BY NED GAGAHE

Central Bank Governor Dr Luke Forau says institutional independence remains the cornerstone of public trust in the country’s financial system as the Central Bank of Solomon Islands (CBSI) prepares for the challenges of the next 50 years.

Speaking during the inaugural Governor’s Annual Lecture and Forum at Heritage Park Hotel yesterday, Dr Forau reflected on the lessons learned over the bank’s five decades of service and outlined a vision for the future of central banking.

The lecture formed part of CBSI’s 50th anniversary celebrations.

Dr Forau said the bank successfully navigated major challenges since its establishment in 1976, including the ethnic tensions, the RAMSI intervention, periods of global financial uncertainty and the COVID-19 pandemic.

“Through each of these, one thing has remained constant – our duty to safeguard stability and serve the people of Solomon Islands,” he said.

Looking ahead to 2076, Dr Forau said the institution must continue evolving in response to a rapidly changing world.

He identified four key lessons from the past 50 years that will help shape the future of central banking.

The first, he said, is the importance of institutional independence.

“Credibility is the most valuable asset a central bank possesses. Once lost, it is extraordinarily difficult to regain,” Dr Forau said.

He added that the independence of the Central Bank has been fundamental to maintaining trust in the country’s monetary system and the Solomon Islands dollar.

The second lesson was the need to adapt during times of crisis.

Dr Forau said challenges such as the ethnic tensions and the COVID-19 pandemic had accelerated reforms, strengthened frameworks and improved institutional resilience.

“We must never waste a crisis. It is often the birthplace of transformation,” he said.

The Governor also highlighted financial inclusion as a major priority for the Pacific region.

He said that more than half of the Pacific population remains outside the formal financial system.

“This is not just a social issue. It is a macroeconomic issue. Economic growth cannot be sustained if large segments of society are excluded from financial participation,” he said.

The fourth lesson, according to Dr Forau, is the value of regional cooperation.

“No Pacific central bank operates in isolation. When we collaborate on payment systems, regulation, data and policy, we achieve far more together than we ever could alone,” he said.

Dr Forau said these lessons will form the foundation for CBSI’s future direction as global forces such as digital technology, climate change, artificial intelligence and geopolitical shifts continue to reshape the financial landscape.

Photo credit: Ned Gagahe

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BY JOHN HOUANIHAU

The Solomon Islands Ports Authority (SIPA) officially commissioned its new jetty at the Honiara Domestic Terminal Area yesterday.

The new facility has been named ‘Kulabule Jetty’ in honour of the late Captain Judah Kulabule, a former long-serving Harbour Master, in recognition of his dedicated service and contribution to the maritime industry and the nation’s ports sector.

The modern facility 50-metre jetty is located behind Hyundai Mall and adjacent to the Wate Jetty.

It was officially opened by the Minister for Infrastructure Development (MID), Ricky Fuo’o.

The ceremony was attended by government officials, SIPA executives, stakeholders and members of the late Captain Kulabule’s family.

The project was fully funded by Solomon Ports at a cost of approximately SBD$28 million.

The facility is expected to improve the efficiency of domestic shipping operations, reduce vessel traffic congestion at the Honiara port area and enhance services for inter-island passengers and shipping operators.

Speaking at the commissioning ceremony, SIPA Chief Executive Officer George Rausi welcomed guests and highlighted the importance of continued investment in domestic port infrastructure to support economic growth and connectivity across the country.

Moses Virivolomo, SIPA Board Chairman also addressed attendees, describing the jetty as a strategic investment that will strengthen domestic maritime services and improve the movement of people and goods throughout the islands.

Kulabule’s family representative, Ruth Lilogula expressed appreciation for the honour bestowed upon the family through the naming of the new facility.

Delivering the keynote address, Minister Fuo’o commended SIPA for undertaking the project and reaffirmed the government’s commitment to strengthen critical transport infrastructure.

He said that improved maritime facilities are essential for national development, particularly for a country that relies heavily on sea transport to connect its scattered islands and communities.

The ceremony concluded with a ribbon-cutting by dignitaries, followed by a walkthrough and structural inspection of the facility led by SIPA’s Engineering and Projects team with MP Fuo’o.

The commissioning of the Kulabule Jetty represents another major addition to Honiara’s growing domestic port infrastructure network.

Photo credit: John Houanihau

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BY RODRICK DESURI 

Auki 

Maka police officers in Small Malaita, Malaita Province stopped a number of men who attempted to remove the fisheries generator at the Afio sub-station, in Small Malaita yesterday evening.

Auki Police confirmed that two outboard motor operators from Langalanga Lagoon came to Afio Substation yesterday evening and attempted to remove the generator.

Malaita Provincial Police Commander, Superintendent Michael Ramosaea confirmed that the incident involved 10 men.

He said Maka police officers were alerted by Afio residents and they stopped the men from removing the generator and are investigating the incident.

Superintendent Ramosaea said the illegal movement has sparked concern among the people of the Afio substation and has raised questions as to why different individuals are targeting the removal of a government asset that was given to benefit and support the people of Small Malaita.

A concerned Afio community member, Chris Araitewa said Afio residents are not clear about any information regarding who instructed them to remove the generator, which belongs to the Afio Fisheries substation.

“We really don’t know any information about who sent those people to come and remove the generator,” he said.

He reported that they heard from those who wanted to remove the generator that they were authorised by fisheries officers from Honiara and Auki.

He added that those men also questioned the Afio residents about why they were unaware of the arrangement.

“From what we heard from those who come and wanted to remove the generator, they were authorised by the Honiara and Auki offices.

“They also questioned us why we haven’t known about the arrangement to remove the generator,” he said. 

Meanwhile, the Auki Fisheries office has responded saying that they do not know of any arrangement and were only alerted about the incident when they saw the article by Solomon Star.

Maka police officers are now investigating the matter and will provide more information later.

Photo credit: Chris Araitewa

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BY TONY IROGA

PRIME Minister Matthew Wale has told the country’s main telecommunications provider, Our Telekom, to lower its service charges.

Wale yesterday met with the board and management of Our Telekom to explore ways to work collaboratively to improve telecommunications services across the country.

At the meeting, the Prime Minister delivered a clear message and that is telecommunication costs must come down as the cost of living continues to rise, a statement by the PM Press Secretariat yesterday said.

“This has been my consistent message to all service providers since assuming office,” Prime Minister Wale said.

“We must think of the unfortunate population of this country who are trying to afford three meals a day. How do we serve them?”

While acknowledging the broader economic pressures affecting pricing across multiple sectors, the Prime Minister said some costs remain unreasonably high for ordinary citizens, the PM Press Secretariat statement said.

“We all have a stake in lowering the cost of living in this country. Government must also play its part through reforms aimed at reducing costs in other key service areas,” he said.

Prime Minister Wale emphasised the need for a collaborative and practical approach, noting that all stakeholders must work together to determine what is both achievable and reasonable, the statement said.

“Every bit of our economy needs to come down,” he stressed.

He added that discussions to address high costs across the economy are already underway with relevant stakeholders.

In response, Chairman of Our Telekom Board, Baoro Laxton Koraua, acknowledged the concerns raised by the Prime Minister.

“We will take home your concerns with gratitude,” Mr Koraua said.

Koraua also highlighted Our Telekom’s substantial contributions to the national economy and the Solomon Islands National Provident Fund (SINPF) over the last decade.

He also identified external cost drivers specifically high electricity tariffs and bandwidth costs as major factors influencing the company’s current pricing structure.

Despite these operational challenges, Koraua assured the Prime Minister that Our Telekom is actively exploring strategic measures to address the government’s concerns and lower financial burdens on consumers.

Photo credit: Press Secretariat, OPMC

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BY JOHN HOUANIHAU

Gordon Darcy Lilo, Minister of Finance and Treasury, has ordered the immediate suspension of all pre-release arrangements for goods at ports, container terminals, and bonded warehouses across the country.

The directive took effect on June 2, according to a statement issued by the Government Communication Unit (GCU) yesterday.

The directive requires the Customs and Excise Division to release imported goods only after all applicable duties and taxes have been paid in full, or when a formal exemption order has been issued by the Revenue and Customs Exemption Committee, the statement said.

Minister Lilo in the statement said the measure aims to strengthen compliance with customs regulations, safeguarding government revenue.

He further adds that this is also to ensure that tax exemption decisions are made through the proper legal channels.

“This action reflects the Government’s commitment to transparency, accountability, and responsible management of public resources,” he said.

The statement advised importers of perishable goods to ensure all duties and taxes are paid in advance to avoid delays in the clearance process and prevent potential spoilage.

The Ministry of Finance and Treasury has instructed all Customs officers and relevant stakeholders to implement the directive immediately.

GCU said the move forms part of broader efforts by the Government to strengthen revenue collection and improve compliance with customs and taxation laws.

Photo: Supplied

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BY IRWIN ANGIKI

Police Commissioner Ian Vaevaso has been suspended.

His suspension notice was delivered yesterday by Governor General under advice from the Prime Minister.

Private Secretary to the Governor-General at the Government House Rawcliffe Ziza told Island Sun today reason for the suspension includes outstanding allegations against Mr Vaevaso.

“Commissioner Vaevaso is suspended while a tribunal investigates the outstanding allegations against him,” Mr Ziza said.

The tribunal was set up yesterday also, Ziza adds.

An acting police commissioner will be made known later under the advice of the prime minister, Ziza said.

Prime Minister’s Press Secretariat told Island Sun today the process is a chance to clear the issue of Vaevaso and the allegations against him.

“The decision was informed by the fact that several of the allegations in question were not raised prior to Mr Vaevaso’s appointment as Commissioner of Police.

“A tribunal will now be established to thoroughly inquire into the allegations and determine whether they are substantiated.

“This process will also provide Mr Vaevaso with a fair and transparent opportunity to clear his name,” PM Press Secretary Douglas Marau said.

The allegations against Commissioner Vaevaso centre on the mishandling and improper destruction of seized illicit drug evidence on February 17, 2024.

In January 2024 Vaevaso allegedly removed the confiscated methamphetamine and ketamine from secure storage and kept them inside his private office for nearly a month without proper forensic oversight.

The drugs were officially dumped into the ocean on February 17, 2024, an episode the Royal Solomon Islands Police Force (RSIPF) initially promoted through a press release and photographs before internal whistleblowers raised concerns regarding the legality of the process.

Following an investigation by the Office of the Director of Public Prosecutions (DPP), an internal report found sufficient evidence to recommend criminal charges for abuse of office based on the following specific actions:

Improper evidence disposal – He allegedly bypassed strict forensic protocols by ordering officers to turn over a large stash of confiscated methamphetamine and ketamine, which he subsequently dumped into the ocean.

Tampering risks – He allegedly kept the seized narcotics unsecured inside his private office for nearly a month before disposing of them, creating an opportunity for evidence tampering.

Witness intimidation – He allegedly threatened and intimidated subordinate officers who actively opposed his irregular handling of the drug exhibits.

Misleading investigators – He allegedly lied to internal police investigators when initially confronted about the unauthorized disposal process.

Vaevaso has always insisted his innocence. The current prime minister, Matthew Wale, when he was Opposition leader, objected to the appointment of Vaevaso to be the new police commissioner on April 24 this year.

Vaevaso’s legal standing to take office was reinforced when the Attorney General’s Office reviewed the internal case and dismissed the allegations. The AG ruled there was insufficient evidence to proceed with criminal charges, which Vaevaso’s allies note effectively closed the matter prior to his swearing-in.

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