The National Court yesterday issued interim orders restraining Bougainville regional member Peter Tsiamalili Jr, the Bougainville Regional Government, and the secretaries of PNG’s departments of Finance, and Treasury from accessing national grants intended for the Autonomous Bougainville Government.
Justice Collin Makail made the orders following an urgent application by the ABG and its secretary, Joshua Tauko, yesterday morning in Port Moresby.
A further order was made against the Bank South Pacific Group Limited restraining Mr Tsiamalili Jnr and the Bougainville Regional government, including their servants, and agents or anyone “from conducting any transactions on the Bougainville Infrastructure Development Account or any trust account operated by them (Tsiamalili Jnr and regional government)”.
Law firm Jema Lawyers, representing the ABG, told the court through its lawyers Donald Kints and Elijah Wembri, that the Bougainville Infrastructure Development Account holds national grants meant for the Autonomous Bougainville Government.
The lawyers said that although both the ABG and the Bougainville Regional Government serve the same people, a 2019 resolution by the Joint Supervisory Body (JSB) had clearly stated that the PNG Government would provide K100 million annually in national grants directly to the ABG.
This was from the “The Prime Minister’s Commitment” for Bougainville under the Restoration and Development Grant provisions of the Organic Law on Peace Building in Bougainville-Autonomous Bougainville Government and Bougainville Referendum 2002.
This was part of PNG’s commitment to supporting Bougainville’s progress toward full independence.
However, the lawyers said MP Tsiamalili Jr had acted outside this agreement, assuming independent control over portions of the funding by placing them into a trust account that he operates and controls.
The ABG claimed that around K125 million for the years 2023 and 2024 were not given to them but diverted by Mr Tsiamalili Jnr into the trust account; K50 million in 2023 and K75 million in 2024.
Justice Makail noted that the serious issue to be determined at the full hearing is whether Mr Tsiamalili Jnr, as a regional member, had the authority to redirect national grants allocated to the ABG into another trust account.
“This is a substantial amount of money moved around which is detrimental to the plaintiff’s (ABG) operations,” he said.
“There is a serious question to be tried as the grants have legislative basis and were not monies that came out of a something like a contract agreement.”
The defendants listed were Mr Tsiamalili Jnr, Bougainville regional government, Finance Secretary Samuel Penias, Treasury Secretary Adrew Oaeke and the Independent State of PNG.
The matter was heard in the absence of the defendants due to its urgency, after the ABG’s lawyers informed the court that the alleged unauthorised transfers were ongoing.
The restraining orders were expected to be served on the defendants shortly after the hearing.
The matter returns to court next month for a full hearing where all parties are expected to present their arguments.