Why the var keyword? Normally you wouldn't need this - unless these are fields on an object?. If so, you will need to reference them using $this. One of the following examples should work for you:
$condition = array('Status.name = ' => 'PUBLISHED');
$paginate = array('conditions' => $condition );
or
var $condition = array('Status.name = ' => 'PUBLISHED');
var $paginate = array('conditions' => $this->condition );
Without seeing more of the code, it is hard for me to say with certainty which one applies to you and/or if this will solve your problem. Hopefully it's pointed you in the right direction.