Queries over BSP payment

Main Stories, National

The National, Thursday July 18th, 2013

 OPPOSITION MP Tobias Kulang yesterday questioned in Parliament a transaction by the Bank South Pacific involving a recent payment to a prominent law firm.

The Kundiawa-Gembogl MP claimed BSP approved same-day clearance for millions paid to the law firm based on a letter that carried a forged signature of Prime Minister Peter O’Neill.

“Verifying the signature of the prime minister should have been a phone call to the PM’s office so I believe the bank could have done that. If not, that it is a breach of the Proceed of Crime Act and prudential standards under the Central Bank.

“This type of transaction raises serious concerns about the independence of the bank.

“BSP owes it to the people as its major shareholder through IPBC and customer base to confirm if the transaction was above board and signature was verified.

“The concern here is the economic well-being of the country and the safety of the savings of the simple people and other institutions,” Kulang said

He called on the Bank of PNG as the regulating agent to maintain a close watch on “these worrying developments”.