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IMF welcomes OAG audit report on govt ministries’ use of covid-19 funds

Written by
Ofani Eremae
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IMF team leader Mr. Masafa Yabara (L) and IMF Resident Representative (based in Fiji) Neil Saker.

BY NED GAGAHE

The International Monetary Fund (IMF) has welcomed the recent publication of the Auditor General’s audit reports of the three government ministries spending of covid-19 funds.

IMF team leader who is the country for the 2023 IV Consultation Mr Masafumi Yabara had held discussion with various stakeholders in the country from February 8-21, 2023 and preliminary findings of their mission were compiled and announced in a media conference yesterday.

Yabara said IMF welcomes the publication of the results of an audit of covid-19 related expenditures.

“IMF staff recommends that the government audit expenditures related to the Pacific Games once the event is over and publish the results.

“Reviewing the Constituency Development Funds (CDF) Act and establishing regulations is critically important to ensure that the funds are used effectively and transparently.

“Introducing a Value Added Tax is a highly priority for consolidating the fragmented tax systems and yielding additional revenues over the medium term by improving compliance and expanding the tax base in line with the economy

“The Central Bank of Solomon Islands (CBSI) should phase out its accommodative monetary measures, given the ongoing recovery and high inflation. Further purchase of government securities at the secondary market should be avoided to safeguard macroeconomics stability and independence of the Central Bank. The current exchange rate regimes remain appropriate, but timely review of the currency basket is called for, given changes in trade patterns.

“Addressing structural bottlenecks including land registration is needed to generate new sources of inclusive growth. Establishing strong governance and fiscal regimes for the mining sector, including through finalizing a Mining Act and rejoining the Extractive Industries Transparency initiative, remains a priority. Ensuring independence and increasing resources of anti-corruption and auditing institutions is essential to advancing reforms to limit corruption and enhance accountability of public spending.

“The IMF team wishes to express its deep appreciation to the authorities and other stakeholders for frank and constructive discussion,” Yabara said.

‘SPEND WISELY’

Written by
Ofani Eremae
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IMF team leader Mr. Masafa Yabara (L) and IMF Resident Representative (based in Fiji) Neil Saker.

IMF advises govt to control spending on Pacific Games and national general elections

BY NED GAGAHE

The International Monetary Fund (IMF) has advised the Solomons government to watch its spending on the Pacific Games and National general elections.

“Expenditure related to the Pacific Games and general elections need to be well controlled to minimize the crowding out of other essential spending.”

This was highlighted by International Monetary Fund’s (IMF) team leader Mr Masafumi Yabara in their preliminary findings following the completion of the 2023 IV Consultation held with stakeholders in the country.

Yabara and his team held discussions with various stakeholders in the country from February 8-23, 2023.

Preliminary findings of their mission were compiled and announced in a media conference yesterday.

Based on their finding on public investment projects for the country, Yabara said that it should be phased in line with the economy’s absorptive capacity and on accompanying financing arrangements, ‘it need to be prudently negotiated’.

“The economy remains subject to downside risks, in particular the risks of a resurgence of the pandemic and natural disasters. Lower-than-expected support from development partners or unsuccessful bond issuance in the shallow domestic market could hinder budget implementation.

“Further increase in global commodity prices, as well as mismanagement of infrastructure projects and their financing, would disturb the recovery. Other downside risks include political instability in the runup to the general elections and rises in geopolitical tensions.

“The fiscal deficit is projected to widen to 6.3 percent of GDP in 2023, mainly driven by exceptional expenditure for the hosting of the Pacific Games and preparation for the general elections (summing up to 5.3 percent of GDP).

“Expenditure related to these two events needs to be well controlled to minimize the crowding out of other essential spending, including targeted support for the vulnerable and investment for future growth. Once the recovery is secured, rebuilding the government’s broad cash balance to at least two months of spending should be prioritized.

“Fiscal deficit are expected to persist over the medium term, driven by large spending needs for improving physical and human capital, costs to maintain newly built infrastructure, and continued weak revenue trends including from declining log exports. Public debt is projected to significantly increase to 22.8 percent of GDP in 2023, from 7.9 percent of GDP pre-pandemic.

“The public -debt-to GDP ratio could reach the authorities’ threshold of 35 percent before 2023, driven by increasing concessional external borrowing. Public investment projects need to be phased in line with the economy’s absorptive capacity and accompanying financing arrangements should be prudently negotiated to mitigate fiscal risks and ensure external balance and debt sustainability.”

Malaria cases rife in Western Province

Written by
Ben Bilua
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Gizo Hospital

BY BEN BILUA

MALARIA cases have increased in Western Province with 97 percent of cases reported to be infected with PV malaria.

In medical terms PV simply means a positive result that a patient have the parasites in his/her blood and that he/she may have malaria.

According to report from Gizo Hospital, a team from World Health Organization have visited the hospital and have conducted data collection.

Report has it that responsible department within Gizo Hospital is in a process to compile a full report of the extent of malaria cases recorded in Western Province.

Risks are for Gizo as most people store water on open drums due to lack of proper water supply encouraging mosquitos to breed.

Police sent to East Fataleka following killing of brothers

Written by
Samie Waikori
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BY SAMIE WAIKORI

Auki and Atori police have been deployed to East Fataleka, Malaita, following the killing of two brothers, it is reported.

Malaita police commander Superintendent Lesley Kili confirmed the incident to SunAuki yesterday, adding that police are on the ground to provide stability and investigate the incident.

Senior Administration Officer (SAO) for Malaita’s eastern region, Mr Nixon Atu told this paper yesterday the incident happened around 5pm Monday this week.

He said the brothers (deceased), one aged between 12-14yrs and the other in his early 20s, were extracting timbers with a Lucas-mill along the roadside in Manu area when the incident occurred.

Atu alleges that the suspect killed the boys with a machete. The younger brother died at the scene and the older brother was pronounced dead at a nearby clinic.

He furthers that a dialogue has been held between relatives of both parties in Honiara to pave the way towards a reconciliation.

Atu said the dialogue was held at Central police station and MP for Fataleka constituency had given $50,000 and two traditional shell money (tafuli’ae), that will be presented to the families of the deceased.

He explained that money given by their MP Rex Ramofafia was to ensure peace prevails between the two parties and for relatives to refrain from escalating the incident.

Atu also said the money was taken by police in Honiara to East Fataleka to be presented to the families and relatives of the deceased. 

He said during the dialogue, they agreed to set up a taskforce that will begin work towards reconciliation between parties to the incident.

Atu, who is also from east Fataleka, together with leaders both in Honiara and in East Fataleka are calling for calm amongst families and relatives and to allow the law to take its course.

OAG found unregistered businesses given contracts

Written by
Mavis Podokolo
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Released audited reports from the Office of the Auditor General ( OAG).

BY MAVIS N PODOKOLO

THE Office of the Audit General had found in its audit of three government ministries in their use of the covid-19 funds that some businesses which were not registered were given contracts.

This was mentioned in the thematic audit report on COVID-19 related procurement in a State of Public Emergency by three ministries, Ministry of Health and Medical Services, Ministry of Infrastructure and Development and National Disaster Management office, Ministry of Environment, Climate Change and Disaster Management and Meteorology.

According to the thematic audit report on COVID-19 the Procurement and Contract Administration Manual (PCAM)  requires tender submissions will only be accepted for businesses which are registered. ‘Tenderers should be a registered company, a registered business name or a Registered Charitable Organisation in order to be considered for SIG Tenders.” (PCAM S4.8)

“However, there is no requirement for businesses which do not go through a tender process to be so registered and in these audits, OAG found some businesses which were not registered had been given contracts and as had some others which had previously been registered but no longer were,” the report stated.

The report says Part 6 of Public Finance Management (Procurement) Regulations   PFMR 2021 provides standards for Government procurement practice, ‘regardless of the method of procurement used.’ This Part also provides a series of schedules to outline the standards for various types of procurement.

These schedules each provide that appropriate specifications should be prepared and businesses should be registered. PFMR 2021 does not widen the requirement for conflict-of-interest declarations beyond those involved in Tender Evaluation Boards, the report said.

NDMO spent $12m of covid funds on unrelated activity: OAG Report

Written by
Eddie Osifelo
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Released audited reports from the Office of the Auditor General ( OAG).

By EDDIE OSIFELO

NATIONAL Disaster Management Office in the Ministry for Environment, Climate Change, Disaster Management and Meteorology, has spent $12 million on disaster relieve activity that was not related to COVID-19.

A thematic compliance audit carried out by Office of the Auditor General on NDMO from 1 April to 31 December 2020, revealed it.

OAG says prior to the advent of COVID-19, the Ministry for Environment, Climate Change, Disaster Management and Meteorology was allocated $1,527,423 in the 2020 budget in the account ‘disaster relief’.

This was increased by $33, 617,600 in the Supplementary Appropriation of 2020 in September 2020.

OAG says although NDMO spent over 95% of this budget, some $12 million was spent on disaster relief activity that was not related to COVID-19.

“For example, in the transactions reviewed by the OAG, over $4.5 million of this COVID-19 money was spent on food relief for the victims of Cyclone Harold.

“Technically, this money was appropriated for disaster relief but the Budget commentary makes clear that the intention was that it be used for COVID-19 related disaster relief,” OAG says.

This audit has reviewed whether the NDMO’s procurement activities for disaster relief complied with applicable Acts and Regulations.

The OAG conducted this audit in accordance with International Standards for Supreme Audit Institutions (ISSAI) namely the ISSAI 400: Compliance Audit Principles and ISSAI 4000: Compliance Audit Standard issued by the International Organisation of Supreme Audit Institutions (INTOSAI).

The objective of this audit was to assess whether the National Disaster Management Office (NDMO) managed COVID-19 Procurement in accordance with relevant laws, policies and regulations of Solomon Islands Government. These include the Public Financial Management Act 2013, The National Disaster Council Act 1989, Emergency Powers Acts for COVID-19, the Interim Financial Instructions currently in force and the Solomon Islands Government Procurement and Contract Manual (PCAM).

Bribery allegations concerns SITESA

Written by
Ofani Eremae
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0

BY NED GAGAHE

In defence of bribery allegations over awarding of scholarships for this year Solomon Islands Tertiary Education and Skills Authority (SITESA) says it treats such allegation as very serious and called on those with evidence to come forward and report to them.

SITESA Chief Executive Officer (CEO) Constance Nasi and Director Quality Assurance Mr Gibson Philip made the call when questioned by media in a press conference last week.

In response Nasi said at SITESA they have process in place to deal with allegations of bribery where they will investigate and discipline officials who are found guilty.

“Staffs are the first people we sit down and talked to them and signed a conflict of declaration to ensure that if they were seen to influence the system or to manipulate it in anyway there is a process to deal with them.” Nasi said.

Mr. Philip commented that at SITESA they see such allegations as very serious and if the public or anyone who actually has information, he urged them to come forward and report it with them.

“If it implicates a SITESA staff there is an internal process where we can undertake and discipline them.

“We are aware of those allegations but it is not something that is tangible where we can establish those involve. But even those who come forward they also lacks evidence. So, until we have a very proven allegation that is fully attached with evidence it is advisable to bring them to us.

“If you have evidence then please come forward and talk to us. You are most welcome anytime. Because it is very serious. In terms of the process, we would like to ensure there is zero influence on the process, the process is fair, transparent, accountable but at the same time it is in line with the act and regulations we have.” Philip said.

PELE S.O.S CALL

Written by
Mavis Podokolo
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Manuopo mini hospital

MHMS to ‘send contractor tomorrow’

BY MAVIS N PODOKOLO

PEOPLE of Pele in the Reef Islands, Temotu Province are said to be desperately in need of health services following incomplete work on the Manuopo mini hospital.

And, they are calling for the government to intervene and see to the ‘quick completion of Manuopo mini hospital’.

The ministry of health (MHMS) says it will send the contractor to the site tomorrow (Thursday) to complete the work.

“Pele people in the Reef Islands of Temotu Province are calling on the contractor and the responsible ministry to quickly complete the outstanding works that are yet to be done at Manuopo mini hospital. It took the contractor almost three years now. 

“There are some patients admitted that need good medical services but are being denied because of the poor facilities. There are also some deaths that could be avoided if the hospital is operational,” a media statement by community leaders of Pele this week said.

“We call all upon the government to quickly intervene; if the current contractor cannot live up to the anticipated timeline better still cancel their contract and get a new one. People of Pele cannot tolerate the delay.

“We asked those involve in the project not to politise it for their own political gains rather work together to ensure the hospital is complete and ready to operate to serve the people of Pele.”

The MHMS in response to Island Sun enquiries admits that the Monuopo Area Health Centre in the Reef Islands is incomplete, which is caused by a lot of factors which include bad weather, poor road access, and the November riots.

“This Thursday 23rd February, the contractor will return to the site to complete the remaining work, which includes the tiling of a few rooms in the clinic house and the varnishing of the reception area with few plumbing tasks.

“Remaining work for staff house is the internal tiling inside the shower and a little plumbing work.

“As per the progress report from the contractor, the Ministry is mobilising a team from its infrastructure department to conduct an inspection of the Monuopu health centre in the next two weeks for verification purposes and once all requirements and takes are fulfilled a date will be set for the official opening of the health facility.

“The project encountered some delays along the way, that is caused by

-Very poor road access to the construction site- from Nyialo to Monuopo causing difficulties in moving materials from the wharf area to the site. The contractor had to use excavators and boats to transport materials to the construction site.

-Bad weather for most parts of 2020 in the Reef Islands also contributed to the delay. At one stage, workers could not work for two and half months straight due to very bad weather.

-The COVID-19 community transmission in 2022 with the movement restrictions, to and fro the province, imposed by the provincial government had also contributed to the delay. For four months workers were not able to proceed with construction.

-In Late 2021 and 2022 riot and looting, contractor’s commitment was affected due to the burning down of its assets at Henderson and Ranadi,” the MHMS said.

SITESA yet to give scholarship awards: CEO Nasi

Written by
Eddie Osifelo
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By EDDIE OSIFELO

Solomon Islands Tertiary Education and Skills Authority (SITESA) is still to give award letters to new scholarship recipients for tertiary education this year.

This after the selected students are still to submit their police clearance, medical report and final semester transcripts of Form 7 last year.

SITESA Chief Executive Officer, Constance Nasi confirmed this during the press conference last Friday.

Mrs Nasi said at this stage, the process reaches conditional offer.

“Students still to upload final requirement, police clearance, medical clearance and final recent transcripts.

“Since assessment in November, they use Semester 1 transcript, so need to submit final transcript for recent,” she added.

Furthermore, Mrs Nasi said the results will be free after the Board approves it.

Unlike in the past, the results were posted on the website.

Apart from that, Nasi said scholarships are allocated to students based on labour market needs of this country.

She said this was agreed through consultation with Ministry of National Planning and Development Coordination and Ministry of Public Service and private sectors like Solomon Islands Chamber of Commerce.

Further to that, she said allocation of scholarships are based on the budget of the ministry.

Mrs Nasi said if student reach Grade Point Average of 3.0, it means you are academically competent.

However, the second thing is allocation of programmes base on the budget.

SITASA, also a regulator, was established through that SITESA Bill passed in Parliament in 2017.

The Act commenced by Government Gazette on 23 September 2019. 

The objective of the Authority is to ensure that tertiary education and skills development drives the Solomon Islands future needs for a highly skilled and productive workforce which will make a strong contribution to the country’s economic and social development.

The strategic role of the Authority is providing the leadership and governance to set national tertiary skills strategy; national policy development and implementation; engaging and partnering with the private sector; promoting tertiary and vocational skills development; national tertiary and skills planning, regulating and funding and grants; capacity development of the sector for all facets of tertiary and vocational skills development including higher education in the Solomon Islands.

SITESA’s governance Board will have strong representation from the private sector who are the employers of graduates from tertiary providers.

We will publish the scholarship list: Nasi

Written by
Ofani Eremae
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0

BY NED GAGAHE

Chief Executive Officer (CEO) of Solomon Islands Tertiary Education and Skills Authority (SITESA) Constance Nasi has assured that the scholarship list will be published once it is ready and approved by SITESA’s Board.

SITESA recently faced wide criticism from public for their silence on the SIG scholarship list.

This followed SITESA informing public that successful scholarship recipients will be notified secretly via their online SITESA portal.

However, responding to that in a media conference last week CEO Nasi said at this stage no scholarship has been awarded yet and they are yet to finalise and publish the list of successful recipients.

“At the moment we’ve just reached the conditional offer stages where students need to produce and uploaded their relevant documents such as police clearance, medical results and latest student’s academic transcripts before there are awarded their scholarships.”

Nasi said they are obligated under act of parliament to release and publish the list of recipients.

She said once the list is finalised and approved by the board it will be published via their website.

Also speaking during the media conference SITESA Director Quality Assurance Gibson Philip explained that SITESA also received feedbacks from government stakeholders such as government ministries of the training needs of the country.

He also clarified why some students with GPA 4 were not selected.

“If you have one programme for example agriculture, spaces are there and the allocation is two spaces as well. We have the other one maybe public health allocation is two spaces as well.

“Let’s assume 10 people with GPA-4, only two applied for agriculture and eight applied for public health. How do we actually select. Now the public think that those with GPA-4 will get selected and awarded a scholarship. If there are only four spaces, (two each for sectors). Those two who have applied agriculture will be automatically selected whilst for the public health only two students will be awarded scholarship.” He explained.

He also further explained that they also looked at how students developed their training plan and whether it is in line with the government priorities when applied for the scholarship.

“In order to be selected you need to develop a training plan and how it is in line with government priorities.

“We also received from stakeholders in terms of the training needs of the country. What jobs will be needed in the future or sectors which the government priorities.” Philip explained.

Meanwhile, CEO Nasi also revealed that for this year government only allocated $250 million compared to past years $413 million.

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