncovered significant breaches of the law, resulting in substantial losses to citizens' retirement savings. In response, the National Executive Council has created an interdepartmental task force named Task Force Shield.

Mr. Marape emphasized that the Task Force is responsible for conducting a thorough investigation of the breaches and holding those responsible accountable under the law. He warned that individuals found guilty of mismanaging investments will face legal consequences.

The Prime Minister clarified that the task force was established after there were reports of mismanagement and illegal activities by the former Trustee and Fund Manager, Melanesian Trustee Services Limited.

There are allegations that this entity misappropriated over 222 million Kina from a total return of 296 million, which rightfully belonged to local unit holders from 2010 to 2022.

Mr. Marape stressed that such injustices are unacceptable and require decisive action.

Under the leadership of James Joshua, Executive Chairman of the Securities Commission, and with the support of national and international experts in law enforcement, Task Force Shield will diligently work to address these wrongs, recover assets, and ensure legal action is taken against all offenders.

The task force aims to present its initial findings and start legal proceedings within the next three months.

Melanesian Trustee denies allegation of misuse of retirement funds

Melanesian Trustee Services Limited (MTSL) has however refuted allegations made by Prime Minister Marape, accusing the Trustee of misusing over 200 million Kina of retirement savings.

In a news conference, MTSL Co-Chair Executive Officer Lawrence Stephens stated that Mr. Marape was misinformed before issuing the statement.

It was alleged that the Trustee had misappropriated over K222 million from a total return of K296 million.

The Trustee's Co-Chair Mr. Stephens has denied the claims.

He clarified that the audited accounts of the Pacific Balanced Fund are completed up to 2022 and are available on the internet, including the interim audit from June 2023.

The Trustee is now demanding a public apology from the Prime Minister on this matter.

Securities Commission welcomes decision to set up Task Force Shield

The Securities Commission meantime has welcomed the National Executive Council's decision to establish a Task Force Shield to investigate the activities of the Pacific Balanced Fund from 2010 to 2023.

This decision comes after initial investigations by the Securities Commission revealed alleged mismanagement and illegal activities by the former Trustee and Fund Manager of Melanesian Trustee Services Limited, resulting in significant losses to the retirement savings of citizens.

The Acting Executive Chairman of the Securities Commission expressed gratitude to International Trade and Investment Minister Richard Maru and Prime Minister James Marape for addressing the concerns raised by the commission.

James Joshua stated that the task force will diligently address these alleged wrongdoings.

Melanesian Trustee Services Limited has publicly denied the misappropriation claims made by both the Prime Minister and the Securities Commission.