Peter Tsiamalili Jr., Minister for National Works and Highways and Regional Member for Bougainville, has confirmed that leaders from the Autonomous Bougainville Government (ABG) and the National Government have reached an amicable resolution to a long-standing funding dispute stemming from OS 85 of 2025.
Minister Tsiamalili said the breakthrough followed two days of high level discussions in Port Moresby involving key Bougainville leaders, including Vice President Ezekiel Masatt, Treasury and Finance Minister Albert Punghau, and Technical Services Minister Patrick Nisira.
“This resolution demonstrates that leadership must rise above differences to serve our people,” Tsiamalili said.
“While legal processes remain important, it is through unity, dialogue, and mutual respect that we achieve lasting outcomes for Bougainville.”
The dispute, which had progressed through the National Court, was resolved through good-faith negotiations before escalating to the Supreme Court. The outcome was formalised in a Leadership Resolution adopted on 5 May 2026.
At the centre of the issue was the management of funds within the Infrastructure Account, which included both Prime Minister’s commitment funds and allocations under the Regional Member’s Infrastructure and Public Investment Programme (PIP).
Minister Tsiamalili said both parties agreed on the need for a transparent and jointly verified reconciliation process to ensure accountability and proper service delivery.
Key outcomes of the resolution include:
- A jointly verified financial position, restoring clarity and confidence in the management of public funds.
- Recognition of all legitimate development expenditures aligned with service delivery priorities.
- Agreement that future Prime Minister’s commitments will be clearly reflected as RDG arrears, in line with Section 326 of the Constitution and the Organic Law on Peace-Building in Bougainville.
- Strengthened governance through improved transparency, accountability, and coordination in public financial management.
Minister Tsiamalili emphasised that the resolution reflects a shared commitment to peace-building, constitutional governance, and respect for institutional processes.
“We have chosen a path of unity and progress. Our focus now shifts firmly to delivering infrastructure, strengthening economic development, and improving the lives of our people across Bougainville,” he said.
He added that both the National Government and ABG will now work closely to implement the terms of the agreement, ensure transparent funding arrangements, and accelerate development programs throughout the region.
The resolution marks a significant step forward in intergovernmental cooperation and sets a unified platform for addressing Bougainville’s development priorities moving forward.