Papua New Guinea Rugby is worried more union players might be lured to rugby league, as it continues to be suspended by World Rugby.

The interim president of the PNG Rugby Union, Vince Karawa, told RNZ Pacific from Port Moresby that the Australian government's large financial investments in rugby league in PNG has already seen players moving to the 13-man code.

The Australian government has approved AUD$600 million over 10 years to support rugby league in the Pacific, including PNG.

At the same time the Australians also budgeted AUD$190 million for the establishment of the PNG Chiefs franchise team that will make its debut in the NRL in 2028.

Overshadowed by league in PNG, Karawa fears more young people and current players will leave union if their suspension is prolonged.

He has called on Oceania Rugby to come to the table, sit and genuinely discuss a way forward, especially in their demand for grants given to the union to be reimbursed.

"Currently the games are still on and quite active at the moment," he said.

"The question everyone is asking is, when will the the suspension be uplifted?

"The game's being jeopardised through the suspension.

"Rugby players have been lured to rugby league, so that's that's something that we've raised to Oceania Rugby, saying to them the more the suspension is prolonged we are on the verge of losing good players to rugby league."

Karawa said they are still waiting on Oceania Rugby to open the door for a round-the-table discussion "for us to really sit down and discuss all these issues surrounding rugby and PNG".

Roadmap

Oceania Rugby delivered the suspension notice to the PNGRU in 2024 over breaches of its tournament obligations, governance and financial non-compliance.

Oceania Rugby commissioned an independent inquiry and established an Independent Judicial Panel to review PNGRU's finances and governance in the months that followed.

Oceania Rugby general manager Frank Puletua said the ball is in PNGRU's court.

"We've been in regular contact with PNGRU and World Rugby throughout this process," he said.

"There's a roadmap agreed by all parties, and we want to see PNGRU back in good standing as soon as they meet what's required."

Karawa acknowleged the contact made by Oceania Rugby but insists they need to have face-to-face discussions to iron out the issues.

Karawa said they have met "most of the sanctions that were placed by Oceania Rugby" and the union has been working with the regional body.

He revealed the current board is a new one, with members elected after the suspension in 2024.

He said the main area they are working on now is clearing a debt that is puzzling them.

That is because around AUD$130,000 in grants given to the union between 2018 to 2023 is now one of the main issues that is affecting their reinstatement.

Oceania Rugby is saying PNGRU needs to repay the grant.

General manager Puletua said last week repaying that debt is critical for PNG Rugby's reinstatment.

"Reinstatement depends on PNGRU clearing a longstanding debt and meeting governance conditions set out in the roadmap," he said

"Some details of the process will stay confidential given the sensitivities for people and organisations in PNG."

But Karawa said their understanding is that they need to send in acquittals for grants extended to PNG, and not to repay the money as it was never a loan.

"So, as far as we understand, this grants are supposed to assist organisations in terms of setting up programmes and developing rugby programmes, assisting all the unions," he said.

"The grants were used to assist the international events, especially rugby tournaments where the national teams competed in.

"They're asking that those funds to be reimbursed. As far as we understand you have to acquit for those funds."

Karawa said "in terms of reimbursing, that's something that we need to really discuss with Oceania Rugby".

The financial assistance was given to PNGRU under the old board but since the new board were elected the burden of payment has fallen on them, Karawa said.

He said getting Oceania Rugby to meet them and agree on a payment plan agreement going forward so they can be reinstated is what they are asking for.

"We have programmes running in schools, we have development pathway programmes going forward and we need exposure to regional and international events.

"This can't happen because we're still suspended."

Work-ons

Karawa said PNG Rugby is reaching out to stakeholders and will keep trying to get Oceania Rugby to sit with them.

Regarding governnance and management, he said they have worked with their local member unions on ensuring that they follow the World Rugby guidelines and are transparent.

"We have worked with them to understand the systems, the process and they need to meet the requirements like you know, the reportings and financial reports and executive reports," he said.

"Our focus has been on making sure they stop the usual systems they had operated in maybe in the past."

"The whole purpose is to make sure that the rugby administration and operation and done correctly going forward and we want to set a precedent so that the next board executives don't fall short."

Karawa said the union does not want the future generation to lose interest in the game if the current suspension is not lifted soon.