BY NED GAGAHE
Kolombangara Forest Products Limited (KFPL) was disqualified from receiving a $5 million grant under the Economic Stimulus Package (ESP) due to non-compliance with the policy guidelines.
Opposition Leader Matthew Wale raised the issue on the floor of Parliament yesterday, asking:
“What happened to the $5 million funding support under the Economic Stimulus Package that was allocated to Kolombangara Forest Products Limited (KFPL)?”
In response, Minister of Finance and Treasury, Harry Kuma, clarified that KFPL did not qualify for the funding.
“Sir, this grant was applied for, but eventually KFPL did not receive it. One of the policy guidelines under the ESP is that assistance is prioritized for companies that are at least 45 percent locally owned. Since KFPL did not meet this requirement, the grant was not approved,” Minister Kuma explained.
However, Opposition Leader Wale questioned the process, noting that KFPL had been publicly listed as a recipient in a budget announcement by the then-Finance Minister.
“If that was the case, why was it announced? I understand that other large companies that also didn’t meet the 45 percent ownership requirement received ESP funding. I don’t understand why KFPL was excluded,” Wale stated.
Minister Kuma reiterated that the policy guideline had been approved by Cabinet at the time.
“Soltuna, for example, received funding because it was more than 45 percent locally owned. In the case of some copra exporters, what they received was not a grant but subsidies,” he clarified.
KFPL was among the companies publicly announced to receive ESP support in April 2020.
However, the company claims it has not received any portion of the promised funds to date.
In April this year Opposition group visited Western Province and KFPL has urged the Opposition Group to press the matter further with the government.
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