Citizens act to establish anti-corruption body
Sea weed drama for ‘Home and Away’ star

Major bank loses millions to employee fraud


BANK SOUTH PACIFIC – the former National Australia Bank which dominates the PNG market and operates throughout the Pacific region – has admitted it has lost K16 million mainly through the fraudulent activities of its employees.

In 2009 the bank’s “non-lending losses” rose to K25.6 million including “an alleged fraudulent matter that involved staff members of BSP”, who have been identified and charged.

Another matter regarding external fraudulent behaviour is currently under review.

A senior officer with a commercial bank in Port Moresby, speaking anonymously, was reported by thePost-Courier as saying BSP’s was “not an isolated case, it also happens in the other banks in the country.”

“When such things happen, sometimes the banks pass on the burdens to the poor customers in many forms such as increasing bank fees,” she said. “We know that this is not good for our customers.”

In January, Australian law firm Gadens reportedly withdrew from representing BSP in a Port Moresby fraud case after its staff were threatened by armed thugs.

The bank was attempting to recover money from a company owned by former MP and policeman, Peter Yama.

In the Solomons, a former BSP employee has been accused of defrauding $83,000 from the bank.

In August last year, BSP selected Norkom Technologies to protect itself against increasing levels of fraud.

“We wanted a robust solution … to help us manage and defend ourselves against financial crimes such as fraud and money laundering,” said Kevin McCarthy, BSP’s Retail General Manager.


Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)