Twelve people were arrested at the Maiap checkpoint by the Joint Security Forces around 2pm last Saturday.
They include two females and ten males, an auxiliary policeman and a high school student.
Of the two females, one is a mother from Laiagam nursing her 3month old baby, and accompanied by her 4 year old daughter.
Police were tipped off about the liquor being brought in with the convoy of vehicles escorting the dead body.
The two vehicles were covered with mud and red ribbons as part of the convoy escorting the dead body.
A total of 534 OP bottles were wrapped in newspapers hidden in the bonnets of the land cruisers, vegetable and hand bags.
On the black markets, a bottle costs K100.
All the suspects are in police custody at the Paiam Police Station awaiting their charges.
Relatives of the deceased were upset saying the vehicles were hired to transport cargoes and mourners to Porgera, not alcohol.
The deceased was murdered at the MMS club in Mt Hagen about two weeks ago.
Police have apprehended two suspects and investigations into the murder is continuing.
Police report that some Western Highlanders have left Porgera in fear of their safety back to Mt Hagen.
Five teachers from Paiam High School and the Manager of Ela Motors branch have left as well.
Contingent Commander of the Call out Operation Chief Superintended Norman Kambo appealed to the relatives of the deceased not to resort to pay back killings, but to allow police to investigate and arrest those responsible.
Mr. Kambo called on respective leaders in Porgera to assist the joint security forces.
He said the Joint Security Forces with local police are on high alert and monitoring the situation closely.
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