THE Bills and Legislation Committee has concluded its hearing into the Development Bank of Solomon Islands Bill 2018 yesterday.
This follows a two-day hearing with officials from the ministry of Finance and treasury working group, Legal drafts lady, Central Bank of Solomon Islands, Bank South Pacific and Solomon Islands Women in Business Association.
Other commercial banks like POB, ANZ and Bred Bank however, could not make it to the hearing despite being invited by the BLC.
Chairman of BLC Matthew Wale, MP, suggested to the witnesses that the Bill need amendments on certain clauses therefore his committee will include them in their recommendations on their report.
The object of this Bill is to establish the Development Bank of Solomon Islands, to replace the Development Bank of Solomon Islands. The principal objective of the reform is to develop a legal regime that is in conformity with good governance and banking international best practices, provides transparency and accountability over directions made by the Minister and provides a framework for the general operations of the Bank that is relevant to the country context.
The Bill repeals the Development Bank of Solomon Islands Act (Cap. 50). This legislation did not effectively regulate the operations of that Bank. It did not fully support and enforce the evolving good governance practices in banks, and the Minister’s power to interfere with the operations of the Bank was too broad.
The Bill provides an effective governance platform for the prudent running of the new Bank, including by ensuring transparency and robustness in the selection of Board members and the executive management of the Bank. It also limits the Minister’s power to give directions, and requires all such directions to be reported to Parliament.
The Bill provides a strong framework for a Bank that will facilitate the economic development and independence of Solomon Islands.