An NGO in Papua New Guinea says the Prime Minister's announcement that controversial land leases will be scrapped needs to be followed up with action.

Peter O'Neill has announced that Special Agriculture and Business Leases obtained illegally will be cancelled and provisions in the Land Act which allowed for SABLs to be granted, abolished.

He's acting on the recommendations of the Commission of Inquiry into the SABLs which was presented to the government nearly a year ago.

Prime Minister Peter O’Neill says his government is serious in implementing recommendations made from the Commission of Inquiry.

His comments come after cabinet acted on the recommendations of the Special Agriculture Business Lease inquiry, cancelling more than 70 of the licenses.

It also comes at a time when his Commission of Inquiry into the Paraka saga almost got him arrested.