Chief Secretary Joseph Nobetau has today issued a warning to local business houses and lending institutions to beware of Government Officials and individuals seeking to borrow funds to secure outstanding debts from the National Government without authority.

“The Bougainville Public Finance Act is clear. Any loans must be approved through formal channels using the very clear provisions of Section 35 of the Act”, Mr Nobetau said.

During the last session of the Bougainville House of Representatives, President John Momis made it clear that unauthorised borrowings and “back door” negotiations with the National Government must stop. “I am told that officials just last week sought to make a claim [to the National Government] for K15 million for so called outstanding debts related to the peace process. How can we demonstrate to the National Government that we act in good faith when our own officials seek to undermine principles of good governance and best practice?”, President Momis said.

The Chief Secretary has advised that any business house or institution that has lent money to an ABG official (or a person purporting to be an ABG official) for the purpose of securing National Government funds should provide information regarding the debt to the Deputy Chief Secretary for Operations, Mr Peter Nomoreke for further investigation. Whilst making it clear that the ABG would seek to honour legitimate outstanding claims, Chief Secretary Nobetau reinforced the need for due process to be followed and for the business community to ensure that they undertake due diligence and assurance to ensure that any request for funds is both legitimate and lawful.

Any business house or institution with concerns should contact the office of the Deputy Chief Secretary, Operations in the first instance.

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