The Papua New Guinea attorney-general, Francis Damem is suing solicitor-general Zachary Gelu over alleged fraudulent conduct in a 2-POINT-1 million US dollar out-of-court settlement.
A writ of summons has been filed containing 19 statements which claim Mr Gelu acted recklessly when awarding more than 2 million dollars in damages to a road construction company called Manorburn Limited.
The PNG Media Council and Transparency International have both called for serious action to be taken against all involved in the deal.
Manorburn was awarded 12 road contracts worth over 970-thousand dollars for the Oil Palm Industry Corporation between 1996 and 1998.
The company was not paid and it went to court in March 200 and was awarded a default judgement for damages to be assessed.