PNGDF K20m investment sparks money laundering fears amid FATF Grey Listing: Opposition MPs

The Parliamentary opposition team has intensified allegations of potential money laundering following the Papua New Guinea Defense Force’s (PNGDF) decision to invest K20 million into the state-owned National Banking Corporation, warning the move could further damage the country’s standing with global financial watchdogs.

Read Prime Minister James Marape’s response to the Opposition’s comment: https://www.facebook.com/share/p/1BGbCySUJn/?mibextid=wwXIfr 

In a press conference yesterday, Opposition Leader, James Nomane said the transaction raises “serious red flags,” particularly in light of Papua New Guinea’s recent grey listing by the Financial Action Task Force (FATF) in February 2026.

Related news: https://pnghausbung.com/png-faces-deadline-for-fixing-issues-with-money-laundering-and-counter-terrorist-financing/ 

“To us, it reeks of money laundering,” Nomane said, questioning why a military institution would engage in financial investments outside its core mandate.

He argued that placing such funds into a government-run bank with what he described as weaker governance structures creates vulnerabilities for misuse and lack of oversight.

Mr. Nomane warned that the absence of transparency around the purpose and management of the funds could undermine efforts to strengthen anti-money laundering controls.

“There are no clear safeguards on how this money will be used or monitored,” he said, adding that such actions risk pushing the country closer to blacklisting by FATF.

The concerns were backed by Ialibu-Pangia MP and former prime minister, Peter O’Neill, who described the investment as a misallocation of critical defense resources amid mounting financial pressures within the force.

Mr. O’Neill said the PNGDF is struggling to meet basic operational needs, including maintaining barracks, paying for supplies, and supporting personnel in remote deployments.

He added that diverting K20 million into a Bank as an investment instead of addressing these urgent needs raises questions about financial priorities and accountability.

“No other defense force in a democracy is used as an investment arm of government,” O’Neill said, warning that such decisions could erode public trust and fuel perceptions of financial misconduct.

Both leaders linked the controversy to broader systemic issues, including weak institutional oversight and declining investor confidence.

They cautioned that any perception of money laundering could have serious economic consequences, particularly as Papua New Guinea seeks to restore credibility with international partners following its grey listing.

ATHURSON Olua
ATHURSON Oluahttp://www.thepngsun.com
He holds a Bachelor of Art Degree majoring in Theatre Arts while minoring in Journalism/Public Relations from the University of Papua New Guinea (UPNG).

━ Related News

World’s largest Law Firm strengthens PNG disputes capability with Partner Gertrude Tamade

Dentons, the world’s largest law firm, has strengthened its Australasian disputes capability with the promotion of Gertrude Tamade to Litigation Partner in its Papua...

Pangu Pati exposes fake Facebook propaganda, issues strong public warning

The Pangu Pati National Secretariat Office has categorically disassociated itself from the misleading and inappropriate content currently circulating on social media, purportedly on behalf...

NGCB donates K4.5 million to Provinces affected by Cyclone Maila

The provinces, severely affected by the natural disaster, Category 5 Tropical Cyclone Maila in the country, have received K4.5 million from the National Gaming...

Step aside if you are under investigation: Sir John to police officers

Sir John Pundari has delivered a strong message to police officers across the country; if you are under investigation or facing allegations, it’s time...

Governor Parkop reaffirms commitment to women and girls as UN Under-Secretary-General and UNFPA Executive Director visits PNG

NCD Governor Powes Parkop has reassured the visiting United Nations Under- Secretary- General and UNFPA Executive Director of the NCD’s commitment to improving the...