The duo were arrested by East Sepik police on February 15, 2016.
Police allege that K803,866.00 for Moem Barracks rehabilitation was instead used to carry out renovation project at the East Sepik Provincial Police Headquarters Building instead by Wewak Building Contractor.
Elizabeth Kaprangi was invited for Record of Interview on Monday where she was formally arrested and charged for one (1) account of Misappropriation under Section 383 A (1) of the Criminal Code Act and one (1) account of Abuse of Office under section 92 (1) of the criminal.
Stephen James Taylor was arrested on 13 February and charged for one (1) account of Misappropriation under section 383 A (1) of the Criminal Code Act and one (1) account of Money Laundering.
Wewak police allege Wewak Building Contractors was paid the total contract value in full, in one payment but work has not commenced.
According to Wewak police this payment was made for the remaining balance of K2 million that was allocated to the 2RPIR, Moem Barracks in 2013 purposely for the project proposes which was parked with the East Sepik Provincial Government Treasury Operating Account.
A full investigation was conducted into the allegation and resulted in the arrest.
The investigation is still under way and others allegedly involved are expected to be arrested soon.
Meanwhile, Elizabeth Kaprangi and Stephen James Taylor have been released on bail and were to appear before Wewak Committal Court today February 16, 2016.