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‘COVID effect’ on business investment and expansion

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Uncertainty remains one of the biggest challenge businesses operating in the Solomon Islands face during this COVID-19 global pandemic.

This uncertainty over the impact of COVID-19 is hindering the expansion of investment opportunities, a third COVID-19 Enterprise Survey conducted by the Solomon Islands Chamber of Commerce and Industry (SICCI), has revealed.

SICCI reiterates that uncertainty is one area that is quite challenging as we do not know how long this pandemic will be around for and we do not know what will happen to our economy.

SICCI, as the peak body representing private sector, has around 200 members covering approximately 80 percent of the Solomon Islands private sector workforce.

43% of the SICCI membership (86 businesses) participated in this survey which was conducted online between 14th July and 17th August 2021.

A high rate of responses from the survey highlighted that expansion and investment decisions have been delayed due to international travel restrictions, hindering development plans as consultants, directors, investors, visitors and tourists are unable to enter the country.

Survey results show that seventy-one percent (71%) of businesses have postponed expansion/investment decisions due to the impact of the COVID-19 crisis while twenty-nine percent (29%) stated no expansion and/or investment decisions have been made.

Cash-flow restraints due to COVID-19 was identified to be a major impact that has led to expansion and/or investment decisions to be postponed.

“Forty-one percent (41%) of business have experienced high financial impact on business and disruption to operations, thirty-eight (38%) have reported experiencing medium impact while sixteen (16%) have reported low impact.

“Twenty-seven percent (27%) of businesses saw no change in revenue in the first quarter of 2021 and thirty-two percent (32%) saw no change in the second quarter of 2021 compared to the previous year,” the Survey reported.

However, twenty-six (26%) saw a significant decrease in revenue in the first quarter while twenty-nine percent (29%) saw a significant decrease in the second quarter of 2021.

Twenty-six (26%) of businesses who responded experienced a moderate decrease of revenue in the first quarter and nineteen percent in the second quarter of 2021. Only twenty-one percent (21%) of businesses have seen a moderate increase in revenue in the first half of this year compared to 2020.

Twenty-one percent (21%) of respondents were large businesses employing more than 100 employees while majority of survey participants are small businesses with 1-9 employees at 47%, followed by Small Medium businesses with 10-49 employees at 26%.

Participating businesses were from the Technology, Banking and Financial services and professional Services, Agribusiness, Tourism sector, Wholesale and Retail, Printing/Stationary, Advertising Media and Health services sectors.

To support a majority of members, SICCI continues to provide services of COVID19 updated information, digital trainings and advocacy dialogue in national platform for the inclusion of private sector view in policy changes while keeping the business community connected.

–SICCI Media

West Kwaio villagers host Aust & NZ top diplomats

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School children of Osa’ania and Sinasu communities gather to meet high commissioners Georgina Roberts and Dr Lachlan Strahan yesterday.

TWO West Kwaio communities in Malaita Province yesterday hosted Australian and New Zealand High Commissioners.

The two top diplomats, who are in Malaita, visited an early education project in Osa’ania and Sinasu communities to celebrate International Literacy Day.

According to the NZ High Commission, the Coalition for Education in Solomon Islands (COESI) has received grant funding through the Education Sector Support Program (ESSP) to implement the ‘Skul Blong Yumi Long Ples’ project, which aims to improve children’s reading and numeracy in early childhood education.

The project is delivered in partnership with Literacy Association of Solomon Islands (LASI) and will encourage communities to use a locally-developed early childhood curriculum, provide training to parents and teachers to improve children’s reading and numeracy skill, and will deliver practical, functional models of community education to engage disadvantaged groups.


NZ High Commissioner Georgina Roberts being enjoying a moment of laughter with school children of Osa’ania and Sinasu communities yesterday.

In welcoming the visitors to the community, Chief Patrick Ainigwaru said the community would plant a sprouted coconut and apple seedling by the new classroom as a reminder of their commitments to literacy and early childhood education.

Speaking at the event, NZ High Commissioner Georgina Roberts shared that International Literacy Day is a chance to come together to see why it is important to read and write, noting that it is a way to learn about the world around us.

She acknowledged the significant role teachers and parents play in supporting education.

“Mifala provide funding, but the most important thing stap inside iufala community lo hia,” Roberts told the villagers.

“Tagio tumas Osa’ania and Sinasu communities for your warm welcome and sharing your time with us!” she added.

The ESSP is a partnership between the governments of Australia and New Zealand to improve access to quality basic education for all children in Solomon Islands.

2014 White Paper important: Rodie

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Ben Bilua
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Permanent Secretary for MEHRD, Dr Franco Rodie.

BY BEN BILUA
Gizo

THE Permanent Secretary of the Ministry of Education and Human Resource Development says that the 2014 White Paper is an important document that plays an important role in the reinvigoration of the country’s education ambitions and development.

Dr Franco Rodie said the document accommodates pathways that would elevate education development through establishing suitable policies.

“For example, the strategic direction of our education system under the new Framework for Education was outlined in the White Paper that was developed in 2014.

“The new Education Framework clarifies the role of the Ministry of Education in governance and strategic management, policy formulation, approval, implementation and monitoring,” he said.

Rodie adds that 2016-2030 Strategic Framework and the five-year cycle of National Education Action Plan is another product of the 2014 White Paper.

“The Education Strategic Framework 2016-2030 and the five-year cycle National Education Action Plan enshrine our expectations, aspirations and hope for a better education system.

“These provided us with a very sound set of foundation for our direction which includes;

“To build upon best practices and set a framework for development of education into the future, against a background of a society facing rapid change.

“To establish an agenda for change and development within the education sector

“To give and empowering sense of direction and definition of relationship between the Ministry of Education and all partners in education. This working relationship is critical as we progress into the future.

“To build an exclusive structure for the education system and should be included significant organisational development.

“To allow for flexibility to meet particular needs and circumstances, respect, legitimate rights and responsibilities amongst the partners and the different level within our education system,” he said.

Rodie said the education system has been working towards addressing some of the challenges that continues to put pressure on education ambition and aspiration.

He said the existing undertakings have continued over the past 10 years to address lots of huge challenges that exist before.

Solomon Islands performing well in literacy and numeracy

Written by
Ben Bilua
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BY BEN BILUA
Gizo

SOLOMON Islands is sitting at the top in the Pacific Islands Literacy and Numeracy Assessment (PILNA).

This was confirmed by Permanent Secretary of the Ministry of Education and Human Resource Development, Dr Franco Rodie in his speech during the opening of the 6th National Education Conference at Gizo, Western Province on Monday.

“Compared to other pacific island countries, our primary education pupils are performing well in the regional Pacific Islands Literacy and Numeracy Assessment (PILNA) especially in English and have performed exceptionally well in numeracy.

“National Examination results administered to 9, 11 and 12 students shows that our students are meeting the proficiency level set by the ministry in terms of curriculum outcomes, but are struggling in some subjects such as year 9 mathematics and in science at year 11,” he said.

Rodie adds that access to higher education has been improved over the past decade and that younger people in the country have more educational opportunities, attain higher levels of education than their parents.

He said the country’s education system have achieved impressive growth in enrolling rates, increased number of qualified and trained teachers, curriculum materials and students’ learning outcome.

Rodie stressed that the achievements were made possible through support from the government, communities and development partners who have made huge investment in education.

However he said, critics on the performance of the country education system still remains with enormous challenges.

Rodie said the demand for both schools and tertiary education have been increasing steadily at a much higher rate compared to say a decade ago.

PM’s wife given $400K food contract

Written by
Mavis Podokolo
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A company registered to the Wife of the Prime Minister Manasseh Sogavare, Emmy Sogavare was given a contract to supply food to SIPA.

BY MAVIS N PODOKOLO

Shadel Café, a business registered to the wife of prime minister Manasseh Sogavare, has been given the lucrative contract to provide catering for Solomon Ports (SIPA).

This follows the termination of Red Cross’s contract, which had spanned one and half years from the start of 2020 to June this year.

Shadel Café is one of two catering businesses currently servicing SIPA, CEO Eranda Kotelawala told Island Sun early last month.

The other is an Asian-owned business, details of which SIPA has not been forthcoming with.

But, Madame Emmy Sogavare, the sole owner of Shadel Café according to Company Haus records, speaking to Island Sun yesterday, said there are three catering businesses servicing SIPA.

The third is unknown at this stage.

Shadel is on a six-month contract, reportedly providing 100 take-aways at $33 each five working days a week.

 This sums up to nearly $400,000 in the contract’s six-month duration.

On the outset, Sogavare stresses that there are no special or political favours involved in her business’s receipt of the state-owned enterprise’s service contract.

“There is no politics involved, to be honest. I do not know anyone working in SIPA. In fact, it was SIPA who approached Shadel Café after having tasted the nice food the Café offers.”

Sogavare said Shadel was awarded the contract to do catering for the Solomon Islands Ports Authority (SIPA) commencing from July to December, 2021.

“I’ll make it clear we (Shadel Café) are same as the other cafés, to be honest there is no politics.

“We have signed a six-month contract with SIPA. The contract will finish in December 2021, the end of this year,” she said.

“Shadel café provided 100 take-aways at $33 each at first, but now at $30.”

Sogavare adds the service Shadel provides SIPA does not generate much profit as some members of public may claim.

“At $33 per plate, the revenue received is just enough to pay for the food and materials, the workers, not to mention the hard work involved since Shadel Café is only a small business.”

Shadel Café, was registered at the Company Haus on October 16, 2020 under ‘Entertainment and Catering’ as its primary business activity.

Meanwhile, few SIPA employees Island Sun had spoken to gave approval of Shadel Café.

One, who prefers to be called Mr John, said, “The menu Shadel provides consists of healthy local food, apart from the timely delivery and nice tasty food. We really appreciate it.”

Island Sun last month reported Red Cross having had their service contract ended abruptly.

CEO Kotelawala, via email [Aug 6] gave insight into why Red Cross’s contract was terminated:
“During latter part of their contract, meals were delivered late with varied standard of quality.”

Explaining the issuance of contracts to service providers, Kotelawala said:

“We have no particular choice of contracts but we look for quality and timely delivery.

“Further, we are not interested in knowing who owns these food houses. As long as they deliver what they agreed upon, they will continue till the end of their contracts. 

“We have two suppliers now and we need to give opportunities to others, not Red Cross on perpetual basis.”

Red Cross has not replied to Island Sun enquiries.

Bangladesh national faces Inquiry over alleged rape

Written by
Jennifer Kusapa
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BY JENNIFER KUSAPA

A Bangladesh national facing sexual offence charges has been set for long form preliminary inquiry on September 22.

Defence Lawyer Hubert Fugui elected a long form inquiry after the accused entered not guilty pleas to the charges.

Fugui said he wants to cross-examined the prosecution witnesses regarding the allegation against his client.

Deputy Chief Magistrate Ricky Iomea then adjourned the case and issued directives for the prosecution to summon their witnesses for the inquiry on September 22.

The Bangladesh national has been accused of raping a 11-year-old girl at the Lungga area in east Honiara.

Police said the girl’s mother called in at Henderson Police Station and reported that her daughter was raped by a Bangladesh national in his bedroom weeks ago.

The mother said she only knew of the incident when she heard stories from other girls about what happened to her.

It was alleged the foreigner has been abusing the girl for sometimes, but the girl was afraid to tell anyone.

Myrella Cleven of the Office of the Director Public Prosecution is prosecuting.

Temotu CDO arrested for official corruption

Written by
Jennifer Kusapa
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BY JENNIFER KUSAPA

POLICE yesterday arrested and charged the Constituency Development Officer (CDO) for Temotu Nende constituency for official corruption.

Police say Philip Tuplo allegedly committed the offence way back in 2013.

He faces one count of official corruption.

A number of constituents yesterday hailed the arrest.

“The arrest is long over-due,” said one.

Tuplo was released on principle bail and will appear at the Honiara Magistrate Court on 8 September 2021.

Director of National Criminal Investigation Superintendent Michael Bole says the arrest was made upon the advice of the Director Public Prosecution office.

“He was arrested over the payment of housing materials for a community project in the constituency,” Bole said.

“I would like to thank the Officer In-Charge (OIC) Corruption Investigation Unit and team for their hard work to make the arrest done,” he added.

“I call for the public to come forward to the police and report any corruption practices committed by those in authority.”

Tuplo comes from Mebialo village on Santa Cruz.

Gov’t commits to ensure zero covid-19

Written by
Mavis Podokolo
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Corona

BY MAVIS N PODOKOLO

THE national government reassures the nation that they are remaining committed to ensure there is zero case in the country.

A report by the National Emergency Operations Centre (NEOC) last week said:

“The Government remains committed in ensuring there is a zero COVID-19 community transmission and have been successful so far in containing it within the quarantine walls.”

The report stressed that a total number of COVID-19 cases recorded in the country to date stands at 20. The country has been COVID free for the last four months.

With this as part of the country’s preparedness in dealing with COVID-19 community transmission, the country went into a strict lockdown on the 29th to 31st of August, 2021 on the declared Honiara Emergency Zone.

The report said vaccination roll-out also continues but at a slow rate.

“Members of the public 18 years and above are strongly encouraged to be vaccinated,” the report said.

In addition vaccination roll-out for all citizens including foreign nationals continues for Honiara, Guadalcanal, Western, Choiseul and the Malaita Provinces. Roll-out to the remaining provinces is progressing which includes training for all front liners.

Silence over controversial China development fund

Written by
Eddie Osifelo
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By EDDIE OSIFELO

PEOPLES Republic of China (PRC) Embassy in Honiara continues to remain silent over the so-called National Development Fund where 39 members in the Government received $200,000 each.

This was after the Leader of Opposition, Mathew Wale broke the story few weeks ago.

Island Sun has sent emails to the Embassy but has not received any reply since.

It is still not clear why the Embassy does not respond to the paper’s email.

Cleo Paskal, Sunday Guardian Special Correspondent as well as Non-Resident Senior Fellow for the Indo-Pacific at the Foundation for the Defense of Democracies, said Constituency Development Funds are essentially legal slush funds given to MPs to, theoretically, spend on their constituency.

“The Taiwanese funded them as well. However, previously (at least as known publicly), all MPs received them, not just the favoured few,” she said.

Pascal alleged the number 39 also raised eyebrows, and suspicions.

“One close observer noted that it is the number, with a small buffer, required to change the Constitution.

“Sogavare is on record as wanting to move the next election from 2023 to 2024, something that would require a constitutional change. And who knows what else he and/or Beijing would like to “adjust”,” she stated.

However, the Democratic Coalition Government for Advancement has denied accusations that the Prime Minister’s $200,000 National Development Fund (NDF) is for political expediency and not for development.

“The NDF was first established by the ROC when they provided these funds for discretionary use by the Prime Minister,” it said in a statement.

“Previous Prime Ministers have exercised their discretion in allocating these funds. However, when ROC gave these funds, they did not require that these funds be used for development projects,” the statement added.

“This has now changed under the Peoples Republic China but only until 2022.

“This arrangement is to ensure a transitionary period after we switched diplomatic relations and will end in 2022.

“However, under PRC, the NDF will only be used for development projects upon application.”

K-water donates to COVID response work

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L to R: Wesley Kukutu of National Medical Store, MHMS DS Health Care Dr Gregory Jilini, Tina Hydropower Limited CEO Yong Hoon, Chang, THL E&S Assistant James Taluasi and THL CFO Jihun Lee.

KOREAN Water Resources Corporation (K-water) yesterday donated over $34,000 to support ongoing preparedness and response to the COVID-19 pandemic.

K-water is a Korean based company that is currently in country managing operations of the Tina Hydro Dam construction in Guadalcanal.

Tina Hydro Limited is part of this mother company, K-water.

Yong Hoon Chang, Chief Executive Officer of Tina Hydro Limited in handing over the cheque expressed thanks towards the Ministry of Health as the lead government ministry in responding to the COVID-19 pandemic for the job well done in keeping the people and country safe.

“Thank you so much to the Ministry of Health but also the government at large and all other important stakeholders who have worked so hard to keep us all safe from COVID-19.

“Your tireless efforts has enabled us to continue live freely and more importantly for us, continue with our work undisrupted, as would be the case if we had a COVID-19 community transmission.”

Chang said the donation is also to demonstrate commitment of the company to support national efforts against the COVID-19 pandemic.

“This virus threatens everyone and all businesses, no one is immune from it therefore in order for us to tackle it we must all work together and support each other.

“Therefore we are once again pleased to support current COVID-19 efforts with the donation of over $34,000.”

The support received from K-water is not the first; previously the company had also donated huge numbers of personal protective gears for COVID-19 frontline workers including AUD$12,000 in July 2020.

Dr Gregory Jilini MHMS Deputy Secretary Health Care, in receiving the cheque thanked K-water for their continuous support that has enabled health to afford for very basic but crucially important items to support health in its COVID-19 operations, more especially the current vaccination roll out.

“As health continues with its COVID-19 vaccination roll out across the country little things really do matter, such as bottle of water, fuel, torch lights and so forth that has the potential to halt operations if lacking or in inadequate supplies.

“Therefore thank you so much for coming our once again to support health’s efforts again COVID-19.”

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