Court extends injunction over disputed Bougainville funds

The National Court in Waigani this afternoon extended an injunction stopping the release or use of funds allocated to the Autonomous Bougainville Government [ABG], while legal proceedings continue over control and disbursement of those funds.

The injunction, initially issued ex parte on 24 April 2025, was extended by the court following arguments presented by both parties. The plaintiffs - the ABG and its representatives- claim that large portions of the K100 million budgeted for Bougainville in both 2023 and 2024 were withheld and placed into a trust account managed by the defendants: Bougainville Regional Member Peter Tsiamalili Jr, the Secretary for Finance, and the State.

The court found that there is a credible legal question over who has rightful control over the allocated funds.

According to the ruling, “I am satisfied that there is a serious question to be tried, raised in this proceeding,” said Justice Makail this afternoon.

The court also noted concerns that the funds could be dissipated or used up before the trial concludes, stating, “To preserve the status quo, the injunction will continue.”

Documents before the court showed that in 2023, K100 million was appropriated to the ABG, with only K50 million released, and another K50 million placed in trust. In 2024, again K100 million was allocated, but only K25 million was reportedly released to the ABG.

The plaintiffs argued that all funds should have been paid directly to the ABG under Section 106 of the Bougainville Constitution and the Bougainville Peace and Restoration Agreement.

The defendants sought to dismiss the proceedings entirely this afternoon, arguing that the case was bound to fail and that no serious legal question existed. However, the court rejected that motion, ruling that “the plaintiffs have demonstrated that these funds were part of the restoration grants under Section 106 of the Bougainville Constitution.”

Objections raised by the third and fourth defendants regarding procedural technicalities and authorization to bring the case were also dismissed. The court found no constitutional or legal breach in how the proceedings were initiated, and said those arguments did not warrant striking out the case.

As part of its orders, the court directed that all parties file any further affidavits by Friday, 27 June 2025, and submit amended notices by Friday, 4 July 2025.

The trial has been scheduled for Wednesday, 9 July 2025, at 1:30 pm.

The ruling keeps the injunction in force, effectively freezing the disputed funds.