THE Solomon Islands National Provident Board has purchased a new $60 million bond issued by the Government on Tuesday, December 22, 2020 within the framework of an emerging secondary market for government debts.

The Central Bank of Solomon Islands (CBSI) has commenced what initially can be seen as the beginnings of a secondary market for government debts, where holders of government debts can sell their assets to Central Bank of Solomon Islands.

The CBSI has also approached other SIG debt holders.

The purchase immediately followed the sale of the Fund’s recently purchased covid19 $60M Development Bond to the Central Bank of Solomon Islands (CBSI) on December 21, 2020.  The Bond that was sold to the CBSI was purchased by the SINPF Board in June 2020.

The $60 million proceeds from the sale of the bond were used to purchase the new bond.

Prior to the sale, the SINPF Board received its $1.5 million six months interest on December 21, 2020, before selling.

The new negotiated 10-year bond was issued by the government on the same terms and conditions as the previous bond:

1. face value of $60 million;
2. coupon rate of five percent pa;
3. grace period of three years where interest only of $1.5M to be paid after every six months; and
4. amortised principal and interest of $ 5,786,714.29 to be paid half yearly following the three years grace period.

The Fund’s current investment exposure to Government remains at $210 million representing just under six percent of the Fund’s investments portfolio.

The Board has an upper limit of 15 percent with a 10 percent target for government investments.

The new bond ensures that the Fund continues to receive an attractive annual five percent interest income as previously enjoyed by members of the Fund under the earlier bond, whilst the government will use the proceeds of the bond to finance its key priorities to keep the country’s economic engine going.

–NPF PRESS

POLICE have arrested and charged three foreigners for prohibition of entry of non-citizens under the SOPE regulation.

Commissioner of Police Mostyn Mangau says the three foreigners had entered travelling in two separate yachts together earlier this month and were seen anchored at Baralau Island, Aola, east Guadalcanal.

“According to information received both yachts departed from Denarau port in Fiji on November 18, 2020 and arrived in Solomon Islands, December 1, 2020,” Mangau said.

“The matter was reported to police and Patrol boat Gizo was sent to escort the two foreign yachts,” he added.

“Upon arrival of the yachts, Immigration, Customs and Police conducted a joint search after a thorough clearance done by Health authorities.

“The crews were quarantined prior to their arrest.

“Concerning their entry, there was no application received by the Oversight Committee from the yachts and there was no permission given.

“I would like to thank officers from Immigration, Customs and Health for their tremendous support to Police in the initial investigation of the yachts’ illegal entry. 

“I also wish to thank Officers of National Criminal Investigation Department (NCID) for their hard work in ensuring the matter is before courts.

“I believe the same support will continue in the near future should there be any similar incident of this nature occurs.”

The suspects were remanded at Rove Correctional Services of Solomon Islands (CSSI) as of December 23, 2020 for further ruling on bail application until yesterday.

–POLICE MEDIA

THE Leader of Opposition, Matthew Wale, has labelled the Sino Capital logging company saga a can of worms, now that the lid has been opened, there is no telling what worms will crawl out.

Mr Wale has described the explanation by the forestry office as totally unacceptable.

“Firstly, who is the officer that made this statement on behalf of the forestry ministry? These kinds of defensive statements lead the public to lose trust in government to protect the interests of indigenous Solomon Islanders,” says Wale.

Further, Wale has called for a publication of all the lands covered by the Sino Capital felling license, so that landholding groups can verify whether proper timber rights processes were in fact carried out prior to the license being issued.

“Documents revealing that Kuma, the Finance Minister approved tax remissions to Sino Capital is the latest of these worms to crawl out of this rotten can. The media are right to question the wisdom and integrity of this decision, given the current dire government cash flows and the record of non-compliance by Sino Capital with tax laws since 2010.

“A serial non-complaint tax-payer, who has deliberately neglected over many years to pay Guadalcanal province for a business license for logging operations on lands for which timber rights hearings were not conducted, is given tax remission by the Finance Minister – how are Solomon Islanders supposed to view such a decision?

“It appears this is a company that flouts the laws of the country and gets away with it, because it enjoys the protection of key leaders in government. Of course the other side to this question is – what do the owner and company do to enjoy such close protection by the government?

“The public knows that the owner of Sino Capital, who is also the Chairman of Pan Oceanic Bank (POB) is a supporter of key politicians and the government. This very close relationship and these kinds of decisions are grounds for concern by the people of Solomon Islands,” the Opposition Leader added.

–OPPOSITION PRESS

Solomon Islands government receives World Bank support for covid-19

THE Ministry of Finance and Treasury (MOFT), the Ministry of Health and Medical Services (MHMS) and the World Bank (WB) have concluded negotiations on a WB funded project worth USD 5 million (over SBD40 million) to support Solomon Island covid-19 ongoing preparedness and current response.

The project components and activities under each component are designed to support critical gaps identified through the 2020 Consolidated National Preparedness and Response Plan for Covid-19.

Sealed on Tuesday this week, the project will complement activities that have already been committed by other development partners including the Australian government through the Department of Foreign Affairs and Trade (DFAT), World Health Organisation (WHO), UNICEF and the Asian Development Bank (ADB). The project coverage will be national in scale and will also include specific support to selected provinces.

WB Task Team Leader for the project, Mr Netsanet Walelign Workie who is based in Washington, said that the Bank was ready to support the country with its covid-19 preparedness and response efforts.

“We are pleased to assist the Solomon Islands Government in their sustained efforts to respond to the covid-19 pandemic.

“Solomon Islands is among few countries that were covid-19 free for long since the first positive case was confirmed in early October the government managed effective quarantine and tracking system to keep the cases low.

“As we speak all covid-19, cases are imported with no community transmission and no death. This is remarkable.”

Meanwhile MOFT Permanent Secretary Mr Dentana McKinnie highlighted “the Ministry of Finance is very pleased to have co-led with the Ministry of Health the successful negotiations with the World Bank on the project and very much looking forward towards the implementation of the project that is geared towards enhancing health’s capacity and capability to tackle COVID-19. In the long run it will preserve and improve the health of our people”.

He explained that for our country’s economy that is characterized, as labor intensive, it is critical that we continue to ensure that the health of our population is well protected, preserved and enhanced.

“As such thank you World Bank for the provision of funds and looking forward towards continued cooperation with the Ministry of Health in the implementation of the project.”

MHMS Permanent Secretary Mrs Pauline McNeil also echoed similar sentiments in acknowledging WB for provision of funds towards the project while highlighting that the project will further bolster our ongoing preparedness and current responses to COVID-19, as well as ensure that the country continuous with routine services and its commitment towards Universal Health Coverage (UHC).

“While most development assistance received was in preparedness and response to COVID-19, these investments also contributed to long-term health system strengthening initiatives that further advanced our goals towards UHC. So therefore, the Ministry is not only just preparing and responding to the current pandemic, but simultaneously we were also strengthening our health system. This funding support is yet another milestone in this regard.”

Permanent Secretary McNeil also revealed that the facility will also assist the Ministry towards the nation-wide rollout of the Covid-19 Vaccine in 2021.

Project implementation is proposed for early January 2021 once the Christmas and New Year holidays are over. A project management unit will be mobilized and established within the Ministry to ensure the successful implementation of the WB supported project”.

–MHMS PRESS

The negotiation team led by PS-MOFT and PS-Health holding the signed and agreed Project Appraisal Document.