PNG Public Officials Face Court Over Alleged K908,839 TFF Funds Misuse

Allegations of irregular payments totalling more than K908,000 in school subsidy money have landed five senior PNG public officials and a woman before the courts following an investigation by the Independent Commission Against Corruption.

The money, totalling K908,839.50, was allocated under the Tuition Fee Free programme for New Hanover Secondary School, with investigators alleging that the funds were obtained and distributed through a series of false enrolment figures, questionable approvals and unauthorised withdrawals between 2021 and 2024.

ICAC Acting Commissioner Retired Judge Don Sawong said the matter came to the commission's attention after a complaint was lodged by a concerned citizen.

The commission alleges former school principal Fredrick Mahisu provided the Department of Education headquarters in Waigani with student numbers that were higher than the actual enrolment at the school.

The inflated figures allegedly resulted in excess TFF money being sent to the school.

When provincial officials later discovered the difference, the surplus was reportedly withheld.

ICAC investigators allege officials then sought the release of the money by presenting it as outstanding subsidy payments.

The investigation further alleges that Mahisu had access to pre-signed cheques which, together with approval letters from a provincial education officer, were used to withdraw money from BSP Kavieng.

Investigators have traced the alleged expenditure and transfers to five main areas.

K307,098.60 was allegedly paid to a company associated with Mahisu, while K278,268 went into his personal bank account.

Another K144,200 was allegedly distributed among other officers, with K114,822.90 reportedly spent on four vehicles.

The remaining K64,450 was allegedly transferred to Shirley Nathasa Perry.

Six people have been charged in connection with the investigation.

Mahisu has been charged with conspiracy to defraud and misappropriation, while Perry, identified as his wife, faces a money laundering charge.

Apollo Pangasa, Coordinator Subsidy with the National Department of Education and attached to NIPA, is facing conspiracy to defraud and misappropriation charges.

Also charged are NIPA Social Sector chief executive officer Benson Apelis, NIPA Director Education Wesley Siangat and NIPA Provincial Examination Officer Lindsay Eruel.

Mahisu and Perry were arrested in Kokopo and subsequently granted bail by the Kokopo District Court.

Their case is due to return for mention in late September.

The remaining four accused appeared at the Kavieng Committal Court on August 28 before being granted bail by the Kavieng District Court.

Their next appearance has been scheduled for September 15, 2026.