Green’s Dictionary of Slang

headlice n.

(N.Z. prison/und.) the police.

[NZ]D. Looser Boobslang [U. Canterbury D.Phil. thesis] 85/2: headlice n pl. pronunciation of ‘police’ = po-lice.
[NZ]W. Ings ‘Trolling the Beat to Working the Soob’ in Int’l Jrnl Lexicog. 23:1 69: Terms for the police found both in boobslang and on the street include Demon, headlice (po-LICE), pig and filth.