The Papua New Guinea Defence Organisation has confirmed a major financial move, investing more than K25 million from its Commercial Support Program (CSP) Trust Fund into the National Banking Corporation Limited.
The investment follows a steady growth of the CSP Trust Account, which increased from K1.2 million in 2020 to over K25 million in 2026.
According to Defence, the funds are internally generated through Defence assets, including contributions linked to soldiers’ rations and accommodation.
The CSP was originally established under National Executive Council Decision No: NG71/2012, with a Trust Deed approved in 2014 under the Public Finance (Management) Act 1995.
The framework requires that all internally generated Defence revenues be deposited into the Trust Account and invested in commercial activities.
Defence Secretary Hari John Akipe said the latest investment marks a return to the original intent of the program.
“This decision ensures we are fully compliant with the Trust Deed and NEC directive. These are not taxpayer funds, but internally generated revenues, and they must be managed responsibly through sound investment,” Mr Akipe said.
The CSP Trust Account had been frozen in January 2020 by the Secretary for Finance, on the recommendation of Defence, to protect and grow the funds. Over five years, the account recorded significant growth, prompting the move into a structured commercial investment.
Chief of Defence Force, Rear Admiral Philip Polewara, said the decision reflects a shift in financial discipline within the force.
“These funds represent the contributions and sacrifices of our soldiers.
Moving into investment ensures long term sustainability and strengthens the financial base of the Defence Force,” he said.
Defence acknowledged that since 2014, CSP funds had largely been used for recurrent expenditures rather than investment purposes.
The latest move is aimed at correcting that course and aligning with the legal framework governing the fund.
Officials say the investment into the National Banking Corporation Limited at K0.60 per share is intended to deliver long term returns while reinforcing compliance, accountability, and financial independence within the Defence Organisation.