@mysteryman,
The Nobel "peace prize" is not awarded by the Swedish Academy - it's awarded by a bunch of leftist Norwegians who place political agenda above scientific accomplishment or other contribution to human knowledge. Even Al Gore got a "Nobel peace prize" from that crew, as did several terrorists.
It's not that I have much good to say about Le Duc Tho of North Vietnam, who got that "peace" prize in 1973 jointly with Henry Kissinger, but I do have to say this: the Vietnamese man exhibited integrity unknowable to our local pest in turning down the prize - and its estimated $ one or half-million.
And yes, the Nobel committee (even the laughingstock "peace" awarding crew in Norway) does have the right to withdraw the award.
In at least one case they tried to, the notorious case of Rigoberta Menchú (Nobel Prize in Literature) when Ms Menchú, a fanatic campaigner for those allegedly persecuted "indigenous peoples" was subsequently found to never have suffered any of the rapes, assaults, mental distress caused by imaginary murders of her non-existent brothers by equally imaginary right-wing South American militaries, and to have lied through the teeth on several other matters. Ms. Menchú sent word to Stockholm she had already spent the money so to avoid further ridicule the Swedes decided not to pursue the matter.