The president of the Papua New Guinea Police Association, Robert Ali, has been suspended over allegations of misappropriating more than 170,000 US dollars.
The newspaper, The National, says Mr Ali was ordered to return his office keys and the Association vehicle.
The move by the industrial registrar follows petitions by association members to probe its executives who were accused of looking after themselves and not its members.
Among the claims put to the registrar was that the union bought a vehicle for the exclusive use by Mr Ali and that it paid more than 50,000 US dollars in fuel costs over five years.
