Papua New Guinea will revoke the passport it issued to a fugitive Indonesian banker convicted of embezzling 546 billion rupiah (1.7bn baht) in bailout funds meant for his bank during the 1998 Asian financial crisis.
Djoko Tjandra fled Indonesia in 2009, one day before he was convicted in absentia by the Supreme Court for misuing government bailout funds intended for the now defunct Bank of Bali.
Mr Djoko was sentenced to two years in prison and ordered to return the money.
Despite being wanted by Interpol and the Indonesian government, the former Bank of Bali owner was awarded Papua New Guinean citizenship last June and issued a passport in the name “Joe Chan”.
The Papua New Guinea government’s chief secretary, Manasupe Zurenuoc, has advised its foreign minister to cancel Mr Djoko's passport, according to a report in local newspaper the Post-Courier on Thursday.
"[Mr Djoko] is currently wanted by Indonesian authorities and has an outstanding arrest warrant issued in Indonesia," Mr Zurenuoc reportedly wrote in a letter to Foreign Minister Rimbink Pato.
"The issuing of a passport under a different name allows Mr Tjandra to travel freely and evade the Indonesian authorities."
Mr Zurenuoc said that Mr Djoko used the passport to obtain visas to travel to Japan and Taiwan as Joe Chan.
The issuance of the passport is now the subject of an investigation by the department of Justice and Attorney-General, he added.
Indonesia has no extradition treaty with Papua New Guinea. In December last year it sent a team to Port Moresby to discuss the repatriation of Mr Djoko.
Mr Djoko can reportedly count on the support of members of Papua New Guinea's parliament and government ministers.
Deputy opposition leader Sam Basil told the Post-Courier "two Papuan ministers" allegedly involved with Mr Djoko must be disciplined.
"The two ministers must be dealt with," Mr Basil said.
"We are waiting and Papua New Guinea is waiting."