11 Dec 2002

PNG police uncover major fraud syndicate

11:18 am on 11 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.

Reports say the fraudulent activity has links throughout the judicial system, the Attornney General's Department, the police and commerical banks.

Government sources are quoted as saying the scam 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.