The Papua New Guinea Supreme Court has reinstated politician Ronny Knight as a member of parliament.
But PNG's Chief Justice Sir Salamo Injia found there were no allegations Mr Knight obtained a personal benefit from the boat purchase and he said there were serious concerns with how he had been cited by the PNG Leadership Tribunal.
He said there is no question the vessel was bought for a good cause and he didn't stand to benefit from the purchase.
Sir Salamo ordered the decision to dismiss Mr Knight be stayed pending an appeal.
He also allowed Mr Knight to remain in office and contest the upcoming election.
He said there was evidence proceedings at the leadership tribunal were not conducted properly.
Mr Knight said the decision gives him faith in the judicial system.
He was critical of Australia's Immigration Minister Peter Dutton for saying he had been convicted of fraud, when he was instead dismissed for misconduct in office by the tribunal.
Yesterday, it was incorrectly reported that the PNG Electoral Commission would not allow Mr Knight to stand in the election.
Before Mr Knight was reinstated by the Supreme Court, the electoral officer, Sponsa Navi, told the Post Courier newspaper that Mr Knight was not eligible to contest this year's election, hold any public office, or be involved in politics for the next three years.