The MP for North Fly, Boka Kondra, has had his dismissal from office upheld by Papua New Guinea's Supreme Court.
Mr Kondra was initially dismissed from office in mid-2015 after a Leadership Tribunal found him guilty of six counts of misconduct in office as a leader.
Between 2008 and 2010, he unlawfully used $US75,000 in public funds to pay for office rentals, family accommodation and to settle the outstanding payments for transport hired in the 2007 election.
Mr Kondra appealed to the Supreme Court and in June an interim stay of that dismissal was issued.
The Post Courier reports that on Thursday a three-man Supreme Court bench dismissed the appeal and discharged the stay order.
It's unlikely that the North Fly seat will have a by-election to fill the vacancy, as PNG's general elections are due by next June.