Wife of a Former PNG State Minister Don Polye Implicated in K1.7 Million PNG Sports Foundation Case
The National Court has frozen bank accounts belonging to Kathleen Ruth James, wife of former state minister Don Polye, Member for Kandep, over allegations that K1.7 million in PNG Sports Foundation funds was illegally obtained through fraudulent contracts.
Justice Teresa Berrigan, ruling on 12 September, ordered two Bank South Pacific accounts—one personal and one for James’s company, Karma Investment Ltd—frozen under the Proceeds of Crime Act. At the time of the order, only about K300,000 remained across both accounts.
Court documents reveal that between February and May 2024, PNGSF paid Karma Investment for four service contracts to procure sports equipment and consumables for facilities in Mendi, Southern Highlands, and other venues. Investigators allege the promised goods and services were never delivered.
Detective Constable Jeremiah Kalap of the National Fraud and Anti-Corruption Directorate said in his affidavit that part of the funds were also deposited into an account where Don Polye was the sole signatory.
The judge approved an ex parte hearing, allowing prosecutors to seek the restraining order without the defendants present. Berrigan said ICAC documents backed Kalap’s claims of fraud and false pretence.
Kalap detailed four counts of misappropriation involving payments of K250,000, K250,000, K628,924.72 and K628,924.72, all allegedly siphoned from state coffers. BSP Financial Group Ltd was directed to enforce the freeze until further notice.
Authorities continue to investigate the involvement of both James and Don Polye as the case signals intensified action against corruption in the management of sports funds in Papua New Guinea.
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