The acting Autonomous Bougainville Government President Patrick Nisira says a dubious ex-combatant group is asking for payment from the ABG.
The Post Courier reports the amount demanded is more than US$175,000.
A total of 10 different groups have put forward their claims for services rendered during the festive season assisting the Bougainville Police Service.
Mr Nisira, who is also the Minister for the Referendum, Peace and Veterans Affairs Department said it was unfair to the majority of the people who "sweat their guts out" to earn their income while opportunist minorities try to get "free money".
He told the newspaper there were officers in the ABG who were encouraging, assisting and entertaining the dubious claimants.
He said they would be investigated, and if found to be at fault, terminated.