Government to review its scholarship scheme, 50 percent to study in country as of next year
THE Ministry of Education and Human Resource will review the Solomon Islands Government Scholarship Scheme.
This may mean a huge cut to the number of students sent to study abroad.
Speaking during his visit to students at the University of South Pacific (USP), Laucala campus last week, Minister of Education and Human Resources John Dean Kuku said there will be a reduction to the number of students going to USP and other institutions in the region.
He said the formal and more acceptable approach to reduce students’ financial crisis while studying abroad is to reduce the number of students.
He said the new approach will begin next year, 2020 with more than 50 percent of scholarships to be in-country.
On the same note, Kuku said the government is serious about the establishment of proper facilities for the USP fourth campus in Solomon Islands.
“My visit here is to discuss with USP to pave way for the establishment of fourth campus in the Solomon Islands.
“There are certain interests that emerge in the proposed plan but the government’s position on the forth university is very clear and that is to build the much waiting campus this year.
“We need to help our own institution, we must prepare our own institution to provide better tertiary learning in our country,” he said.
Kuku stressed that the construction of the fourth campus will take time and the government sees it fit for groundwork to begin this year.
“We will not sit, listen and watch but move on so that our local institutions are given equal importance as any other institution in the region,” he said.
Kuku highlights that cooperation between academics and the government is crucial in making sure the fourth campus comes into fruition.
DCGA to release its first 100-days in office programme tomorrow
By Alfred Sasako
THE election of a new Governor General is expected to top the “TO-DO” list the Democratic Coalition Government for Advancement (DCGA) plans to implement in its first 100 days in Office.
Details of the to-do list will be announced tomorrow.
Government sources told Island Sun on Wednesday the hunt is now on for someone to replace the incumbent, Sir Frank Kabui, whose five-year tenure ends on July 7 this year.
Sources have also confirmed that the eye is now firmly on Isabel Province for a new Head of State. Isabel Province has identified at least three prominent individuals, including a retired Bishop and a former Member of Parliament for the job.
Isabel Province’s three current Members of Parliament are reportedly split on the choice for a Governor General as each of the three potential candidates is also from the three constituencies.
“The fact that each MP would want to align his Constituency with the new Head of State is going to make things a little tough for the MPs,” one man said.
It is understood the three Isabel candidates said to be vying for the job are former Archbishop and current Principal of Selwyn College, David Vunagi, former MP Clement Rojumana and retired Bishop Richard Naramana who founded the Honiara-based and successful Varivao Holdings Ltd, a company that is leading in the export of food crops such as cassava to Australia.
Bishop Naramana’s credentials include being head of a group which is completing the idea of establishing Senior Secondary School with just Forms 6 and 7.
Insiders told Island Sun the choice of Isabel for the top job is in line with the understanding that every province be given a turn in occupying the top job.
Solomon Islands has produced six Governors General since independence in 1978. The first was the late Sir Baddeley Devesi who hailed from Guadalcanal Province, followed by Sir George Lepping from Western Province. He too had passed on.
Sir Moses Pitakaka from Choiseul Province followed. He too had since died.
There are three living Governors General. They are Sir John Ini Lapli of Temotu Province, Sir Nathaniel Waena of Makira/Ulawa Province and Sir Frank Kabui of Malaita Province.
Should Isabel Province get the gong this year, two Provinces – Central and Renbel – will await their turns over the next 20 years.
Meanwhile it was disclosed yesterday that the release on Friday of the ‘To Do’ list in the first 100-day in Office is a prelude to the main DCGA Policy document, being launched at the end of June.
Insiders said consultants have been engaged on a two-month contract to translate the main document in time for its launch at the end of June – two months after the DCGA assumed office under Prime Minister Sogavare’s leadership.
Australian Prime Minister Scott Morrison. PHOTO - AFP.
By EDDIE OSIFELO
Australian Prime Minister Scott Morrison. PHOTO – AFP.
THE visit of Australia Prime Minister, Scott Morrison to Honiara this Sunday is timely after his re-election last week.
A senior officer in the Ministry of Foreign Affairs and External Trade said he thinks the visit is a timely one considering Australia just had an election just like Solomon Islands.
“We have become one of Australia’s important friends and so a visit to Solomon Islands as first foreign visit is a semblance of the importance/significance of our relationship.
“A good sign for us and we must play it strategically for mutual benefits,” the official said.
However, Australia media claim Morrison’s first visit to the Solomon Islands comes at the back of China growing influence in the country.
United States of America do not want to see China exerts its influence in the Pacific.
Solomon Islands has a strong diplomatic tie with Republic of China (Taiwan) since 1983.
However, two blocks within the government, Malaita and Guadalcanal members urged Prime Minister Manasseh Sogavare to sever its relation with Taiwan and switch to China.
They gave a six months ultimatum for Sogavare to meet their demands or face a motion of no confidence.
However, senior officer in the Ministry of Foreign Affairs and External Trade thinks the media is driving the China/Taiwan issue.
The official said even if the issue will be discussed with the Australia Prime Minister, the choice will always be with Solomon Islands.
“Friends can only share thoughts.
“Our strategic importance will be the drawcard for a visit apart from important cooperation programmes that we have,” official said.
Australia is the largest provider of Official Development Assistance (ODA) to Solomon Islands, providing almost two thirds of overseas aid in 2016-17.
In 2019-20, total Australian ODA to Solomon Islands will be an estimated $174.4 million. Of this, Department of Foreign Affairs and Trade (DFAT) will manage an estimated $122.3 million in bilateral funding.
–Queens Counsel Matthews to represent government MPs in petition cases
-Fee ranges from $17,000 to $28,000 per hour
-Opposition MPs to find their own lawyers
By EDDIE OSIFELO
QUEENS Counsel, Timothy Matthews from Brisbane, Australia will represent the 18 members of Parliament in the government who are facing petition in the High Court, it is reported.
The other 10 MPs who are also facing petition are members of the Opposition and Independent Group, therefore they will engage their own private lawyers.
A total of 28 of the 50 members in Parliament are facing petition.
And, the million-dollar question is “who is going to foot the bill of QC Matthews in the petition cases?”
Island Sun understands the estimated cost of the QC Matthews is around $17,000 ($3000 AUD) to $28, 450 ($5000 AUD) per hour.
A lawyer who wishes to remain anonymous said it is not right for the government to foot the bills of the government MPs because they were contesting as candidates during the election.
“If the government is going to foot the bills, then it is the tax payers’ money that will be paid to the QC.
“This is really unfair,” the lawyer said.
Further to that, the lawyer said it shows the government does not trust the local qualified lawyers in the country which led to it engaging QC Matthews.
The Attorney General Chambers earlier said its lawyers will represent the 28 Returning Officers in the petition cases filed against the Members of Parliament.
Currently there are 15 to 16 lawyers working in the AG Chambers.
A officer in the AG Chamber said they will have to spread the lawyers to represent the ROs because of the big number of cases before the High Court.
“We will only represent the ROs because the MPs are just candidates during the election.
“The MPs will need to find their own lawyers to represent them in the petition cases,” the officer said.
Under the Electoral Act 2018, an election petition can be filed by an elector to the constituency, to which the petition relates, or a candidate for the election in the constituency.
Such a petition must be filed within 30 days after the results of the election are published under Section 7 of the Electoral Act 2018.
The Act also states that the Courts must decide a petition within 12 months after it is filed.
So it means petition will be held between May 2019 to May 2020.
The petitions will test the efficacy of the new Act.
Aside from losing one’s seat, there are serious penalties for major offences such as election bribery and fraudulent voting.
The penalties include up to 15 years imprisonment and/or fines of over $155,990 ( $US19,000) as well as an automatic five-year ban on voting or standing in elections.
Lesser offences such as providing misleading information can still land offenders in jail for five years and possibly steep fines.
SOLOMON Islands will welcome Australian Prime Minister Scott Morrison next week in Honiara after his re-election last week.
His visit comes as a faction in the government involving Malaita and Guadalcanal Members of Parliament are urging Prime Minister Manasseh Sogavare to switch to Mainland China, leaving its traditional ally, Republic of China (Taiwan) behind.
The blocks believe China is the only solution to build infrastructure projects in their provinces to address the high unemployment of youths.
They thought the long standing relationship with Taiwan since 1983 only address constituencies’ needs and fuels the ‘dependency syndrome’ through the Constituency Development Funds (CDFs).
However, Prime Minister Sogavare said the government will still maintain its diplomatic relationship with Taiwan, whilst maintain the foreign policy of ‘Friends to All and Enemy to None’.
According to Colin Packham of Reuters, Australian Prime Minister Scott Morrison will visit the Solomon Islands next week, two sources familiar with the plans said on Monday, as Western nations seek to rein in China’s influence on the tiny Pacific island. With the United States and its allies keen to ensure China does not increase its foothold in the Pacific, protecting diplomatic recognition for self-ruled Taiwan has emerged as a flashpoint in regional ties.
“China is the Solomon Islands’ largest trading partner and this is adding a lot of pressure on lawmakers to switch allegiances,” said Jonathan Pryke, Pacific Islands programme director at the think-tank, the Lowy Institute.
The Solomon Islands is one of a handful of Pacific countries to recognise Taiwan, a policy now in question after recent elections. China views as Taiwan as a renegade province with no right to state-to-state ties.
On Friday, a senior U.S. official said Washington would help Pacific countries in the face of China’s attempts to influence them.
Those remarks threaten to inflame tension between the U.S. and China already heated by their trade war, U.S. sanctions and China’s increasingly muscular military posture in the South China Sea.
Morrison’s first overseas trip since winning re-election this month will also be the first time an Australian prime minister has visited the Solomon Islands since 2008.
SOFT POWER
Australia and China have been vying for influence in sparsely populated Pacific island countries that control vast swathes of resource-rich oceans.
Keen to undercut China’s Belt and Road Initiative, Australia has directed ever larger amounts of its foreign aid to the region.
In 2018, Australia said it would spend $139 million to develop undersea internet cable links to Papua New Guinea and the Solomon Islands, amid national security concerns about China’s Huawei Technologies Co Ltd.
That year, Australia became the first country to ban the world’s largest maker of telecom network gear from its nascent broadband network, a step the United States followed this year by effectively banning U.S. firms from doing business with Huawei.
In November, Australia offered Pacific countries up to A$3 billion in grants and cheap loans in build infrastructure, as Morrison declared the region was “our patch”.
Australia has won favour through its spending commitments but its support of its dominant coal industry is a sore point for many in the region. “There is little doubt that many Pacific islands will have been unhappy with the re-election of Morrison,” said Peter Chen, a political science professor at the University of Sydney. “He will need to find common ground to repair that relationship.”
THE country’s economy is projected to experience a slow growth of 3.7 percent in 2019 says CBSI’s 2018 Annual Report.
This slow growth is said to reflect the key assumption that forestry will finally decelerate as part of the government’s forestry sustainability initiatives.
All the more, growth during this year is said to be driven by the services sector, especially wholesale retail and transport that is related to the major pipeline projects.
Other activities such as major construction, manufacturing and that of new mineral production in the secondary sector and fisheries in the primary sector will also contribute to this growth.
CBSI also highlighted that the government needs to address structural issues to mitigate the economy’s long term risks and vulnerabilities.
In this regard, on the monetary front, CBSI stressed that slower credit could hinder growth and would need remedial policy actions such as proper and efficient registration of collateral and corresponding support by government to targeted credit sectors.
Non-price impediments such as within the fuel distribution sector is also in the view to be managed to minimise it systematic impact on inflation.
As for the forestry sector, CBSI said the realisation of a drawdown of the sector can mean growth for other productive sectors.
Meanwhile, this scenario as expressed also presents a challenge where the fall in forestry revenue necessitates more fiscal discipline to ensure that government’s budget remains affordable and sustainable.
CBSI expects that the government undertake an expansionary fiscal stance, as it cements itself to carry out is new projects.
“Due to the rebuilding of the fiscal buffers during 2018 and timing constraints to fully implement its activities, a fiscal surplus balance is anticipated for 2019,” said CBSI.
DESPITE denials and accusation of misleading reporting, there is evidence the Commissioner of Forests, Reeves Moveni, has been misled by subordinates and others into signing a felling licence without timber rights hearing, a special investigation by Island Sun has uncovered.
The investigation also points to the alleged involvement of a company called ES Suba Enterprises Ltd, a company whose close relatives hold key positions in the Ministry of Forest and Research.
The Ministry of Forest and Research last week denied there was anything wrong going on and accused Island Sun of misleading reporting.
But our continuing investigation has also found that Deputy Commissioner, Fred Pitisopa, used statutory powers which he may not have to issue a felling licence while he was supervising Commissioner of Forests.
“By law, an officer in a supervising role does not have the statutory powers to do something that only the Commissioner is allowed by law to do. A supervising officer may have administrative powers, but that does not necessary mean the administrative powers translate or extend to statutory powers,” an observer told Island Sun.
The case in question began in June last year. It involved a former Choiseul Provincial Government Minister for Forest, who allegedly told a senior licensing officer in the Ministry of Forest and Research that all was now in order for a felling licence to be issued for the Subavalu Customary Land in South Choiseul.
The felling licence was subsequently issued in September, four months later, according to documents obtained by Island Sun.
Commissioner Moveni who at the time was traveling to Germany signed off on the Form B, authorising the issuance of the felling licence, Licence No. A10185, before he left on the overseas trip, unaware that no timber rights hearing had taken place.
The senior licensing officer appears to have deliberately withheld the information on timber rights hearings from the Commissioner. By law Timber Rights Hearings are mandatory and a prerequisite requirement to a felling licence being granted.
The five-year licence took effect from 14th September 2018. It is over the Subavalu Customary Land, South Choiseul in Choiseul Province.
“The Commissioner was obviously misled by his subordinates to endorse the issuance of the licence by signing off on the Form B. His subordinates knew full well there were no timber rights hearings but told the Commissioner that everything was in order and that he should sign off on the Form B. He did,”
The Commissioner is said to be very angry after he found out that the licence was issued without a timber rights hearings. It is not clear whether he has taken action to revoke the licence.
The case is one of many which involved many players in the forestry industry, including the Attorney General’s Chambers.
Take for example, High Court Civil Case (HCCC) 246 of 2018. The Attorney General’s Chambers reportedly released all the funds kept in a trust account in accordance with a seizure notice issued by the Commissioner of Forest.
These funds included royalties, according to those familiar with the case.
What the Attorney General’s Chambers overlooked is the fact that there was a pending case, HCCC 246 of 2018 from which the seizure notice was based.
So while the Commissioner of Forest has done the right by referring the matter to the Attorney General’s Chambers for counsel or advice, the Attorney General’s Chambers has erred by ignoring HCCC 246 of 2018.
For by releasing the funds from the Seizure Notice vide HCCC 148 of 2019 Consent judgement, HCCC 246 of 2018 was still pending. It does seem that the action by the Attorney General’s Chambers is in fact in contempt of an Interim Ex-Parte Court Order dated 31st July 2018.
Island Sun has obtained a copy of the Ex-Parte Order.
The Island Sun investigation has also established that the Commissioner of Forests and the Attorney General’s Chambers have been knowingly misled by a Philip Bavare, a former Choiseul Province Minister of Forest, on the Babatana House of Chiefs’ decision.
A spokesman said there was a Varisi House of Chiefs decision in favour of Billy Tudubatu, the customary landowner who initiated the HCCC 246 of 2018.
“But a leading law firm representing Mr Bavare wrote to the Varisi House of Chiefs to prevent its hearings intended to determine the ownership of Kubangava Customary Land.
“This is wrong. The law firm does not have any power over the Varisi House of Chiefs,” the spokesman said, adding the action of the law firm is tantamount to intimidation and or coercion.
The spokesman explained that the Kubangava Customary Land is situated in the Varisi House of Chiefs’ jurisdiction and not within the Babatana House of Chiefs’ jurisdiction.
“As such Babatana House of Chiefs does not have the powers to decide Kubangava Customary Land matters, including the issue of land ownership,” he said.
The spokesman said Mr Tudubatu had appealed the decision by the Babatana House of Chiefs and the hearing began in the Customary Land Appeal’s Court (CLAC) in Gizo yesterday.
He also pointed out that there was “no timber rights” covering Kubangava Customary Land.
“Definitely, some of those logs have come from Kubangava Customary Land. In this regard the Commissioner of Forest must exercise caution not to be in contempt of (the) Interim Ex-Parte Court Order dated 31 July 2018.
“What we are doing here is merely reporting these matters for the attention of the Commissioner and not to challenge his authority. We will continue to do this as we believe law-abiding individuals must help the Commissioner in carrying out his difficult job,” the spokesman said.
Prime Minister of Solomon Islands Manasseh Sogavare and Australia’s Prime Minister Scott Morrison.
Australia’s miracle man Prime Minister Scomo to meet Solomon Islands’ own miracle Prime Minister Manasseh Sogavare
By Alfred Sasako
AUSTRALIAN Prime Minister, dubbed Scomo (Scott Morrison) the miracle politician who against all odds won a resounding victory at the recent election, will visit Honiara on Sunday.
The visit, reported on the front page of The Australian newspaper, is being seen as an extension of Washington’s fight to keep China out of the Pacific.
It is Mr Morrison’s first overseas visit after his re-election, which has been described as a miracle as the victory went against poll predictions which suggested the Australian Labor Party (ALP) was going to win.
The Australian newspaper said the stop-over visit was motivated by China’s attempt to persuade Solomon Islands to sever its ties with Taiwan and warnings by the United States that Chinese interference in the Pacific is leading to “the possibility of conflict.”
Prime Minister Morrison is on his way to London for the 75th anniversary of the D-Day landings.
His meeting with Minister Manasseh Sogavare on Sunday is expected to cover the One China policy. Mr Morrison is also expected to inform his Solomon Islands’ counterpart that Australia and the United States are against Solomon Islands recognising Mainland China.
The Sogavare Government remains divided on the China-Taiwan issue. There are indications that many in government are supporting the move to sever ties with Taiwan. They are working from within to make the change happen.
The pressure from within was so intense, Taiwanese Ambassador to Solomon Islands reportedly ended up in hospital in Honiara over the issue. He later left for Taipei on special leave.
Prime Minister Morrison may have a hard time convincing the Government about the One China policy since Canberra and Washington have offered no alternative in terms of economic development in Solomon Islands.
Nevertheless, the visit to Honiara fulfills a promise of a fresh focus on the country’s Pacific “step up”. Since his re-election Prime Minister Morrison has appointed his closest ally and numbers man Alex Hawke to lead a frontbench ministry focused on the Pacific region.
CBSI staff from left, David Ereai, Evance Neusia, Angeline Bataánasia, Uriel Matanani,Sandy Iro, Lain Aquillah and Paula Dofai proudly display the copy of the report.
By EDDIE OSIFELO
CBSI staff from left, David Ereai, Evance Neusia, Angeline Bataánasia, Uriel Matanani,Sandy Iro, Lain Aquillah and Paula Dofai proudly display the copy of the report.
CENTRAL Bank of Solomon Islands (CBSI) has projected that the Solomon Islands economy to grow by 3.7 percent in 2019. This is a slight drop from 3.9 percent witnessed in 2018.
Speaking during the launching of the CBSI 2018 Annual Report, Governor Denton Rarawa said this moderation in growth reflects the key assumption that forestry will finally decelerate as part of the government’s new policy to achieve sustainability in the forestry sector.
Nevertheless, Rarawa said the growth is expected to be driven by the transportation and construction sectors, related to major infrastructure projects, the onset of mineral production, wholesale retail, manufacturing and fisheries.
“Over the medium term, the economy is expected to grow by an average 4.5 percent.
“This is expected to come from positive spill over from projects such as the submarine cable, Tina Hydro, the Pacific Games and projected robust outcomes in mining,” he said.
In the meantime, Solomon Islands economy witnessed another successful year in 2018.
Rarawa said this result was driven mainly by favourable performance in the services sector, particularly from wholesale retail, transport and financial services.
He said the positive outcomes in the primary and secondary sectors (mainly forestry and fisheries) and (construction and manufacturing) also contributed to this growth.
“Performance in all key export commodities, with the exception of copra, were positive.
“Round logs grew by three percent to 2.7 million cubic metres last year, the highest level of production on record,” he said.
Rarawa said labour conditions expanded during the year.
“Based on Solomon Islands National Provident Fund (SINPF) data as a proxy employment indicator show an increase of seven percent to more than 58,000 active contributors.
“Staffing levels in the public sector rose by two percent to over 17,000 employees,” he said.
Rarawa said there was also a pickup in both the locally based work force and seasonal workers in Australia and New Zealand.
Further to that, consumer prize pressures rose in 2018.
Rarawa said headline inflation reached 4.2 percent in December against 1.8 percent at the end of 2017.
“This rate was within the Bank’s forecasted range and was driven by stronger supply side domestic inflation, along with the rise in imported prices.
“Categories responsible for the spike in consumer prices during the year were education, transportation, food, and alcohol and tobacco,” he added.
Rarawa said external conditions remained firm during the year.
He said despite a reduction in the trade surplus, improved investment income and tourism receipts narrowed the current account deficit.
“As a result, the country’s gross foreign reserves increased by 10 percent to $5 billion.
“This level of reserves was sufficient to cover nearly 13 months of imports and is well above the CBSI’s precautionary import cover threshold of six months,” he said.
Rarawa said developments in the monetary sector also point to sustained growth.
He said broad money rose by seven percent to $5.2 billion due to increase in both net foreign assets and private sector credit.
“Lending by banks to the private sector grew by 4 percent to $2.4 billion during the year.
“Major borrowing industries were construction, distribution, transportation and manufacturing,” he said.
Rarawa said nonetheless, interest rate margins remained high at around 10.5 percent.
Meanwhile, liquidity levels in the banking system continued to accumulate, rising by 14 percent to $2.2 billion and was largely driven by the growth in net exports.
He said excess liquidity remained high, although they believe it is not inflationary, particularly in view of the much lower credit growth and the supply side nature of inflation in the country.
“With respect to government’s finances, 2018 was a positive year.
“The fiscal position returned to an estimated surplus of $191 million after two successive years of deficits, reflecting considerable fiscal consolidation.
“Revenue in particular rose on strong collection from tax and trade related duties, while total expenditures only grew marginally, amidst a reduction in development spending,” he said.
Meanwhile, government debt increased moderately and remained at around 11 percent of Gross Domestic Product.
The theme for the event is ‘Setting the foundation for robust, broad based and inclusive growth’.
Governor of Central Bank of Solomon Islands Denton Rarawa.
BY EDDIE OSIFELO
Governor of Central Bank of Solomon Islands Denton Rarawa.
CENTRAL Bank of Solomon Islands (CBSI) has made an operating profit of $84 million last year from investment income and growth in other incomes.
Speaking at CBSI 2018 Annual Report in Honiara on Monday, Governor Denton Rarawa said this is more than double profit of $30 million in 2017.
He said the net assets position of the balance sheet also increased to $149 million at the end of 2018 up from $45 million in 2017.
“In terms of its investments, CBSI strategically invested portions of the foreign reserves in secure asset portfolios overseas to generate income and sustain the reserves.
“Improved financial market conditions and favourable deposit rates, particularly in the United States contributed to the surge in interest income to $86 million from $49 million in 2017,” he said.
The Bank had also strengthened its governance with the appointment of three new directors to take it to a full complement of nine board members.
The Bank total number of staff increased by four percent to 159 in 2018.
Rarawa said there were some important currency developments during the year.
He said in July, the Bank launched the commemorative $40 note and a coloured $2 coin to celebrate the country’s 40th Anniversary of Independence.
In August, a new $5 polymer note was endorsed.
Rarawa said the bank plans to progressively update its suit of notes as part of a currency reform process that started in 2010.
He said these are aimed in part, to enhance the security of the notes and to reflect changes in the economy.
