PORT MORESBY – Lawyers representing Papua New Guinea’s Prime Minister, Peter O’Neill, were to return to court to fight for protection against an arrest warrant.

A warrant was issued against O’Neill over his alleged involvement in illegal payments made to the Paul Paraka law firm.

But last week he won a week-long stay on the warrant following a controversial morning in the National Court with two lawyers competing to represent the prosecution.

Radio New Zealand’s correspondent in PNG, Todagia Kelola says this has now been sorted and the case can resume.

“The police lawyer, Nicholas Miviri, has been replaced by a new lawyer, Paul Mawa, who was instructed by the newly-appointed acting commissioner to represent police in the matter,”

Kelola says the court session could decide the entire fate of the case against O’Neill.

In excess of 1000 people reportedly staged a protest in the capital calling for O’Neill to resign, in defiance of a ban by the country’s police chief.

Police earlier banned the protest, citing concerns over possible violence, but then allowed it to proceed, striking an agreement with police to confine their demonstration to Unagi Oval, one kilometre from parliament.

Commentator and blogger Martyn Namorong says at first police had outnumbered protestors but later the number increased to over one thousand.

He says they were carrying banners demanding the prime minister should resign.

Protesters wanted a politician to come and receive two petitions – one calling for O’Neill to answer allegations of corruption and the other calling for the reinstatement of sacked senior police officers and Taskforce Sweep head Sam Koim.

“Not necessarily talking about a change of government but for the prime minister to step aside and to allow due process to take its course and for him to appoint an acting prime minister and, you know, let this country get on with life”, Namorong said.

“The prime minister cannot hold this country to ransom, just because he wants to defend his own interests.”

Road blocks were set up around the area, but the protest remained peaceful.

Meanwhile, in parliament O’Neill, has backed away from pushing through controversial amendment to the country’s constitution.

On Tuesday, O’Neill announced the amendments would be withdrawn to allow more debate on the issue.

One of the amendments, which would have made it harder to pass motions of no-confidence in a government, had been labelled draconian by a former supreme court judge.

When O’Neill withdrew the amendments, parliament voted to adjourn for two months deferring debate on the controversial constitutional amendment.

Opposition leader Belden Namah expressed his anger at the move, saying the opposition was denied the chance to debate the motion to adjourn.

“We have a tyrant, we have a dictator,” he told reporters at a media conference after the sitting.

“I’m calling on public dissent to protest against the leadership of Peter O’Neill as prime minister of Papua New Guinea.”

O’Neill was issued with an arrest warrant last week after an investigation by the now defunct anti-corruption body, Taskforce Sweep, into alleged multi-million dollar payments to a law firm.

O’Neill has denied the charges, claiming they were politically motivated, and responded by disbanding the anti-corruption body as well as sacking the attorney general and deputy police commissioner.