BY JOHN HOUANIHAU

The Economic Stimulus Package (ESP) is a grant designed to assist individuals and businesses in generating income, aimed at bolstering the economy of the Solomon Islands in response to the challenges posed by COVID-19.

This initiative was introduced during the pandemic period.

Residents from rural areas have been informed that the fund is intended to support farmers in collaborating with their communities to enhance livelihood activities, including cocoa production, pig farming, poultry, copra, various agricultural projects, fisheries, and tourism. Upon receiving this news, there was considerable excitement, as the funding represented a significant opportunity for change, with a substantial amount of money available.

“I am among the beneficiaries of this grant,” said former cocoa buyer and processor, Cyril Kulisiua. Kulisiua has a vested interest in this initiative, as he continued his cocoa project even before the COVID-19 period. “I purchase cocoa from local farmers, process it by drying, and subsequently sell it in Honiara to cocoa exporters,” he explained. He applied for the ESP funding in 2021.

“The Ministry of Finance and Treasury (MoFT) was responsible for issuing the application forms, which were distributed to the Ministry of Agriculture and Livestock (MAL) field officers. We completed the forms, which included several criteria, such as the necessity of having a registered business, obtaining a business license, and possessing a company Haus certificate. Many of us made determined efforts to meet these requirements,” Kulisiua told Island Sun.

Kulisiua, from Weathercoast in Guadalcanal Province, submitted his application through the Guadalcanal Province for his business, called DB Cocoa Processing & Marketing, which involves purchasing, processing, and marketing cocoa. “I submitted my form to the provincial office after completing the forms,” he said.

“In my proposal, I outlined a budget of $250,000, which was intended for the construction of a drying facility, storage, and labor costs, as well as ongoing cocoa purchases. This was the detailed breakdown of my ESP proposal,” he explained. Unfortunately, he was only awarded $10,000.

“I received a call informing me that my cheque was available at the Ministry of Finance and Treasury (MoFT). This situation did not adhere to the standard procedure of signing a contract agreement. Typically, when funds are allocated, a contract or agreement must be signed with the relevant ministry.

“We have encountered this process when applying for community projects, which usually involves a donor and the community. In my case, the absence of a formal agreement meant we were not bound by the usual stipulations, including the clause that improper use of the funds could lead to legal consequences,” Kulisiua said.

Kulisiua received the cheque in 2022, after submitting his application in 2021. “With the $10,000 I was awarded, I purchased a scale, a few copra bags, and carried out some minor maintenance. However, this amount was insufficient to significantly enhance productivity as I had initially planned. The funds did not align with my project plans, resulting in a loss of potential benefits. If I had the appropriate facilities and equipment, as previously outlined, the $10,000 would have been immensely beneficial, and I would not have encountered any issues,” he added.

“Unfortunately, I lack a proper cocoa drying house, adequate storage, and the necessary funds to cover labor costs, which has hindered my progress. Since that time, I have not engaged in cocoa production up to the present day,” said Kulisiua.

There have been reports suggesting that government officials misappropriate substantial sums of money, yet it remains unclear how these funds are being utilized.

“Although someone collected the cheque on my behalf, it was actually my wife who did so, rather than myself. Ideally, I should have been the one to collect the cheque, as I am the designated recipient responsible for signing for the release of the funds. However, at that time, the process involved my wife being contacted, and she subsequently informed me that my cheque was ready for collection,” shared the concerned farmer.

BY INDY MAEALASIA

JAPAN Ambassador to the Solomon Islands, Miwa Yoshiaki, has reaffirmed his country’s ongoing commitment to strengthening the Solomon Islands’ education sector.

He emphasized this commitment during the handover of a newly built two-story classroom at Numbu Community High School in North East Guadalcanal last Friday.

“Japan will continue to aid in the education field in terms of infrastructure for all sectors, tertiary assistance, and capacity building in the workplaces…to cultivate a cordial relationship between Japan and Solomon Islands,” he said.

Japan is also providing support to the Solomon Islands National University (SINU) proposed Center of Excellence for Agriculture, Fisheries, and Forestry.

Ambassador Miwa highlighted that the center would play a crucial role in research and gathering essential data for these key sectors.

“This is for the purpose of research and gathering information on our priority sector and feeding our center of excellence hub with the required raw resources to learn,” ambassador Miwa added

He noted that this hub would be a worthwhile initiative as current and future will utilize the resources provided and in turn, contribute to the community and the country.

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.”