THE Australian owner of a ferry which sank and killed more than 140 people in Papua New Guinea has been arrested.
Expat Peter Sharp was arrested on Tuesday afternoon in Rabaul, in PNG's East New Britain province.
Mr Sharp, who owned the Rabaul Queen ferry which sank in rough weather off Lae in February last year, was being interviewed, a police spokesman told AAP.
He is expected to be charged with manslaughter and taking an unseaworthy ship to sea.
The exact death toll from the disaster is unknown because Mr Sharp's company, Rabaul Shipping, did not have a complete passenger manifest.
An official inquiry found the ferry was unseaworthy, overloaded and should not have been sailing at the time.
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