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Western Provincial Gov’t cautioned on budget cuts

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BY BEN BILUA

WESTERN Provincial Government (WPG) has been told to take heed of the National Government’s reduced budget support to the province.

In an interview, Speaker of Western Province, Adrian S Gina said Western Province is aware of the National Government COVID-19 Redirection Policy and is now taking measures to fill the gaps.

He said Western Provincial Executive have spent time last week and this week identifying the province’s priority areas and align the priorities with the cost cutting measures of the National Government COVID-19 redirection policy.

“It’s been a very tiring weeks for Western Provincial Executive as some of the plans came short due to COVID-19 direction policy of the National Government.

“We tried to align our budget with the national government’s shortfalls so that what we budgeted for will complement the national government,” Gina said.

“Western province has to go down to its level to see the national government budget cut and determine its own intervention to make sure its development aspirations and service delivery are not affected in the next financial year,” he added.

Gina said the provincial executive and the province’s planning division have already made amendments to the province’s budget so that both the provincial budget and national government allocation are on the same page.

Western Provincial Government (WPG) will kick off its Assembly meeting today at the Imagination Island Resort – an Island half a mile from Gizo town.

OUR $1.5B DEBT

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Eddie Osifelo
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By EDDIE OSIFELO

SOLOMON Islands debt stock has risen to $1,450 million after government borrowed money from donors and state-owned enterprises and National Provident Fund to combat covid-19 last year.

The debt is equivalent to 12 percent of the Gross Domestic Product.

Central Bank of Solomon Islands Governor, Dr Luke Forau told the Public Accounts Committee in Parliament on Monday that external debt component has a bigger share of 69 percent ($998 million) underpinned by new loans from the Asian Development Bank and World Bank.

Forau said domestic debt represented 31 percent ($452 million) mainly attributed to borrowing from SOEs and the Solomon Islands National Provident Fund.

Further to that, Forau explained the country’s external trade (exports and imports) deteriorated in line with weak domestic and foreign demand as well as the impact of containment measures on tourism and infrastructure projects.

He said export dropped by 17 percent to $3,113 million driven largely by fall in round logs and canned tuna exports.

Forau said imports fell by 18 percent to $3,232 million reflecting slowdown in capital imports amidst low domestic investments during the year.

He said aided by favourable donor in-flows and the International Monetary Fund credit support, the country’s gross foreign reserves grew by 13 percent to $5.3 billion representing 13 months of import cover.

Further to that, Forau said monetary conditions during the year remained firmly in line with CBSI’s expansionary monetary policy.

He said money supply rose by seven percent to $5,418 million against December 2019, driven by increase in narrow money and other deposits.

Forau said this reflected the build-up in foreign reserves over the period.

Meanwhile, private sector credit at the end of December 2020 declined by one percent to $2,541 million.

Forau said the main sectors driving the fall in lending were personal loans, construction, tourism, transport and manufacturing.

He said conversely, credit to the forestry, distributions and professional and other service sectors grew over the year.

“The interest rate margin narrowed to 9.73 percent in 2020 from 10.23 percent in 2019.

“This mirrored a decline in the average weighted lending rates from 10.67 percent to 10.30 percent,” he said.

Forau said the average lending rates have come down; by comparison they are not far from their neighbours.

“However, I want to stress here that we need to address the issues that affect the financial systems in totality.

“The financial system is but only one component of the economy, and its functioning depends on several factors, one of which is the stability of our governing system and the robust enforcement of the relevant laws,” he said.

In the meantime, inflation remained muted in 2020 falling to minus 1.8 percent by end December 2020 despite spikes in the middle of the year whilst core inflation stood at minus 1.4 percent.

Captain pleads guilty to oil spill in Temotu

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Jennifer Kusapa
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The bulk carrier Quebec's ship captain has pleaded guilty for spilling oil at the Graciosa Bay in Temotu Province

BY JENNIFER KUSAPA

The vessel master of bulk carrier Quebec has pleaded guilty to dumping around 1,000 litres of oil into the sea at Graciosa Bay, Temotu province.

He pleaded guilty to all five counts against him and will be sentenced on March 26 at the High Court.

The vessel master who is a Vietnamese national was charged with the following counts;

Count-one; discharge of pollutants contrary to regulation 9(2) and (3) of the Shipping (Marine Pollution) Regulations 2011.

Penalty: A fine not exceeding 5000 penalty units or to imprisonment for a term not exceeding 12 months, or both.

Count-two; Failing to comply with operational requirements of the International Convention for the Prevention of Pollution from Ships (MARPOL) 1973/1978 contrary to regulation 8(1) and (2)(a) of the Shipping (Marine Pollution) Regulations 2011.

Penalty: A fine not exceeding 5000 penalty units, and to imprisonment for a term not exceeding 12 months, or both

Count-six; Making a false report contrary to regulation 16(1) and (4)(b) of the Shipping (Marine Pollution) Regulations 2011

Penalty: A fine not exceeding 5000 penalty units or to imprisonment for a term not exceeding 6 months, or both.

Count-seven; Failing to comply with instructions contrary to regulation 27 and 29(1)(a) of the Shipping (Marine Pollution) Regulations 2011

Penalty: A fine not exceeding 5000 penalty units, and to an additional fine of 1000 penalty units for each day during which the offence continues

Count-nine; Taking an unsafe vessel to sea contrary to section 81(1)(e) and (2) of the Shipping Act 1998.

Penalty: A fine not exceeding sixty thousand dollars

Director of Public Prosecution Rachel Olutimayin said the vessel, when the incident happened, had carried 21 crews, all Vietnamese nationals.

Ms Olutimayin said the vessel was registered in Panama and is used to carry wooden logs from the Solomon Islands, and the vessel’s headquarter is in Singapore and they are represented here in the Solomon Islands by Sol fish limited.

She said the vessel MV Quebec, on January 20, 2021 anchored at Graciosa Bay in Lata. The heavy oil was discharged to the sea from the vessel’s engine room through the main fire line and this was witnessed by boarding agents whom they estimated that the spilling was set to 6 to 7 minutes between 500 to 1000 heavy oil and the discharge polluted about one kilometre of beach and mangrove at the bottom of Graciosa bay.

Olutimayin also submits that any penalty imposed should be a fine and will be paid to the Solomon Islands Marine Authority.

Meanwhile counsel for the defendant Wilson Rano also suggests to consider fine as an appropriate penalty for the defendant.

Fear not

Written by
Mavis Podokolo
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Blood clot is not related to AstraZeneca vaccine: WHO

BY MAVIS N PODOKOLO

Blood clots is no side effect of the AstraZeneca vaccine, assures World Health Organisation (WHO), Solomon Islands.

Simon Burggraaf of World Health Organisation (WHO) Solomon Islands elaborates, saying data from Europe and Asia-India all show the blood clot incidents to be coincidental with vaccine administration.

WHO Global Advisory Committee on Vaccine Safety (GACVS) COVID-19 subcommittee on safety signals related to the AstraZeneca COVID-19 vaccine in its latest statement, says:

“Based on a careful scientific review of the available information, the subcommittee came to the following conclusions and recommendations: 

“The AstraZeneca COVID-19 vaccine (including Covishield) continues to have a positive benefit-risk profile, with tremendous potential to prevent infections and reduce deaths across the world.

“The available data do not suggest any overall increase in clotting conditions such as deep venous thrombosis or pulmonary embolism following administration of COVID-19 vaccines. Reported rates of thromboembolic events after COVID-19 vaccines are in line with the expected number of diagnoses of these conditions. Both conditions occur naturally and are not uncommon. They also occur as a result of COVID-19.  The observed rates have been fewer than expected for such events.

“While very rare and unique thromboembolic events in combination with thrombocytopenia, have also been reported following vaccination with the AstraZeneca COVID-19 vaccine in Europe, a causal relationship between these rare events has not been established at this time.”

Economy set for comeback: CBSI

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Eddie Osifelo
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Central Bank of Solomon Islands. Photo by CBSI

By EDDIE OSIFELO

CENTRAL Bank of Solomon Islands has projected the economy to recover to 1.5 percent this year in line with global growth and anticipated recovery in fisheries, construction sectors and key national projects in the pipeline.

The national projects are Tina Hydro and facilities for the Pacific Games in 2023.

Last year, the national economy contracted to minus 4.3 percent due to the impact of the coronavirus pandemic which affected key export and productive commodities and other related economic activities.

This happened after the government imposed the containment measures combined with the international travel restrictions led to disruptions in the production and supply chain in the domestic economy.

Appearing before the Public Accounts Committee in Parliament yesterday, CBSI Governor Dr Luke Forau over the medium term (2022-2025) growth is anticipated to pick up to an average of 3.5 percent with high growth concentrated ion 2022-2023 of between five percent and six percent from booming construction activities.

However, Forau said post Pacific Games in 2024 would be more challenging, as growth would drop considerably to around one percent when infrastructures and facilities are completed.

He said a gradual decline in forestry is also anticipated over the medium term.

“However, risks to this forecast are tilted to the downside especially with the ongoing pandemic related disruptions,” he said.

Further to that, Forau said CBSI expects inflation to remain low at -1.6% in the first half of this year consistent with on going depressed demand and to improve to 3% by end of 2021 to reflect upward pressures from food and fuel prices and transitory inflationary pressures of volatile items at the market.

The PAC has scrutinised the three billion, nine hundred and five million, nine hundred and fifty one thousand and three hundred and sixty dollars ($$3,905,951,360) budget.

The hearing continues today with the Australia High Commission, New Zealand High Commission, Japanese Embassy, Ministry of Finance and Treasury, Commodity Export Marketing Authority (CEMA), Solomon Islands Broadcasting Corporation, Solomon Islands Postal Corporation, Office of Prime Minister and Cabinet and Ministry of National Planning for Development Coordination.

2021 Bill hangs with $300m ‘dead money’

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Eddie Osifelo
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CBSI Governor, Dr Luke Forau

By EDDIE OSIFELO

THE 2021 Appropriation Bill 2021 is proposing a deficit of around $300 million.

Central Bank of Solomon Islands Governor, Dr Luke Forau stated this when he appeared before the Public Accounts Committee (PAC) in Parliament on Monday.

PAC is scrutinising the three billion, nine hundred and five million, nine hundred and fifty-one thousand and three hundred and sixty dollars ($3,905,951,360) budget.

Mr Forau said in 2020, the fiscal position recorded an overall deficit of $308 million (or 2.5 percent of GDP), mainly driven by lower domestic (tax) revenue collections and covid-19 related expenses

He said the total revenue rose five percent to $3,800 million in 2020 attributable mainly to large grant receipts of $697 million primarily relating to covid-19 responses to support the economy.

However, Forau said this year’s budget is expecting a deficit of around $300 million.

“With the current revenue flow, there are at least two immediate risks to the fiscal outlook.

“First, is the government’s cash reserves is limited to finance the fiscal deficit,” he said.

Dr Forau said second, following from the first, the financing options would be crucial for the government.

However, the Governor said there is ‘dead money’ of around more than $300 million on the budget.

He said these are monies already due to the Government, but never been collected, these include taxes such as exercise tax, company tax, etc. and other fees.

“If the government collects all these monies this year, then the deficit is securely financed,” he said.

Further to that, Dr Forau said this year is the recovery phase of our economy.

“We really need to get the economic fundamentals right.

“The 1.5% growth projected for this year will not be sufficient enough to take the country back to pre- 2020 level.

“The economy needs to grow by at least 5% to 6% before we reach the pre-2020 level. By our estimation, this may occur in around 2024/2025,” he said.

Dr Forau said seeing that international travel and border restrictions remain uncertain to reopen soon, the Government should focus on spacing out its policy priorities into short to medium term and long term priorities.

He said in the short term, which is the recovery phase the focus should be on boosting the domestic demand.

“In the doing so, policy attention should focus on ensuring that the existing companies are supported to get back to their pre 2020 level.

“Simultaneously, policies relevant for medium to long term development should also be looked at to ensure continuity.

“While I haven’t seen the Government’s recent policy redirection, Iam sure it captures some of these things that I just mentioned,” he added.

The PAC hearing continues today.

Charges against One Link director may be amended

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Jennifer Kusapa
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BY JENNIFER KUSAPA

One Link director, Gerrard Tauohu, may see charges against him amended.

This follows prosecution seeking adjournment to the case to allow them time to get statements from property owners after police recovered some properties and received a statement from Charles Dora.

Public Prosecutor Jonathan Auga told court yesterday police investigators have obtained statements from Mr Dora and recovered some properties in which the police needs to get statements from the property owners.

Auga said that with the new statements, they are looking at amending the charges against Mr Tauohu.

Deputy Chief Magistrate Ricky Iomea then adjourned the case for April 5.

Tauohu is faced with 38 counts of false pretence under the penal code, and one count of unlicensed financial institution under the Financial Institutions Act 1998.

He was arrested by police following complaints from One Link mentors and customers who did not receive their payments from the director.

Allegation said that Tauohu obtained more than $400,000 from the six mentors between December 2019 and February 2020 and failed to pay them their promised interests.

He then allegedly escaped to Malaita and was arrested after police received complaints from the scheme’s mentors and customers who had invested in the scheme last year but are yet to receive their payments.

One link Pacifica customers had allegedly invested a total of $56,440,4575 in the scheme but police had only managed to recover $336,891.20.

Jonathan Auga of the Office of the Director Public Prosecution appears for the crown while Ronald Dive represents the accused.

Police in West call for support

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The Provincial Police Commander (PPC), Western Province Chief Superintendent Mathias Lenialu calls on people at Narovai Village on Rarumana Island and surrounding communities to assist the police arrest a suspect for illegal brewing at the village.

Villagers called the police at Gizo on March 20, 2021 to report the incident.

PPC Lenialu says, “Villagers at Narovai witnessed the suspect selling homebrew to villagers especially youth after he was arrested previously for the same offense of illegal brewing of homebrew at his residence.

“The officers left Gizo Police Station at 8am and upon their arrival the complainant and the community were waiting for them. The suspect saw the officers and escaped. The officers only managed to collect the equipment he used for brewing as exhibits.

“The officers instead conducted an awareness to the community on the illegal brewing of home brew, kwaso as well as the COVID 19 pandemic.

“The community were pleased with the quick response shown by police and the work they have done for the community.

“I want to call on people at Narovai Village and the nearby villages to report to police anywhere they happen to see the suspect. He must be arrested to stop the practise of brewing because it can destroy the health of our young generation,” says Lenialu.

Govt asks India for 600k Astra

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Mavis Podokolo
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Dr Zelalem Taffese, UNICEF Field officer to the Solomon islands shakes and with Minister of Health Dr Culwick Togamana following the arrival of the AstraZeneca vaccine into the country on March.

BY MAVIS N PODOKOLO

SOLOMON Islands Government has reportedly finalised its request to the Indian Government for 600,000 AstraZeneca vaccine.

Dr Culwick Togamana, minister for health and medical service, confirmed this during the welcome event of the 24,000 doses of AstraZeneca vaccine that arrived on Friday last week.

“Solomon Islands is taking proactive actions in its efforts to secure more vaccines for the population. Thus, we have finalised our request to the government of India for 600 thousand more AstraZeneca vaccines for our people.

“This is important to fulfill the government’s desire to get all of its eligible population vaccinated,” Togamana.

He said they are also anticipating another 20,000 doses of China vaccine known as Sinopharm covid-19 vaccine early next month from the People’s Republic of China.

“Once approved by World Health Organisation, we will also roll out the Sinopharm vaccine. So, thank you China.”

Togamana said they are also anticipating significant amount of financial support from the Australia and New Zealand governments for the procurement of more covid-19 vaccines with discussions on these now underway.

“Thus, I extend sincere thank you to Australia and New Zealand,” he said.

The first batch of AstraZeneca that arrived last week was made available through the COVAX facility by GAVI, the COVAX facility, Government of India and the Serum Institute in India.

West’s Assembly meeting tomorrow

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BY BEN BILUA

GIZO

THE Western Provincial Government (WPG) is gearing up for its Assembly meeting tomorrow.

Speaker of Western Province, Adrian Gina confirmed this to Island Sun Office in Gizo yesterday afternoon.

He said the Assembly meeting will be held at the Imagination Island Resort – an island half a mile from Gizo town.

Gina said the main agendas for the meeting will be the 2021-2022 Appropriation Bill which includes the Province’s budget, Western Provincial Government (WPG) Audit Report 2018-2019 and the Western Province Investment Corporation (WPIC) Audit Report 2011 -2019.

“As usual, we come to an end of a financial year 2020-2021 end this month and it has been a tradition that the Provincial Assembly gather together and discuss the budget for the next financial year 2021-2022.

“Main agenda is the 2021-2022 Appropriation Bill. This will be the whole focus of the meeting.

“We will also table the WPG Audit Report which accommodates the spending of the province in the year 2018 to 2019 and the WPIC Audit Report which has not been audited for the past few years that the interim government took forward to audit the finances of the entity,” he explained.

Gina said the Western Provincial Executive had completed the documentation of the province’s estimate budget and the document is before the Provincial Public Account Committee for further scrutiny.

He said the Western Provincial Executive will meet again today to finalise the edited report from PAC before compiling the final document for the assembly meeting.

Gina calls on provincial members of the 26 wards to attend the Assembly Meeting as it is very important to map out the province’s future operations and service delivery.

He said the public is welcome to the meeting and will be made available for the public to travel to the island to listen to the discussion.

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