GOVERNOR-General David Tiva Kapu has emphasized the need for the country to address social issues stemming from high unemployment rates.
In his New Year’s message last week, Kapu pointed out that the country’s large unemployment problem is largely due to the high number of school dropouts and graduates struggling to find meaningful employment.
He stressed the importance of providing young people with trade skills and helping them develop a positive outlook on life.
The Governor-General also expressed gratitude to the governments of Australia, New Zealand, and Canada for their support through initiatives such as the Labour Mobility Scheme, which has provided employment opportunities to thousands of Solomon Islanders.
“This support has helped offer employment to thousands of our men and women,” he added.
SCHOOLS in Honiara are gearing up for the 2025 academic year, set to begin in less than two weeks.
Among these schools is Saint Nicholas Anglican College, which started student registration for kindy, primary, and secondary on Tuesday.
School Principal (Secondary), Jon Patteson confirmed that registration would run for two weeks.
He specifically urged the new Form one intakes, to come forward for registration as soon as possible
“We are expecting all the form ones to come and register now that the results have been released last year,” he said.
However, Patteson noted that registration turnout has been slower than expected.
“Turnout of registration for yesterday and today is okay and is not that crowded. Probably parents are still looking for funds and some are yet to travel back from the islands,” he explained.
Patteson indicated that registration numbers are likely to increase in the coming days, particularly with the expected release of the national exam results next week.
While the school has seen increased interest in transfer, Patterson emphasized that the priority for now would be given to continuing and new students.
“Current students and new intakes must show their interest and come forward for registration,” he urged.
Meanwhile, Bishop Epalle Catholic School is also preparing for the new academic year. Principal Sam Alley confirmed that teachers have been recalled this week in preparation for registration, which will take place from January 15th -17th.
Honiara High School has also confirmed that registration will occur next week.
All three schools will officially commence the academic year on Monday, January 20th, which has been specified by the Ministry of Education and Human Resources Development (MEHRD).
A Silver Fruit Dove bird species was discovered within the Nasi Land Resources Conservation site in West Are’are Malaita province.
This was according to Solomon Island Ranger Association Program Manager Edward Haikau Huitarau.
“Local rangers of Nasi recently found a bird species called Silver Fruit Dove. This bird species scientifically known as Ptilinopus superbus was found within the riparian buffer zone of Nasi Land Resources Conservation Foundation (NLRCF),’’ he said.
He said that the male Dove has a colourful body with a purple crown orange nape and shoulders.
He said that the NLRCF rangers are voluntarily doing good work already as far as conservation is concerned for them.
“Thus, I believe once we’ve carried out a full species baseline survey within the terrestrial forest and along the streams it will add several specimens to the bird collection, but utilising this as the sample collected was important for such a new conservation site,’’ he said.
He said that the exciting thing about the sighting was the fact that it was never thought that Nasi could host this sort of beautiful species as it was not regularly sighted.
“This now opens the possibility for further baseline surveys that would pave the way for further study.
“In going forward, there are many ways to expose children to the ideas of wildlife protection and here is one of the few suggestions; that is by way of actively engaging children at the appropriate age to discuss threats to birds and wildlife and their environment in terms of deforestation, habitat destruction and human impact on the environment, for example,’’ he said.
He said that the NLRCF rangers are raising young children to become conservationists who protect wildlife by actively engaging children.
Japan International Cooperation Agency (JICA) welcomed six new volunteers who arrived in Honiara yesterday under the Japan Overseas Cooperation Volunteers program (JOVC).
JICA Solomon Islands Program Officer James Niaseka said the six volunteers will begin their assignment at various organisations next month, on the 3rd, for two years after undertaking various briefings, Pijin language training, and cultural lessons for three weeks in Honiara.
He said the six volunteers are Mr Kanto Yamashita who will be assigned to SIFF as a coach, Ms. Ayame Yoshida will serve as a teacher at St John School and Ms. Yumeno Fujii who will be assigned to work with Isabel Provincial Government Environment and Climate Change office.
He said that Ms. Hitomi Sugihara, a nurse will be assigned to Buala Hospital while Mr Kazuki Mizuhara a teacher by profession will be assigned to Auki Primary School in Malaita province and Ms. Sugihara a nurse will be assigned to Helena Goldie Hospital in Munda Western province.
He said that the JOVC program is one of Japan’s technical cooperation schemes operated as part of JICA’s Official Development Assistance (ODA).
He said that the program dispatches eager Japanese citizens who wish to participate in assisting developing countries and also has called for assistance from their governments.
He said that this reflects the commitment of the JICA Solomon Islands to focus not only in Honiara but also within the provinces.
The recent mission of the Solomon Islands People First Party (SIPFP) to Beijing, China was an investment mission and not a move to destroy the Government for National Unity and Transformation (GNUT).
This is according to SIPFP Mission’s team leader, Minister for Agriculture (MAL) Franklyn Wasi when he responded to Alfred Sasako’s ‘IN FOR THE KILL’ article on this week’s Monday Solomon Star front page.
According to the article, SIPFP was on the move to destroy GNUT with a secret visit to China soon after the withdrawal of MONC and sought to establish links with China and business leaders in case the GNUT leadership collapsed.
“Our trip was to meet with investors regarding the oil palm development in Vella La Vella,’’ Wasi told Island Sun on Tuesday via phone interview.
“For your information, this oil palm development is for North and South Vella La Vella. It is located in the Oula Basin. So, the team I led included myself, the Minister for Provincial Government, the Minister for Aviation, the Minister of Justice, the MP for Marovo, and the MP for Vonunu Rence Sore.
“The Vella La Vella oil palm development is one of the policy priorities of GNUT for the MAL. We went there to meet with the investors. We signed an MoU with them. The next step is for me to present the cabinet paper to the cabinet to form the parliamentary subcommittee and task force to spearhead this project,” said Wasi.
Wasi said that Sasako’s mention that the PM was not aware of their trip is false and misleading.
“We used our diplomatic passport to leave the country and have the permit from Prime Minister Jeremiah Manele for me to lead the team Beijin China,” he said.
He said that he was surprised at how Sasako wrote about something he knew nothing about.
“Claiming that we want to down GNUT. I don’t know who gives him the information he gives out to people.
Mr Wasi also presented the revised, finalised draft cabinet memorandum copy and paste in Cabinet Memorandum format for the Minister’s presentation.
The document presented to Island Sun showed that the SIPFP Investment Mission met with three Chinese State-Owned Enterprises: China Enterprise Reform and Development Society, China National Agriculture Development Company Limited, and Shanghai Wiheng Construction Engineering Company Limited.
The document also showed after the fruitful discussion a Memorandum of Outcome was signed between the Solomon Islands Government, represented by the Minister for Agriculture and Livestock, and Shanghai Wiheng Construction Engineering Company Limited.
It adds that the MOU stipulates the responsibilities of (1) the Solomon Islands Government, (2) Shanghai Wiheng Construction Engineering Company Limited, and (3) Joint Responsibilities of both parties to the Understanding.
According to the document the cabinet, therefore, is requested to note the Memorandum on Oula Basin Oil Palm Development Project, endorse the Memorandum on Oula Basin Oil Palm Development Project, approve the Establishment of Sub-Committee on Oula Basin Oil Palm Development Project, approve the establishment of Task-Force on Oula Basin Oil Palm Development Project.
Tax exemptions for Solomon Islands’ investors is set to have an improved mechanism of accountability and transparency.
In an exclusive interview with Island Sun yesterday, Minister for Finance and Treasury, Manasseh Sogavare, announced new measures aimed at improving the decision-making process for tax exemptions granted to investors in the Solomon Islands.
Sogavare emphasized the need for stricter monitoring and accountability, following concerns over the use of tax exemptions.
The Minister revealed that he has issued a comprehensive 16-page set of instructions to the Exemption Committee, outlining how they should assist him in making informed decisions regarding exemptions.
“All the fixing will be coming here, under the new instructions we have given them,” Sogavare said.
“This is a full 16-page instruction to improve the way the minister is assisted in making these decisions. They must continue to monitor exemptions.”
Sogavare made it clear that if the Exemption Committee fails to carry out its responsibilities effectively, he will take action.
“If they are not doing their job, I can move and slash off the exemptions granted,” he warned.
The Minister stressed that tax exemptions are a form of indirect budgetary assistance to investors, and the government holds a serious responsibility to ensure these exemptions are being properly utilized.
“There’s nothing wrong with the government assisting investors in this country. Nothing wrong whatsoever,” Sogavare stated.
“Anyone who complains about this, you’re probably living up in the moon. You don’t know what’s happening in this country.”
Sogavare also expressed frustration with those who have criticized the government’s policies on exemptions, especially those who may not fully understand the government’s stance on supporting investment.
“These ministers, and people who put out these demands, don’t even know the policy of their government. The GNUT government is here to support investors,” he said.
The Minister’s comments come amid mounting debate about the government’s practice of granting tax exemptions to foreign investors, including a recent case leaked in social media this week where Xiao’s Henderson Hotel Ltd, a Chinese developer, received more than $15.2 million in exemptions.
The exemptions have sparked discussions about the fairness and transparency of such policies, as well as concerns about the long-term implications for public revenue.
Despite the criticisms, Sogavare remained firm in his stance that supporting investors is critical to the country’s economic development.
He reiterated the government’s commitment to fostering a favorable environment for investment and emphasized the role of the Exemption Committee in ensuring that the country’s resources are being used effectively.
“We are here to support investors. I am really upset and concerned about the people who came up with this issue and criticize the government to cause political instability.” Sogavare said.
THE 2025 Solomon Islands Government (SIG) Scholarship results are expected to be released next week, according to the Solomon Islands Tertiary Education and Skills Authority (SITESA).
Director of the National Scholarship Division of SITESA, John Iromea told Island Sun that the selection committee is finalizing candidates.
“…the selection committee is finalizing the results with the help of other government agencies, assisting in the verification and confirmation of the shortlisted applicants.,” he said.
“As soon as the verification and confirmation processes are done, the Minister (MEHRD) will endorse the final listings and release of the results,” Iromea added.
Initially planned to be released by the end of December 2024, the director said the delay was due to technical issues.
“The key reason for the slight delay was technical issues, including dysfunctional PCs that affected some assessors during the assessment process,” Iromea explained.
“It took almost two weeks to fix and replace those dysfunctional PCs and hard drives. These unexpected circumstances led to a slight delay in the assessment and selection processes,” he added.
In a Public Accounts Committee (PAC) sitting last year, PAC Chair Gordon Darcy Lilo voiced the committee’s frustration over the persistent delays and suggested improvements to the administrative workforce
He also called for an efficient system that aligns scholarship announcements with the academic calendar.
Finance Minister Sogavare says exemptions will be, things of the past after 2026.
Speaking exclusively to Island Sun yesterday, the Minister for Finance and Treasury outlined the government’s ongoing efforts to reform the taxation system in the Solomon Islands.
Sogavare emphasized the importance of supporting strategic sectors such as tourism and the role tax exemptions play in facilitating investments in these sectors.
According to Sogavare, the country’s current tax system is severely lacking.
“Our tax system is grossly deficient and structurally the worst tax system in all countries worldwide. That’s why we are undertaking a serious and major reform of the government’s taxation system,” he said.
Sogavare also highlighted the government’s plan for comprehensive tax reform set to take place in 2026.
“After 2026, all of these outdated taxes will be eliminated. There will be no more goods tax, We will be introducing a value-added tax (VAT), and tax exemptions will be a thing of the past,” he revealed.
The finance minister stated that tax exemptions are currently an essential tool for making the tax system more equitable for investors.
“The only way to make the tax system fair for investors in this country is to grant tax exemptions. This is the basis on which these exemptions are granted,” he explained.
However, he acknowledged the need for reform to ensure long-term sustainability and fairness in the tax system.
Sogavare also addressed the concerns about accountability in the process, assuring that there is a robust monitoring mechanism in place to oversee the use of tax exemptions.
“There is a checking mechanism in place. It’s not all wrong. We have continuous monitoring to ensure that exemptions are being used correctly and benefit the country as a whole,” he said.
This interview comes amid growing criticisms regarding the government’s tax policies, particularly the recent granting of over $15.2 million in tax exemptions to Xiao’s Henderson Hotel Ltd, a Chinese hotel developer.
While the exemptions have sparked controversy, Minister Sogavare defended the policy as necessary to encourage investment in critical sectors, particularly tourism.
-Government grants zero-duty for Chinese business importing hardware materials to build hotel
-Finance Minister Sogavare defends decision saying GNUT is following policy to boost tourism
BY IRWIN ANGIKI & NED GAGAHE
More than $15 million in tax exemption has been given to a Chinese business, documents leaked to media on Tuesday this week show.
Two 100-percent tax exemption instruments signed by Finance Minister Manasseh Sogavare exempted Xiao’s Henderson Hotel Limited from a total duty cost of $15,265,619.79.
One for $9,487,014.66 and the other for $5,778,605.13.
Both documents were issued on July 31, 2024, valid for six months and taking effect on the date of issuance and expiring on January 31, 2025.
Finance Minister Sogavare, in an interview with Island Sun yesterday said the exemptions were government’s support to the development of the country’s tourism since the company was proposing to build a hotel.
“Exemptions are same as government direct assistance. It is indirect budgetary assistance to the investor. For that reason government has a serious responsibility to make sure that the recipient of exemptions properly use the exemptions.
“There’s nothing wrong with government assisting investors in this country.”
This is in line with the Government for National Unity and Transformation (GNUT) policies, Mr Sogavare said.
Sogavare adds that he has made three statements regarding tax exemptions last year following revelations by the Opposition of tax exemptions worth nearly $200 million and that he stands by them.
It is understood Xiao’s Henderson Hotel Limited (XHHL) is currently building its hotel on an area in Henderson, east of Honiara. The project has reportedly not met hotel requirements to have a swimming pool and bar.
Company Haus records show XHHL has a sole director, XIAO You Qiang, with total shareholdings owned by Xiao’s Hardware Company Limited, a separately registered retail and wholesale business solely owned by Mr Xiao, who hails from Guangdong, China.
Public records also contain Xiao’s Solomon Islands passport which was issued on October 20, 2014, and expired on October 20, 2024.
Xiao could not be reached for comment.
In defending this case of tax exemption, Finance Minister Sogavare said XHHL genuinely needed the exemption from the country’s harsh tax system in order to invest here.
“That group (XHHL) applied for exemption for equipping the Henderson Hotel they plan to build. They are investors in this country and have been spending money in this country. And with the country’s tax system of this country which is really killing it, it is not helpful.
“And as I explained in parliament, when we have a system that requires intervention by tax authority it is a tax system that is really structurally deficient, we’ll still have this kind of people that request tax exemptions because tax is really killing them.
“And they are investing money into this country in strategic sectors. And Xiao’s (XHHL) is investing in a very strategic sector fulfilling GNUT government’s policy of tourism, which we support the development of tourism sector.”
Sogavare said XHHL’s planned hotel will boost tourism by providing more accommodation for tourists, which government anticipates will increase following the direct and visa-free flight agreement with China.
“This is connected directly to government’s effort to open direct flights from China. And the minister of tourism is moving ahead to get more tourists into the country. We’re running out of beds, do not have enough beds in this country for tourists coming in. If tourists flood in from China, as a result of direct flights, we can reach a stage which people say we don’t go to Solomon Islands because they don’t have enough beds there although there is so much to see in this country.”
Sogavare said that XHHL was initially given only 50 percent exemption by the Tax Exemption Committee, which he later set at 100 percent after the company appealed.
“The committee granted 50 percent with no justification whatsoever. There’s two aspects to exemptions. One is the qualification to be granted exemption. This outlines if the applicant is investing in sectors which government is advancing national interests in.
“Once they qualify they move to the next stage where the committee will look into. Before I came in they were giving and recommending 100 percent exemptions here and there. When I came, I told them to review their recommendations. So, yes the buck stops with the minister, but he has to be properly advised on the reason why applicants are to be given a 100 percent or 50 percent.
“They appealed to me as minister, which is the normal process when investors are not satisfied with the exemption committee’s decision – they appeal to me as minister. So, when that happens I need all the information in order to make a decision.
“When they appealed to me there was no information from the exemption committee, which placed me in a very serious situation in which I could not make a decision either way, whether to uphold it, the committee’s decision, or review it.
“So, I fell back to the general policy of the government to assist the tourism sector in the country. And, they (XHHL) qualify 100 percent. They’ve been spending their money and they come back to me and say your committee has given us 50 percent only, but we cannot equip our hotel investment. Can you consider granting us 100 percent? That’s the information I had. I did not have any information from the committee. They failed miserably. So what else can I do? I have to believe our investor.”
Sogavare also refuted rumours that he had connections with XHHL.
“I do not have any connection with Xiao’s, I don’t know who they are. Some implication that I am connected with these people so they bribe me. I am insulted by those baseless implication. I have been in politics for 28 years and my reputation and character are very important to me. Receiving bribes is something outside how I run my politics.”
The finance minister reassured public that there is a mechanism in place to monitor and make sure investors given tax exemptions do not breach government’s conditions.
“There is a check mechanism. It is not all wrong. There is a managing and monitor system is ongoing. The investors will not utilise the full amount. As they import it triggers this monitoring system, and if they don’t comply, I as minister can revoke their exemption.”
Last year Opposition criticised government for granting nearly $200 million in tax exemptions to individuals and companies over nine months from January to September.
Opposition Leader Matthew Wale described this as ‘outrageous and reckless’.
The Opposition exposed some cases, which include two exemptions to Wan Chen Company totalling $29.3 million.
Wan Chen Company is owned by Harry Chen who also operates Goodwood Wharf, TBC Hardware Ltd and Injoy Restaurant.
Opposition also revealed that $30 million of tax exemptions were given to Lee Kwok Kuen, Anthony Veke, Nature Motel, and Wan Chen Company.
Sogavare following these revelations organised a press conference [Sunday, November 10] to rebut Opposition’s revelations.
Sogavare labelled Opposition’s revelations as misleading and defended the tax exemptions saying the practice was intended to boost critical infrastructure projects necessary for the country’s development.
But, Wale said there were no reasonable grounds, given the current precarious cash flow problem in government, for the Minister of Finance to award these exemptions.
He described Sogavare’s press conference as a cover up of the whole truth.
Meanwhile, the materials and equipment listed under the tax exemptions for XHHL include:
‘Deformed bars, round bars, cements, tire wire, foam seal plywoods, ceramic tiles; culture stones, vinyl tiles, fibro, PVC materials, Masonite, floor mesh wire, plaster board, base coat, cornic cement, top coat, tile fix, tile grout, exhaust pan, vinyl flooring, louvre glass, louvre frame, air conditionings, floor carpet, door closer, single and double door, roller gate, bare channel fittings, sprung roof, ceiling pan, single switches, double switches, power box, electrical adaptors, PVC conduits, PVC reducer squares, neutral link single pole switches, electrical fittings, paint brushes, PVC fittings, 2 unit mixer truck, 3 unit mixer machines, square tubes plumbing items, cables, electrical items, temporary external lift machine, 1000 set scaffold (interior s exterior), set iron scaffold stand 6800 pieces and building materials.’
Sustainable growth is vital for the country; for its wealth and GDP says former finance minister, Harry Kuma.
The minister for the Ministry of Commerce, Industry, Labour and Immigration (MCILI) voiced this at the Sine Die Motion in parliament on Thursday 19th Dec, last year.
He said from his perspective, there are four aspects to ensure sustainable flow of revenue for the government and sustainable growth in our country and economy.
Kuma said the first is diversifying our economy by not depending on any single sector.
He stated that the second aspect is having quality infrastructure, pointing out that this is very important.
Kuma said thirdly, is human capital development and under this aspect we have to develop our expertise and skills.
He added that these expertise and skills are needed to support growth of our private sector to support the delivery of government resources, to be innovative and to be able to create growth and a sustainable environment.
Kuma said the fourth aspect is that growth must be sustainable.
“These are four features I believe we should work on so we can transform our country to be better and sustainable”
