Momis blames PNG Govt’s bureaucracy for failing to meet financial obligations as agreed

 THE President of the Autonomous Region of Bougainville Dr John Momis has accused the national government’s bureaucracy of failing to meet Papua New Guinea’s financial obligations to the region as spelt out in the Bougainville Peace Agreement and the Organic Law on Peace Building in Bougainville-Autonomous Bougainville Government and Bougainville Referendum 2002.
Dr Momis was referring to current autonomy arrangements for taxation under which PNG’s tax authority, the Internal Revenue Commission (IRC) is expected to collect and remit taxes and duties to the ABG.
He observed that this may be due to the IRC’s “lack of internal capacity to meet its current obligations”, causing the ABG to consider instituting changes to the region’s internal “taxation revenue arrangements under autonomy”, with the view of establishing a complete “stand alone revenue collection system with its own taxation office to take full control of taxation in Bougainville. This would involve complete separation from PNG's tax system”. 
Dr Momis further stated that the IRC had failed to collect an estimated K20 million in taxes from Bougainville’s cocoa and copra industries, including failure to account for personal income tax from Bougainville employees of businesses and national government enterprises.
He said that the ABG has yet to receive remittance of seven years worth of stamp duty collections for all Bougainville transactions dating back to 2005, as well as company tax, customs duties and 70% of GST collections from businesses in Bougainville.
He said that since the ABG does not have the expertise to “properly audit and analyze the accuracy of IRC accounting and administrative systems”, professional assistance from outside the region will be sought to determine whether Bougainville was receiving its full revenue entitlement.
Dr Momis said the ABG was also concerned with the National Fisheries Authority’s inability to conclude a Memorandum of Understanding which would see transfer of fisheries functions and powers to the Bougainville government. This failure would have financial and fisheries revenue implications for the ABG.
“This is a matter affecting not only the autonomy arrangements but also one with implications for the economic and fiscal sustainability of Bougainville”, Dr Momis said. 
He said that although the ABG was encouraged by the renewed political interactions with the national government, greater cooperation and commitment at the senior bureaucratic level was needed in Bougainville’s the path to autonomy and referendum.
Dr Momis was speaking at the Joint Supervisory Body meeting in Kokopo earlier this week.


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