School principal arrested as ICAC cracks K1m tuition fee scam

A New Ireland school principal has been accused of turning public education funds into his personal cashbox – buying four motor vehicles and enriching himself through an elaborate tuition fee fraud now under investigation by the Independent Commission Against Corruption (ICAC).

Frederick Mahisu, Principal of New Hanover Secondary School, was arrested and charged after ICAC uncovered what it describes as a sprawling corruption network siphoning more than K1 million meant for schoolchildren in New Ireland Province. Mahisu allegedly sat at the centre of the racket, funnelling Government Tuition Fee Subsidy (GTFS) payments into his own pockets.

ICAC confirmed that Mahisu faces one count of misappropriation totalling K1,040,339.55, two counts of official corruption, one count of conspiracy to defraud, and one count of dealing with criminal property. His alleged accomplice, provincial GTFS Coordinator Apollo Pangasa, has also been arrested, with more charges anticipated.

According to investigators, the scheme operated by fraudulently inflating student numbers on official school census forms between 2021 and 2025. The inflated roll allowed Mahisu and Pangasa to trigger the release of extra subsidy funds, which were then quietly diverted.

ICAC says Mahisu used a substantial portion of the funds to purchase four vehicles for both business and private use—an apparent display of wealth that quickly drew scrutiny. All four vehicles have since been seized.

The corruption web extends further. Investigators found kickbacks funneled into Pangasa’s personal bank account and identified Benson Apelis, CEO of the Provincial Social Services Division, as another alleged beneficiary.

Three search warrants have already been executed at Mahisu’s school, the New Ireland Provincial Government subsidy office, and New Hanover Secondary School, resulting in the seizure of documents and electronic evidence.

ICAC says more arrests are imminent as it widens its probe into what it calls a systemic network of corruption draining the country’s free education funds.