ESP audit report yet to be debated; new related reports tabled

By Loretta B Manele

The much talked about Economic Stimulus Package (ESP) audit report is yet to be debated on and new related reports were brought to parliament on Friday last week.

Parliament’s recent sitting earlier this month on November 4 had Prime Minister Jeremiah Manele move a special adjournment for parliament to resume on Friday Nov 15 purposely to allow Leader of Opposition, Matthew Wale to move motion No 8 which stands in his name and is a motion for parliament to resolve into a committee of the whole house to consider the Audit Report on the Economic Stimulus Package.

On Friday, Nov 15, Manele said this was because the report has generated much public debate and our constituencies were also beneficiaries as well.

He stated that the ESP audit report is one of public interest hence the reason why he moved the motion of special adjournment on Nov 4 for parliament to resume on Friday Nov 15 the day in which the Leader of Opposition can move his motion because it cannot be done on government business days which are Mondays to Thursdays.

“Unfortunately, parliament cannot consider this report today because the Leader of Opposition did not move the motion which stands in his name to enable parliament to debate it.”

Manele said he understands from the Leader of Opposition that the parliamentary house committee decided to defer consideration of the ESP report as well as for PAC to examine the audit report.

Meanwhile, he added a number of reports from the minister of finance and treasury that are related to the ESP report were also presented in parliament so that may also need some time for deliberation.

Manele voiced that as a government, they are keen to look at these reports so our people have the opportunity to hear about it from both sides of the house.

Apart from reports received from the minister of finance and treasury, two reports from the minister for mines, energy and rural electrification were also tabled in parliament on Friday, Nov 15.

BY INDY MAEALASIA

MANASSEH Sogavare has defended his actions as the finance minister, reaffirming his commitment to the tax exemption reforms he promised on the floor of parliament.

Last week, the opposition accused the minister of being ‘out of control’ and pursuing personal interests in regards to a tax exemption of about $29 million granted to a foreign investor.

 In response, the finance minister rejected these claims, labeling them as ‘very disturbing and insulting’ on his integrity.

 He reassured citizens that he has not “erred one bit” in his commitment to implement reforms.

 “The reforms that I want to pursue in the ministry are progressing very well,” he announced in a press conference Sunday.

One particular reform he is pursuing alongside the Attorney General’s Office involves drafting clauses for renegotiation with the mining companies.

Though the minister did not provide further details on the specific changes being considered, he stated that the mining companies he spoke to have no issues with the proposed amendments to the agreement.

Sogavare stated that unless these agreements are renegotiated and adopted, he is unable to approve or grant any new tax exemptions under the current agreements with mining companies.

The minister is also issuing instructions to the exemptions committee to review current recipients of exemptions to monitor how the exemptions have been used.  

“Any further considerations on their applications for extension of exemption will be decided based on them submitting properly authenticated, projected, provident law statements. To establish how any further government indirect budgetary assistance will impact their operations.” Sogavare said.

Additionally, he mentioned plans to review the non-statutory exemption application form, to ensure applicants for exemptions provide adequate information to the Exemption Committee.

“The content of exemptions should be based on proper assessments of the profitability of the business and not some random figures and percentages, “he noted.

Furthermore, the finance ministry is working on strengthening the exemption committee to effectively evaluate exemption applications.

“There is a need to set up a proper continuous monitoring system on the utilization of the tax exemption,” Sogavare said.

He stressed that this reform is necessary to enable his ministry to properly report to the cabinet on the effects of the government’s indirect assistance to recipients of tax exemptions.

Sogavare said that recent discussion with the chairman of the exemption committee focused on improving government revenue.

He stated, “Cabinet will shortly consider a number of institutional and structural adjustments to improve the collection of non-tax revenue.”

Sogavare added “These will be announced as soon as Cabinet considers my memorandum and also will be announced on the floor of Parliament.”

Trade Union council urges Finance Minister not to hide behind Tax Exemption board and simply halt all tax exemptions

The trade union has weighed in on government’s tax exemption mess urging the finance minister not to hide behind the exemption board and to cease all exemptions – period.

In a statement yesterday the Solomon Islands Council of Trade Unions (SICTU) conveyed deep concern regarding recent events surrounding tax exemptions by GNUT government.

“During a press conference, the Finance Minister mentioned that all tax exemptions he approved were also endorsed by the Tax Exemption Board under his purview,” the statement said.

“However, SICTU remains sceptical of this explanation and is troubled by the potential impacts of the minister’s actions on the economy and the people of the Solomon Islands.”

Opposition last week came out with revelations of tax exemptions by government from January to September this year worth millions of dollars.

Finance Minister Manasseh Sogavare was the centre of criticisms because he had announced in the floor of parliament in June this year that he would halt all tax exemptions, citing that they were a source of leakage to government revenue.

Opposition’s revelations showed that Finance Minister Sogavare carried on and granted exemptions after his June announcement.

Sogavare in response held a press conference on Sunday (Nov 10) where he condemned the Opposition and media accusing them of propagating misleading information.

He notably however did not disprove the revelations by the Opposition.

“It has come to light that the Minister of Finance signed off on tax exemptions amounting to millions of dollars, citing approval from the tax exemption board,” the SICTU statement yesterday said.

“This perceived use of the board as a shield for the minister’s discretionary powers has led to distress and disappointment among workers nationwide and the general populace.”

SICTU called upon the Minister of Finance and Treasury to uphold the commitment made to the people of the Solomon Islands by immediately ceasing all tax exemptions, as pledged in parliament, the statement added.

“SICTU urges the Minister of Finance and Treasury to reassess their stance on tax exemptions and prioritise the interests of the people and the Solomon Islands’ economy.

“As representatives of the majority of workers in both the public and private sectors, SICTU takes its responsibility seriously in shedding light on recent efforts by the Minister of Finance to justify the continued granting of tax exemptions.

“Despite the government’s challenges in providing essential services to workers and the public, we firmly assert that the minister must keep his promise to the public by halting all tax exemptions and focusing on the well-being of the people above individual interests.

“Recent statements from the Minister of Finance attempting to shift blame onto the tax exemption board do not absolve him of responsibility.

“Accountability begins at the top, and it is the minister’s duty to ensure the proper collection of revenue. “Rather than deflecting fault, the minister should take definitive action to fulfill his pledge to the public by suspending all tax exemptions until basic services are accessible to all workers and citizens.”

BY ROMINAH FAKA

On Friday last week the Public Solicitor Office in Honiara welcomed the Papua Guinea Public (PNG) Solicitor delegates, Director of Fiji Legal Aid Commissions with a ceremony of Chupu which was held at National Museum Auditorium.

The event was graced by the Deputy Prime Minister Bradley Tovosia, the Director of Public Solicitor Office of Honiara George Gray, the Public Solicitor of Papua Guinea, and Fiji Legal Aid Commission and Australia Solomon Islands Partnership in Justice (ASIPJ).

During the event, the Director of Public Solicitor office in Honiara Mr Gray greeted the partners with a warm welcome speech.

“Tonight is important nights where we gather to recognized the importance of our work and celebrate the contributions and accomplishments in our field.

“Collaborating and networking are vital elements if further growth is to be achieved. Improved collaboration and networking are important ideals to ensure a variety of standards are to be achieved.

“The stronger ties, relationship and support to broader insight to different perspectives in terms of the management and deliverance of legal services and justice.

“From building to raising professional standards to further expending the leadership capacity, and extent of the reach and quality of the Public Solicitor Office and its mandated role of quality providing legal aid services in the country,” Gray added.

BY JOHN HOUANIHAU

The Ministry of Public Service successfully concluded a week-long capacity-building training programme last week at the Heritage Park Hotel in Honiara.

This training was designed for 24 ministries, specifically targeting senior Human Resource managers, public service officers, and chief administrative officers, as well as representatives from three government entities.

During the closing ceremony, Public Service Commission Chair Milner Tozaka addressed the participants, emphasizing that the training would enhance the organization’s ability to meet its goals and objectives.

“I am confident that following this training, many of you will be equipped to address the shortages in your ministry and agency’s human resource capabilities, thereby improving performance by implementing the principles learned during the training,” said Tozaka.

He said that this training is a result of a Memorandum of Understanding signed between the Ministry of Public Service and the Australian Public Service Commission in August 2024, aimed at fostering collaboration between the two entities.

“This partnership will focus on (A) Sharing and addressing common challenges, (B) Establishing best practices and governance in public sector human resource management through the creation of standards and benchmarks, (C) Resource sharing, (D) Training and exchange of experiences, and (E) Other relevant areas,” he explained.

Mr. Tozaka further said that this collaboration would facilitate the exchange of knowledge, best practices, and innovative ideas, ultimately leading to advancements in public sector leadership and management.

“This marks the second training session conducted by our colleagues from the Australian Public Service Commission. I would like to extend my gratitude to Facilitator Natalie Danes, APSC Assistant Director Bronwyn Armstrong, DFAT First Secretary Tasman Bain, and Political Counsellor Cameron Darragh.”

He informed the participants that another training session will be organized by the Australian Public Service Commission in the first week of December 2025.

Tozaka expressed gratitude, stating, “I extend my sincere thanks to our colleagues at the Australian Public Service Commission and all participants for dedicating their time to engage in the training,’’ said Tozaka.