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Pricing scandal?

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Billions of dollars robbed from SI economy through logging

By Gary Hatigeva

THE Solomon Islands economy is believed to have been robbed billions of dollars through exported logs under prefixed prices outside of international market tags.

The government has been asked by Independent Member of Parliament and Public Accounts Committee member, Matthew Wale, on what it is doing to address the issue of transfer pricing amounting to billions of dollars lost, which he said is continuing unrestricted.

Wale further suggested that the determined price mechanism was used as a tool to legalise the transfer of profits offshore, legitimising the theft of government dues, and the robbing of resource-owners.

Wale in parliament claimed that the determined price mechanism provides legal cover for the theft to be conducted in broad daylight, right in front of everyone and that the level of theft of dues rightfully owing to resource owners and the government are in the billions of dollars.

“We must ask, why is the determined price for logs always lower than the market prices published by our own central bank?

“This difference has averaged at around USD100 to USD180 per cubic metre at various times and there have been quarters that the determined price has been reduced when at the same time the market price was actually rising. How can this possibly be?

“There is no reasonable explanation for this phenomenon and why are the people of Solomon Islands being treated with such contempt by their own leaders of government?

“The government has been so beholden to the logging industry that the industry dictates the price to the government. But the reason for this highly irregular decisions must be more sinister,” he stressed.

He said there is only one word that can accurately describe government in this matter – ‘shame’.

“How can the people’s government advance, protect and defend the criminal interests of the loggers against the interests of the people? And not be ashamed of it?

“On rough estimates based on the 2.6 million cubic metres of logs exported in 2017, based on prices published by the central bank, the government has been robbed of SBD936 million and the resource owners were robbed of SBD561 million, just for the one year 2017.

“So in just the one year 2017, the Solomon Islands economy was deprived of a total of SBDSBD1.497 billion,” Wale claimed.

He said the people of this country can be assured that this robbed money was transferred offshore.

Meanwhile, Wale said imagine the effect that $1.5 billion would have had on the Solomon Islands economy and on the capacity and quality of social services in 2017.

“Instead 2017 was a very difficult year in which clinics lacked basic supplies, if they remained open at all, the NRH suffered basic supplies and equipment and staff over-worked, to say nothing of provincial hospitals.”

He however pointed out that if only the country get the rightful dues, Solomon Islands will not need aid donations that makes it become so vulnerable to foreign interests.

“Then we will be truly independent and can have true meaningful sovereignty to be proud of – not sovereignty in words only.

“On the other hand, export in 2016 was slightly higher than 2.6 million cubic metres, we estimate similar amounts were robbed of landowners and the government in 2016.”

So he further suggested that just for the two years 2016 and 2017, the government was robbed of a total of SBD1.9 billion and landowners were robbed of a total of SBD1.1 billion and the Solomon Islands economy was criminally deprived of a total of SBD3 billion.

He claimed that these values ought to be higher but added that it is unfortunate, loggers are exporting premium natural growth forest declared as cheap wood, such as mixed red and mixed white.

He further claimed that there is obviously collusion between forest rangers, customs and the loggers to allow what he described as criminal practices, to carry on for so many years.

“And nothing is being done to stop it? How much are the resource owners and government losing due to this practice?

“We have no way of know, because government is not interested in finding it out because it may then have to do something about it.”

He said the logging sector’s production appetite is not likely to be tamed soon, even if government has said it wants production to fall to 2 million cubic metres for 2018.

He added that more than 80 percent of logging is re-entry/secondary logging and resource owners do not seem able to resist the temptation of quick and easy money that comes from trees they never planted, and therefore the government must take a policy position so that it is able to properly deal with this as an important matter for the sake of the people and the economy.

Titinge 2 can now walk safer in any weather

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Titinge community members were trained and organized to work on their prioritised access infrastructure

UP in the steep hills of Titinge, a new small access infrastructure subproject was recently completed making daily travels much easier and safer for its users.

The new Jacob’s ladder is the second subproject under the Rapid Employment Project (REP) pilot activities agreed to by the Honiara City Council and the Guadalcanal Province.

It was built by 30 community members from Titinge 2 and Valeato communities who had previously undertaken a one week Life Skills Pre-Employment Training under the Rapid Employment Project in preparation for the implementation of their subproject.

Work started on the 100-metre long Jacob’s ladder on March 6, 2018 and was completed after three weeks on March 28.

Total cost of the subproject came to around $62,000 including labour and materials.

Completion could have come earlier if it were not for several days of heavy rains which interrupted work activities.

The Jacob’s ladder is a big leap from what was once a slippery track especially in the rainy season to an all-weather concrete foot path and ladder.

Philistus Meke said she was able to apply what she had learnt from the Pre-Employment Training about ‘Safety at Work’ such as wearing proper work clothes and how to handle hand tools and now understands how concrete ladders are made.

David Koevania, the group leader said he has picked up skills in ‘form work’, laying down wire mesh and scaffolding for the concrete to run along.

Christina who is a Form 2 student at Mbokona and Stella a Form 1 student said that it was very hard to get up the hill in rainy weather, and one has to find a safe foot rest and use the aid of a stick while going up or down the path.

The Jacob’s ladder has changed all that now for them. It is no longer a tiring job like before and they do not have to take the long way around.

It is also the women and girls who have to do the washing at the Community western top end of the ridge and the Jacob’s ladder has made a big difference in their lives in terms of easy access and time to get to and from the water source.

As of today REP has already completed 49 community access infrastructure subprojects (41 Jacob’s ladders and eight stream crossings/footbridges) around Honiara and in a few communities along its boundary with Guadalcanal Province.

The project’s Rapid Employment Scheme (RES) has now generated nearly 800,000 paid labour days (over half for women) and provided short-term employment to 13,000 people (including 6,900 women) in Honiara since the project began in 2010.

The Pre-Employment Training (PET) has trained about 12,000 participants, and provided one on one coaching services to about 1,700 persons.

REP which is supported by the World Bank shall close by the end of 2018, but preparations to commence with its successor project called Community Access and Urban Services Enhancement (CAUSE) Project are now well underway.

Building on the original parent project (REP), CAUSE will cover Honiara and additional urban and peri-urban locations in Guadalcanal, Malaita, and Western Provinces.

The project has been designed building on REP’s proven track record and the experience of the implementing agencies, HCC and MID, in partnership with GPA, MPA and WPA. World Bank-IDA has initially committed US$15 million in grant funds to finance CAUSE.

–REP MEDIA

RSIPF and stakeholders discuss youth concerns at Honiara Botanical Garden

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THE Royal Solomon Islands Police Force (RSIPF) and other stakeholders met on Thursday, March 29, 2018 at the Rove Headquarters in Honiara to discuss concerns raised regarding the possibility of young people living at the capital’s Botanical Garden and being put at risk.

“RSIPF decided to host the problem-solving workshop aimed at reducing harm at the Honiara Botanical Garden after concerns have been raised regarding the possibility of homeless young people living in the garden and being put at risk,” says Supervising Assistant Commissioner of Police, National Capital and Crime Prevention, Superintendent Solomon Sisimia.

“We were very pleased that representatives from a wide range of organisations were able to attend including the Ministry of Health and Medical Services, Honiara City Council Youth Division, Botanical Gardens, Honiara Youth Council, Oxfam, Salvation Army, Seif Ples, the South Seas Evangelical Church (SSEC) and the Solomon Islands Planned Parenthood Association (SIPPA).

“A key part of our Crime Prevention Strategy is working with a wide range of stakeholders to collaborate and problem solve effectively. That is why it is so good to have such a great turn out at the workshop.

“The workshop used the SARA problem solving approach, which stands for scanning, analysis, response and assessment.

“All stakeholders agreed that accurate data and evidence is needed to help truly understand what the problem is.

“The group has agreed to meet again in the near future to share data and work together to improve the situation.”

Director of the Children Division in the Ministry for Women, Youth and Children, Goldie Lusi says, “It is good for stakeholders to get together and discuss the problem. We now know different organisations are already working on it and now we can help.”

The Honiara City Council Clerk, Charles Kelly says, “I endorse the action with our stakeholders, so that the public are aware of the issues at the Botanical Garden. The Honiara City Council plans to have a project to work with tourism, conservation and lands regarding the Botanical Garden in Honiara.”

–POLICE MEDIA

MAL emphasises local food consumption

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BY LORETTA BRIGIDIA MANELE

THE Ministry of Agriculture and Livestock (MAL) has a policy which promotes local food consumption.

“It’s not only our ministry that is involved in this policy,” MAL Permanent Secretary, Mr Jimi Saelea TOLD Island Sun yesterday about the National Lokol Kaikai Policy.

He said that while the policy is still valid, there are multi-stakeholders who are involved in its implementation including development partners and line ministries.

Moreover, Saelea stated that the policy is basically about addressing the country’s food security.

Additionally, he explained that the policy focusses on areas such as emphasising the importance of growing local food and consuming it, the link between non-communicable diseases (NCDs) and food and the impact of imported food consumption.

“It is about giving emphasis on growing local food and consuming it,” said Saelea.

He furthered that they are reviewing the policy and noted that the review is funded by the Food and Agriculture Organisation (FAO).

Foreigners cheat system: Aihari

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By Mike Puia

DIRECTOR of Foreign Investment Division of the Ministry of Commerce, Industry, Labour and Immigration, Derek Aihari, revealed there are foreigners who cheated the country’s Foreign Investment Act by using locals to run their bus and taxi services.

Aihari said operating a bus and taxi service in the country is under the Act’s reserve list which means the business is meant for locals only.

But, he said it appears some foreigners have “come through in any way” to own and operate buses and taxis.

Aihari said the Act clearly stated that any application from a foreigner to run a bus or taxi service must be automatically rejected by the Registrar of company.

He said they know foreigners who own and run these public transport services are using locals to register their company.

Aihari said the Honiara City Council (HCC) is the body that issue a licence to operate in the city but can issue a licence without knowing the owner of the company.

He said they have been expecting formal report from members of the public of any bus or taxi service operated by any foreigner but until today since 2004, they haven’t got any report of such.

The foreign investment director said members of the public must report to them any issue of foreign ownership of public transport service so they are dealt with using their processes.

Temotu police search for 2 boats with 9 people

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POLICE at Lata in the Temotu province are searching for two boats with nine people on board, reportedly missing since March 30, 2018.

It is alleged that one of the boats, painted light blue with a red cabin powered by a 40 horse power (HP) Yamaha engine with three adult females and two males on board left Reef Islands on March 30, 2018 to travel to Lata, Santa Cruz Island and but have not arrived since then.

Another boat painted white with a blue cabin and powered by a black 40 HP engine, carrying four men all serving public servants, left Lata to travel for the Reef Islands on March 30, 2018. They have not arrived at their destination since then.

Temotu Provincial Police Operation Manager (Ops Manager) Inspector Lily Dagi says, “Officers at Lata and in the Reef Islands have started the search for the missing boats and people after the matter was reported to police at the Lata Police Station yesterday March 31, 2018.

“So far there has been no sighting of the missing boats and people as the search continues.

“The bad weather including continuous rain and rough seas is making the search difficult and I appeal to any travelling vessels or boats to be on the lookout for the missing boats and people.

“I also appeal to coastal communities in Temotu Province to also look out for these missing people and boats and report any sightings through VHF radio to Lata police or may call phone numbers 53023 or the Police free toll 999.

“I want to ask all people in the Temotu Province not to travel at sea during this time of bad weather unless it is absolutely necessary. Please consider your safety first before planning to travel by boat.”

–POLICE MEDIA

 

Police in Malaita investigate land dispute related incident

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POLICE in Malaita province are investigating an incident of alleged threat, damage of property and assault of a man at Bona Village in West Kwaio in the Province on March 31, 2018.

Supervising Provincial Police Commander, Malaita Province, Timothy Apaesi said, “It is alleged a group of about ten people entered Bona Village and threatened the people there, damaged a dwelling house and assaulted a man.

“It is alleged that this happened as after some landowners of Bona set up a roadblock on March 31, 2018 to show their dissatisfaction with the management of the Sumlinsun logging company and the licensee for their lack of commitment in fulfilling some of their promises to the landowners.

“A team of my officers have been deployed to Bona Village to investigate the allegations.

“I appeal to parties involved in the alleged dispute at Bona Village to refrain from any form of violence and I encourage them to participate in peaceful dialogue over the matter,” says Apaesi.

–POLICE MEDIA

Financial fraud warning for Auki residents

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THE Solomon Islands Financial Intelligence Unit (SIFIU) is calling on the general public to immediately stop joining a false financial scheme called Eagle Advertising Resources Network (EARN) currently based in Auki, Malaita province.

This warning comes after concerns from members of the public about the group EARN reached SIFIU office in Honiara, calling for an immediate investigation.

According to SIFIU, the group EARN has a large number of followers located in and around Auki township, with many already investing personal funds of well over $1,000 – $4,000 (ie membership fees).

The investments made are mainly to receive huge promised payouts or bonus payment fees of around $80,000 per member.

SIFIU Director Mr Jimmy Sendersley expressed great concerns about how easy people continue to fall prey to international scammers and to the few local individuals pushing these activities.

“We have learnt that some promised payments to EARN members have already lapsed their dates; these are all just false promises.

“Once again our people are becoming victims to such money scams and I must remind everyone to stop investing your hard earned personal savings and money into any of these types of get-rich quick schemes.

“Anything of this nature that sounds too good to be true, especially on receiving huge financial rewards for very little investments must be carefully considered before your money is thrown away.”

Sendersley highlighted that according to their investigations, Eagle Advertising Resources Network (EARN) in Auki is simply another false financial scheme.

He added that people in Malaita Province and other parts of the country must be careful and their warning is serious. SIFIU was able to identify clear red flags indicating EARN as generally operating as a Ponzi scheme and is part of an international fraud programme that has made slight changes to its modus operandi (ways to convince people to become members).

“If you want more information or advice please do not hesitate to call our unit on 21791,” Sendersley advised.

“We must continue to assist each other and share these information and advice, and further help stop such pyramid and Ponzi schemes from abroad, coming into the country to rip off our good people from their hard earned money.”

–CBSI PRESS

Auki alerted on expired goods

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BY SAMIE WAIKORI

Auki

MALAITA provincial health authority has been called on to check for expired goods in shops in Auki town.

The appeal comes following a number of expired items (goods) found in the shops which are on the shelves – on sale.

A resident in Auki told this paper yesterday that there are lots of shops in Auki selling expired goods.

He said it is a common issue with most shops and if nothing happens to stop it the practice will continue.

“What I want to say here is this attitude only tells the shops never care about the quality of the goods they sell for their customers.

“What evidently seen here is money, and that’s the motive behind their continue sell of expire goods in the shops.

“So I think it’s time for provincial health authority or whoever responsible to do what they can to stop the practice,” the person said.

He urged the authority to check the shops and run a schedule to do regular checks on the shops.

The person said it’s through ideas of setting-up regular checks that will ensure shops will be free from expired goods.

He said people deserve quality food service and the goods sold in the shops must guarantee their health.

Gov’t reminded to protect list of reserved businesses

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By Gary Hatigeva

THOUGH very little attention is shown in their $4billion Budget, the Solomon Islands government has been reminded to ensure the list of reserved businesses set aside for local Solomon Islanders is protected and closely monitored.

This reminder first came out from the Public Accounts Committee (PAC) last week, but was reiterated by most of the committee members including the Chairman and MP for East Honiara, Douglas Ete, and PAC member also Chairman of the Bills and Legislative Committee (BLC) and MP for Aoke/Langalanga, Matthew Wale.

Other PAC members including opposition and independent MPs have also shared similar sentiments on this issue, but the two chairs were more outspoken on the issue even up to their contributions into the debates of the Appropriation Bill 2018, which is currently underway in Parliament.

They have repeatedly been putting strong reminders to the government for what they describe as a scary pressure placed on the Indigenous Solomon Islanders who are continuously being suppressed of even the only avenues set out for them to participate in the local economy.

Yesterday, Mr Wale blasted the government again on the issue, reiterating worries in the high acceptance of foreigners now venturing into small scale business operations, which includes running small retail canteens/shops and other businesses set out in the reserved list.

Meanwhile, during the course of the PAC hearing, the BLC Chairman questioned officials from the Ministry of Commerce and Labour over the establishment of retail shops and small scale restaurants by a group of Bangladesh nationals who are evidently operating on the outskirts of Honiara.

Questions were also raised as to whether the responsible authorities are closely monitoring these establishments and if their operations and involvement in various businesses that are understandably in the reserved list, are actually in line with relevant regulations and laws governing these matters.

But PAC was also told that a good number of businesses set aside for the Solomon Islands people continue to witness gaps and little participation.

Director of the Investment Unit explained that the ministry was with the intention to increase the number of businesses in the reserved list, but clarified that the lack of active participation and activities in the reserved businesses does not justify the need for an expanded list.

However, the Aoke/Langalanga MP rubbished the analysis and said the government should create the stimulus for locals to start up in conjunction to his earlier call for the recognition to create job opportunities for locals.

He stressed that local Solomon Islanders are just as capable as those foreigners that come in from thousands of miles away just to establish retail operations.

He said the only issue faced by the indigenous people is the will power and establishment mechanisms, which includes access to capitals and other related matters.

Wale therefore suggested and called on the government to see that issues as such are budgeted for and ensure that what they talked about is translated down to the people governments oath to serve.

He added that if jobs are not enough, then the government steps up to create job opportunities, and if there is little participation from its people in the economy, the government should also step up and create the empowering and establishment opportunities.

“This is what empowering should be and the support we talked too much about,” the BLC Chair and Aoke/Langalanga MP emphasised.