BY JOHN HOUANIHAU

Imprest payments amounting to over $473,696 made in 2021 under the COVID-19 Economic Stimulus Package (ESP) have not been acquitted.

Auditor General David Teika Dennis stated that this is a violation of the applicable financial regulations governing the management of standing imprest accounts.

Dennis disclosed this information during the most recent Accountability Workshop held by the Office of the Auditor General (OAG) on Wednesday, October 2, coinciding with the release of the 2020-2021 Economic Stimulus Package Audit Report.

He said that the ministry’s utilization of the Corporate Service Standing Imprest account as a special imprest holder for grant disbursements, with retirement processed through a general adjustment journal, does not align with the financial instructions set forth by the Solomon Islands Government (SIG).

“The examination of these imprest transactions could not be finalized as 11 payments from the selected sample, totalling $473,696.97, remain unacquitted, despite the last payment being made in September 2021,” he stated.

He highlighted that the persistent failure to properly manage imprest accounts is a widespread issue within the Solomon Islands government bureaucracy, which significantly undermines accountability.

“Additionally, among the imprest payments were disbursements totalling $1.2 million to seven different constituency development offices for distribution. As previously noted, the majority of grant applications could not be located, making it impossible to verify that grants were awarded to eligible beneficiaries,” Dennis said.

He further revealed that most Constituency Development Offices received a total of $800,000, paid in two instalments: $600,000 in mid-2020 and an additional $200,000 in mid-2021.

“The OAG requested the committee secretariat to provide copies of the submissions for these funds; however, the secretariat was only able to supply nine of these applications,” he added.

One specific case he pointed out involved the South Choiseul constituency, which lacked a sitting member of parliament at that time.

He explained that these funds were allocated following a successful election petition against the incumbent, resulting in no ESP funding being received.

“Two payments totalling $120,000 were paid out to members of parliament from the Choiseul province, followed by a third payment of $360,000 made to the successful candidate following the South Choiseul by-election in 2021,’’ said Dennis.

He said that these payments were directed to the constituency development office without any conditions regarding the utilization of the funds.

“None of the reports offered insights into the criteria for selecting beneficiaries or whether this selection process ensured equal access to these funds for all constituents,’’ he said.

He said that one constituency development office submitted a list of payments averaging between $20,000 and $30,000 to 30 constituents, yet there was no clarification on how these constituents were chosen or their intended use of the funds.

“Another provided a receipt for $290,000 for wire mesh, but there was no explanation regarding the purpose of the mesh,” Dennis stated.

Trade Union throws weight behind call on government to set up inquiry into Economic Stimulus Package 2020-21 disaster exposed by OAG audit

BY JOHN HOUANIHAU

The Solomon Islands Council of Trade Unions (SICTU) has requested an inquiry into the recently published 2020-2021 audit report concerning the COVID-19 Economic Stimulus Package (ESP).

While commending the Office of the Auditor General (OAG) for its efforts, SICTU emphasized that the findings of the audit are vital for promoting transparency, accountability, and integrity in the management of public resources.

“The Solomon Islands Council of Trade Unions strongly urges the government to promptly refer for investigation public officers and recipients implicated in the audit report.  SICTU will take proactive action in holding those implicated accountable if the government fails to provide transparent and responsible leadership,’’ it adds.

In its statement, SICTU stated the necessity for the government to act promptly and decisively in addressing the recommendations outlined in the report to rectify any identified deficiencies and ensure the effective and efficient use of public funds.

“Given the serious implications highlighted in the audit report, SICTU urged the government to take immediate action to protect the officers mentioned in the findings, allowing them the opportunity to respond while also remaining accountable to public expectations for justice through a formal investigation of those responsible for the breaches identified,’’ the SICTU statement said.

The SICTU statement adds that it is essential that these officers are allowed to respond to the report and present their perspectives on the matter.  

“This will not only ensure fairness and due process but also contribute to a comprehensive understanding of the issues at hand,’’ the statement said.

“SICTU expressed confidence that the government would prioritize accountability and transparency in addressing the audit report’s findings and would take proactive measures to protect the public’s interests,’’ said SICTU.

Additionally, SICTU announced plans to convene a special council meeting to facilitate a presentation aimed at informing council affiliate members about the matter.

“SICTU affiliate’s members distance themselves from public officers implicated in the report until their names are cleared. It is imperative that those responsible for misusing public funds are held accountable and that transparent and ethical leadership is upheld to safeguard the interests of the people,’’ said SICTU.

The SICTU calls upon all workers to join forces in this crucial effort to uphold integrity and demand justice for our nation when the need arises.

The statement said that those entrusted with public resources must be held to the highest standards of integrity and are held accountable for their actions.

BY INDY MAEALASIA

Students at the University of the South Pacific’s Solomon Islands(USPSI) Campus are thrilled with the newly opened facility, which they say fosters an ideal environment for their studies and enhances their overall learning experience.

The campus, dubbed as a “state-of-the-art facility” is the latest of the university’s newest facilities after the Covid pandemic.

Officially opening its door with much celebration last Thursday at King George East Honiara, many have praised the facility’s impressive features.

Elizabeth Enoch, a student undertaking a Bachelor of Arts, Double Majors Sociology and Land Management expressed her appreciation to this paper.

“This new campus is great. As a student coming here for my studies every day, I have learned a lot because of its setup. It is good for learning,” Enoch said.

Enoch highlighted how the new facility differs from the previous campus, noting that it better caters to her study needs.

“When I come here, I always feel like I am in the mood for studies and I find myself concentrating on my work,” she said.

Patterson White, also pursuing a Bachelor of Arts with Double Major in Social Work and Sociology shared his sentiments.

“This environment itself is conducive, it is spacious, it has enough computers for students to use and enough lecture theaters. This has boosted my learning and motivated me to study very hard,” White said.

He expressed gratitude to the funders for making the project a reality, calling it one of USP’s most modernized facilities. “Everything is here; much credit goes to the funders,” he emphasized.

As the campus becomes fully operational, White urged fellow students to take care of the facility.

 “It comes back to the students to take ownership of this campus, this is not only for the current students but also our children who would be using it in the future,” he added.

The opening ceremony was attended by notable figures, including USP Vice-Chancellor and President Professor Pal Ahluwalia, Supervising Prime Minister Bradley S. Tovosia, Governor General David T. Kapu, and other local and international dignitaries.

Central province to revive Hakama farm, set to boost provincial revenue

BY JOHN HOUANIHAU

The Central Island Province Premier (CIP) Michael Salini together with the province’s agriculture and lands division staff visited the Hakama farm recently.

The newly elected premier said the visit aims to discuss some of the issues of landowning groups and surrounding communities before reviving the farm as part of the government’s policy to prioritise agriculture as one of the key sectors.

“That is apart from Tourism and Fisheries,” said Salini.

He said that as part of the programme they already bought some piglets, equipment and feed to start with the piggery breeding programme.

“Next will be the cattle etc. We are also looking for support to help us with the major developments of the farm.

“Some are already indicated support but will need to work on the details,” he said.

Salini stressed that he hopes that through CIP’s sister relationship with a province in China, CIP can tap into support in terms of technical support and equipment.

“What strikes me is while Hakama is such a beautiful farm with so much potential, it will need a lot of investment to get it up and running. We need investments in housing, facilities, staffing, equipment etc.”

The Premier said that the Government will need to work hard to revitalise the once thriving farm to its former state and more.

“We need to bring modern technology and know-how that help us develop it. Hakama can be a food bowl for the country if we get it back up and running.

“There is so much potential in that place. We need to work on that potential to realise it,” he said.

“Overall, there is so much to do in our province.

“We need to work together and I believe we can develop our province into a prosperous and peaceful place we can all enjoy and be proud of.

“The story of Hakama is the story of Central Province. we can get it all back together. It’s not impossible,” said Salini.

Transparency Solomon Islands calls for OAG’s audit report on ESP to be debated in parliament

BY JOHN HOUANIHAU

Transparency Solomon Islands (TSI) has highlighted the need for the Auditor General’s report on the Economic Stimulus Package 2020-21 to be brought to parliament.

The Auditor General’s office (OAG) released its audit report of the economic stimulus package (ESP) covering the period from 2020-2021 on Wednesday this week.

The report uncovered an extensive pattern of major fraud risks involving government ministries, agencies and officials, private businesses and individuals.

The ESP programme saw the spending of $309 million public funds with no set rules, laws or framework, no transparency, no documentation and no accountability.

Although a small portion of the report mentions few individuals receiving and utilising funds, the overwhelming majority of findings point to – companies getting windfall profits and individuals getting rich overnight.

Speaking to Island Sun yesterday, Transparency Solomon Islands’ (TSI) acting CEO, Legal Officer Joy Abia stresses that “such reports are significant for public transparency and require a debate in the parliament”.

Ms Abia also highlights that “nothing or no conviction has been made for the past years” following such a report being made known.

“It is a requirement, that such reports must be brought and debated in the parliament.

“This will allow the public to access and have many insights regarding what happened.

“That is transparency and accountability. It would be also better to review the legislation,” she said.

“Review of the legislation is one of the important aspects to strengthen and enhance the work they do. It’s a must also for the government to consider this,” said Abia.

Briefing media on the Report before its official launch on Wednesday, Auditor General David Dennis clarified that his office does not prosecute nor does it comment on policies, although popular public view desires this.

Mr Dennis also clarified that the report does not comment on the whether the ESP was effective in achieving its purpose to buffer the economy against the pandemic’s impacts or not.

The followings are a few examples of the discrepancies the OAG investigation found:

One government official was found to have signed off on 251 cheques totalling $6.8 million purportedly on behalf of recipients. The was no document to prove this officer was authorised by the recipients to do so.

This same officer was involved in encouraging and preparing applications for individuals, the report said.

Three government officers (including the one above) were found to have signed off on a ‘vast number’ of payments on behalf of recipients, with no documents to say whether these three officers were authorised to.

An ESP recipient was given an $80,000 cheque and told to cash it and return to the government office, where the officer took $20,000.

More than 2,000 grant payments were made, but only 200 applications could be found for review by OAG, raising the question as to where and what happened to the rest.

There was no standard application form, and applications ranged from 30-page comprehensive proposals to a single page.

One letter simply stated ‘I am writing to request the above funding ($1 million) to assist in enhancing the transportation needs of my constituency. Grateful please to facilitate the disbursement as soon as it is practicable.’ This was a cash grant to a MP with no requirements attached.

One constituency got $1million for transport purposes and $200,000 was paid out as ‘canteen assistance’.

Of the 24 payments for infrastructure which totalled $14 million, all were for government MPs only – none for any Opposition MP.

Government helped themselves to the bulk of $55 million for constituency offices for productive and resources sector or infrastructure. Opposition MP constituencies generally received less.

Double dipping by some recipients who took from the constituency ESP funds and the main ESP grant process, due to the use of constituency development offices to distribute funds.

One constituency development office purchased a capital equipment for $1.75 million based on only a single quote using ESP funds.

Some preferred suppliers received windfall profits when paid directly by ESP but the recipients did not collect their materials. No government follow-up.

Some recipients received far less than they had applied for, while others got far more than they had requested.

Case study shows requests varying from $2,719 to $3,860 and each were approved $15,000. Another applied for $5 million but received only $5,000. No documents to explain these approvals.