PAC reveals Govt’s $21 Million debt to SINU in tuition fees

BY NED GAGAHE

The Solomon Islands Government still owes the Solomon Islands National University (SINU) approximately 21 million dollars in unpaid tuition fees, with concerns that these arrears could resurface in the 2025 national budget.

This revelation came during the Parliamentary Public Accounts Committee (PAC) hearing this week, where Dr. Franko Rodie, the Permanent Secretary and the team from Ministry of Education and Human Resource Development (MEHRD) appeared before the committee.

Opposition Leader Matthew Wale questioned PS Rodie on whether the government is in a position to settle the arrears this year. “So, you’re confident that the government will settle their obligation this year? Are we not going to inherit the legacy for next year’s budget?” Wale asked.

The Chairman of the PAC, Gordon Darcy Lilo, also expressed concern that, with the government’s requisition calendar closing in December, the outstanding debt may appear again in the 2025 budget. Lilo, who is also the Member of Parliament for Central Honiara, emphasized the urgency of the situation.

In response, Dr. Rodie clarified that the arrears were for second-semester tuition fees.

He explained that the Ministry of Finance and Treasury (MOFT) had shown some leniency regarding the payment.

“From the invoice, I estimate the total amount to be around 21 million dollars. This is the amount SINU has been waiting for, and we hope the outstanding balance will be settled,” PS Rodie stated.

Dr. Rodie further revealed that a delegation from the Vice-Chancellor’s office at SINU recently met with the Prime Minister to discuss how to address the arrears.

However, he added that he was not involved in those discussions and was unaware of the outcome.

“There was a delegation from the VC’s office that met with the Prime Minister, and I believe they reached some agreement on how the arrears will be resolved. Unfortunately, I was not included in that meeting and was sidelined,” Dr. Rodie remarked.

BY JOHN HOUANIHAU

Solomon Islands is expecting a modest economic growth rate of 2.5% in 2024, followed by 2.8% in 2025.

Masafumi Yabara IMF de mission chief for the Solomon Islands said that the drivers are the fishing, mining, manufacturing, and construction sectors.

In terms of inflation, Mr Yabara told local media during a press conference that inflation will remain stable.

“We expect 3.4% inflation in 2024 and 3.9% in 2025. On the fiscal, the fiscal deficit is projected at 3.1% of GDP in 2024 and 3.3% in 2025,’’ he said.

He said that this reflects the continued spending pressure, including on payroll and investments to advance the government’s priorities as well as the externally financed infrastructure projects.

“We also note that the government’s cash buffers have been significantly depleted. And it poses a liquidity risk to the government. On the external front, we expect that the current deficit will be smaller in 2024, but widen to 7.7% of GDP in the next year. As economic activity gains momentum,’’ said Yabara.

He said that over the medium term, Solomon Islands expect around 3% of growth annually.

“This is moderate, given the rapid population growth in the Solomon Islands and the growth outlook has been constrained by declining local activity,’’ he said.

He said that the urgent priority now is to diversify the economy through addressing some government’s weaknesses in the economy so both fiscal and current deficit would persist in the medium term.

“On the risks, we expect that the economy remains subject to downside risks. In particular, we see that in the past few years, the budget was not fully implemented, as the government faced some shortages in money. So, they had to cut some spending. So, we expect that the same thing could happen again next year,’’ he said.

Mr Yabara said this could adversely affect the country’s economy.

“Of course, the Solomon Islands remains subject to, remains vulnerable to climate change, and natural disasters. And also, the commodity price volatility in the global market including driven by the possible intensification of regional conflicts in the world,’’ said Yabara.

By Loretta B Manele

The China-aid Auki Road project will enhance access to public services like healthcare, education, trade and economics.

Elijah Asilaua, Premier of Malaita province expressed this at the official signing ceremony of the project at the Chinese embassy on Sunday, 24^th Nov.

He said road infrastructures play a crucial role for the efficient movement of people and goods as well as accessibility to a wide variety of commercial and social services.

Asilaua added that road connections will also stimulate economic growth with decent modernized face-lifts.

He voiced that their road infrastructures will be the most important asset to facilitate and influence indicators in sustainable economic development.

“It will also enhance access to public services such as healthcare, education, trade and economics”

Asilaua stressed that the better the access, the higher the benefits that may influence future economic development and social improvements, especially in areas with a prevalence of public services.

He voiced that his government prioritizes economic development as they focus on creating a greater Auki city.

“The connection of Auki city with reliable effective road networks will boost better farming, industries, commerce, tourism and communication activities. That will support a sustainable ecosystem with highly competitive skilled workforce through practical and future trainings”

He said his government feels that providing an effective transportation network supports complex system in which technological spatial aspects combine with economic, financial and institutional aspects for economic growth.

Asilaua stated that the Malaita provincial government will continue to collaborate with the national government through the existing mutual relationship with the People’s Republic of China (PRC) to utilize current and future cooperation in better planning, economic development and management.

He reiterated that the China-aid Auki Road project will create better transportation and accessibility to stimulate essential roles in economic development.

“It will create better market access, increased labour markets, increased flows of potential and consumer goods and increased mobility and cash flow to our rural population”

Asilaua also took the opportunity to acknowledge participating stakeholders of the project.

“I convey our deepest appreciation on behalf of the Malaita provincial government and our people to the Chinese ambassador, staff of the embassy, the Chinese government and the minister of MID”

“Our heartfelt acknowledgement as well to Director Deng Hong and your team colleague Mr Chu Jianpeng of the Agency for International Economic Cooperation of Ministry of Commerce of the People’s Republic of China for facilitating the requirements to progress with this China-aid Road tar sealing project”

Asilaua also said the engagement of their local personnel with the professional tireless efforts of the team leader and designing team members of China Communications Construction Company (CCCC) and Contractor, China Civil Engineering Construction Corporation (CCECC)over the last two weeks was very exciting and valuable with new learning insights.

“I am sure this will continue to add value for long life learning career and employment of our local employees during the implementation of this Auki Tar Sealing project”

Asilaua said his government, their people and relevant participating stakeholders respect the implementation agreement with mutual understanding, cooperation and commitment to accomplish this valuable China-aid Auki Road project for the betterment of our beloved Malaitan communities with quality road infrastructure.

“I wish our two countries a continued endurable lasting brotherhood friendship through our partnership through this Auki Town Tar Sealing project for better developments with a shared future and equality for our prosperity”

BY INDY MAEALASIA

The Solomon Islands Ports Authority (SIPA) hosted its 2024 Stakeholders’ Appreciation Night on Saturday at the Heritage Park Hotel, as a gesture of gratitude.

The event saw each stakeholder receive a recognition award as a token of appreciation for their contributions to SIPA’s operations and success.

SIPA Chief Executive Officer (CEO), Mr. Eranda Kotelawala, addressed the attending stakeholders, highlighting the interdependence between SIPA and its stakeholders.

“What we do is facilitate trade. Whether you are importing or exporting, you keep the ports moving. All the volumes and our revenue are determined by how well you are doing. If you are not doing well, it means the port is not doing well too. But if you are doing well, the port is doing well,” Kotelawala stated.

He emphasized that SIPA’s success is closely tied to the success of its stakeholders.

“That is why you are part of our business. You are the key stakeholders of our success—whether it’s the infrastructure projects we undertake, the new systems we implement, our expansions, or the future that depends on our success as a collaborative effort,” Kotelawala said.

SIPA’s initiative to recognize the contributions of its key stakeholders began in 2019 but was paused due to the COVID-19 pandemic, until this year.

“This is really a big thank you to all of you for your valued support in making our ports one of the most successful state-owned enterprises in the Solomon Islands and one of the best ports in the region,” Kotelawala remarked.

He expressed that the recognition was sincere and not just a marketing tool, gimmick, or publicity stunt.

Although not all stakeholders were present, Kotelawala hopes to host a much larger event in the coming years.

“We are not in a position to invite all our stakeholders due to certain restrictions, such as space and other factors. But when we have more space in the future, we plan to make it a much bigger event,” he added.