10 Dec 2002

Reports of massive fraud in PNG Government department

6:38 pm on 10 December 2002

There are reports from Papua New Guinea that the police are close to exposing a major fraud syndicate in the Finance and Treasury Department.

The National newspaper reports the fraudulent activity has links throughout the judicial system, the Attornney General's Department, the police and commerical banks.

It quotes government sources saying the fraud is so entrenched that court orders have been forged to illegally enforce payments.

Three staff have been suspended and charged under the Finance Management Act with disagraceful and improper conduct with intent to defraud the state of large amounts of public funds.

And they have been referred to the police fraud squad for criminal investigation.