Solomon Islands member of parliament Dickson Mua has been arrested and charged with conversion, an offence which carries a maximum penalty of seven years in jail.
The former cabinet minister is facing charges relating to a $3 million SBD transport grant (more than $571,000 NZD) paid into a constituency fund for the Savo-Russell islands in 2013 to buy a ship, which never appeared.
Police anti-corruption investigators spent years tracking the spending trail for the funds, most of which had gone to a local company for outboard motors and other purchases unrelated to the purpose of the grant.
Mua was released on bail and the case has been adjourned until mid November.
Mua has been MP for Savo and Russell since 2010 and with elections due in 2019, the outcome of this case dictate his political future.
In the Police statement, Commissioner Varley stressed the Police force are upholding the law and are not involved in politics.
Police Commissioner Varley says the force will continue to investigate allegations of corruption and that no one is above the law.