Police media confirmed the arrest was done by Naha police officers.
Councilor Ngati is charged with Larceny by Servant and will appear in court on July 13.
The arrest was made following reports that Councilor Ngati allegedly stole the money from HCC officers.
The incident was reported to have taken place at the Ranadi Bank South Pacific Bank branch late last year.
A formal complaint was done by HCC administration to the police for investigation after the incident.
The HCC yesterday also confirmed Ngati’s arrest.
“Yes we have made a complaint to police and this morning (yesterday) we received information that he was arrested by Naha police," City Clerk, Rence Sore confirmed.
It is understood that Councilor Ngati was very vocal about alleged corruption within the HCC rank for almost a month now.
The Solomon Star also understands that this is Councilor Ngati's second arrest.
He was also charged for unlawful intimidation when he was arrested a week ago.
It was also understood that Councilor Ngati is in police custody at the moment.
By Carlos Aruafu