BREAKING NEWS: The former principal of Australia's top indigenous college has today been arrested and charged with two counts of fraud for allegedly dishonestly obtaining nearly $9 million in government funds.

Jean Illingworth, 67, of Kuranda, was today detained by police and charged before she was bailed to appear in Cairns Magistrates Court on January 31.

Her arrest comes after nearly two years of a protracted Queensland Police fraud squad investigation into alleged misuse of millions of dollars of government funding at Djarragun College, at Gordonvale, south of Cairns.

The former principal and chief executive allegedly defrauded $3,517, 806 from a Queensland Government department and $5, 400, 558 from a Commonwealth department.

It is alleged the school grossly exaggerated the number of indigenous students at the college to obtain millions in funds.

Under the Queensland Criminal Code, she was charged with once count of dishonestly induced to deliver property.

She also faces one charge of obtaining property from a Commonwealth entity by deception.

Ms Illingworth, a one-time Australian of the Year Award winner, who has been stood down from the school since March 2011, has steadfastly maintained her innocence.

More in tomorrow's The Cairns Post.

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