BY JOHN HOUANIHAU
Member of Parliament (MP) for South New Georgia/Rendova- Tetepare Constituency, David Gina, said that repeated capitalisation of State-Owned Enterprises (SOEs) demands honest reflections.
Delivering his speech during the Sine Die Motion in parliament on Monday, December 15, 2025, Gina said that while public funds flow into these entities annually yet tangible returns remain thin or difficult to see.
He said that capital injections should drive growth and market access and not serve as life support.
“When Parliament approves capitalisation, it expects clear benefits to the economy and the public. Development Bank of Solomon Islands (DBSI) continues to receive government support as a key vehicle for financing farmers, small businesses and productive sectors,” he said.
He said that DBSI secured $50 million from the National Provident Fund, a significant sum, approved on the understanding that it would expand access to credit and support production on the ground.
“Yet, when we look at the evidence, our concern emerges,” Gina said.
He said that recent growth in agriculture has been driven largely by high world price and donor funded projects, not by a noticeable expansion of domestic credit.
“This leads to a simple but important question for Parliament. Are repeated capital injections into DBSI translating into real lending to farmers and small businesses? There is also a practical constraint that cannot be ignored where many rural farmers face serious challenges in providing loan security.
“The CBSI loan guarantee scheme has now been fully utilised. Once that safety net is gone, what options remain for farmers who are productive but lack assets? If DBSI is to fulfil its mandate, government must explain how credit will reach rural producers in the absence of guarantees,” he said.
He said that capitalisation risks benefiting the balance sheet, not farmers otherwise, an issue Parliament must confront honestly.
“CEMA presents a similar concern. It is regularly cited as a Centre of Export Marketing Authority and market access. Yet, Parliament receives little clear reporting on volume benefits or financial returns. If public funds are used to capitalise CEMA, we must be able to see whether it is adding value beyond what private traders are already doing,” Gina said.
He said that in a context of rising debt, servicing and tight development budget, capitalisation with a clear performance benchmark is a risk the country cannot afford.
He said that support to SOEs must be tied to measurable outcomes, transparent reporting and consequences for underperformance.
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