Bougainville leaders end long running funding dispute
Leaders of the Autonomous Bougainville Government and the National Government have reached an agreement to settle a long-standing funding issue affecting Bougainville.
The agreement was reached after two days of meetings in Port Moresby recently, between Bougainville Vice President Ezekiel Masatt, ABG Treasury and Finance Minister Albert Punghau, ABG Technical Services Minister Patrick Nisira, and Regional Member for Bougainville and National Works Minister Peter Tsiamalili Jnr.
The discussions followed a National Court ruling linked to a legal matter known as OS 85 of 2025.
Both sides agreed to settle the issue through dialogue instead of taking the matter to the Supreme Court.
The agreement was officially confirmed through a Leadership Resolution adopted on May 5, 2026.
One of the main issues discussed was the management of money held in the Infrastructure Account, including Prime Minister’s Commitment funds and the Regional Member’s Infrastructure and Public Investment Programme funds.
Leaders agreed that the funds needed to be properly checked and verified together to ensure transparency and fair delivery of services to the people.
As part of the agreement, both governments accepted a jointly verified financial position to restore confidence in the management of public funds.
All spending already committed for development purposes was also recognised as valid and aimed at improving services for Bougainville people.
Leaders further agreed that future budget arrangements must clearly show Prime Minister’s Commitment funds as RDG arrears in line with the Constitution and the Organic Law on Peace-Building in Bougainville.
The resolution also aims to strengthen transparency, accountability and cooperation between the National Government and the Autonomous Bougainville Government.
In a joint statement, the leaders said the agreement shows that leadership should focus on serving the people through unity and dialogue.
“This resolution affirms that leadership must rise above differences to serve our people,” the statement said.
The leaders said their main focus now is on infrastructure development and improving services across Bougainville.
They also agreed to continue working together to ensure future funding arrangements are transparent and support development throughout Bougainville.