The Papua New Guinea government has agreed in principle to pay compensation of more than 1.5 million US dollars to five members of the University of Papua New Guinea following their suspension last year.
The newspaper, The National, reports the decision was reached five weeks ago.
But the ombudsman commission has asked the university to stop the payments, pending further investigation of the claims following last year's student unrest in Port Moresby.
The biggest sum of the compensation payment - more than 980,000 US dollars - was set to to go to Vice-Chancellor Professor Leslie Eastcott.
The Inquiry head, Dr Thomas Webster, Professor Eastcott and members of the government have so far been unavailable for comment.