By Gary Hatigeva

THE four Commercial Banks operating under the banking regulations and laws of Solomon Islands are due to appear before the Bills and Legislation Committee (BLC) today, to present their cases on the Payment System Bill 2018.

They are the Bank South Pacific (BSP), the Pan Oceanic Bank (POB), ANZ Bank, and the newly established, Bred Bank.

Early this week the Committee together with representatives from the Ministry of Finance and Treasury, Central Bank of Solomon Islands accompanied by the government’s legal drafts person, Catriona Steele, thoroughly went through the general principles of the Bill and later covered the in-depth aspects of it, clause by clause.

As key implementations and subject matters of the proposed amendments in the payment system provision of the CBSI Act 2012, representatives of each institutes are expected to present their case in terms of how they view the bill and how it will affect their operations, both positive and negatively.

Currently, these banks operate on a manual transactional interaction system, which is deemed inefficient and vulnerable, and the bill is looking to provide mechanisms and regulations to improve all that.

In Solomon Islands, there is no payments system in place to facilitate electronic funds transfers between banks or between customers of different banks, instead, all payments are made with cheques, which is totally manual and time consuming.

The bill provides the legal framework for the implementation and use of an electronic payment system and securities settlement system that would allow a safer, and a more efficient settlement process, reducing systematic risks, avoiding human errors.

It also delays the typical manual processing, and intends to speed up the availability of funds for beneficiaries of payments between the commercial banks.

The electronic payment system looks to effectively allow banking institutes and agents to communicate with each other, electronically transferring amounts when people pay for goods and services.

The four commercial banks were also part of the collaborative review and consultations involved that led to the formulation of this Bill, and are therefore expected to give views as part of the implementing partners of the proposed amendments to the provision of the CBSI Act.

The Committee inquiry into the Payment System Bill was adjourned after a thorough inquiry into it clause by clause, and continues this morning, with hopes for all committee proceedings to end today, so more time can be bought for the reports of all the remaining Bills before parliament resumes in less than two weeks’ time.

Yesterday, the bills committee completed all its enquiries into the Development Bank of Solomon Islands Bill 2018, capturing the views of all commercial banks who are bound to appear again for the payment system bill.

BY MAVIS NISHIMURA PODOKOLO

JAPANSESE Ambassador to Solomon Islands His Excellency Toyama Shigeru has lauded Solomon Island authorities for the kind support rendered towards repatriating 88 bodies of World War II Japanese soldiers in Solomon Islands.

He made the public acknowledgement following the recent repatriation and recovery of 88 remains of Japanese soldiers who had sacrificed their lives for their country during the Second World War in Solomon Islands.

“I would like to take this opportunity to express my heartfelt gratitude for the kind support rendered form the Solomon Islands Authorities and all related personals towards many projects and I ask for your continued support in the future as well,” said Mr Shigeru.

Shigeru said the project for recovery and repatriation of Japanese wartime soldiers is one of the most important missions for the Japanese Embassy here in Solomon Islands.

He said they will never forget to hand down the experience of the sacrifices of war to the future generations and will do their outmost efforts to work in aiming for world peace.

Shigeru said this activity of recovery and repatriation is not the final one but they will carry out another one.

“The recovery and repatriation of remains will continuously be carried out since a huge number of soldiers still remaining in Solomon Islands,” he said.

BY SAMIE WAIKORI

AUKI

COMMUNITY leaders in Alaru’a area of West Kwaio in Malaita province are hard at work to cool tensions which had heated up in the past weeks following the bashing of one the youths there by passing-by travellers.

The incident happened two weeks ago when youths in the area allegedly set up road a blockage to passenger trucks from Hauhi area in West Are Are crossing the area.

Report received from police said the youths were under the influence of liquor and were demanding money from the trucks.

The report said as a result of the action a member of the youths was allegedly beaten by somebody within a passing-by truck.

The report furthered that after that, the incident was escalated where victim’s side wanted to take revenge on the other side.

It has reported that compensation was demanded from the owner of the truck where somebody going in the truck involved in the incident.

The blockage was reinforced for the truck where it believed to be from Hauhui area not to cross the area, if going down to Auki.

The report stated that police has arrested a youth into the incident. They’re also working together with opposing parties in the incident to address the problem.

The report said the parties are showing willingness as chiefs and village elders where behind dialogue to solve the matter.

Police called on those especially residing along public roads in the province to respect travelling public and refrain from such unlawful activities.

THE Bills and Legislation Committee has concluded its hearing into the Development Bank of Solomon Islands Bill 2018 yesterday.

This follows a two-day hearing with officials from the ministry of Finance and treasury working group, Legal drafts lady, Central Bank of Solomon Islands, Bank South Pacific and Solomon Islands Women in Business Association.

Other commercial banks like POB, ANZ and Bred Bank however, could not make it to the hearing despite being invited by the BLC.

Chairman of BLC Matthew Wale, MP, suggested to the witnesses that the Bill need amendments on certain clauses therefore his committee will include them in their recommendations on their report.

The object of this Bill is to establish the Development Bank of Solomon Islands, to replace the Development Bank of Solomon Islands. The principal objective of the reform is to develop a legal regime that is in conformity with good governance and banking international best practices, provides transparency and accountability over directions made by the Minister and provides a framework for the general operations of the Bank that is relevant to the country context.

The Bill repeals the Development Bank of Solomon Islands Act (Cap. 50). This legislation did not effectively regulate the operations of that Bank. It did not fully support and enforce the evolving good governance practices in banks, and the Minister’s power to interfere with the operations of the Bank was too broad.

The Bill provides an effective governance platform for the prudent running of the new Bank, including by ensuring transparency and robustness in the selection of Board members and the executive management of the Bank. It also limits the Minister’s power to give directions, and requires all such directions to be reported to Parliament.

The Bill provides a strong framework for a Bank that will facilitate the economic development and independence of Solomon Islands.

–PARLIAMENT MEDIA

By Gary Hatigeva

HAVING the former Development Bank of Solomon Islands re-established is the way forward to give opportunity to the rural masses to contribute directly into the national economy, says Trevor Manemahaba, a member of the Working Committee responsible for the revitalisation of the Development Bank.

Manemahaba highlighted this when making his presentation on Development Bank of Solomon Islands Bill 2018, where he spoke on the detailed essence of it and the policy rationale behind intentions to re-establish the development bank, before the Bills and Legislation Committee (BLC) this week.

In his presentation, Mr. Manemahaba pointed out that it is evident there is a gap in the financial systems’ reach in Solomon Islands in terms of access to finance in the rural areas, where the masses of the population live, and the financing vehicle in the rural setting is nearly non-existent.

“Therefore the Democratic Coalition for Change Government (DCCG) in 2015, by recognising the need to revitalise DBSI to address the existing gap, endorsed the Terms of Reference of the DBSI Working Committee and its establishment on July 15, 2015.

“The DBSI Sub-Committee and the working committee have undertaken numerous consultations both regional and national to inform the stakeholders on the noble intention of the government,” the Working Committee Economist personal explained.

He further explained that with the intentions, the government drew up some rational to help guide its policy with hopes to expand access to finance, supporting rural economies, and push for economic advancement in Solomon Islands.

Manemahaba explained that from how it was redesigned, the Development Bank will become a vehicle to promote, stimulate and strengthen economic development in the Solomon Islands.

The Policy rational to revive DBSI according to Manemahaba also looks at expanding productive activities in the rural areas and increase participation of the indigenous population in commercial activities.

“Ensure 80% of the rural population receives the opportunity to participate in various economic activities, and enhance participation of Solomon Islanders in the rural productive sector, and prevent Solomon Islanders to become excluded in economic development.

“While at the same time, look at the existing financial sector in these country is dominated by commercial banks, which were contended with short-term banking activities and were either not willing nor not in a position to support national priorities of long-term investment outside of Urban Centres,” he said.

When speaking on the fundamental aspect of getting the development bank revived, the Economist further pointed out that while re-establishing DBSI is an important achievement in itself, the reform of the DBSI law is equally fundamental.

“This is to provide an adequate legal underpinning for the prudent operation and management of DBSI.

He said the new (amendment) DBSI Bill is expected to address what have been outlined as some of the underlying issues, which includes the development of a legal regime for DBSI that is in conformity with good governance and international best banking practices, and to provide transparency and accountability.

The others include enhancing Good Governance (new improvements), with hopes for it to provide an effective governance platform for the prudent running of the new Bank, and by ensuring transparency and robustness in the selection of Board members and the executive management of the financial market.

The PMO Official noted that the new bill is also looking to support financial deepening and serves a place in the market that cannot be reached by other players in the financial market, and added that this can be achieved with the development of a proper financial system.

“In a nutshell, the Development bank of Solomon Islands will fill a gap or void left by undeveloped capital markets and reluctance of commercial banks to offer long-term financing outside Honiara.

“It is evident that the absence of Development Bank has in effect pushed rural Solomon Islanders to a point of economic exclusion,” Manemahaba concluded.

However, while supporting the initiative, the BLC Chairman and MP for Aoke/Langalanga, Matthew Wale cautioned the government not to take the same path the former DBSI went through, and added that it must really serve the purpose of initial intention for its establishment, and avoid becoming too commercialised that it will forget the rural mass officials are talking too much about.

Also sharing similar views, Member of the BLC and MP for East Makira, Alfred Giro supported his chairman, and added that the Development Bank, if re-established, must decentralise its services and not in Honiara or the Urban Centres alone.

“Therefore the government and those involved must create mechanisms and avenues for the most rural people to receive its services,” the East Makira MP suggested.

The Revitalisation and recapitalisation of the DBSI is one of the government’s key flagship policy commitments, initiated with hopes for it to ensure the majority of Solomon Islands are provided the opportunity to engage in various economic activities.