THE Central Bank Governor, Loi Bakani will be asked to give an explanation as to why the Central Bank disassociates itself from the BPNG Financial Analysis and Supervision Unit (FASU) and defended the Bank of South Pacific (BSP) against FASU’s report.
Minister for Treasury and Member for Kavieng, Ian Ling-Stuckey made this known in Parliament on Friday, August 20 as part of the Treasury and Government stance in addressing the conflicting statements made by the Central Banks and FASU last month.
The minister was responding to questions asked in Parliament on Thursday by the Member of Komo-Margarima, Manasseh Quiz Makiba regarding the circumstances surrounding the FASU report and the Politically Exposed Persons (PEPs).
The Treasurer in his response on Friday, August 20 said that he was aware of the notices that was published by the Central Bank which distinct itself from FASU against BSP for non-compliance.
“The notice clearly undermines FASU and therefore the Government’s ability to regulate the financial system.
“I think the Governor for Central Bank can answer that on why he defended BSP against the FASU report even before the investigation has yet to be completed.
“It is of concern to the Government and I will be asking the Governor for an explanation on this matter,” the Treasurer said.
He further added that he shall be issuing instructions to both Treasury and Central Bank to provide all details mentioned in that notice and then determined the appropriate cause of action.
The Treasurer said he has raised the matter with the Governor of Central Bank overnight but the Governor advised that he does not have access to such information because it is the property of FASU which is an independent entity.
“He referred me to FASU but FASU is not able to give that information as they advise they are not at liberty to give it.
“But I intend to investigate further what appropriate action is available to my office, Minister Ling-Stuckey said.
The Treasurer also would want to know who were the PEPs that transferred several millions of Kina to the Bank of South Pacific.
He added that PEPs are typically Government officials, members of SOE boards, relatives and even close associates.
“I have yet to receive details from FASU so I am not aware of who the culprit or whether the culprit is a politician, ex-politician or even ex-Prime Minister who is the high risk of politically exposed persons that had credible allegations of money laundering mentioned in the international media,” the Treasurer said.