Papua New Guinea bid board member Wapu Sonk has been forced to stand down from the new NRL team over alleged corruption, but Australian Rugby League Chairman Peter V'Landys believes there is nothing to worry about.

Per a report in The Sydney Morning Herald, Sonk, who was the chair of the NRL team's bid and owns Kumul Petroleum Holdings, is alleged to have funnelled lucrative contracts to an Australian company that Sonk also owns over the upgrade of a PNG port.

PNG Prime Minister James Marape confirmed he had asked Mr Sonk to stand down from the board despite previously being recommended.

“I have spoken to Mr Sonk and, while he is currently overseas, I have requested that he step down from his role as a director on the PNG NRL franchise board effective immediately. He has agreed to do so,” Marape told the publication.

“This reflects PNG's commitment to the highest standards of integrity, probity, and public trust.”

The PNG team is joining the NRL after securing $600 million of funding from the Australian Government over the next ten years, with the team to be based in Port Moresby.

It was viewed by the Australian government as the cheapest way to ensure support from the PNG government amid expanding Chinese influence in the region.

Speaking to News Corp, Australian Rugby League Commission chairman Peter V'Landys revealed that all board members had their backgrounds checked, the accusations are currently alleged, and that the right decision had been made in the interim for him to stand down.

“We did background checks. You also have to understand that these things are alleged and he is entitled to due process and natural justice,” V'Landys said.

“The allegations haven't been tested in court but they (PNG government) have done the right thing while these claims hang above him.

“He himself decided to stand down. We're OK with that. The money that comes in will come through us. We're going to only give money out that has been audited.”

The team, which in the plan will be self-sufficient by 2035, is due to enter the NRL in 2028, although questions remain around that too given issues with the enormous amount of infrastructure that still needs to be built.