Reports of stolen shares rising

NATIONAL Fraud and Anti-Corruption director Chief Supt Mathew Damaru says they are experiencing a surge in reports of company shares been stolen by fraudulent means.
He is calling on the Investment Promotion Authority (IPA) to be diligent in checking applicants intending to change the names of company directors and shareholders.
Chief Supt Damaru’s reminder came yesterday when charging McQueenie Maip Waia, 48, from Kumunga village, Mt Hagen, Western Highlands, with defrauding K2 million worth of shares from Palimp Ltd. Former Madang MP Alois Kingsley is also facing similar charges for allegedly being part of a syndicate that stole shares from a company through fraudulent means.
“The incidence of fraudulent share transfers and changing of directorship of the company is becoming prevalent,” he said.
“The IPA is supposed to carry out proper due diligence checks before effecting these changes.
“The request for such changes of records should be accompanied by the board or shareholders’ resolution authorising such changes. I call on the IPA to assist by conducting due diligence checks prior to effecting any changes to company records to prevent such fraudulent activities.”
Meanwhile, Waia is charged with one count each of conspiracy to defraud, false pretence, forgery, uttering and misappropriation of over K2 million.
It is alleged that a company called Palimp Ltd, had 2,459 shares in the Moge Nambuga Milimb Investment Ltd which is 10.164 per cent of ordinary shares, equating to K2,050,505.
Waia was neither a director nor a shareholder of Palimp Ltd.
It is alleged that his co-accused, who were directors of Palimp Ltd, had transferred the shares to Waia and also appointed him as a director of Palimp Ltd without the resolution of the shareholders. After the appointment they went to the IPA and allegedly effected the changes accordingly.
The executive directors of the Moge Nambuga Milimp Ltd on discovery of this fraud reported the matter to the police (NFACD) for investigation.
NFACD received the complaint and conducted the investigation which resulted in first arrest being made on April 10, 2019 when Tom Maip was arrested and charged with similar offences. Waia is in police custody and is expected to appear before the Waigani District Court for committal proceedings this week.
More arrests are expected to be made on the matter soon.
Meanwhile, Kingsley has been charged with six counts of fraud and utterance, stealing shares fraudulently from companies owned by Andrew Anis, Crimes ACP Hodge Ette said.
Kingsley, 51, from Yabob village, Madang, was charged with two counts each of forgery, utterance and stealing.
He is now out on bail.