The autonomous Papua New Guinea region of Bougainville is close to legal action against the national government in Port Moresby for its failure to fulfil funding commitments.
Bougainville's president John Momis said the region is owed at least US$33 million dollars from the recurrent unconditional grant and more than US$200 million under the Restoration and Development Grant set up by the Peace Agreement.
The money situation is so poor that the Bougainville government struggles to its meet day-to- day expenses.
Mr Momis said he is prepared to follow through on a threat of legal action if Port Moresby doesn't fulfil its obligations.
"We are having a meeting on the 15th -[of February] and I have said if nothing positive comes out of that meeting we will have no choice but to take legal action."