By CYRIL GARE
THE Pacific Balanced Fund (PBF) – formerly the Investment Corporation Fund of Papua New Guinea (ICFPNG) had an asset value of around K50 million when Melanesian Trustee Services Limited (MTSL) took over in January, 2002 as trustee or fund manager.
MTSL was appointed via a very transparent process under then Minister of Privatisation Commission, the Late Hon. Vincent Auali, under the reforms of the Late Sir. Mekere Morauta’s Government that liberalised the financial sector.
Protected Growth.
Today the PBF has locked over K700 million and heading towards a billion-kina mark in value of the monies of the 30,000 ordinary ‘mums and dads’ unit holders of Papua New Guinea.
Thanks to the Board and Management of the MTSL especially the Executive Chairman, Mr. John Sanday, co-Chief Executive Officer, Mr. Lawrence Stephens and Team MTSL for their prescience and prudence that protected and grew the ‘peoples’ money’ out of the pit-hole of the former Investment Corporation Fund that was once wrecked by fraud and elite-corruption.
Blood Sucking Leech.
Corruption is a blood sucking leech. It didn’t go away since the ICFPNG days. It sticks on. It tasted blood and follows blood.
According to Executive Chairman of MTSL, Mr. John Sanday, “this is not the first time, MTSL has been targeted. Aside from previous attempts, in 2018 under Alex Tongayu as Chairman of the Securities Commission of PNG (SECOM), MTSL, had its license terminated on baseless allegations which were later dismissed by the Court and MTSL was reinstated as Trustee and Fund Managers of PBF.
Partners in Crime.
Alex Tongayu was later convicted for forging the signature of then Trade and Industry Minister, Richard Maru. The current Chairman of the Securities Commission, James Joshua was himself an accomplice to that conviction for using his personal Kundu card to pay for the gazettal notice appointing Alex Tongayu which the Court eventually deemed as a forgery and convicted Alex Tongayu to a jail sentence.
Mr. James Joshua, who is currently the SECOM Chairman was a State witness in the prosecution of Mr. Tongayu. Acting in self-preservation, James Joshua turned against Mr.Tongayu to become a State witness and caused his jailing.
The Self-Enricher.
For the self-enricher, a scheme is needed to create a leeway to access the K750 million asset in the PBF.
So, on August 17, 2023, co-CEO of MTSL, Lawrence Stephens was arrested by police, charged and appeared in Court for allegations of misappropriation which could not be found in the balance sheet – an allegation cooked up by Weatherman Capital Advisors Limited (WCAL), an appointee of the Securities Commission of PNG (on an interim basis) for three months.
Chairman James Joshua used these fabricated allegations against Mr. Stephens to terminate the Capital Markets license of MTSL and, in the same breath, appointed a K2 company at the time, Weatherman Capital Advisors Limited as interim Trustee of the savings and wealth of more than 30,000 ordinary Mums and Dads of PNG.
Strike Out.
Last Thursday, Feb 1, 2024 the Waigani Committal Court presided by Magistrate, Laura Wawun Kuvi threw out the matter against Lawrence Stephens saying “there is no evidence in file that demonstrates that Mr. Stephens misappropriated or stole these funds”.
A relieved Mr. Stephens described the outcome as an “impressive decision that was precise…it is a relief for the 30,000 unit holders.
“The court saw that the alleged offence was flawed and had no grounds to pursue the matter forward”.
Doubt in Capital Market.
Mr. Sanday said the decision handed down on Feb 01, 2024 by the Wagani Committal Court upends some of the allegations used by SECOM to terminate MTSL’s Capital Market License.
“This is not a good reflection to investors in PNG and the world of the safety of the regulatory environment for Capital markets in PNG.
“There was much hope when it was trumpeted with a lot of fanfare that the Capital markets of PNG will be reformed to be world class. However, the recent decision by the Court throws that into question.
“Can international investors have confidence in PNG’s capital market? Are our hard-earned savings and wealth safe?
Fraud Complaint.
MTSL has already lodged a “fraud” complaint against the SECOM with Independent Commission Against Corruption (ICAC) as well as Ombudsman Commission (OC).
MTSL also has a pending appeal before the Supreme Court which it took against Securities Commission for terminating its capital markets license on unreasonable grounds.
“MTSL intends to defend its position vigorously and show the facts. Some of the baseless allegations used to terminate our license has been thrown out by the Waigani Committal Court and that starts to show up the truth and we will continue to bring out the facts for the world to see.
“We will have our day in Court, and we trust in the Judiciary of PNG,” Mr. Sanday said.
