A boat carrying 35 passengers capsized near the mouth of Murua River about half a kilometre away from Kerema Bay.
The passengers were traveling to Kerema Town to do business when the boat capsized.
The incident happened over the weekend and is said to be caused by rough seas.
According to Mamuro Village Chief, Richard Panama, many of the passengers were from the Highlands of Gulf province, therefore could not swim; some held onto containers to stay afloat.
A search party was conducted by relatives when the news of the incident broke out.
A total of ten bodies including three infants were recovered and taken to the Kerema General Hospital Morgue.
The skipper believed to be a young and inexperienced dinghy operator, is currently on the run and police are appealing to him to surrender.
Meanwhile, the Gulf Provincial Disaster Office and Police Personnel are yet to comment on this matter.