The Independent Commission Against Corruption (ICAC) uncovered misappropriation of more than K1.04 million funds from the Government Tuition Fee Subsidy (GTFS) now known as the Government Free Education Policy allocated to a public school. 

An ICAC investigation into New Hanover Secondary School in Kavieng, New Ireland revealed systemic corruption and misappropriation of GTFS funds between 2021 and 2025. 

Evidence gathered by the ICAC revealed that school principal Fredrick Mahisu, in collusion with Apollo Pangasa, the GTFS Coordinator for New Ireland Province, falsified student enrolment numbers on census forms submitted to the Provincial and National Education Departments. 

These inflated figures led the Education Department to release substantial GTFS funds to the New Ireland Provincial Subsidy Office, and later, directly into the school’s account following a policy change in 2022. 

Further investigations uncovered that Mr. Mahisu diverted these funds for personal gain, including the purchase of four vehicles for private business and personal use. The ICAC has since seized these vehicles. Additionally, Mr. Pangasa benefited through kickbacks deposited into his personal account. 

Evidence also implicates Benson Apelis, Provincial Chief Executive Officer for the Social Services Division, as a recipient of misappropriated funds. 

The ICAC executed four search warrants at Mr Mahisu’s current school, New Ireland Provincial Administration Subsidy Office and the New Hanover Secondary School where documentary and electronic evidence were secured. 

As a result, the ICAC has arrested and charged the following individuals: 

1. Fredrick Mahisu– one count of Misappropriation ( K1,040,339.55), two counts of Official Corruption, one count of Conspiracy to Defraud under the Criminal Code Act, and one count of Dealing with Criminal Property under the Criminal Code (Money Laundering and Terrorism Financing) (Amendment) Act 2015. 

2. Shirley Natasha Perry (wife of Mahisu)-one count of Dealing with Criminal Property under the Criminal Code (Money Laundering and Terrorism Financing) (Amendment) Act 2015. 

3. Apollo Pangasa – one count of Official Corruption, one count of Conspiracy to Defraud, one count of Dealing with Criminal Property under the Criminal Code (Money Laundering and Terrorism Financing) (Amendment) Act 2015. 

4. Benson Apelis – one count of Official Corruption, one count of Conspiracy to Defraud, one count of Dealing with Criminal Property under the Criminal Code (Money Laundering and Terrorism Financing) (Amendment) Act 2015. 

The ICAC has determined that the misappropriation of the GTFS is widespread nationwide, and further investigations are underway. 

A copy of the Official Press Release can be obtained here: https://www.icac.gov.pg/news/icac-probes-corruption-scams-involving-government-tuition-fee-subsidy/

The ICAC encourages the public to take an active role in combating corruption by reporting any suspected cases through the following channels: 

• In person: Central Government Office, Tower B, Melanesian Drive, Waigani, Port Moresby 

• By Post: PO Box 353, Vision City 

• By Email: complaints@icac.gov.pg 

• By Phone: 300 7500 

Complaint forms are available on the ICAC website: https://www.icac.gov.pg/operations/