The Post Courier reports that the task force will have up to 30 police officers whose primary role will be to instill discipline and restore respect among the police and the public.
Kundiawa MP Tobias Kulang had raised the issue of frequent reports of police brutality in Port Moresby with Mr O'Neill during question time in parliament yesterday.
He said the police force was a disgrace, and had fallen into disrepute, and Mr O'Neill agreed.
Peter O'Neill said there is a lack of discipline in the force, and many of the officers are serving private interests rather than the interests of the State and the people.
He says internal affairs in the police force needs to be strengthened, so issues of discipline and brutality can be dealth with and investigated properly.
Mr O'Neill has ordered police Minister Robert Atiyafa to take control of the situation.
A phone hotline will be set up, which the public can use to lay complaints against the police.