Papua New Guinea's Prime Minister Peter O'Neill has ordered a review of a 284 million US dollar deal with China's ZTE Corporation and China Great Wall Industry Corporation for a communications satellite.
The Chinese entities are expected to design, produce and launch by 2016 a satellite, which PNG is to lease a sector of, in a deal that would provide TV broadcasting, internet and data services across the south western Pacific for 15 years.
However, Mr O'Neill has written to Public Enterprises Minister Ben Micah asking him to review the memorandum of understanding he struck on PNG's behalf with ZTE and China Great Wall.
The newspaper, The Australian, reports that this follows concerns raised in the US Congress and a corruption case in Singapore.
ZTE managing director Peter Poon has denied that ZTE is involved in such activities.