President John Momis has today commended Prime Minister Peter O’Neill for the leadership he has shown in seeking to address discrepancies arising from the 2019 National Budget.

Speaking in Port Moresby following their productive meeting, the President said that he welcomed advice from the Prime Minister that the absence of the Restoration and Development Grant from the 2019 Budget Appropriation was an administrative error.

“I thank the Prime Minister for meeting with me and agreeing to the need to urgently rectify the non-payment of the Restoration and Development Grant (RDG) in the 2019 National budget. I take the Prime Minister at his word that this was an administrative oversight that will be fixed”, President Momis said.

The 2019 National Budget saw a cut to recurrent funding for the Autonomous Bougainville Government, along with the absence of the RDG. The RDG is a Constitutionally guaranteed grant provided for the purpose of restoring infrastructure and service delivery within the Region to pre- crisis levels.

“The fact is that the ABG relies on the RDG for essential projects. When we met in December last year, the Prime Minister undertook to address continued budget shortfalls, through the provision of K437 million to be paid through grants and funding to National Government contracts. On the basis of the National Government’s commitment to pay K135 million to the ABG in the 2018 and 2019 budget years, the ABG entered into contracts for major infrastructure projects. A failure by the National Government to fund these commitments will reflect badly on both our Governments”, the President Said.

The Bougainville Peace Agreement contains clear provisions which are reflected in the Constitution regarding funding arrangements and grants. The RDG, which represents a significant part of National Government budget support to Bougainville is needed for critical projects to enhance government service delivery and support in the Region.

“2019 will be a critical year for both Bougainville and the National Government. With the referendum on Bougainville’s long term political future scheduled to take place in June next year, we must ensure that together, we provide the funding and support needed to allow the referendum to take place and for the important work of peace building to continue”, President Momis said.

The President indicated that he was particularly pleased that the Prime Minister had indicated that he would address the K14 million funding shortfall for the referendum and a K12 million shortfall to progress Weapons Disposal initiatives. He noted that as a joint Agreement, both Governments had an obligation to the people of Bougainville to ensure the Bougainville Peace Agreement is implemented to the letter of the law. The President indicated that ABG Minister for Treasury and Finance, the Hon. Robin Wilson will soon be travelling to Port Moresby for meetings with his counterpart to address these critical issues.

“I trust that the Deputy Prime Minister and Minister Wilson will be able to find a solution to this issue very quickly”, the President said.

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