Edmond Sikua's arrest came after police accused him of awarding Government tenders worth over 630,000 Solomon Islands dollars ($630,436.50) or $US80,000, to Beeds Investment, a company registered and owned by his two daughters.
Mr Sikua appeared in the Honiara Magistrate's Court this week on seven counts of official corruption and was released on a bail of 2,000 Solomon Islands dollars or $US 256, with strict conditions.
Solomon Star reports Mr Sikua was first appointed permanent secretary in 2012.
On the 8 of September this year, his appointment was renewed for a further four-year term.
Prior to this appointment he had been a serving member of the Royal Solomon Islands Police Force and a member of the Police Executive.
Edward Sikua was arrested by Task Force Janus, a joint effort between the Royal Solomon Islands Police Force and the Ministry of Finance & Treasury.
The focus of the Task Force is to identify, apprehend and prosecute individuals involved in fraud and corruption within but not limited to the Solomon Island Public Service.