An audit the City Council office in Lae by officers from the Provincial and Local Level government office in Port Moresby.
Lae MP, John Rosso, told EMTV News the City Authority has not been operating efficiently,and needs urgent assistance.
Lae City Manager Roy Kamen, who agreed to stand aside, received a suspension notice from the Office of the Provincial Administration last Friday at 4pm.
The members of the general public and some business houses have raised concerns over the management of the Lae City Council office.
This was brought to the attention of the Member for Lae, John Rosso, who consulted the Lae City manager and the Acting Provincial Administrator for Morobe.
Kamen said he agreed to step aside to allow the audit to proceed and, not to be suspended from office.
Kamen has responded to the suspension notice.
He said he had not sighted the allegations made against him.
The Lae City Manager called on the office of Morobe Provincial Administration to clarify his suspension.