2 Jul 2013

Bougainville anger at Port Moresby grant funding failure

8:51 pm on 2 July 2013

The president of the autonomous Papua New Guinea province of Bougainville, John Momis, says his government is considering suing the national government for what he says is its failure to meet the terms of the Peace Agreement.

He says the province will need to seek financing from foreign sources because Port Moresby appears to have no qualms in continuing to breach funding commitments.

Mr Momis says the outstanding funds are separate to last year's agreement by the Peter O'Neill government to provide 218 million US dollars spread over five years.

"That's a political commitment the national government made, whereas the Restoration and Development Grant is constitutionally stipulated. The national government has no choice but to give it. In fact we are seriously thinking of taking them to court because that is a massive breach which creates a lot of doubt in the minds of Bougainvilleans about the national government's goodwill."

Bougainville president John Momis.

He says the ABG estimates that the national government owes it about 82 million US dollars.

Mr Momis says the lack of funding means Bougainvilleans need to be more reliant with the referendum on independence likely in 2016.