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Sogavare says GNUT upholds and is committed to indigenous investors regarding tax exemptions

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Sogavare. Photo credit- MAVIS PODOKOLO

BY INDY MAEALASIA

FINANCE Minister Manasseh Sogavare has underscored the Government of National Unity and Transformation’s (GNUT) commitment to supporting Indigenous investors regarding tax exemptions. 

Responding to claims made by the opposition leader, Matthew Wale stating that the government has little consideration for Solomon islanders

Sogavare deemed the claims as “very disturbing”, and emphasized that, to date, he has never turned down any requests from Indigenous investors seeking exemptions. 

“Nothing is stopping Solomon Islanders from investing in tourism and other sectors to benefit from tax exemptions,” he added.

He pointed out that the country’s tax system includes provisions specifically designed to support Indigenous investors.

 “That’s how serious the government is. The government is ever ready to assist any Solomon Islander who is willing to take the risk to venture into these sectors,” the finance minister said.

Sogavare further labeled the claim as ‘false and misleading’, stating that such claims, at their worst, could contribute to division and hatred within the country.

“And there’s no room for it in this country if we want to progress,” he said.

The finance minister stressed the government and the ministry are obligated to “do the right thing and be properly accountable” for their actions under the processes of parliamentary democracy.

$199M TAX EXEMPTION

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Opposition leader, Matthew Wale

Opposition says new information and documents reveal total of government’s activities from January to September 2024

Opposition says it has obtained documents and new information which show Government has exempted in total $199 million in taxes in nine months.

A total of $199m discretionary exemptions from January to end of September 2024 were granted by government to individuals and companies, a media statement from the Opposition yesterday said.

Opposition Leader Matthew Wale describes this as ‘outrageous and reckless’.

Yesterday, Finance Minister Manasseh Sogavare held a press conference to rebut Opposition’s media revelations of tax exemptions which government had granted to selected businesses, one at the cost of $29m.

Sogavare labelled Opposition’s revelations as misleading but failed to deny their truthfulness.

Sogavare defended the tax exemptions saying the practice is intended to boost critical infrastructure projects, necessary for the country’s development.

Opposition’s latest statement said more than $30 million of tax exemption was given to Lee Kwok Kuen & Anthony Veke, Nature Motel, and Wan Chen Company.

In the case of Anthony Veke, it appears that there is a deliberate attempt by the Minister of Finance to misrepresent the facts by referring to Veke with the title ‘Honourable’, although the exemption was granted after the elections in which he lost his seat, the statement said.

“There are no reasonable grounds, given the current precarious cash flow problem in government, for the Minister of Finance to award these exemptions. The Minister’s press conference today [Sunday, November 10] is a cover up of the whole truth,” Wale said.

GNUT’s string of exemptions are a slap in the face of every hardworking Solomon Islander, Wale said in the statement.

“Ordinary Solomon Islanders struggle to make ends meet and put food on the table for their families, yet the Minister of Finance sees it fit to subsidise a select few who are already well-off,” Wale said.

Wale said citizens of this country deserve to know and the Prime Minister and his Finance Minister have a duty to inform the nation.

“I am calling on the Prime Minister and the Finance Minister to clarify to people in this country how many exemptions have been granted by GNUT, how much they cost, to which companies and individuals and why exemptions are granted when GNUT cannot even fund the 2024 budget,” the Opposition Leader said.

Wale said one would expect the Finance Minister to be apologetic now that he has been called out publicly.

“But this is not the case; surprisingly the Finance Minister is trying to defend his actions. This is worse than it appears.

“Obviously, the Finance Minister does not fear discipline from the Prime Minister. This is clear political calculation.

“The Finance Minister knows the Prime Minister is very weak and cannot sack him.

“This situation is terrible for the good governance of Solomon Islands. A weak Prime Minister emboldens Ministers to make decisions without accountability and not fear sanction,” he said.

Wale said as the Finance Minister’s conduct is under question, he expects the Prime Minister to inform the nation on the extent of exemptions granted and whether he, the Prime Minister, accepts it, and what actions he will take to discipline the Finance Minister.

The Opposition Leader said if the Prime Minister does not address this issue, then it merely confirms his utter weakness as Prime Minister.

 “$199M of exemptions granted by a government which cannot even fund its own budget. Although it is not surprising, it is frustrating that GNUT lied to parliament that they have cancelled all exemptions as of June this year, yet they have done the opposite.

“This hypocrisy smacks of the worst arrogance. GNUT does not respect the people’s parliament. GNUT therefore does not respect the people, and feels it can lie to the nation,” he said.

The Opposition Leader also criticised the Prime Minister as to why he remains tight-lipped over all these controversial issues happening under his nose, the statement said.

“A Prime Minister with any sense of integrity would have taken stern action already. Yet he is abetting all these nonsense.

“It is clear, the Prime Minister is either part of all this or too weak to control his ministers, either way, the Prime Minister is enabling all of this,” he said.

The Opposition Leader said GNUT likens itself, as a regime for ‘transformation’ but it only seems the transformation is going from being bad to worse.

Sogavare rebuts Opposition reports

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Prime Minister Manasseh Sogavare.

BY INDY MAEALASIA

FINANCE Minister Manasseh Sogavare has refuted allegations regarding a controversial $29 million tax exemption granted to Wan Chen Company Limited, accusing the opposition and media of misleading the public with half-truths and political rhetoric.

In a press conference yesterday, Sogavare clarified that the exemption was intended to boost critical infrastructure projects, necessary for the country’s development.

In response, the finance minister explained that the company had proposed an investment in a wharf and warehousing upgrade of $40.9 million and $52.2 million in apartment and resort projects, bringing the total investment to $94 million.

Sogavare stated that the former finance minister granted tax and duty exemptions amounting to $29 million under two specific orders (0122-24 and 0125-24) on February 26, 2024, just before the national general election.

Following the government formation in early May and his appointment as finance minister, he was directed to issue new orders,

“On taking up the post, the exemption committee recommended that the minister issue new orders on the same exemption, replacing the orders mentioned, which is reviewable every six months,” Sogavare said.

He stressed that the orders will expire this November, allowing the government to review the implementation of the exemption, “that’s how it works.” Sogavare said.

The finance minister said that to adhere to current reviewing of exemptions, he has advised the company to submit a full report on the utilization of the exemptions to justify any extensions.

The finance minister claimed that these exemptions were “hardly utilized” and emphasized they have “very minimal loss of revenue.”

Regarding the proposed tourist resort, Sogavare clarified that the company was still in the process of backfilling the project site

“They have yet to import the materials required for the resort. Some works are going on the construction of the wharf and warehouse at the Ranadi compound,” he said.

Sogavare emphasized that attracting investors for critical infrastructure projects is essential for boosting the tourism sector.

“As the Minister of Finance, my duty is to ensure that government achieves its objective,” he stated

To demonstrate the government’s seriousness commitment, Sogavare said the Ministry of Culture and Tourism budget will increase in 2025.  

“This is to properly coordinate the development of this sector. This is how serious the government is. Now going forward, of course, as Minister of Finance, I also have the duty to protect government revenue,” he added.

Late last week Opposition came out with two episodes of revelations in which it produced documents showing government tax exemptions to few businesses totalling in the millions.

One Chinese business was granted $29 million in tax exemption, the documents showed.

Opposition criticised government over this saying that Finance Minister Sogavare had told parliament in June this year that he would halt all tax exemptions, which he described as a source of leak in the government’s revenue coffers.

Opposition’s revelations show that government is doing otherwise, continuing with its habit of issuing tax exemptions left and right, and secretly, to businesses it favours.

MPG to find donor for tar sealing of Kilu’ufi – Gwounaru road

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Premier of Malaita province, Elijah Asilaua.

BY SAMIE WAIKORI

Malaita provincial government says it will find a donor to fund the tar-sealing of the road from Kiluufi to Gwounaru in Auki.

This is the only segment of the road not covered in the tar-seal programmes for Auki town and parts of South and East roads funded by donor partners.

In an interview, Premier Elijah Asilaua affirmed the commitment of his government to pursue support from donors towards tar-sealing Kilu’ufi/Gwounaru road.

He said there are three tar-seal and road pavement programmes for the province funded by three separate donors.

Asilaua said Australia will fund the 22km road from Auki to Bina, SIRAP will fund the 70km road pavement from Gwounaru to east Malaita road and PRC will fund the Auki township road network to Kilu’ufi junction.

Kilu’ufi/Gwounaru road is approximately 4km.

Asilaua said his government is looking into the matter and plans to approach PRC, as one of the potential partners with the Kilu’ufi/Gwounaru tar-seal project.      

He said as long as his government puts in place a plan for the project, they will submit the proposal to PRC for consideration.

Bad weather, public urged to travel with caution

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Police Commissioner Mostyn Mangau.

By Loretta B Manele

The recent bad weather has the police calling on the public to travel with caution in the capital.

Police Commissioner Mostyn Mangau made the call during a press conference at the Police Headquarters yesterday.

He said right now the weather is not friendly so we have to make sure we travel safely by making sure to look left and right before crossing the roads and doing that when vehicles make a stop on the roads.

Mangau also calls on drivers to not use their phones when they are behind the wheel.

He said we must avoid doing things like this to avoid problems as such unnecessary things can even cost someone’s life.

Mangau pointed out that as we are heading into the Christmas season, there are a lot of incidents that might happen so we must look after ourselves when we travel.

“It’s also a busy time where people will be shopping, so if you are going somewhere make sure to tell a family member.”

He said Christmas is approaching and people will be celebrating soon however must also consider their safety.

Mangau said there are national games and a regional rugby 7’s game which will take place early next month followed by a Melanesian Cup game so people must respect the country’s laws and display good behaviour to show ambassadors from regional countries that Solomon Islands is a peaceful country.

Solomon Islands, China sign visa exemption deal

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BY INDY MAEALASIA

Citizens of the Solomon Islands and the People’s Republic of China (PRC) will soon enjoy visa-free travel between the two countries following yesterday’s historic signing of the Mutual Visa Exemption Agreement.

The signing took place at the Prime Minister’s office, with delegates from the PM’s office, the Ministry of Foreign Affairs and External Trade and the media in attendance.    

Prime Minister Jeremiah Manele described the signing as an “important progress”, stating it will allow ordinary citizens to travel freely, embrace each other’s cultures, and promote greater understanding and respect, which he believed are “critical to our bilateral relations”.

Manele noted that the agreement is expected to attract a portion of China’s 130 million tourists, encouraging them to consider Solomon Islands as a preferred destination.

He further emphasised the commitment to strengthening relations between both countries, “This continues to demonstrate your commitment, enhance strategic communication, and deepen cooperation in various fields with the Solomon Islands to ensure the steady progress of the bilateral ties and bringing more benefits to our two peoples.”

Manele expressed the Solomon Islands’ appreciation to the PRC government, particularly for their swift response in facilitating the establishment of reciprocal visa exemptions.

Under the agreement, citizens from both countries with valid ordinary passports will be exempt from visa requirements for entry or transit, allowing them to stay for up to 30 days per visit, with a total stay not exceeding 90 days within any 180-day period.

PRC Ambassador Cai Weiming echoed similar sentiments, calling the agreement a further manifestation of the strong and growing cooperation between the two countries.

Following the signing, Acting Immigration Director Chris Akosawa explained that the next necessary step is to officially publish the agreement, enabling visa-on-arrival for Chinese citizens. China will also be added to the concessional visa category.

This process will be carried out in consultation with the Attorney General’s Chambers and Chinese authorities and should be completed soon.

In 2022, Solomon Islands and China signed an agreement on mutual visa exemption for holders of diplomatic, official, or service passports and passports for public affairs.

Police Reassurance operation in motion

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Police Commissioner Mostyn Mangau

By Loretta B Manele

The police Reassurance Operation is in motion as they continue to carry out their work amid the recent alleged kidnapping and abduction scare that caused public panic last month.

Police Commissioner Mostyn Mangau in a police press conference held yesterday told the media that their “reassurance operation” is currently being undertaken in areas like Honiara, the headquarters and Guadalcanal province.

He expressed that they have put a lot of resources and focus into this operation to reinstall confidence to our people in the capital.

Mangau said from this operation, six cases were under active investigation by their team during the reassurance operation.

He stated that three of these six cases were charged while the others are still being investigated.

Mangau mentioned that of these three cases, only one individual was remanded and the other two were released on bail to appear in court today.

He calls on the public to come forward to the police authorities to make reports if they hear anything that should be reported rather than jumping on social media to post about it which causes anxiety to our community.

“I encourage people to not use media to share information that is not true. Media is a good thing and it must be used the right way and not used to cause problems in our own communities.”

Mangau emphasised that crimes should be reported to the proper channel and that is the police.

He added that as part of the police reassurance operation, they are also engaging with communities to talk about how to deal with the issue that came about from social media.

Mangau stressed that as communities, we should work together and we cannot allow people to do things like spreading false information on social media to spark fear in our people.

“Schools were affected and services in the country were affected. Because of this people were not going to work.

“When we are spreading stories like this that cause fear in the public it slows down progress in our country.”

OLD HABITS DIE HARD

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Opposition leader, Matthew Wale

Wale accuses GNUT of business as usual – secretly granting exemptions despite telling parliament in June it will stop the practice

Opposition has accused government of lying to the people of Solomon Islands – continuing with business as usual in granting exemptions left and right after it said in parliament it would halt the practice in June this year.

Leader of Opposition Matthew Wale questioned why discretionary exemptions continue to be granted despite assurances by the Minister of Finance in Parliament to cancel past exemptions and halt future ones as of June 2024.

Wale in a statement yesterday said the Finance Minister was very animated in making this announcement in Parliament on June 11, 2024 that Cabinet had reviewed and disallowed exemptions as of June this year.

The Finance Minister in his speech in Parliament said “the government will review the discretionary exemptions and disallow granting of exemptions from now on (June 2024), to any individual or company. These are tough actions”.

The Finance Minister in his speech highlighted “the total exemption forgone by the government in the first four months from January to April 2024, for both Inland Revenue and Customs, totalled $83.6million. This included $9.4million Statutory Exemptions”.

However, it has turned out that the GNUT government misled Parliament and the people of Solomon Islands, the statement adds.

Wale said in the matter of discretionary exemptions, it is business as usual.

“The Government must reveal total exemptions forgone since June this year for both Inland Revenue and Customs as well as Statutory Exemptions,” the Opposition Leader said.

Wale made the criticism following documents cited that the Finance Minister signed exemptions on separate occasions August 29, 2024 and September 10, 2024.

The exemptions were granted to Nature Product Limited – Nature Motel, the statement said.

According to the Company Haus, the company is registered under a Mr Wang Bing but the email address is registered under Billy Wong, the statement adds.

 “My office was reliably informed that GNUT through the Ministry of Finance continued to grant exemptions despite their dishonest statement in Parliament,” the Opposition Leader said.

Wale said the Finance Minister told Parliament that the reason to cancel all exemptions is because “we are experiencing serious revenue leakages in areas that we can control and that makes it very serious”.

“Since making that animated announcement on the floor of Parliament in June, we have learnt that an exemption was granted to Lee Kuok Kwen & Anthony Veke for equipment, and now this exemption. We understand there are others done in secrecy even from Cabinet and Caucus. The hypocrisy is blinding,” Wale said.

He said obviously it is not as serious to the Finance Minister contrary to his own statement, and it seems this was just another deceptive ploy by the GNUT regime – so much for transformation.

“This is the same deceptive tactic by the former DCGA and it is no surprise that GNUT administration is acting in the same way,” Wale said.

The Opposition Leader called on the GNUT government to clarify to the people as to why they are still granting exemptions to individuals and companies, when government does not have cash to buy basic medicines, fix roads, and provide other essential services.

He said government services are at their lowest level ever, many of the line ministries are not implementing their budgets because government does not have the cash.

“Many contractors and suppliers have not been paid for many months, yet revenue is being given away casually by the GNUT. There is no accountability in this matter,” Wale said.

He said the Prime Minister is simply too weak to put a stop to this nonsense.

The Opposition Leader said the economy is in a very precarious situation, government revenues are down, government cash flow is terrible.

“We have a weak Prime Minister who cannot make tough decisions that are in the best national interest of Solomon Islands,” he said.

“This business as usual attitude is only going to get worse, and Solomon Islanders must be very concerned,” Wale adds.

$120m Kilu’ufi project begins

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Premier of Malaita province, Elijah Asilaua.

BY SAMIE WAIKORI

Construction of the Japanese funded SBD130 million project for the upgrade and improvement of the Kilu’ufi provincial hospital in Auki, Malaita province is set to begin.

This week, Kitano Company began its set-up in Auki as well as mobilisation of machineries to the province as they prepare for construction.

In an interview with Malaita premier Elijah Asilaua this week, he said this is one of the major development projects the province will largely benefit from.

“After the recent ground breaking for the project, I am pleased to see the project has now come to fruition. Since this week, we have witnessed the presence of Kitano Company in Auki. 

“The project had begun and we expect it to go into full swing next year and beyond. My government fully supports the project and we will work closely with Japan and national government to deliver it.

“The completion of the project will help address health issues as well as improve health services for the people of Malaita province,” he said.

Asilaua thanked the people and government of Japan for the fruition of this very important project for Malaita province and assured them of continuous support.

The contract for Kilu’ufi hospital project was signed by Minister for Health and Medical Service, Dr Paul Popora Bosowai with the Japanese government on July 18 this year, in Japan.

The completion of the project will provide Kilu’ufi hospital with central clinic, delivery departments and strengthening other infrastructure of the hospital such as water supply system, electricity and sewerage.

This will help support the daily medical activities at the Kilu’ufi hospital, whilst considering the future expansion of the hospital.

A statement recently made by His Excellency Miwa Yoshiaki on the project say, the project is a symbol of cooperation between Japan and Solomon Islands.

Highlighting its significance to strengthen the function of medical health service in Malaita province.

He emphasized that the project will not only contribute to the infrastructure development in the province, but also medical health centre which is the basis for social activities and development in the province.

Prime Minister Jeremiah Manele also said that the completion of the project will not only improve health service in Malaita province, but also offer new tertiary health services.

He said it will help a lot in off-loading burden from the NRH.

The construction of the project has begun and expects completion in the first quarter of 2026.

Don’t make prank calls to toll numbers: NDMO

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Director of National Disaster Management Office (NDMO), Jonathan Tafiariki

BY JOHN HOUANIHAU

National Disaster Management Office (NDMO) Director Jonathan Tafiariki has appealed to public not to make prank calls to toll-free numbers.

Mr Tafiariki also called on public to take safety measures during this tropical cyclone season.

“We have toll-free numbers that people can use to seek information or report incidents. Most time people abuse these numbers and thus, I like to appeal to the public to respect those numbers as they are important for emergency purposes. So don’t make prank calls on these numbers.

“Those are emergency numbers that exist for us in the country. (Police 999, Fire station 988, Marine 977, or 955 to report disaster impact, weather 933, Ambulance 111, public health emergency and surveilling unit is 115.

“Those numbers are to get information or report information during emergencies and I want people to respect them,’’ he said.

He stated that it’s more important for the general public to re-look back at safety measures and measures that are required during this Tropical Cyclone season.

“We have heard and are aware of the country’s TC outlook, it has become elevated. This means that the risk of TC to form our waters becomes high,’’ said the Director.

He said that many festive activities will happen in November and December, and the public needs to be aware of the high chance of Tropical Cyclone formation this season.

“Not only that we also want to ensure our people check weather updates or information daily from the local news outlets, such as radio, newspapers or the SI Met website or official FB page. As we know TC is associated with heavy rains, which will also threaten the general public.

He also calls the public service, NGOs, to reach out to NDMO to update their contacts.

“Some of the contacts are not functioning or used -so it is vital to revisit NMD to update the contacts,’’ said Tafiariki.

He said that the NDM will continue to reach out to the organization to update but it is also important for those that already subscribe to reconfirm those contacts with NDMO.