Papua New Guinea's Prime Minister Sir Michael Somare and his son, Arthur, say they have nothing to hide over property deals in Australia worth more than 700,000 US dollars.
The Courier Mail newspaper has reported that PNG's Ombudsman Commission will investigate the Somare's purchase of an executive-style apartment and a four-bedroom house in Cairns.
The PNG leader has issued a written statement saying he has nothing to hide.
He says it was a business transaction that was cleared by the PNG Internal Revenue Commission and the Australian Securities and Investment Commission.
And Arthur Somare has told AAP in Port Moresby that he detests the newspaper's suggestion that his leadership of the ten billion dollar liquid natural gas project was linked to the purchase of a house for his children.
He says like his father before him, he takes the same opportunity to educate his children in Australia.
Mr Somare says he has purchased a property in Australia so his children have appropriate housing while they are educated in Australia.