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Gov’t to follow DMF

FINANCE Minister Harry Kuma says the Debt Management Framework (DMF) will guide any new borrowing proposal of the Government. 

Minister Kuma highlighted this during his 2021 Budget Speech in Parliament on Tuesday this week.

The Finance Minister said this framework provides the guidelines for the National Government to enter into new borrowing.

Mr Kuma said the Framework does not encourage large, one off borrowings, as they limit the Government’s ability to:

 a)           Adapt to economic shocks; and

 b)           Fund yet to be identified development initiatives that may exhibit high   economic and social returns.

“A Debt Management Advisory Committee (DMAC) has also been established to review borrowing proposals and make recommendations to the Minister for Finance,” Mr Kuma told Parliament.

He said at the end of 2020, the level of official Government debt was $1.226 billion. 

Minister Kuma said this consists of $774.9 million in external debts, $451.2 million in domestic debts and $30 million in other debts. 

The Finance Minister said the government plans to spend $84.8 million in debt servicing in 2021.

“At present, the Debt to GDP ratio is currently around 11.7 percent at the end of December 2020. This is a sustainable level. However, at this level of debt, the Solomon Islands has limited capacity to borrow to fund its needed development. To ensure that debt remains at a sustainable and affordable level, the government has resolved that new debt should only be incurred incrementally, in a steady and predictable manner,” he said.

OPMC PRESS

$938m to productive and resource sector

By EDDIE OSIFELO

THE Government has committed $938 million under the Development Budget to the country’s productive and resource sectors.

This is part of the government’s re direction policy to address the changing dynamics of the “new normal” environment.

Delivering his speech on the $4 billion budget tabled in Parliament on Tuesday, Minister of Finance and Treasury, Harry Kuma said the productive sector is very important for the country’s growth and recovery process.

He said this explains why a total of $209.8 million is allocated to the productive sector.

This includes:

  1. $25 million for Agriculture Investments.
  2. $25 million for Commerce and trade investments.
  3. $24.8 million for Communication and Aviation investments.
  4. Under Fisheries, the government is allocating $15 million.
  5. Under Lands, the government is allocating$10 million.
  6. Under Tourism, the government is allocating $10 million.

Furthermore, Kuma said under the Infrastructure Development, the government is allocating$100 million in total.

He said the Government has provided a total of $370.4 million in additional funding to develop the projects and activities in these areas:

  1. Increase value added Industries and build a resilient economy
  2. Push for an Innovative development model for Solomon Islands
  3. Encourage strategic investment through the Public Private Partnership
  4. And ensure we maximize economic benefits of our resources. The government promotes more value adding industries and encourages investments that add value from our resources.

Kuma said the budget allocation towards the resource sectors have been increased in 2021 under the following sectors:

  1. Under Forestry, the government is allocating $10.6 million.
  2. Under Environment, the government is allocating $6 million.

Further to that, he said the government had decided to allocate $342 million, including $90 million from the People Republic of China (PRC) to support rural development and growth initiatives through the constituency development programme to establish small business, construct infrastructures, and create employment opportunities in the rural areas.

He said under Mines, the government is allocating $11.8 million.

Kuma said the government is providing an additional amount of $10 million towards the COVID-19 vaccination programme in 2021.

He said 2021 development budget will be collectively funded by domestic revenue, external financing and direct budget support from our development partners.

Economic outlook outlined in Parl

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National Parliament of Solomon Islands

By EDDIE OSIFELO

MINISTER of Finance and Treasury, Harry Kuma has outlined the economic outlook of the country in Parliament.

Delivering his speech on the $4 billion budget on Tuesday, Kuma said the 2021 budget was developed based on a projected Real Gross Domestic Product (GOP) growth of one percent (1.0%).

He said based on recent economic trend observations, both the services and industry sectors are expected to contribute 0.5 per cent and 0.6 per cent, respectively in 2021.

Kuma said Primary sector production, on the other hand, is projected to remain relatively weak in 2021, attributable to the expected fall in log output in the near term.

He said real GOP growth is forecast to rebound to around 1.0 per cent in 2021, from minus 3.6 per cent in 2020, consistent with expected recovery in overall economic activities.

“However, revenue growth is not expected to keep pace with nominal growth over the medium term.

“This is primarily the result of the expected slowdown in collections of export duties from round logs,” he said.

Furthermore, Kuma said in terms of price pressures, annualized headline inflation surged in early 2020 due to a temporary surge in the betel nut index and supply-side shocks for selected commodities.

“For 2021, annualized headline inflation is estimated to decline to around 3 per cent.

“As said earlier, the global slowdown has markedly affected the Solomon Islands economy, resulting in a sharp decline in major commodities exports (particularly fish) and tourism, which is also expected to negatively impact the economy and produce a weaker external position,” he said.

Kuma said the current account deficit was around 4 percent of GOP in 2020 and will continue to widen in 2021.

Moreover, Kuma said in response to the threats of COVID-19 on tourism, exports, and domestic demand, the IMF had disbursed funds to the Central Bank of Solomon Islands in June 2020 to help cover the urgent balance of payment needs.

“Despite the lingering external vulnerabilities, logging and other key exports have been relatively strong throughout 2020, while further falls in import oil prices are expected to provide support in 2021.

“The impact of continued decline of logging activity and the expected importation of heavy infrastructure projects in the pipeline will place significant pressures on external foreign reserves over the medium term,” he said.

Kuma said in 2021, total exports are forecasted to slowly pickup in line with projected recovery in the global economy and domestic activity.

He said external demand for all categories of exports, except for round logs are forecast to rebound.

Further to that, Kuma said looking ahead; total exports are projected to expand by 6.5 per cent in 2022, due to positive contributions from increased agricultural exports, minerals and fish exports.  

He said total imports, on the other hand, are also forecast to rise because of increased importation of machinery and transportations equipment.

Debate of the budget continues today.

Police issue weather warning

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Police are warning people to be cautious during the current bad weather.

POLICE have advised members of the public and communities throughout the country to take precautionary measures by thinking safety first during the current bad weather being experienced throughout the country.

Commissioner of Police, Mostyn Mangau said communities close to river banks must find high grounds to take shelter and try to watch out for landslides.

“Please do not cross flooded rivers.

“Road users in Honiara and throughout the provinces are also advised to take safety measures when travelling on the roads as we experience the bad weather.

“Please drive slowly as the roads have become slippery and even flooded in some parts with blocked drains over flowing.”

“Pedestrians are also encouraged to take care when walking along slippery footpaths. Parents and guardians must make sure their children do not play on the wet roads or flooded drains,” Commissioner Mangau said.

“Boats and vessel owners are also urged to think safety first before embarking on any trip at sea during the current bad weather. Check the weather by listening to the SIBC and other radio stations or call the Met service and get the right advice before travelling at sea.”

“If you are at sea and need help, contact the Maritime Rescue Coordination Centre (MRCC) on phone 21609 or 27685, or toll free 977. You can also call the Police Communication Centre on 23666 or toll free 999.”

“Let us all work together to make sure of everyone’s safety and security during this bad weather,” Commissioner Mangau added.

RSIPF

Kuma commits to ‘credible budget’

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Minister Hurry Kuma

GOVERNMENT says it is committed to implementing a credible fiscal plan budget for 2021.

Finance Minister Harry Kuma highlighted this when delivering his 2021 Budget Speech in Parliament, Tuesday this week.

Minister Kuma said the National Government is also committed in ensuring adequate resources are allocated to legitimate contractual commitments and policy priorities.

He said the 2021 Budget would be the necessary vehicle to stimulate growth again, investment opportunities and better service delivery outcomes for all.

“As usual, all ministries and agencies are required to put together comprehensive procurement plans and documentations as soon as possible, so that implementation of the 2021 budget, especially the development spending is not unnecessarily delayed,” he said.

Minister Kuma said the Ministry of Finance & Treasury will continue to monitor the implementation of the 2021 budget and ensure public resources are used prudently and for the approved purposes.

“It is the responsibility of all accounting and accountable officers, Permanent Secretaries, Deputy Secretaries, Financial Controllers, Human Resource Managers and Directors to uphold the PFM Act 2013 and also Financial Circulars which will be issued to ministries after this Appropriation bill is passed,” he said.

Furthermore, the Finance Minister strongly reminded government ministries not to commit the government into contractual commitments without securing funding. 

He said this is to avoid rolling over arrears into 2022.

Minister Kuma said in order to facilitate the smooth operation and delivery of government services to the people, all ministries are urged to provide revised costed work plans; procurement plans and to ensure spending is in line with those plans.

“As we lay out our plans for our economy, we must ensure these plans are fiscally sustainable, so that we have the resources to deal with future needs and challenges.  We must continue to plan our finances based on long-term structural drivers,” he said.

OPMC PRESS

Patrol boat base talks continuing

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Patrol boat patrolling in the Shortland Islands.

BY JENNIFER KUSAPA

The proposed patrol boat outpost in the Shortlands is still being discussed between stakeholders and landowners.

Permanent Secretary of the Ministry of Police, National Security and Correctional Service Karen Galokale revealed this during the recent Public Accounts Committee hearing.

Ms Galokale said they started the discussion last year with the landowners about the outpost base, which will be a multi-agency facility as it will accommodate all law enforcement agencies.

She said the landowners supported the idea, but there are more talks to be done before any deal can be sealed.

Galokale also said the donor who will be constructing the project is ready and awaiting on the finalisation of discussions with LOs.

She also said while awaiting that project to be constructed currently they are trying to get all the law enforcement agencies to review their existing framework and their standard operating procedures, this is for them to tide up their existing systems as that facility at the border will be a combined multi-agency facility to mann the border.

Sentencing on water tank case adjourned

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BY JENNIFER KUSAPA

Sentencing for two Isabel men convicted for stealing 36 water tanks belonging to the Rural Water Supplies and Sanitation Hygiene in 2017 has adjourned to April 12.

Their sentence was supposed to have been made on Tuesday this week but the presiding Magistrate moved it for next week.

Wilson Innie Hiro and Hilly Manasseh faced 28 counts of simple larceny and were found guilty after a trial was conducted in the Honiara Magistrate Court.

The only pending issue is for the court to deliver its sentence on both men.

The two men were found guilty by the court for collecting 36 water tanks on different dates at Island Tanks Ltd and selling them to other people.

The court heard during the trial that in April 2016, two payments totaling up to $194,600 were made for two projects, one for Guadalcanal Plains Palm Oil Limited (GPPOL) and the other for Renbel.

It was also heard that the two payments, $99,340 for the GPPOL Project and $95,260 for the Kanaba project in Renbel were paid to Island Tanks.

Those tanks were however never delivered to the Rural Water Supplies and Sanitation Hygiene (RWASH)/Ministry of Health and Medical Services warehouse.

The two were earlier entered not guilty pleas and a trial was conducted on their which they were found guilty of their actions.

Public Solicitor’s lawyers Rodney Manebosa and Daniel Kwalai represent the two accused while the Office of the Director Public Prosecutions appears for the crown.

The two are currently on bail awaiting their sentence.

Lockdown if covid-19 case at border: PM

Police officers patrolling the Western border with Bougainville. PHOTO ABC

BY ALFRED PAGEPITU

If there is any covid-19 case detected in the border communities, the country will head into Lockdown.

This is according to Prime Minister Manasseh Sogavare.

In his nation wide address on Tuesday he said, “This will restrict people movements in-order to prevent any further spread of the virus beyond where it may have been identified.”

He said the best way to prevent a lock-down, is to prevent its entry into the border communities in the first place.

“My good people of Solomon Islands, the Western Border continues to be a great cause of concern to us in relation to covid-19 security.

“With the rapidly increasing number of COVID-19 cases in PNG, it is highly likely that numbers of COVID-19 in Bougainville are also increasing although it is difficult to know the numbers.

“As of today, PNG has reported a total of 7,406 cases with an average daily increase of around 300 new cases per day.”

PM strongly reminds people at the border communities that no one from Solomon Islands is allowed to cross the border to Bougainville.

He also added that no one from the Bougainville side is allowed to enter into Solomon Islands.

Sogavare explained that this is no longer just a legal matter. It is a matter of protecting and safeguarding life. Protecting our families and children who live in our border communities from covid-19.

“Most people infected by COVID-19 do not have symptoms. They are not sick. If they are infected and are not sick, they can transmit the COVID-19 virus to anyone they meet without knowing about it.

“This is why the best policy is not to allow anyone to come across the border and no one from our side goes across the border.

“Our joint border force is also steeping up its patrol at the border zone. However. this is not a policing matter. It is simply a matter of individual responsibility to care for each other’s health and wellbeing.”

Legal advocates fine-tune skills

TWELVE Community Legal Advocates (CLAs) who are based in the provinces of Malaita (North and South), Western (Seghe, Shortlands, Vella la Vella and Kolombangara) and Temotu (Santa Cruz and Lomlom) have now fine-tuned their skills in basic law, legal rights, awareness raising, mediation and problem solving following the conclusion of their nine-day refresher training this week.

 The work of the CLAs has benefitted over 9000 individuals whose access to the formal legal system is limited by their physical access, awareness and high costs borne by both individuals in accessing services and by government in supplying sufficient quantity and quality of service delivery to the outlying provinces.

In their community awareness programmes, the CLAs provide information on the Public Solicitor’s Office (PSO).

The PSO is the equivalent of Legal Aid Office in other countries and provides free legal representation and advice to those that need it.

 Some of the usual questions asked by community members in remote locations include, can we report a crime to the PSO? Does the Police have the same responsibilities as the PSO? Does the PSO represent both parties (the offender and the victim) in any issues?

 The training which ended on Tuesday 30 March, was organized by the United Nations Development Programme (UNDP) through the Access Justice Project, which is supported by the Australian Government in partnership with the Ministry of Justice and Legal Affairs through the PSO.

“By definition, CLAs are grassroot advocates who use the knowledge and skills built from training such as this to seek concrete solutions from formal justice institutions,” said Access to Justice Project Manager, Grace Kiernan.

 “As part of their primary role, the CLAs provide a PSO presence at the rural community level, linking the community to the formal justice system which benefits those most marginalized.”

 She added, “Depending on a given case, they apply tools and skills which include mediation, education, advocacy and referrals, to justice providers and the PSO as a public facing justice institution of the Solomon Islands Government.”

 “The result of their work so far, has highlighted their practical effectiveness in remote locations underscoring the equality of all persons and the respect for human dignity, regardless of location, family, economic and/or social circumstances,” said Kiernan.

 The work of the CLAs addresses specific gaps highlighted in the 2019 Access to Justice Study, which confirmed that justice in the Solomon Islands is largely characterized by the parallel existence of formal and customary systems. In addition to being relatively inaccessible for those outside urban centres, unsurprisingly much of the formal justice system is also poorly understood by most Solomon Islanders.

 “I decided to be a CLA because I felt the need for awareness on the formal option for justice,” said Temotu Province CLA, Mark Liko. Temotu province is more than 600km from Honiara making it the most remote province in Solomon Islands.

 “Through our work, people now have greater clarity on the range of services that the PSO provides and thus are now more confident to submit any issues of legal concern to the relevant authorities.”

The CLA for Western Province, Francesca O’Grady also involves her family to assist in her awareness sessions.

“My family has really supported me in this role, especially my husband who travels with me to communities and assists with logistical matters,” said O’Grady.

She added, “I found the refresher training useful for me because I continue to pick up tips on how to better communicate with communities and provide clarity on the different roles of the justice stakeholders.”

The CLAs now return to their respective communities with an enhanced appreciation for their role to reach the furthest behind first.

Vura begins talks on UNDP Climate Adaptation Project

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City Councillor for Vura ward Reginald Ngati

Following the signing ofa Climate Change and Adaptation Project with the United Nations Office for Project Services (UNOPS) under United Nations Development Programme (UNDP) in February 2021, Vura Ward has proceeded on with consultations to get the ball rolling.

The Climate Change and Adaptation Project focuses on waste and pollution reduction, and back yard farming targeting Vura Ward.

About 42 community representatives from the 12 communities of the Vura ward attended the Ward’s first development project awareness meeting held at the Kukum SDA School, yesterday.

According to the Vura Ward Project Officer, Francis Paulsen the meeting was to inform all community representatives to be aware of the UNDP funded projects that are proposed for the Vura ward.

“This is the first phase of the funding assistance from the UNDP. The second part will be community consultations and awareness which is going to happen after this meeting,” Mr Paulsen said.

Honiara City Councillor for Vura Ward, Reginald Ngati said after the first meeting, the 42 community representatives will return to their communities and choose 20 participants to assist in carrying out the task to organise a series of awareness within the 12 communities.

“The 20 people from each community must be gender balanced, including women, men, and youths.

“So the 240 people will meet as of next week, to participate in a wider awareness to inform all Vura Ward residents of the UNDP funded projects and how we as a Ward will utilise the money for the benefit of all residents within the ward.  

“After the awareness, we will then prepare a report and then present it to UNDP and inform them of the proposed plan for the funding assistance,” Ngati said.

Ngati sees the funding assistance as a blessing for the Vura Ward, knowing very well that the Honiara City Council (HCC) is not in a good state at this time.

“All along the focus of HCC towards the 12 Wards in Honiara is not about ownership, not about calling on citizens to take responsibility in their own environment and own ward.

“So when we want to carry out our plans in the communities, it will not work out as expected,” Ngati said.

In terms of waste management in Honiara City, the Councillor said it is obvious that the HCC is collecting rubbish but it is not enforcing control on people and how they dispose their wastes. Therefore, what Vura Ward is going to do with the opportunity through the funding is to educate people to care for their surroundings and environment, to be responsible for what they dispose as rubbish.

“That is one of the reasons why I see this funding as a blessing to Vura Ward. It will really connect the vision of the HCC to make Honiara City a clean city by strengthening waste management in the communities and I am ready to work with the representatives of the 12 communities in my ward,” the Vura Ward Councillor said.

Meanwhile, senior Honiara resident and Vura Ward elder, Tom Nanau said the opportunity provided by the UNDP is a breakthrough where the ward will continue to aspire to further advancement to achieve the goals for each community.

“For us Vura Ward, we want our environment to be clean but we do not have the resources to support us. With this funding now available, we will have the resources needed to translate our ideas to the ground level and into households,” Mr Nanau said.

He added that the UNDP assistance will pave the way for Vura Ward communities to become model site which all the other wards within Honiara City can learn from and look up to.

“With this funding coming in, Vura Ward will be going very far out into the future. It will also hit the national government’s target to make Honiara City clean and a green city.”

–VURA WARD MEDIA