-KFPL queries fund government promised under ESP in 2020
-KFPL mentioned by the-PM Sogavare in his 2020 speech to launch ESP
-KFPL missing in recipients listed in Auditor General’s ESP Report 2024
BY JOHN HOUANIHAU
The Kolombangara Forest Products Ltd (KFPL) has said it is still waiting for the $5 million government had promised under the economic stimulus package (ESP) in 2020.
This was revealed to the Opposition group when it visited KFPL last week under the office’s civic awareness programme to the Western province.
Former Prime Minister Manasseh Sogavare had named KFPL as being earmarked to receive support under the ESP in his speech to launch the fund on May 4, 2020. Sogavare did not state any particular amount to be allocated to KFPL.
However, in the Auditor General’s ESP Report 2024, KFPL was missing.
KFPL pleaded with the Opposition Group to probe government over the missing $5 million (ESP) when the group visited the company’s site on Thursday last week, a statement from the Opposition last week said.
“KFPL was announced as a recipient, but we never received that promise,” KFPL told Opposition.
“We would like to raise this so that you (Opposition) can ask on our behalf what happened to the promise or whether someone has already received it on our behalf.”
KFPL also informed Opposition that despite operations being very tough lately, KFPL has continued to provide revenue to the government and meet community obligations.
In his speech to launch the ESP on May 4, 2020, then-PM Sogavare said that KFPL would be supported under a segment of the ESP called the Immediate Recovery Measures 2 (IRM 2).
$75 million was allocated for the IRM 2. And, KFPL was listed as one of companies to be supported, although no figure was given in Sogavare’s speech to say how much KFPL would receive.
“This component [IRM 2] of the package proposes equity injection into government owned or partly owned companies to enable them keep afloat and keep supporting the economy,” Sogavare said in his speech.
“Other privately owned large companies will also be assisted by way of export credit or other liquidity support through the banking system to maintain production and employment.
“These enterprises are important players and taxpayers in the economy. This measure is a combination of direct grant and concessional finance and a total of SBD75 million is allocated towards this initiative. The breakdown of the proposed measure are: Solomon Airlines – $20 million (Grant and Concessional loan); Soltuna – $5 million; Support will also be provided to KFPL; Solomon Water – $5 million (Grant); DBSI – $20 million (Capital); CEMA – $2 million (Grant).”
In the ESP Report published by the Auditor General’s office on October 3, 2024, the same companies were listed as receiving funding, but KFPL was missing.
Under the Report’s ‘Part 9 – ESP distributions, 9.1 Payments to SOEs and DBSI’: Solomon Water – $5 million (Grant), CEMA -$2 million (Grant), Soltuna – $5 million, Solomon Airlines – $20 million (Grant and Concessional loan), and DBSI – $20 million (Capital).
Another area KFPL could have been paid under but missed was the grant for productive and resources sector.
This allocation saw a total of $135 million paid out, either through the Treasury corporate services imprest account, to constituency offices or directly to businesses.
Meanwhile, Opposition said during its visit to KFPL, the company appealed for government to be fair.
“The company’s tax exemptions have been removed, and we are also concerned with the unreasonable increase in license fees. The Government should be fair to everyone. KFPL has always supported schools, police, teachers and Churches when the Government cannot do so,” KFPL told the opposition group.
KFPL also informed the Opposition of the incidents of Malaysian loggers trying to enter KFPL land and attempting to carry out illegal activities, the statement said.
“The government must respect KFPL’s FTE,” KFPL told the Opposition.
The statement said Leader of Opposition, Matthew Wale acknowledged KFPL’s concerns and said he would bring these issues to the responsible stakeholders in Government.
KFPL is the country’s largest sustainable managed Forestry Company. It had been in operation since 1989 and has approximately 200 full-time staff and 1,800 contractors, one of the biggest private sector employers in the country, the opposition statement said.
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