ClearView defends fund chief David Brown over PNG arrest

ClearView Wealth has issued a statement of support for board member David Brown after his arrest in PNG.

Listed wealth manager ClearView Wealth has issued a statement of support for board member David Brown after his arrest on a “spurious” fraud charge in Papua New Guinea.

Mr Brown was arrested and charged with one count of conspiracy to defraud by the National Fraud & Anti-Corruption Directorate, ClearView said in a statement yesterday.

Mr Brown is the chief investment officer of the National Superannuation Fund in PNG.

In a further statement, ClearView said the charge concerned claims by the Melanesian Trustee Services group of an attempt to remove and replace the fund manager of the Pacific Balanced Fund by Mr Brown’s National Superannuation Fund.

“The charge against Mr Brown has not been proven and his employer, NASFUND, is fully supporting Mr Brown, believes he has not breached any laws and has stated that it will support Mr Brown in his defence of the charge,” ClearView said.

“Mr Brown has assured the board of ClearView that he has acted at all times in accordance with the law and does not consider there is any basis for the charge and will vigorously defend it.”

Shares in ClearView closed down 5.5 per cent at their lowest point for nearly two-years.

NASFUND is a successor to PNG National Provident Fund and has $1.75 billion under management.

NASFUND chairman Hulala Tokome released a statement noting that the fund was “defending spurious charges laid against one of its executives resulting from a routine request for information”.

“In the course of doing his job, one of our executives was charged and detained,” Mr Tokome said.

“It is difficult to determine from the charge what the alleged wrongdoing is. To the best of NASFUND’s information and belief it is malicious prosecution and will be revealed as such in due course.

“The superannuation sector is very well regulated by the Bank of Papua New Guinea and as a condition of our licence, we are obliged to monitor the performance of all investments.”

ClearView said it would provide updates on the matter.

Mr Brown, a non-executive director of ClearView, is also a director of the PNG Institute of Directors, and is a former head of private markets for Victorian Funds Management Corporation and a former portfolio manager with QIC.

He is also a former chairman of the Australian Private Equity and Venture Capital Association Limited.