BY BEN BILUA
Gizo
Isabel Provincial Government (IPG) has come under scrutiny following revelations in its 2021/2022 Audit Report regarding a controversial shareholding arrangement with a local telecommunications company.
According to the report, IPG entered into a Shareholders Agreement on April 11, 2023 with Pacific Vaizeds Enterprise Limited to establish communication services across Isabel Province.
The provincial government acquired a 30 percent stake in the venture, valued at SBD$1.2 million.
The partnership company, Vaizeds Isabel Telecommunication Company Limited, was structured with 70 percent ownership held by Pacific Vaizeds and 30 percent by IPG.
However, the audit highlighted inconsistencies in share allocation records.
While the signed agreement indicated a total of 100 shares, 70 for Pacific Vaizeds and 30 for IPG, records from Company Haus showed a different structure of 100 shares, with 70 and 30 shares respectively.
Further checks confirmed that the company was incorporated on 18 April 2023 and later deregistered on 1 November 2025.
The Office of the Auditor General (OAG) raised serious concerns about the legality and timing of the transaction.
Audit findings revealed that payment for the provincial shares was made on 16 March 2022—prior to the signing of the formal agreement and just weeks before the dissolution of the Provincial Assembly.
This sequence of events, the report noted, contradicts International Public Sector Accounting Standards (IPSAS) Cash Basis requirements, which mandate that transactions must be supported by valid documentation at the time they are recorded.
“The posting of the transaction before the agreement was signed raises concerns about whether the transaction was validly authorized,” the report stated.
The audit also uncovered potential conflicts of interest involving senior leadership.
It found close familial ties between the former Provincial Premier and the owner of Pacific Vaizeds Enterprise Limited, raising questions about the integrity and transparency of the deal.
Auditors further identified multiple governance lapses, including the province’s failure to provide a detailed project appraisal, lack of documented Provincial Assembly approval, and submission of unsigned executive and budget minutes for review.
There was also no evidence that the investment received clearance from the Ministry of Finance and Treasury.
Additionally, the province lacked a clear policy framework to govern the management, operations, and reporting structure of the partnership company.
The audit noted uncertainty over who would serve as the company’s external auditor.
The findings point to a potential breach of provincial financial management regulations and highlight a high risk of misuse of public funds.
“The absence of proper approvals and the presence of conflicts of interest create conditions that could enable fraud or personal gain,” the report warned.
The IPG has yet to publicly respond to the audit findings.
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