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Pleas for help as politics and the China debate cast shadow over KPFL’s survival.

(L to R): Kolombangara Forest Products Limited General Manager, Dan Raymond; the Australian High Commissioner, Dr Lachlan Strahan; Australian High Commission Counselor Economics, Andrew Schloeffel; and the Honourable Minister and Member of Parliament for Gizo/Kolombangara, Lanelle Tanandaga, touring the Kolombangara timber plantations last year.

BY BEN BILUA
Gizo

Kolombangara Forest Products (KPFL) – one of the biggest employers in Solomon Islands and an important source of income to local communities in Western province – is on a financial knife-edge.

In an exclusive interview with Island Sun Gizo Office, KPFL General Manager, Edwin Schramm said KFPL is struggling to sell its logs and is requesting the shareholders to inject more funds to keep the company going.

Schramm said the company’s focus is business and that it is not interested in politics.

The comments come after an Australian Broadcasting Corporation program reported that a Chinese state-owned enterprise had shown interest in the weakened company and that during a visit representatives of the Chinese enterprise paid particular attention to KPFL’s deep water harbour which has potential for military use.

In response, the office of Prime Minister Manasseh Sogavare issued a statement saying: “It is a baseless allegation to say that a Chinese firm is going to buy off the Kolombangara Forests Products Limited (KFPL) on Kolombangara Island, Western Province.”

Since COVID pandemic, KPFL has been struggling financially and has needed extra cash to survive.

The company shareholders are Elite Idea Ltd – a Taiwanese company – and the Investment Corporation of Solomon Islands (ICSI) which is owned by the Solomon Islands government.

“So far, the Taiwanese Company (the majority shareholder) has injected four or five times funding, but ICSI zero, Schramm said

“This means, the balance of share(holding)_has completely changed. Currently, ICSI has very minority share, while the Taiwanese Company has substantial shares.

Documents filed with the Solomon Islands Business Registry show that since May 2020 ICSI’s shareholding in KPFL has fallen from 33% of the total number of shares to just 17.6%.

Australia has no share with KFPL but is funding development projects Schramm stated.

“It is a concern that ICSI is not very supportive of the company at the moment, he said“. Twenty percent of ICSI’s share to KFPL is meant to go the communities but they don’t have 20 percent share left because they are not funding this company. This has created a lot of unhappiness in most of the communities. They know that by now they should have 20 percent of ICSI’s share as ownership by themselves,” Schramm told Island Sun.

The Kolombangara Land Trust Foundation (KLTF) is a body set up to ensure communities benefit from KPFL.

So far KLTF has received nothing from the ICSI, Schramm told Island Sun.

He said KFPL needs more support from the government to make sure all its logs are exported and more customers are coming in to do business.

Like many businesses, KPFL was hit hard by COVID.

Unlike some, it is still suffering from a confusing and uncertain future.

KPFL management is worried.

Schramm said KFPL’s log exports has been stopped since the lockdown and that even though international restrictions have been lifted, not a single international customer has been interested in doing business with KFPL.

“I’m trying to understand why the business is not running for more than a year and yet we are still keeping 1400 employees.

“We thought that when the borders were opening on the 1st of July, and state of emergency was lifted on 24th of July, we thought the customers, from records, we have many customers from years ago. I don’t familiar with them but Vietnam, Philippines, Japan and Chinese.

“There are many different customers who have been buying logs here but not even one single customers is committed to come back and I don’t understand why.

“Is it something to with Chinese issue in Solomon Islands? Is the government changed the export regulation for border control? Is it because of politics or is it because this company is core owned by a Taiwanese company? You know the shareholder of this company is Taiwanese, China and Taiwan is not in a good term, I don’t know.

“All we are trying to do is to attract customers coming here,” he said.

“People are saying that politic(s) is interfering, that what people are saying not me, but if politics is involved, we have to resolve these issues quickly,” Schramm said.

He said KFPL is very grateful that Bulacan International Limited has stepped in and buy some of the logs.

“KFPL needs to remain viable because we care for the people of this islands to help them but in order to that, we need financial support.

“We need to sell our logs. KFPL must remain viable critically. We have a population of about 8000 people in this island. There are people from other islands that are looking for employment here but I have to cut back on our recruitment.

 “For me, if we talk about KFPL, we talk about business and not the politics,” Schramm said.

Kelvin Naphtalae, Senior Accountant at KFPL said COVID-19 has had a major blow to KFPL as most customers stop buying logs from the company.

He adds that the international restrictions have forced customers to stay out.

Naphtalae further stated that the company has lost its privilege of duty-free export.

“In the previous years, the government gave us duty exceptions on our export, but this has changed recently. Maybe it’s something to do with economy recovery, maybe there are changes in our export regulation, I don’t know,” he said.

Naphtalae said KFPL has contributed well in the economic development of Solomon Islands, not only that, the company also provides employment to people all over Solomon Islands.

He said KFPL is a sustainable company with huge potential to deliver much needed service for the people and at the same time contributes to the country’s economic development.

“We pay our taxes, contributes to our employee NFP and also pays other fees. These are our contribution to our country and I calls on the government and other aid donors to help KFPL continue with its service,” Naphtalae said.

He said KFPL is gold for Solomon Islands and that assistance from donor partners to secure more customers would be high appreciated.

“KFPL is our bread and butter so all of us including those working in plantation don’t want this company to go down,” Naphtalae said.

William Duran, Assistant Supervisor KFPL Necessary said his department also lost staff due to financial constraints.

He said only three employees out of ten are currently managing the Necessary department.

“Our government must support KFPL because we support the government in many ways. KFPL provides employment, pay taxes, pay NPFs and other state obligations to drive the country’s economic forward.

“Stop the politics and think about the people who are struggling to fend for their families as we enter into post-covid period,” Duran said.

‘No voters list’ blamed for delayed elections.

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Western Provincial capital Gizo

By EDDIE OSIFELO

THE non-availability of voters list has delayed the provincial elections in Western and Choiseul following dissolution of their Assemblies on 13th June 2022.

Minister of Provincial and Institutional Strengthening, Rollen Seleso clarified this when asked by Leader of Opposition, Matthew Wale in Parliament yesterday.

Mr Seleso said according to the section 9 of Provincial Government Act 1997, election should take place on the 4th Anniversary of the previous election which is June 14, 2022.

He said this could not eventuate due to non-availability of update voters list.

Therefore, Seleso used his power under 47 of the Act to put out an order for election to take place on December 14, 2022.

“This is to allow time for voters registration and preparation for elections of two provinces,” he added.

Seleso explained the situation in Western and Choiseul is unprecedented, they have not gone through this experience before.

“Therefore, this order clarifies how provincial government to be administered.

“The order to avoid further confusion,” he added.

Seleso said voter registration has started on August 2, 2022 and complete in end of October 2022.

Wale said this situation arose because the Ministry allowed it too late.

He asked whether there is power to run the affairs of province as delegated to public officers as opposed to elected officials.

However, Attorney General, John Muria Junior said in terms of section 47, it gives power to Minister to deal with the situation when there is nothing as provided in the Act.

He said “because it is not provided, we use Section 47 to create a provision to cater for that, so it is the avenue that ministry has taken”.

RSIPF and AFP prepare for parliament meeting

RSIPF officers leading that route march through Honiara starting at Ranadi on Saturday.

Local police (RSIPF) and members of the Australian Federal Police (AFP) under the Solomons’ International Assistance Force (SIAF) continue their preparations for the upcoming sitting of Parliament. 

Operational fitness and interoperability are key to maintaining the RSIPF’s Public Order Management (POM) capability.

Over the weekend, RSIPF and AFP members participated in a route march from Ranadi to Rove Headquarters as part of the RSIPF preparedness for the next phase of Operation Parliament.

RSIPF Commissioner Mostyn Mangau in a statement acknowledged AFP for continuing to support the RSIPF in building a robust POM capability.

“This exceptional capability continues today to ensure RSIPF is operationally prepared for current and future operations.

RSIPF and SIAF officers arriving at the Rove Police Headquarters during their route march that starts at Ranadi on Saturday.

“As Commissioner, I reassure the community my members are prepared to maintain law and order.

“I remind citizens that you have a responsibility to not engage in criminal acts and if you choose to, we are prepared to respond,” Mr Mangau said.

He said the route march shows that RSIPF and SIAF officers are partners united in protecting law and order in the Solomon Islands.

SIAF Deputy Commissioner, Heath Davies, reinforced the message that SIAF are here to support RSIPF as part of the Australian and Solomon Islands Government Bi-lateral Security Treaty (BST).

The RSIPF and SIAF route march started at Ranadi in the early hours of Saturday.

The RSIPF and SIAF officers regularly conduct joint POM operational exercises to ensure both police agencies are prepared to respond to any potential public disorder incidents.

These exercises ensure members are operationally prepared and provide realistic exposure to an active POM environment and will continue as part of the ongoing operational preparedness

Mercy services to start on August 31

United States Naval Hospital Mercy arrived in Honiara yesterday

BY MAVIS N PODOKOLO

THE United States Naval Hospital Mercy and partners arrived in Honiara yesterday.

It is here for its Pacific Partnership 2022 and will start its humanitarian services on August 31, 2022 to the people of Solomon Islands.

Chaplain of the Pacific Partnership 2022 Steven Szelmeczki says the floating Hospital Mercy departed Philippines and arrived in Honiara yesterday.

“The team is excited to have the Mercy calling into port.

“We are very excited to be able to have the ship calling into port. Many different logistics have been worked out yesterday when the ship calls into port. Some of the staffs on board the ship have met with the planners on the ground to prepare for the opening ceremony today evening at the Unity square before we will go into our line of effort.

“So yesterday is mostly the logistics of settling the Ship and getting everybody on the same page so we can execute a good mission here in Solomon Islands. Majority of the efforts will start on August 31, 2022,” Szelmeczki said.

He says it is a blessing for him be here in the country and finalise details for his line of effort in this host nation in terms of outreach.

“The biggest I have to say is that to thank already for the hospitality that they have shown us over the course of the last week the smiles on the children’s faces will continue to grow over the course of our mission execution as we actually work together for the beautiful partnership here in Solomon Islands,” Szelmeczki says.

“The Pacific Partnership 2022 comprises of four main lines of the effort, one is medical, engineering and one is humanitarian and disaster relief and the last one is host nation includes outreach.”

Pacific Partnership 22 returns to Solomon Islands, continuing to build on a foundation established during previous missions.  Now in its 17th year, Pacific Partnership is the largest annual multinational humanitarian assistance and disaster relief preparedness mission conducted in the Indo-Pacific.

SI eyes 5,200 seasonal workers by end of 2022

Part of a group of Solomon Islanders who went under the Australian Seasonal Workers Programme and Labour Mobility Scheme. PHOTO AUSTRALIAN HIGH COMMISSION OFFICE

By EDDIE OSIFELO

SOLOMON Islands hopes to reach 5,200 workers by end of this year for the seasonal workers schemes in Australia and New Zealand.

Minister of Foreign Affairs and External Trade, Jeremiah Manele confirmed this when asked by Member of Parliament for Small Malaita, Rick Hou in Parliament yesterday.

Manele said by end of this year, they hope to reach above 5,200 workers, just some few 100s short of target and vision for 2023 which is 5,500, according to our Labour Mobility Strategy (2019-2023).

He said in total they have 4,413 seasonal workers currently working in Australia and NZ under the seasonal labour programme.

In terms of economic impact, Central Bank of Solomon Islands has confirmed that the total remittances (inflow) for 2021 was $215 million.

This is 68 percent increase from $128 million reported in 2020.

CBSI also confirms that these figures include remittances from both seasonal workers and non-seasonal workers.

The Labour Mobility Strategy was developed and endorsed by Cabinet in 2018. 

It has been developed in tandem with the Labour Mobility Policy Framework and together these documents outline the Solomon Islands Government’s [SIGs] plans and system for growing labour mobility opportunities over the next five-year period (2019 – 2023). 

Fundamental principles underpinning the labour mobility strategy are that it aligns with other government strategies for the development of the domestic economy, by: 

  1. Developing new employment opportunities for Solomon Islanders
  2. Increasing international earnings for investment in the domestic economy
  3. Developing workforce skills for entrepreneurship and the creation of new industry. 

Brisbane court confirms letter of appreciation from Sogavare.

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BRISBANE Magistrate Court in Australia has confirmed that Prime Minister Manasseh Sogavare has written an “appreciation” letter to two parties and not a character reference letter.

Dion Kingi Paul, who pleaded guilty for looting wheels during flooding in Queensland, Australia, early this year is one of the two parties.

This came after Special Secretary to Prime Minister Albert Kabui said they are not aware of that person.

He added the PM has not drafted any letter and that he himself has not seen that letter.

“We are looking at legal options to address this issue,” Kabui said.

However, an email from Brisbane Magistrates Court I Magistrates Courts Service in the Department of Justice and Attorney-General to Island Sun yesterday that the letter in question is NOT a character reference and is a letter of appreciation and as stated above is addressed to 2 parties, 1 being the above named (Paul).

It was revealed following Sun’s investigation that Paul owns two retail shops in Solomon Islands.

Mala executive questions new ship service to Auki

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By SAMIE WAIKORI

AUKI

AN executive member of the Malaita Provincial Government has questioned the services of the new MV Express Pelican to Auki on Malaita Province.

The Provincial Member, Felix Bosokuru raised the question as the MARA executive claimed it is yet to receive an application from the company and grant approval for the ship to provide shipping services to the province.

 “Why did the ship start to travel to Auki without the executive attention and who granted the company approval,” he said.

Another executive member, Dickson Pola also confirmed the executive is yet to receive submissions of application from the company for the new ship.

“No submission from that ship has come across our executive committee, we are surprised the ship is starting making its first trip” he said.

Pola suggests that there is a need for the executive to deliberate on the matter as an executive meeting is underway in Auki.

Island Sun also learned from other executive members yesterday that the company has a valid shipping license with the province and the new boat might be operating under the license.

 However, they said the executive will deliberate and look at how to deal with the matter.

The executive members said the company which owned the Express pelican has a valid license with the province which will lapse next year.

They added that indigenous Malaitans are operating similar shipping services, hence they will be reviewing companies that have shipping licenses with the province from next year.

Philip: 90% of my constituents support parliament extension.

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MP for South New Georgia, Rendova and Tetepare, Danny Philip

BY BEN BILUA

Rendova

MEMBER of Parliament for South New Georgia, Rendova and Tetepare says 90 percent of his constituency support the proposal to extend the life of parliament.

Speaking during the opening of Lokuru Diversity Fair on Wednesday, Danny Phillip said he has consulted his constituency during his visit.

He told those present that there are substantial reasons as to why the government cooked up the proposal.

“Our government has been trying to explain to people the importance of the extension of parliament.

“I myself came down to my people and seek their view and from what was heard, 90 percent of my people supports the proposal,” Phillip said.

Island sun understands that the proposal is yet to be tabled in parliament.

The DCGA is proposing a one-off deferment to the coming national general elections 2023 to 2024.

And, DCGA members of parliament are tasked to hold consultations with their constituents on the matter.

Some DCGA MPs have carried out theirs, Mr Philip is currently doing his.

Government Communications has reported positive feedbacks from the constituency visits by the DCGA MPs reflecting overwhelming support by constituents to the proposal.

$15M Claim lodged against DFAT, MHMS

The proposed Naha birthing facility

By EDDIE OSIFELO

A Local construction company has lodged a claim of $15M from both the Australia Department of Foreign Affairs and Trade (DFAT) and the Ministry of Health and Medical Services for breach of contract.

This after the termination of its contract on the Naha Birthing Clinic in East Honiara.

The $25 million project came to a halt following the ground breaking ceremony on 26th July 2019.

General Manager of the construction company, Bako Dua, who won the contract said work has progressed in the first stage before it was halted during the second stage.

He said this after a Geo Tech study found the building needs a new design.

Dua said initially the project should be completed in 2020, but was extended to 2021.

He said after the extension lapsed, he received a call that his contract was terminated.

“We engaged a lawyer because my company has signed a contract with both parties.

“We agreed to sort the issue outside court,” he said.

Dua said his lawyer has calculated the claim based on a clause of the contract and it is around $15 million.

He said it is not the fault of the company but the two parties if a Geo Tech study was carried out in the first place before construction started.

Recently, Honiara City Council councillor for Vura ward, Reginald Ngati has questioned why the development is not progressing after the ground breaking ceremony a few years ago.

“This birthing clinic is in my ward and the issue is why it has not been progressing since it was proposed.”

“It is a national project and once completed will meet the challenges faced by pregnant mothers and midwifes,” he added.

“It is quite unbelievable as why such major development is on hold and what really is the cause for the hold up, because the current state does not look right with the community,” he said.

Ngati said he would like the Ministry of Health and Medical Services and DFAT to solve whatever issue and allow the project to progress and be completed.

He alleged it should be solved over the years and expressed concern if political interference on the funding is a factor for the delay.

Ngati said the project for the birthing clinic needs immediate attention and be solved to see it eventuate for the benefit of pregnant mothers in the city.

The Naha Birthing and Urban Health Centre is in Naha Valley adjacent to the current Naha Clinic site.

It is intended to support up to 1,500 low – risk deliveries each year, along with primary health care services to the surrounding community.

DFAT and MHMS have promised to respond to our enquiry on the matter for almost a week, but have not done so before the paper went to print last night.

Loulo farmers display their richness

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Fresh from the garden

BY BEN BILUA

Rendova,

LOULO Farmers Association which include farmers from Lokutu and 10 other nearby communities on Wednesday displayed their richness in agricultural produces.

Farmers brought together different types of crops to be part of Diversity Fair – a mini agricultural show which was held at Patoani village.

The two-day programme kicked off yesterday, witnessed by MP Danny Phillip, the guest of honour, officials from Kastom Garden led by Pitakia Tikai, programme coordinator, officials from Pacific Islands Farmers Organisational network, Pacific Islands Rural Agriculture Stimulus, officials from Western Province.

In his opening remarks, Danny Phillip said the government strongly supports agriculture development and he is proud to be part of the programme.

Danny Phillip welcomes guest coming from Honiara to attend the program.

He said Rendova Island is suitable for agriculture and it’s fitting that the show is held at Rendova.

“Rendova is known for its Ngali Nut and other root crops.

“It good to see this agricultural program taking place in my community,” Phillip said.

Chairperson of Loulo Farmers Association John Suia Alepitu said the event will go down as history for Rendova.

Kastom Garden Program Coordinator Pitakia Tikai introduces Aneet Kumer and Angela Birch from PIFON to Western province Agriculture stall.

He acknowledged donor partners, Kastom Garden and Ministry of Agriculture for making the event possible.

Alepitu said the programme will definitely boost farming in Rendova Island.

He calls on farmers to get as much knowledge and understanding from program to improve their farms.

Project Manager of Pacific Islands Rural Farmers Stimulus, who is the implementing arm of the project, George Mae said Diversity Fair is a program designed to improve food security through exchange of knowledge and materials.

Guests take a look at all the stalls.

He said part of the programme is improve production for sustainable and healthy diet so as improve income generation.

Mae said PIRFS is honoured to be part of the programme.

Kastom Garden Board Member, Shane Tutua said Kastom Garden strongly encourages preserving and promoting traditional crops as part of food resilience.

Fresh pana from Rendova on display.

He said Kastom is happy to see farmers taking ownership of the program with keen interest.

Tutua acknowledged donor partners DFAT and IFAM for supporting the programme.