21/07/2025
OPPOSITION DEMANDS COMMISSION OF INQUIRY INTO MVIL SHARE SALE TO MRDC
Opposition Media Release
Port Moresby, 21st July 2025
The Opposition is calling for an immediate Commission of Inquiry (COI) into the recent sale of Motor Vehicle Insurance Limited (MVIL) shares in BSP Financial Group Limited to the Mineral Resources Development Company (MRDC). The call was made during a press conference this afternoon by Member for Sinesine-Yongomugl and senior Opposition MP, Hon. Kerenga Kua, who described the transaction as a “State-sponsored crime.”
Speaking at Dream Inn, Port Moresby, Mr. Kua accused the Government of acting unlawfully by selling off assets it does not beneficially own, and called for an immediate freeze on the proceeds of the sale, pending a full investigation.
“The first question is whether the State beneficially owns all the shares in MVIL, or if it holds them in trust for the actual beneficiaries—namely, motor vehicle owners in Papua New Guinea,” said Mr. Kua.
“To act like a shareholder and claim dividends from a company without ever owning any shares in it is tantamount to fraud and theft. It is a crime.”
He maintained that the State has been illegally receiving dividends from MVIL for years, despite not being a rightful shareholder. According to Kua, the proper legal beneficiaries of MVIL’s earnings and assets are motor vehicle owners, past and present.
“All the previous dividends claimed and received by the State are illegal and liable to recovery by the true beneficiaries,” he added.
Mr. Kua further demanded that the proceeds from the MVIL-BSP share sale be immediately placed in an escrow account and not used to fund any Government projects, particularly those recently referenced by the Minister for State Enterprises, Hon. William Duma.
“I call upon BSP—or any bank currently holding these funds—to freeze the accounts where the proceeds have been deposited. Continued transactions on these funds could amount to money laundering, especially now that the legality of the sale has been publicly challenged.”
He emphasized that all financial institutions are now on notice and that any further movement of funds could result in legal consequences.
“Banks, including BSP, cannot ignore this controversy. Until it is resolved by an independent and competent authority—whether through a Commission of Inquiry, the courts, or through investigations by the Ombudsman Commission, ICAC, or police—any financial activity involving these proceeds is reckless and improper.”
The Opposition has reiterated its stance that a full Commission of Inquiry under the Commission of Inquiry Act is the appropriate course of action, to ensure transparency, accountability, and public confidence in the handling of State-owned entities and assets.
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