BY SAMIE WAIKORI

Temotu province will soon establish a sub-national sister relationship with China’s Hunan province.

Stanley Tehiahua, Temotu Province’s Premier made the announcement at the province’s recent 42nd Second Appointed Day celebration in Lata, Temotu.

“I am pleased to officially announce that Hunan province in the Republic of China will become our sister province.

“The formal signing of the sister relationship agreement is under way. Once finalized, the relationship will allow us to explore specific areas of mutual cooperation, including education, trade and technology,” he said.

Most recently, the Solomon Island’s Polynesian province of Rennel Bellona through the national government has officially signed a Letter of Intent (LOI) with Hainan province of China.

The LOI was a step-away in the process to formally establish the sister-relationship between the two provinces.

The Rennell Bellona provincial government reported that MOU to formally forge this historic sub-national relationship will be signed later this year.

Since the two provinces began their path towards this sister relationship, China through its embassy office in Honiara, Solomon Islands has been supporting Rennell Bellona province with livelihood items on several occasions.  

In April 2024, the most populated province in the country – Malaita province signed a cooperative MOU with Jiangsu province in China formally establishing a sister relationship between both provinces.

The sister relationship has since been enhanced with mutual cooperation, contributing to win-win outcomes in important areas such as infrastructure, education, agriculture and livelihoods.     

The sister relationship plays key roles in the cooperation between Solomon Islands government, China and Malaita provincial government in the PRC funded Auki Road project that is currently being implemented.

Still under the cooperation, half of the 160 Solomon Islanders who were offered Chinese scholarship to study in China are from Malaita province.

Malaita province has so far, received livelihood items donated by Jiangsu province through Chinese Embassy office in Honiara worth more than one million dollars.

The PRC’s (People’s Republic of China) relationship with Malaita province, according to PRC’s Ambassador to Solomon Islands, His Excellency Cai Weiming, is a vivid example of China’s relationship with Solomon Islands.

Other provinces in Solomon Islands have also established relationships with provinces in China, while others are in the process of establishing similar sub-national cooperations.

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BY BEN BILUA

WORLD Bank says countries in the Pacific including Solomon Islands must strengthen their economic resilience by building fiscal buffers to better withstand growing global shocks.

Speaking on the current state of the global economy, Ekaterine Vashakmadze, World Bank’s senior economist for East Asia and the Pacific region, said heightened policy uncertainty is significantly impacting economic confidence and trade outlooks worldwide.

“The global economy is facing significant challenges driven by heightened policy uncertainty.

“In early 2025, global economic policy uncertainty surged, further weighing on investor confidence and global trade,” she said.

Vashakmadze noted that the Pacific region is particularly vulnerable and is projected to experience a sharper economic slowdown than previously forecast.

She attributed the economic shock to global pressures and the diminishing effects of post-pandemic recovery efforts.

Vashakmadze emphasised the need for Pacific nations to prioritize structural reforms and resilience-building strategies.

“To stay on course toward development goals, Pacific countries could benefit from reinforcing resilience and accelerating structural reforms to unlock untapped workforce potential,” she said.

Vashakmadze highlighted that a robust private sector is essential for driving productivity and long-term growth in the region.

“One approach that would help countries become economically resilient is to support the private sector to increase productivity.

“A strong private sector will definitely lead to a productive economy,” she said.

The World Bank’s call comes amid growing concerns that small island economies, such as Solomon Islands, may struggle to respond effectively to external shocks without stronger fiscal safeguards and more diversified economic strategies.

Vashakmadze’s remarks serve as a timely reminder for policymakers across the Pacific to focus on sustainable economic reforms that not only address immediate challenges but also lay the foundation for long-term resilience.

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World Bank report shows Solomon Islands in the green zone, the only country in the Pacific not at high risk of debt distress

BEN BILUA

Solomon Islands’ debt is in the green zone, meaning our debts are not burdening our economy.

The World Bank Fiscal Outcomes and Public Debt report shows Solomon Islands is bouncing back with a low debt distress record.

The report shows Solomon Islands gradually improving its public debt since 2023 and recorded an all-time-low debt in 2024.

The report shows five countries in the pacific that remain at a high risk of debt distress.

Speaking during World Bank’s Pacific Economic Update yesterday, World Bank country economist Lodewijk Smets said World Bank and IMF analyse countries’ debt levels and projection to determine the average debt and whether the debt levels are sustainable.

He said Solomon Islands is the first and only country in the Pacific with low risk.

Smets added that Solomon Islands is sustainably managing its debt so there is an opportunity to make investments.

“Aid dependency is high in the pacific and it is important to focus on aid effectiveness.

“Paris Declaration on aid effectiveness is an important document that establishes certain principles how to deliver aid and make sure aid dollar is well spent.

“Countries need to own aid programmes, focus on results and harmonise aid investments.

“This is the opportunity to address your development challenges,” he said.

Smets said it is important that Solomon Islands sustains its debts as the situation can fluctuate and change the debt level.

On the other hand, World Bank’s Senior Economist, Ekaterine Vashakmadze said having a huge aid programme is good if its effective and contribute to potential growth.

She strongly emphasised that grant and aid deliver result.

“Bottom line is transparency and accountability,” Vashakmadze said.

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BY BEN BILUA

Eight months have passed since the Auditor General’s Office released the Economic Stimulus Package Report and still no arrests have been made in connection to the controversial and widely criticized funding.

It is obvious that authorities have failed to take significant action against those responsible despite clear evidence pointing to the involvement of multiple institutions and individuals.

The lack of accountability has left many questioning the integrity of the process and the effectiveness of the ongoing investigations.

According to Section 7.2 of the ESP Auditor General’s Report, the mismanagement of the ESP Fund involved numerous committees and individuals who were tasked with overseeing the allocation of funds.

The report outlined that the ESP Oversight Committee, a body set up by the cabinet to manage the fund’s implementation, was chaired by prominent figure within the Ministry of Finance – a clear directive to kick off the investigation.

Other key figures include Officer within the Prime Minister’s Office, Officer at the Ministry of Commerce, Industry, Labour and Immigration as well as the Cabinet Office.

The report named title holders who should be questioned about the allegations of financial mismanagement, fraud and other irregularities as stated in the report but it is saddening to see the Royal Solomon Islands Police Force remain silent about the issue.

Among the most troubling revelations in the report is the fact that government officers allegedly signed off substantial cash cheques some exceeding $1 million for beneficiaries without any documentary evidence confirming that these beneficiaries actually received the funds.

Critics argue that the failure to take action is not just a failure of law enforcement but a systemic issue involving multiple layers within government.  

It remains to be seen whether the police will take meaningful steps toward holding those responsible for the mismanagement of the ESP Fund accountable or the public will wait for answers and for justice that will never be served.

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