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FAMOA to meet with concerned parties

Landowners spokesperson, Alisae Laore

BY JARED KOLI

FAMOA Trust Board stands by its commitment to meet with the concern parties after finalising all the arrangement with the Solomon Islands Government (SIG).

This is according to Chairman of the FAMOA Working Committee, Pellion Buare, after Alisae Laore – a spokesperson for a landowning group at Lofung in Shortland Islands, where a new patrol boat base will be built, raised disappointment on the Government and FAMOA in this newspaper this week.

Mr Laore questions the Government and FAMOA on why they were left out of ongoing consultations and negotiations over the land to build the new patrol boat outpost project.

Laore said FAMOA is just an association and trustees for landowning groups, but they have never consulted them on what is currently going on as the groundbreaking is expected at the end of this month to kick off work on this major national project.

But responding to this, Mr Buare said: “FAMOA is not just an association. FAMOA is a Trust Board, it is actually the registered owner of Lofung land, which is the site for the project. FAMOA, however, still stands by its commitment to meet with the concerned parties after finalising all the arrangement with SIG.”

However, Mr Laore maintains that as the groundbreaking is said to be held at the end of the month, they must know their position first, prior to the event.

“They should consult us before the groundbreaking so that we know our position before the event, instead they do all the arrangements behind our back,” Laore said.

He said FAMOA has set a precedence on the case of World War II relics sale at Balalae, where the final arrangements were signed all parties involved, including customary land owners.

“We want to see these arrangements to include our inputs as well. We want to see the figures and conditions of the final arrangements or agreement before we agreed and signed,” Mr Laore said.

Permanent Secretary of the Ministry of Police and Correctional Services, Karen Galokale told Island Sun this week that tender and bidding process for the new patrol boat base is yet to be done, and work is yet to commence on the ground.

The new patrol boat outpost project will be built with support from the Government of Australia.

EDITORIAL-Allegations that must be investigated

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NEWS of Dr Deogratias Harorimana’s alleged fraud and deceitful dealings with a number of local business houses has gone viral on social media since last week.

Deo, as he was commonly known, is a Rwandan citizen. He is reported to be also a holder of Zimbabwean and United Kingdom passports.

In Honiara, Deo operates a consultancy company called AIPF (SI) Ltd, which among other offerings, facilitates loan applications for businesses that want to borrow money from the banks.

He’s been in this business since 2013.

But last week, a former top public servant and local economist, George Kosui went out on the media to launch a number of allegations against Deo and his local business partner.

Kosui claimed Deo has been deceitfully brokering huge loans for local clients with Bank South Pacific (BSP) that are beyond their capacity to repay.

This, Kosui added, has left many of Deo’s clients on the brink of losing their businesses.

Further allegations of tax evasion and visa breaches were highlighted on social media.

Kosui claimed he is doing this on behalf of local business houses who were “victims” of Deo’s dishonesty and deceitfulness.

On Wednesday, Kosui and his group had an audience with the Central Bank of Solomon Islands (CBSI) and its Solomon Islands Financial Intelligence Unit (SIFIU).

Deo, in response, denied any wrongdoings.

He said Kosui and others leading the charge against him are trying to assist so-called “victims” avoid paying their dues to AIPF (SI) Ltd.

This is an interesting case and a serious one, too.

Perhaps the best way to deal with this matter is to take it to the courts.

Meaning Kosui and the “victims” will have to compile a report of the host of allegations they have and submit them to the right authorities for investigation.

Understandably, they are already in the process of doing that.

The authorities must therefore investigate and determine whether the allegations against Deo have any truths in them.

If there is, then the case must be referred to the courts.

Only then will we see truth and justice in this matter.

SIG-Private Sector Advisory Group meets

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(SIG)-Private Sector Advisory Group held its second meeting for 2021 on Wednesday 9th June 9, 2021. Photos: SICCI Media.

The Solomon Islands Government (SIG)-Private Sector Advisory Group held its second meeting for 2021 on Wednesday 9th June 9, 2021 to discuss issues of concern and where representatives from both parties were able to share views and ideas on the best possibilities to improve the lives of our people and addressing issues affecting a private sector led growth.

The Advisory Group was established under the MoU between the Solomon Islands Chamber of Commerce and Industry (SICCI), as the peak body representing private sector in the country, and Government.

SICCI was led at the meeting by Chairman, Ricky Fuo’o and Vice Chair, Qila Tuhanuku including Board Members, Kazi Mushfiqur Rahman, Craig Gibsone and Chief Executive Officer (CEO), Natalina Hong.

Permanent Secretary of Foreign Affairs and External Trade, Mr. Collin Beck and SICCI Vice Chairlady, Qila Tuhanuku.

On the Government side, Permanent Secretary of the Ministry of Commerce, Industry, Labour and Immigration, Riley Mesepitu chaired the meeting and was joined by the Permanent Secretary of the Ministry of Foreign Affairs and External Trade, Collin Beck and Permanent Secretary of the Ministry of Development Planning and Aid Coordination, Susan Sulu Dhari.

The Permanent Secretaries including the Deputy Secretary Technical from the Ministry of Finance and Treasury, Selwyn Takana provided an update from the Solomon Islands Government to the Group.


SICCI Chairman, Mr. Ricky Fuo’o (left) and PS of Ministry of Commerce, Industry, Labour and Immigration, Riley Mesepitu who is also Chairman of the Advisory Group.

SICCI CEO, Ms Hong also took the opportunity to provide an update from the Chamber while the Chairman and Vice Chair provided updates on the Chamber’s Building and Construction Working Group (BCWG) and the Manufacturing Industry Working Group (MIWG).

Also on the agenda was an up-date on SICC’s proposed Local Content Policy, discussions around the recent announcement by the Prime Minister in regards to providing budgetary support to SICCI and the unlevel Playing Field-Local Shipping Industry.

SICCI Chairman, Mr Fuo’o acknowledged the importance of the Advisory Group to the private sector as the way forward to building on interactions and platforms that has been developed over the years and seek to further strengthen the relationship that is shared between both Government and Business.



SICCI Chairman, Mr. Ricky Fuo’o addressing the Advisory Group

“Our relationship is one I believe needs to function beyond political and commercial interests and underpinned by our collective commitment in building this great nation, to provide opportunities for our people and to fully realize our growth potential,” Mr Fuo’o said.

Mr Takana from the Ministry of Finance and Treasury assured the private sector of his ministry’s work to support the creation of a conducive business environment through tax reforms, tariffs and incentives from import and export duties.

The Deputy Secretary Technical from the Ministry of Finance and Treasury, Mr. Selwyn Takana.

Permanent Secretary of the Ministry of Development Planning and Aid Coordination, Ms Sulu updated the Group on the country’s 2021 Development Budget while indicating their plan to expand the consultation process of the 2022 Development Budget to the private sector which will start as early as July or August 2021.

Ms Sulu also highlighted twenty-five (25) project priorities for the Ministry under its proposed infrastructure investment pipeline incentive and the possibility of consulting for the private sector’s labour needs to be included in Government’s priority areas for human resource development.


Permanent Secretary of the Ministry of Development Planning and Aid Coordination, Ms. Susan Sulu.

Permanent Secretary of Foreign Affairs and External Trade, Mr Beck provided an update on labour mobility and the country’s signed off trade agreements while his colleague from the Ministry of Commerce, Industry, Labour and Immigration touched on labour policy and reform program the Ministry of Commerce, Industry, Labour and Immigration is currently undertaking.

Meanwhile, SICCI Chairman, Mr Fuo’o also stressed to the Group the importance of identifying a structured way from Government to channel all issues, concerns and ideas raised in these meetings to ensure action is been taken in terms of addressing them.

Mr Fuo’o reiterated that the Advisory Group was established under the MOU to accommodate these discussions between SIG officials from core Ministries and private sector representatives from SICCI on a quarterly basis.

“Through the Advisory Group, the Government and the private sector will work towards exploring solutions that a tailor-fit to Solomon Islands context. Both sides will work with the private sector to make recommendations towards the effective implementation of identified Public Private Partnership opportunities,” he said.

According to the Chamber, this is an important strategy to encourage Government to lend an open ear to the sector that creates the country’s wealth as well as pays taxes that support Government services.

-SICCI Media

‘VICTIMS’ MOVE ON DEO

Dr Deo Harorimana

Working with CBSI seeking answers

By EDDIE OSIFELO

SOME ‘victims’ of Dr Deogratias Harorimana’s brokering business held their first consultation with Central Bank of Solomon Islands (CBSI) and its Solomon Islands Financial Intelligence Unit (SIFIU) yesterday.

Former Permanent Secretary of Ministry of Commerce, Industry, Labour and Immigration, George Kosui revealed this to Island Sun.

Kosui is helping the victims, mostly local business people allegedly duped by Deo into signing loan commitments and business agreements that have left their businesses on the brink of collapsing.

He said CBSI and SIFIU requested them to compile and submit a report of the facts relating to money laundering and violation of banking regulation allegedly employed by Deo and other authorities.

He said this is to allow CBSI and SIFIU to investigate all the allegations levelled against Deo’s controversial AIPF SI Ltd before taking the next step.

So far, a person calling himself Robert Leeson on Facebook has questioned the four percent commission AIPF has charged on loans and service fees on their clients.

He gave examples:

If client 1 takes a loan of $2 million, Deo will charge a commission of $80,000. If client 2 takes a loan of $20 million, Deo will charge a commission of $800,000. If client 3 takes a loan of $40 million, Deo will charge a commission of $1.6 million. This is the motivation why AIPF(SI) Ltd would go to any extent to secure higher loan amounts even though a client’s capacity to repay is not guaranteed.

  1. Who approves and regulates AIPF’s commission rate of four percent of gross approved loan amount? For financial institutions such as BSP Bank, their interest rates are regulated and approved by CBSI.
  2. What is the commission fee for?
  3. Why is the Commission rate not standardized, but instead dependent on the gross value of the approved loan?
  4. Why charge a commission fee when a service fee is already charged to customers? As per AIPF’s own rules, their loan brokering, capital raising, and administrative support are recognised as a service and should be included in the service fee charged.
  5. Does AIPF(SI) Ltd pay relevant taxes for this four percent commission they have collected from numerous clients over the past 5-8 years?

Under clause 4 of the Declaration & Instruction to Act form, the service fees will become due on completion of the required tasks.

Clients are obligated to pay such fees when they fall due. If the client is late to meet the said payment, a default penalty of seven percent of the gross fees shall apply; followed by monthly accruing interest rate of three percent until such full payment is received.

Further to that, if service fee of $100,000 and default on the payment of fees for six months; taking into account the default penalty of 7% of gross fees and monthly accruing interest rate of 3%; below will be the situation:

   M1: $100,000 + (7% of $100,000 = $7,000) = $107,000

   M2: $107,000 + (3% of $107,000 = $3210) = $110,210

   M3: $110,210 + (3% of $110,210 = $3306.30) = $113,516.30

   M4: 113,516.30 + (3% of $113,516.30 = $3405.49) = $116,921.80

   M5: $116,921.80 + (3% of $116,921.80 = $3507.65) = $120,429.45

   M6: $120,429.45 + (3% of $120,429.45 = $3612.88) = $124,042.33

In a matter of six months of late payment, a client would be liable to pay an additional $24,042.33 on top of the charged service fee of $100,000. If the service fee is $200,000 then a late payment after 6 months will mean a client is liable to pay AIPF(SI) Ltd an additional interest of almost $50,000.

  1. Why is 10% interest charged to a service provided, at a constant price? Unlike lending money where interest is being charged, service already provided against quoted price and invoice should not be charged a monthly accruing interest rate. This basically implies that the value of the service keeps on increasing by 3% every month, in addition to the 7% default penalty. This is ridiculously insane and basically another form of scam such as One Link etc.
  2. Who gave the approval for AIPF(SI) Ltd and which law allowed Deo (a foreign investor) to charge a monthly accruing interest rate on its services?
  3. How was the 7% default penalty derived and why is it very high?
  4. Does AIPF pay tax for the extra default penalty and interest which would not be recorded in receipts paid to third parties for their service?
  5. Who collects the total interest on the service fee, AIPF or the third party?

Lastly, in clause 5 of the Declaration & Instruction to Act form, clients must sign the drawdown instructions to the lender (BSP Bank) to pay AIPF fees and any other refundable amount on the first drawdown.

“Construction management” is listed by AIPF as a service and so a service fee is chargeable.

“In specific examples where construction management was also done by a company owned by Deo’s defacto and AIPF business partner, why should this specific service fee be paid directly to AIPF or its preferred construction firm by the bank on the first drawdown, instead of installments after successful completion of key milestones or phases of the construction?

“What rights do customers have to claim back any portion of the construction management service fee if the project is not complete or done properly?” Leeson asked.

$50k for Birao ward

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Guadalcanal Provincial Secretary Timothy Ngele hands over the cheque to Chairman of Birao Ward, Victor Ninipua

BY JARED KOLI

Four communities in Birao ward, Marau in east Guadalcanal will benefit from a Ward Development Grant (WDG) of $50,000 to implement community projects in the provincial ward.

The Guadalcanal Provincial Government yesterday hands over the cheque in a brief handover ceremony at the Guadalcanal provincial headquarter in Honiara.

Sourced through Guadalcanal provincial government local revenue, the funding will be used in the completion of Marauiapa Womens Market, Vuravura foot path, Savekau Early Childhood Education (ECE) project and Simeruka Sanitation project. 

Member of Provincial Assembly (MPA) for Birao ward Andrew Tahisihaka congratulates the recipients and wish them success in the implementation of the approved projects for 2021/2022 financial year.

“The projects are targeting economic needs of Marauaiapa women by having a proper market venue because now there is no proper market house there for women to sell their produce. The Vuravura footpath project is more to do with safe access for our people,” Tahisihaka said.

He adds the funding will also improve access for ECE in Savekau community, and improve access to sanitation for Simeruka community. 

“I am looking forward for proper implementation of the projects and urge communities to care and properly use the facilities when they complete,” said Tahisihaka.

Island Sun was informed that currently, MPAs will no longer receive the ward grants.

Instead, the Ward development committee will receive the grants based on their annual work plans approved by provincial assembly.

Guadalcanal Provincial Secretary Timothy Ngele handed over the cheque on behalf of Guadalcanal provincial Government to Chairman of Birao Ward, Victor Ninipua.

Other officials of Guadalcanal Province are also present to witness the handing over of the cheque yesterday.

According to GPG Media, other four wards received the same grant of $50,000 each. They are Malango, Paripao, Tasimboko, and Talise wards. It says this is their second payments of $50,000 Ward Development Grants. 

Kolosori Nickel starts drilling

By EDDIE OSIFELO

KOLOSORI Nickel (SI) Limited has commenced drilling uphill at Havihua in Bugotu, Isabel Province, three weeks ago.

One of the landowners, Fr Wilson Mapuru confirmed this to Island Sun yesterday from his home village.

Fr Mapuru said drilling and survey are now ongoing on the tenement area with the view to go into nickel mining.

KNSIL holds the Prospecting License over Havihua, which is within Kolosori.

Its investor, Pacific Nickel Mines Limited has already published the information of the current activity on the Australia Stock Exchange.

Pacific Nickel CEO Geoff Hiller commented:

 “We are excited by the progressive phase made so far on developing the Kolosori Nickel DSO mining project and the incredible support shown towards this national project by the local Kolosori communities, the Provincial Government of Isabel and the National Government.”

“The drilling program and these engineering studies are part and parcel of the development of the Kolosori Project and we remain on track to apply for the necessary Mining and Environment licenses within the next couple of months.”

The first stage of the drilling program will comprise 64 holes (including 11 metallurgical holes).

Mining One has designed an initial drill program of 224 holes for the Kolosori Nickel Project.

These holes are part of the planned 2021 pre-development activities.

The initial 64-hole drilling program is designed to infill the existing Mineral Resource of 5.89Mt at 1.55% Ni2 as well as test for extensions to the Mineral Resource. 

The core samples taken from the 11 metallurgical holes are expected to provide metallurgical information needed in marketing of the DSO product.

Technical information such as moisture content will be estimated from core samples and used for designing the materials handling systems from mining to stockpiling to exporting the DSO via barges and ships.

In addition to the commencement of drilling, the Company is also strongly progressing feasibility study work with engineering consultants Resindo. An important part of this feasibility work was the identification of a suitable port location near to the Kolosori resources.

A local marine survey consultancy group has now completed a bathymetric survey over an area previously identified by Resindo as potentially suitable for a port location. 

The results from the survey confirmed that the site is suitable as a loading point for trans-shipping barges. 

Resindo is now finalising the wharf design. 

On the back of the wharf design, Resindo is also assessing the trans-shipping requirements for loading the nickel ore onto barges, which travel about a kilometre offshore, to then load into a ship moored in deep water

Recently appointed General Manager – Project Development, Mike James, is now working closely with Mining One to progress a number of mining components of the Feasibility Study for the Kolosori Nickel Project. Specifically, he will assist Mining One with, a mine optimisation analysis which will lead to mine schedules and planning for the Feasibility Study. 

Mike has already begun engaging with local mining contractor and engineering groups as part of the feasibility work.

Mike is expected to be in country by the end of July to overlap with CEO Geoff Hiller who is currently in the Solomon Islands progressing the application of the required licenses for the project.

In the meantime, reports claimed Sunshine Nickel Limited is continuing with its activity on the other tenement on Jejevo.

Australian company, Malachite Resources Limited has acquired Sunshine Minerals Limited (“SML”), a private company incorporated in the Solomon Islands. 

SML owns an 80% in Sunshine Nickel Limited (“SNL”) which holds PL 01/18 containing the Jejevo Nickel Project located on the south coast of Santa Isabel Island.

The remaining 20% of SNL is held by local landowners.

Ngati: review of city act will not change Honiara

Honiara City Councilor, Reginald Ngati said a review of the Honiara City Act will not change the image of the Capital.. Photo Benz Newman

REVIEW of the Honiara City Act will not drastically change the image of the city.

Vura ward Councilor, Reginald Ngati stated this after the city is facing road issues, traffic congestion, unregulated businesses and others.

Ngati said there are other relevant legislations that go inline with the HCC Act to make Honiara a better city.

These include legislations in Ministry of Infrastructure Development, Telecommunication, Water and others.

As such, Ngati said the HCC Act should be amended to accommodate provisions of other relevant Acts into one legislation.

He said this will make the HCC Act more proactive when enforcing rules in the City.

Further to that, Ngati said at the moment, the HCC Act is weak to address all the issues in the City because its arms are short.

Therefore, Ngati said if the review of the HCC Act is going to take so much time, amendment is a best solution.

Island Sun understand the Ministry of Home Affairs is currently reviewing the HCC Act to accommodate some of the issues facing the Council.

One of the them increasing the allowances of HCC councilors after they were paid with $1000-$2000 range.

According to Ngati, non-Executive Councilors are paid $1,325 fortnightly, while those holding Chairmanship receive $1,500 and Deputy Mayor $1,900 plus.

Luckily, the fortnight allowances of the councilors are tax free.

One Link owner lands in court

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BY JENNIFER KUSAPA

THE man alleged to be the owner of One-Link Pacifica Charles Dora will appear again in court on June 16 for mention.

His case was mentioned in court yesterday before Principal Magistrate Felix Hollison, and since the defence is yet to receive full disclosures on the matter, an adjournment was granted to allow time for defence to obtain instruction.

Defence also proposed a bail application to be made on the next court appearance.

Meanwhile Public Prosecution said two statements are yet to be obtained by investigators, the outstanding statements are from the Central Bank of Solomon Islands.

Mr Dora is facing two charges under the financial institution act 1998.

Prosecution said on July 4, 2019, One-Link Pacifica (OLP) was formally registered at the company Haus under the name of Mr Charles Dora as Director. There is a business certificate in file as it appears, Dora is a Director of OLP, registered under business name One-Link Pacifica Business number 20191217 issued by Company Haus.

Dora is the proprietor and sole trader of the OLP, he is also a manager for online mentors.

OLP scheme was described as sharing resource, however it is a ponzi scheme, the essence of the scheme is that investors give money towards the company, on the promise there will be a higher return after 30 days of investment, the creator of the scheme then used recruiting agents (mentors) for people to come along and invest their money through them.

Prosecution alleged that Dora collects deposits from mentors by way of online deposits. Huge number of public members invested their money through his agencies, which totaled up to $56,440,475. This money reportedly were went missing and has not been recovered since.

The monies were from people who invested their money into One Link, the company owned by the accused.

Prosecution also said that between the period of December 2019 to March 2020, investors did not receive their money as promised. Within the period, CBSI warned public members about the operation of the schemed, that One Link Director Dora did not apply for a licence under the FIA to engage in the business of banking in Solomon Islands.

On March 4, 2020 CBSI wrote to Dora as Director of One Link to make available to CBSI record, books or accounts relating to the business for examination within seven working days pursuant to section 3(3) of the FIA. However, Dora did not provide detail documents or failed to comply.

Later on March 27, 2020, CBSI informed Police that One Link seemed to be operating as a banking business, and did not comply with the Financial Institution Act.

Prosecution then alleged that Dora knowing his co-accused was arrested on April 4, 2020, went and hid in the Russel Islands, Central Islands Province, up until his arrest on June 1, 2021.

HP beer theft case in court

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BY JENNIFER KUSAPA

TWO former male employees of the Heritage Park Hotel are facing court for allegedly stealing alcohol to the total of $8,020.

The two had entered a not-guilty plea and their appearance yesterday was for pre-trial conference to be conducted on their case.

However, due to some documents yet to be sorted the PTC was moved to June 15.

The alleged incident occurred on January 29, 2021.

Allegations said on January 29 an on-duty waitress at the Heritage Park Hotel was serving customers at the bar, and while she was doing her duty another employee came to her and told her that some SolBrew drinks in the freezer was empty with their lids still attached.

The other employee noticed that some cans were also empty when she was serving customers.

The two female employees then did a proper check and discovered that 54 cans of SolBrew left in the freezer were empty.

It was at that time the matter was reported to their superiors and an internal investigation was conducted and the two accused were identified.

Police then were alerted and the two accused were arrested regarding the incident.

Police also alleged that CCTV footage also revealed the two accused refilling empty cans with water and placing them back in the freezer.

FAMOA supports Traditional Governance & Custom Bill

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Shortland Islands FAMOA Council of Chief group photo at the TGCFB 2018 consultation held at Nila

LEADERS in the Western Province have pledged their support behind the institutionalisation of the Traditional Governance Custom Facilitation Bill 2018.

The support was affirmed at a consultation held in the Shortland Islands and Kolombangara from June 2-3.

FAMOA council of Chiefs chairman, Lawrence Hotomo was among those who threw support behind the intention to institutionalise the Bill.

“The Bill is very important. We chiefs, traditional leaders and elders of FAMOA support the proposed Bill because it will empower us,” he said.

He said it will provide a platform that will enable chiefs and traditional leaders for meaningful dialogue with the government when it comes to resource management and socio-economic development on tribal or customary-owned lands.

Mr Hotomo stressed that the FAMOA Council of Chiefs, was established way back by their forefathers and is very instrumental in the Shortland Islands today.

FAMOA Council of Chiefs Chairman Chief Lawrence Hotomo speaking at the consultation

Shortland Islands is strategically located at the border and hosts some of the important government agencies, he added

“This consultation is timely and vital so that we chiefs and traditional leaders in Shortland Islands contribute to the Bill”.  

The Kolombangara Council of Chiefs representative Chief Donald Saepio acknowledged the government through the Ministry of Traditional Governance Peace and Ecclesiastical Affairs for enabling the TGCFB 2018 consultation on Kolombangara Islands.

“Most of our chiefs, traditional leaders and elders have passed away, with only us young leaders and elders with these responsibilities on the Island. Therefore, this consultation is an opportunity and blessing for us to come together to share ideas”.

Kolombangara Islands participants group photo on the TGCFB 2018 consultation held at Hunda Village

He also points out that Kolombangara Island has contributed much in the country’s economy through the KFPL investment on the Island, let alone the leadership of our chiefs, traditional leaders and elders in this regard.

Chief Saepio called on all Kolombangara leaders to come together, work together and make Kolombangara a united and peaceful Island.

Director Traditional Governance Division from the Ministry of Traditional Governance Peace and Ecclesiastical Affairs (MTGPEA) Chris Tabea thanked participants for accepting the invitation.

“Your participation in the consultation is very important, given this Bill is to empower chiefs, traditional leaders and elders, therefore your contributions are very much appreciated,” he said.

He said the Ministry in 2018 conducted a nationwide consultation on the draft Bill and was withdrawn on the floor of Parliament based on the Bills and Legislation Committee (BLC) recommendations.

“Therefore, the purpose of our coming is to consult with you on the draft TGCFB 2018 as well as identify areas whereby recommended by BLC to support the re-drafting of the Bill,” he added.

–MTGPEA PRESS RELEASE