A powerful businessman has stood down from the board of Papua New Guinea's new NRL franchise amid corruption concerns relating to business dealings with a Chinese state-owned company. The newly established board has been entrusted with overseeing more than $200 million in Australian government funding to set up PNG's new NRL team, which plans to join the rugby league competition in 2028. PNG businessman Wapu Sonk led a successful campaign as chair of the PNG NRL bid in 2024, and was appointed as a director of the franchise board last month. On Friday, PNG Prime Minister James Marape said Mr Sonk had agreed to step aside following corruption concerns reported in the Sydney Morning Herald. The concerns surround business dealings related to Mr Sonk's role as managing director of PNG state-owned oil company Kumul Petroleum Holdings Limited (KPHL), and not the NRL franchise. An official letter seen by the ABC shows KPHL insisted that Chinese state-owned company China Petroleum and Pipeline Engineering Corporation award a subcontract to an Australian company owned by Mr Sonk. China Petroleum and Pipeline Engineering Corporation was awarded a contract to upgrade fuel storage facilities at a major wharf outside PNG's capital. The letter suggests that failure to award the subcontracts could "compromise the project's overall success" and collaborative efforts between the Chinese Company and KPHL. Mr Sonk did not respond to requests for comment and has not yet publicly commented on the allegations. In a statement, Mr Marape said the allegations "raise concerns that cannot be ignored". He said the allegations against Mr Sonk, who is not in PNG presently, were not a presumption of guilt. "Mr Sonk is entitled to due process and the opportunity to clear his name," he said. "Stepping down allows him the space to do so without casting a shadow over the franchise process or compromising the confidence of our partners. "This moment demands clarity, accountability, and the upholding of public confidence. Our national sporting future — and our international reputation — depend on it." To help the PNG franchise join the NRL, the Australian government has committed $600 million over 10 years. The money will also fund community outreach programs supported by the new club.