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”
“We should support the Mamara development initiative because it is not only for my constituency but for the nation as well.”
Francis Sade, minister for the Ministry of Public Service made the call in parliament on the second day of the Sine Die Motion, Thursday, December 19, 2024.
He said what is essential for this initiative is that they must also involve people, landowners particularly as partners in the development at Mamara.
Sade explained that this is because by not doing so they will still have issues such as landowners continuing to claim their rights when development progresses.
He mentioned that as a member of the council in the last 5 years, he remembers that a number of development initiatives that were to be rolled out were challenged by the slowness in government to establish or put in place policies to support these developments.
Sade stressed that an ongoing challenge in his constituency is youth unemployment.
“A lot of people travelling for the weekend at the beaches at times, experienced disturbances from my youths”
Henceforth, he said this is why he wants the Mamara development project to progress so they can engage their young people in productive sectors.
Sade added that in doing so, they can help reduce unemployment and support youths not only in their development but also in the nation’s development.
He said he is happy to hear from the minister of commerce that a policy for investment and the Special Economic Zone bill will be brought to parliament this year.
The member of parliament for Northwest Guadalcanal constituency expressed that these are special frameworks for development not only for Guadalcanal but for other provinces too.
CONSTRUCTION work to rebuild classrooms and key facilities at Honiara High School, which were burned down during the 2021 unrest, is set to resume early this year.
School Deputy Principal Johnson Maqila told Island Sunthat administrative and financial challenges had delayed the project.
However, with recent financial support from the People’s Republic of China (PRC), work is now moving forward.
Maqila confirmed that contractors began a major clean-up of the site just before the Christmas break in preparation for construction.
During the unrest, the administration office, computer lab, Agriculture department, Industrial arts classroom, NTS department, form four classrooms and the school library were destroyed.
These losses have disrupted the school’s operations, forcing a reduction in new student intakes.
“For from four and five alone we had to cut the streams from four to three streams to fit the classes,” the deputy principal explained.
Additionally, the school had to limit student transfers and rearrange classrooms to accommodate all students.
“Several optional classes had to be held at the school hall and our industrial arts department had fewer proper tools to work on,” he recalled.
Despite the challenges, Maqila is hopeful the construction will be completed in less than six months.
Once finished, the new buildings will include new classrooms, an administration block, and other key facilities that were initially lost.
Francis Sade, member of parliament for Northwest Guadalcanal and minister for public service explained his side of the story on the controversial Dodo Creek issue.
Speaking at the Sine Die Motion on Thursday, December 19, 2024, he told parliament that he needs to explain his part regarding Dodo Creek because Guadalcanal province said he sold the land.
Sade said when he came into office in 2019 as premier, they signed an MOU with China’s Guangdong province.
He added that after the signing, they immediately sent 29 agriculture people to China.
Sade said it was when they returned that they came up with the idea for Guadalcanal province to develop an agriculture technical institute.
“We wanted to give land to that partnership as we were looking at how we can progress agriculture technically in Solomon Islands”
Sade said they then went to Doma and marked out 50 hectares of land only to later find out that Guadalcanal province didn’t have land there anymore because it was given up before they showed up there.
“So, our plan was held up”
Sade further explained that when the Dodo creek issue came up, they endorsed the purchase of the land thinking that they would develop it into an agricultural technical partnership and that thinking still stands today.
“So, this sale was in fact endorsed by Guadalcanal province for partnership of an agriculture institute”
Sikaiana atoll residents plead for help as influenza outbreak affects more than half population
BY IRWIN ANGIKI
People on Sikaiana are calling for a nurse to be sent over as a viral outbreak ravages the Malaita outer islands atoll.
More than half of the 300-plus inhabitants are reportedly sick from the influenza outbreak.
Authorities say the earliest a nurse could be sent over will be the last week of this month.
“But this depends on how fast a nurse who is willing to be posted in Sikaiana is found and processes met before being deployed,” Malaita Finance Minister and MPA for Sikaiana, Lemuel Kevianga told Island Sun yesterday.
Mr Kevianga said this matter is now one of the priorities of the Malaita provincial health.
“I already talked with Minister of Health for Malaita. New posting of nurse for Sikaiana will be sorted later this month,” Kevianga said.
“So, a nurse could be sent either last week January or first week February.”
During the New Year festivities more and more people on Sikaiana succumbed to a flu which reportedly was brought over by those returning home from Honiara onboard a ship before Christmas.
Local priest Fr Philip Teleilua sounded the alarm posting on social media the dire need for a nurse on Sikaiana on Friday last week.
“[Any nurse for us in Sikaiana? Sikaiana really needs a nurse. Sickness is knocking from house to house. Have mercy on us Solomon Islands. We are also Solomons citizens too],” Teleilua’s facebook post said.
Speaking to Island Sun from Sikaiana, Teleilua said nearly three quarters of the island’s population have fallen ill.
“[The sickness is highly contagious and symptoms include very high temperature, severe head and eye pain, dizziness, diarrhoea, high fever, persistent dry coughing and vomiting],” Teleilua said.
“Men, women and children all struck down the same.”
He said they have been surviving by applying simple home remedies such as steaming, drinking warm water, while some who have their private supply of Panadol share it when needed.
“[We are surviving by the Grace of God as we continue praying for healing, and so far a few have recovered with no death reported],” Teleilua said.
It is understood the last nurse on Sikaiana left before October last year after being reportedly involved in a drunken brawl during celebrations of Malaita Day on August 15.
