The man who is also a village court magistrate from the Bupichupeu - Lelemadih Local Level Government was arrested in Manus on Wednesday.
Acting Provincial Police Commander Senior Inspector David Yapu said the victim is the accused’s own granddaughter who is nine years old.
It is alleged she was sexually touched by the 44-year-old man on April 9 while she was sleeping in one of the rooms in the family home.
PPC Yapu said the victim woke up and noticed her grandfather touching her private parts. She reported the incident to her mother who placed a complaint with police.
“Such action by the village court magistrate is unacceptable and disgrace to the community, especially being a magistrate in the village to enforce Law and Order and not break the law.
The man has been refused police bail. He is currently locked up at the Lorengau Police station.
PPC Yapu said he will be appearing in court next week Wednesday. The man is also expected to ask court for bail then.