Five senior public officials in New Ireland Province have been arrested and charged over the alleged misappropriation of K908,839.50 in Tuition Fee Free (TFF) funds, while a sixth person has been charged with money laundering.
The arrests followed an investigation by the Independent Commission Against Corruption (ICAC) into alleged financial abuse involving TFF funds allocated to New Hanover Secondary School (NHSS) between 2021 and 2024.
ICAC said the investigation began after a complaint was lodged by a concerned citizen over the alleged misuse of education funds.
Those arrested and charged include Fredrick Mahisu, who served as principal of New Hanover Secondary School from 2021 to 2024; Apollo Pangasa, Coordinator Subsidy with the National Department of Education attached to the New Ireland Provincial Administration; Benson Apelis, Director for Education; Wesley Siangat, Director Education; and Lindsay Eruel, Provincial Examination Officer.
Also charged is Shirley Nathasa Perry, the wife of Mahisu, who faces a money laundering charge.
ICAC alleges that Mahisu submitted inflated student enrolment figures to the Department of Education in Waigani, resulting in excess TFF payments being made to New Hanover Secondary School through the Provincial Subsidy Office.
The commission said the Provincial Government later identified the overpayment after comparing the payments with the school”s actual enrolment figures. The surplus funds were subsequently withheld as “outstanding” subsidy payments.
It is alleged that Mahisu, who had access to pre-signed cheques for the school account, made significant unauthorized cash withdrawals.
ICAC further alleges that the withdrawals were facilitated by approval letters from a Provincial Education officer to BSP Kavieng, and that Mahisu allegedly paid the officer for the approvals.
The investigation also alleges that some officers pressured the Subsidy Office to release the withheld money as outstanding subsidy payments, which Mahisu would allegedly withdraw and deposit into personal accounts.
According to ICAC, of the K908,839.50 allegedly misappropriated, K278,268 was allegedly deposited into Mahisu's personal account, while K307,098.60 was paid to his company.
The commission alleges a further K114,822.90 was spent on four vehicles; K64,450 was transferred to Perry, and K144,200 was allegedly paid to other officers.
Mahisu and Perry were arrested in Kokopo and appeared before the Kokopo District Court, where both were granted bail. Their matter was listed for mention later in September.
Pangasa, Apelis, Siangat and Eruel were arrested in Kavieng and have also been granted bail by the District Court.
ICAC Acting Commissioner, retired Judge Don Sawong, thanked the Provincial Police Commanders, including the Divisional Commanders for East New Britain and New Ireland, as well as the New Ireland Provincial Administration, for their cooperation during the investigation.
The arrests form part of ICAC's ongoing efforts to investigate alleged corruption and protect public funds from misuse.
All accused persons are presumed innocent unless and until proven guilty by a court of law.