Government secures additional budget support from donors

By EDDIE OSIFELO

THE Government has secured a total of $449 million in grants and concessional loans from development partners and donors to sustain the economy during this downward time caused by the global covid-19 pandemic.

This is because the government expects additional spending pressures, particularly in the health sector, depending on the severity of the domestic public health situation.

Minister of Finance and Treasury, Harry Kuma highlighted this during his presentation on the motion to extend the State of Public Emergency to four months in Parliament on Tuesday this week.

Kuma said Asian Development Bank will provide $24 million in grants and $24 million on loan.

He said ADB will also provide $162 million on grants.

Kuma said World Bank will assist with $114 million in grants and $48 million in loan.

He said Department of Foreign Affairs and Trade in Australia will provide $63 million in grant.

This is also same with New Zealand Ministry of Foreign Affairs and Trade that will allocate $14 million in grants.

In addition, Kuma said the country very own State Owned Enterprises namely Solomon Islands Ports Authority, Solomons Power and Solomon Islands National Provident Fund pledged their willingness to purchase Government Development bond of around $100 million.

“This will further support the implementation of the economic stimulus package,” he said.

By EDDIE OSIFELO

PARLIAMENT on Tuesday 7th April approved that the State of Public Emergency shall continue in force until the expiration of a period of four months.

Forty (40) members of Government, Opposition and Independent benches have thrown their support on the motion moved by Prime Minister Manasseh Sogavare during the divisional vote in Parliament.

 Eight members were absent during the voting.

Former Minister of Education and Human Resources John Moffat Fugui and MP for North East Guadalcanal, Jamie Vokia vacated their seats after they lost their election petition cases recently.

PM Sogavare said he was overwhelmed by the spirit of unity that manifested in the house for the first time a matter discussed where everyone agreed on points to put on floor.

He said it was amazing what a national crisis can do, it actually unites the country together.

“Where it starts, it starts appropriately here in this house.

“When the motion was debated, it was overwhelming supported by all members of the house,” he said.

Sogavare said the government took note of a lot of issues raised and would address through relevant ministries.

In addition, he said the powers given to him under the Emergency Powers (COVID-19) are not absolute and sweeping powers.

However, Sogavare said in times like this you don’t need to negotiate but for people to carry out orders.

He said the existence of State of Public Emergency does not means all rights of citizens are suspended but allow these rights to be curtailed.

“The State of Public Emergency allows the Excellency to evoke powers under the Emergency Powers Act to make regulations for the exercise of the powers prescribed the particular regulations.

“In this case it evokes the Emergency Powers (COVID-19) 2020,” he said.

Sogavare said the powers are to address the COVID-19 and not to do anything under the sun.

A state of emergency is a situation in which a government is empowered to perform actions or impose policies that it would normally not be permitted to undertake.

A government can declare such a state during a natural disaster, medical pandemic/epidemic, civil unrest, or armed conflict.

Such declarations are designed to alert citizens to change their normal behaviour and orders government agencies to implement emergency plans.

This was the second SOE in 20 years after former Governor General Sir John Lapli declared it in 2000 following the ethnic conflict on Guadalcanal.

Parliament adjourns to Monday 27th July 2020 unless the Speaker recalls Parliament earlier.

By EDDIE OSIFELO

THE Government COVID-19 Economic Stimulus Package targets the export sector and key growth areas in services, agriculture, construction, tourism and communication.

Minister of Finance and Treasury, Harry Kuma explained the proposal during his contribution in Parliament yesterday on the motion to extend the State of Public Emergency to four months.

The proposal is pending Cabinet deliberation after consultation done between Officials in the Ministry of Finance, Office of Prime Minister and Development partners.

Kuma said the four different level of support in the proposal are:

1. Soft immediate relieve;

He said the first level looks at soft measures to ensure the economic machinery or vehicle continues to operate with the given relieve measures.

These include:

1. Utilities relieve package from State Owned Enterprises (SOEs) like Solomon Power and Solomon Islands Ports Authority (SIPA);
2. Banks and financial institutions relieve on loan repayments and interests;
3. NPF relieve on surcharges to employers;
4. Possible tax relieve on specific sectors (this will be finalised with IRD input);
5. Government payroll will generally continue to support public servants and maintain certain level of consumer demand.

• Injection into targeted investments into productive and resources sector.

This will include:

1. Value added or production on target agriculture products, kava, noni, cassava, etc;
2. Value added or production on targeted forestry, fisheries sectors;
3. Targeted investments into tourism;
4. The package will also propose a specific investment called COVID-19 product in DBSI. This product will promote specific investment in agriculture sector.

• Equity injection into Government’s portfolio companies for immediate recovery and continuation of their operations.
• Equity injections into airlines;
• Equity injection into Soltuna;
• Equity injection into KFPL;
• Equity injection into DBSI.

• Medium to long term support to growth.

Kuma said this part of the package will commit the government to bring forward key unfunded infrastructure under the National Transport Plan and the Development Programme of the Government.

He said pipeline investments under this package will include but not limited to projects such as:

1. Two major wharves that links agriculture hub, include Kirakira wharf/rumps, and Malu’u wharf;
2. Fiu bridge in Malaita
3. Seghe and Taro airport upgrade project

Kuma said the road ahead to stimulate the economy will not be easy.

He said it is entangled with uncertainty, fear, and travel restrictions that have been established to contain the virus, but on the other hand are restrictive in the implementation of the stimulus package with the business sector.

“Unlike other disasters, such as cyclone and flood that are developed and physically seen in the country.

“The COVID-19 is unseen and is still a foreign virus,” he said.

Kuma said nonetheless, it has restricted people’s mobility, affect and reduce aviation and shipping services, hinders project implementation and reduce business and economic growth.

However, Kuma said the Government is committed to secure funding resources and identify targeted areas to be ramped up.

“Stimulating the economy (like protecting our citizen from COVID-19) is however, everybody’s business.

“We all need to see a goal together, plan together, and work together to reinvigorate the economy,” he said.

By Alfred Sasako

SOLOMON Islands Maritime and Safety Authority (SIMSA) chairman, Robert Bokelema, has reportedly issued a news blackout on the search and recovery operations following the sea tragedy last Friday night.

At the same time it has been revealed that the ship involved in the accident, MV Taimareho, allegedly switched off its radar and radio when it left Honiara at midnight on Thursday.

Two parallel investigations are now underway – one by SIMSA and the other by police.  The SIMSA investigation is establish whether any marine rules were broken while the probe by police is to establish whether criminal negligence was committed.

Six bodies have since been recovered from the sea tragedy, including five on Sunday. Some 27 passengers were missing, reportedly fell overboard when the MV Taimareho was hit by giant waves on the crossing between Guadalcanal and Malaita Provinces.

Those who fell overboard were largely high school students, according to initial reports

It is not clear whether relatives of the 21 people who remain unaccounted for are included in the news blackout, issued by Mr. Bokelema after a meeting of the SIMSA Board of Directors on Monday.

It is also unclear whether the search and recovery operation has been called off.

Island Sun contacted SIMSA yesterday and was told that it is not allowed to say anything to the media on the matter because of an order by the Chairman of SIMSA Board of Directors, Mr. Robert Bokelema

“We’ve been told not to say anything to the media until a formal report on the accident is completed,” one officer confirmed yesterday.

Asked how long the report would take, the officer said SIMSA is working on it.

Attempts to speak to the Permanent Secretary of the Ministry of Infrastructure Development, Steve Masiola were unsuccessful. He did not pick up his phone.

Search and Rescue came under scathing criticisms both in and outside Parliament.

West Are’Are MP, John Maneniaru, told Parliament the Search and Rescue Division of the Ministry of Infrastructure Development (MID) the “slow response to an urgent request for assistance” had cost innocent lives.

The MV Taimareho was on charter to Ward 24 of West Are’Are Constituency which owns the ship. It reportedly arrived back in Honiara yesterday afternoon.

“It takes twenty-four hours for the Search and Rescue division to respond to an urgent request for assistance,” Hon Maneniaru reportedly told Parliament on Monday.

Meanwhile, a relative of one of the missing people told Island Sun yesterday he had been informed by authorities that the radio and radar of the MV Taimareho were not switched on when the boat left at midnight last Thursday.

“Whether that was deliberate or not is a subject of SIMSA investigation because it is a violation of marine safety rules,” Charles Karamauri told Island Sun.

“I was told that even the urgent request for assistance was made via a mobile phone not the ship’s radio. This call was made when the boat was already at Su’u where it took shelter in West Kwaio. When the caller was asked why the ship’s radio was not used to make the emergency call, he simply said, it was turned off,” Mr. Karamauri said.

He said authorities also told him that responsible officers on the MV Taimareho did not even sign off on an authority form before it departed at midnight last Thursday. This form is a mandatory requirement for ships in the event the ship was stopped initially from sailing.

Mr. Karamauri said SIMSA had apparently stopped the ship from sailing because of alleged over-loading as well as the weather warning given to all ships around 3pm on Thursday.

“I am happy that these matters are now being investigated because we as relatives need answers. I would also like authorities to do a re-count because it has been reported that there were 738 passengers on board when a headcount was first taken,” he said.

Government to find out the truth of boat tragedy: Sogavare

By EDDIE OSIFELO

PRIME Minister Manasseh Sogavare has assured families of the 27 passengers who were washed overboard MV Taimareho between Guadalcanal and Malaita on April 3 that government will get to the bottom of the issue.

Mr Sogavare made this assurance when he winded the motion to extend the State of Public Emergency to four months in Parliament yesterday.

He said the government will get to the bottom without any further delay.

The government has launched two separate investigations into this incident.

The first investigation comprises a two-part investigation by the Solomon Islands Maritime Safety Administration (SIMSA).

The first part is already commenced – the preliminary investigation into the tragic incident in which the 27 passengers were washed overboard from MV Taimareho. A Marine Investigation Officer has been appointed by the Director of SIMSA in accordance with the Shipping Act 1998, and Shipping (Marine Inquiries and Investigations) Regulations 2011.

The second part involves the Commissioning of a ‘Board of Marine Inquiry’ by the Minister under the Act to conduct a formal enquiry into the incident.  The Board of Marine Enquiry will commence its work following the appointment by the Minister of its Chairperson and two members.

The second investigation is criminal investigation commissioned by the Commissioner of Police as a result of suspicious deaths. This will involve interviews of passengers, crews, shipping company and other persons or bodies of interest to establish facts resulting in suspicious deaths.

These investigations will look into the legality of certain actions or decisions taken or not taken leading to the ship departing Honiara on the night of 2nd April 2020. It will also look into the incident itself and the post-incident activities. The findings and recommendations of these investigations will be presented to the relevant authorities.

These two investigations will provide adequate assurance into the cause of the incident.

Sogavare said some people are calling for Commission of Inquiry in social media, how he said it will take lengthy period before answers are made.

He said there is not time for finger pointing or blame any persons because what happens is a tragedy due to astronomical proportion.

Sogavare said it was wrong for certain speakers to imply that the incident was a direct consequence for the government’s call for people to return to their provinces as a result of coronavirus (COVID-19.

He said it was also wrong that the people who lost are the first victims of COVID-19.

“We really need to correct that, at this time and at such circumstances; I find that kind of statement quite disconcerting.

“Such statements too early until all the facts have been established,” he said.

By EDDIE OSIFELO

OPPOSITION Leader, Mathew Wale urges the government to keep the economy functioning in this time of economic recession caused by the coronavirus (COVID-19) globally.

Speaking in Parliament on the motion to approve State of Public Emergency and for its continuation for next four months, Wale said in the macro, international trade in the main commodities exported by Solomon Islands are severely curtailed.

He said commodity prices are expected to remain relatively low on the back of weak demand from the manufacturing slowdown in China.

“The length of time for demand to pick up again is uncertain, perhaps as long as six to ten months.

“Imports of food and essential items will continue, but expect a weakening demand of non-essential items,” he said.

Wale said world price for oil has dropped to its lowest level in the last 18 years.

He said Government revenues expected to fall significantly.

“Government borrowing may increase to fund the emergency costs.

“Government budget to be reprioritized,” he said.

As such, Wale said Government to urge banks to grant loan repayment holidays, at the very least, and to consider reducing lending interest rates.

“Government must address the need for a stimulus package.

“SIEA should be required by the Prime Minister to immediately suspend disconnections, and reduce tariffs by at least 30% for 3 months,” he said.

Wale said Solomon Water should immediately suspend disconnections.

In addition, he said the Prime Minister should deliver emergency orders using clear, simple messaging from government in simple Pijin.

Wale said food security is paramount.

“Vietnam has closed exports. 90% of rice is imported from Vietnam.

“Rice should be rationed, if insufficient stock levels,” he said.

Wale said the supply of local food produce may need to be nationalized, & distribution coordinated.

He said food prices to be kept very low or subsidized.