Charges over PNG payroll scandal

10:20 am on 1 March 2016

Three people have now been charged by Papua New Guinea police investigating a payroll scandal at their headquarters.

A 29-year-old has been arrested and charged with two counts of conspiracy to defraud the state.

Police are investigating allegations of massive fraud reported at the payroll section.

A man and his wife, identified as Christopher Chapau and Rhonda Kerea, were arrested in Manus province last month for their alleged involvement in a similar fraud case.

Acting Assistant Commissioner of Crimes Victor Isouve said Kone was the third person arrested so far since investigations began towards the end of last year.

Mr Isouve said Kone and a co-worker attempted to defraud the state by creating a bogus payroll account.

They then produced a claim of more than US$33,000 but the scam was detected before the money was transferred.

Mr Isouve said investigations were beginning to widen and more arrests are expected in the coming weeks.