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SUGGESTIONS FOR TAX BILL

Written by
Eddie Osifelo
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Central Bank of Solomon Islands. Photo by CBSI

CBSI: new law should have anti-laundering and combatting financing terrorism clause

By EDDIE OSIFELO

CENTRAL Bank of Solomon Islands (CBSI) wants to see anti-money laundering/combating the financing of terrorism (AML/CFT) included in the Tax Administration Bill 2022.

Governor Dr Luke Forau stated this when appeared before the Bills and Legislative Committee last Thursday.

The committee is inquiring into the Tax Administration Bill 2022.

“With this early new phenomenon, in other jurisdictions around the world they tend to institute laws to minimise or stop the prevalence.

“Although we have an Act specifically on this area but we think in our view it is necessarily important that an AML CTF must also be featured in these sections or somewhere in this Bill,” he said.

Forau said this is to ensure that sources of funds used to pay taxes are cleaned and not source from money laundering or terrorist financing activities to investigate sources of funds.

“That the funds are not from illegal activities, and if they are found to be from illegal activities, off course Commissioner (Inland Revenue Division) should take this further to the court of law.

“Now the policy rational that we think should be included in this, the country cannot afford to be branded that our tax system facilitates money laundering or terrorism financing activities,” he said.

Forau said one thing is if the country is branded under this and then we are blacklisted, it is very difficult for us to get out of the blacklist and there are so many processes to go through.

“So, we must not put the country’s reputation at risk, if we do then it will lead to other areas especially in international trade.

“So, we suggest that an additional section should be included either in this division or other areas that empower the Commissioner to look at this area,” he added.

Furthermore, he said CBSI does not supervise casinos whether conducting money laundering activities or not.

He said it is high time Government introduce independent bodies to look at supervising this kind of business.

Opposition Leader, Matthew Wale asked if legal business using illicit gains to pay tax, will that have done in cash.

Forau, who was also part of the Money Laundering Commission, said there are couple of ways to look at it.

“Once people of money laundering, they are smart to make their way around, first thing to do to clean up the money.

“Do legit investment and it becomes clean and used to pay tax, use normal legitimacy process the banks,” he said.

He said it is a bit complex, but he thinks authorities need to be trained on this as well.

“We are very far behind in this area.

“There is no capacity in this area locally,” he added.

Wale claimed in the black market economy, rumours stated that $600 million cash are circulating and never entered banking system.

Forau said in the government, especially in IRD and Customs authorities need to build up money laundering section in this bill.

“It is an ongoing thing to train our people every now and then to update on level of activities these people will go, technology change, tactics will change too,” he added.

Wale asked on the crypto currency.

Forau said at the moment, they don’t have any capacity on crypto locally.

“If they go in that space, we don’t have law to stop and we discourage investors to go into crypto currency,” he added.

Border agents urged to be vigilant

Written by
Eddie Osifelo
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Police officers patrolling the Western border with Bougainville. PHOTO ABC

THE multi-agencies manning the border entries in the country are urged to look out for the changing nature of criminals involving in smuggling, trafficking and organised crimes.

Australia Border Force Damien Pollard signals this warning during the training for Immigration and Police officers in Honiara last week.

The two days training (Monday 30th May and Thursday 2nd June) aimed to:

Equip Immigration and Police officers with knowledge to execute the operation plan’s border reopening framework for international airports, maritime and SI-PNG traditional border crossing; and

Understand the execution of a joint multi-law enforcement border operation plans to facilitate international border reopening.

“The other fascinating thing while we have border risks pre covid, they may change dramatically whilst we reopen the border particularly with organised illegally activities.

“Example, if someone is bringing in people illegally, usually once we identify and start blocking it, these people are very smart, they change the way they operate very quickly,” Pollard said.

He said as soon as they get the slightest hint you are on to it, the whole things change.

“As an intelligent analyst, once you start seeing that, you got to pre-empt where they going to and you got to start putting yourselves into the mindset, which way I would go and start identify the emerging trends there and get to on to that.

“But it forever changing environment, these people are highly sophisticated and they want to get people through the border and they will at any cost and and we got to stay ahead of the game and be aware what’s going around us,” he added.

Further to that, Pollard urged the intel officers to collect information of any suspicion and critically analysed it before forwarding the report to Director of Immigration in order to disrupt the illegal movement.

However, he said people are hesitating to put intel report in cases it does not happen and make them not look good in their role.

“When put your report together make sure this report is defensible,” he added.

Pollard said the importance of intel report is to reduce uncertainty, ascertain contact, assisting prioritising and assist decision making and help policy change.

Western Province vows to strengthen ties with Isabel

Written by
Ben Bilua
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Premier Mesepitu, Father Barclay and the organising Committee

BY BEN BILUA
Gizo

WESTERN Province has vowed to strengthen its ties with Isabel Province while looking at potential development aspiration where both provinces can benefit going forward.

Premier of Western Province, Christian Mesepitu made the statement during an event held at Gizo on Friday to commemorate the 38th Isabel Second Appointed Day.

Mesepitu said both provinces are endowed with natural resources which have contributed to the country’s economy and it will be more beneficial if Isabel and Western Province collectively elaborate on common development interests that would enhance rural livelihood as well as improve standard of living.

Pamela Szetu, Fei Siota and friends at the event

He said the relationship between the two provinces dated back during the head hunting error, thus the blood connection and shared cultures are common making it easier for both provinces to collaborate in any development aspirations.

“To date people from both provinces have been tracing their origins to areas and respective parts of the provinces.

“This is further consolidated through inter-marriage and other genealogical ties which in many ways only served to reinforce what has been a traditional relationship that was in existence for centuries.

“From development perspectives, given our shared common heritage and ties, we should also look at ways where our provinces can cooperate through mutual understanding and respect to progress our development agendas.

Isabel family performed the famous Isabel dance Salo olo

“It is time we need to explore how these connections can be better utilize to benefit our citizens in a more equitable manner,” Mesepitu said.

He said Western Province is advocating for the federal system to be fast tracked and he hopes Isabel Province will also give its support toward the call.

Overstayers face deportation

Written by
Eddie Osifelo
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By EDDIE OSIFELO

THE Immigration Division is working hard to deport overstayers in the country once the border reopens.

The non-citizens who worked in various companies have their two years visa expired during the Covid 19 and lockdown and could not return to their respective countries.

Acting Direction of Immigration, Chris Akosawa confirmed this last week during the training for Immigration and Police officers to familiarise with the ‘Keepem Yu Safe’ Operation Plan for the border reopening.

Akosawa said the Immigration Division will make sure the overstayers return home because they have breached the Immigration law.

Furthermore, Chief Immigration Officer, Arnold Horesi explained the deportation process of unlawful non-citizens.

Horesi said his office will send the deportation order to the Attorney General for vetting and the Minister of Commerce, Industry, Labour and Immigration to sign before gazette.

He said by serving the deportation order to the person, the person can agree in consent or seek judicial review within seven days.

Furthermore, Horesi said the same process applies for detention of a non-citizen who breached the Immigration law except the Director signs the detention order and not the Minister.

Akosawa said when a person is deported, the person can return back to Solomon Islands after two years if the person pays the fine.

However, he said the person is restricted to enter the country if the person still has outstanding financial obligation with the state.

Sinking island

Written by
Alfred Pagepitu
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Ongtong Java Islands

Schuijl produces documentary about Ontong Java

BY ALFRED PAGEPITU

A feature-length documentary on Ontong Java, in the Malaita Outer Islands, whose inhabitants continue to live under existential threats of climate change has been released.

Two filmakers from Europe who visited Solomon Island, in 2018 to document the effects of Climates change on Ontong Java have published their documentary on Wednesday this week.

Ontong Java atoll is situated 250 kilometers north of Isabel and currently facing an existential crisis.

The film features intimate interviews with people in Ontong Java community who feel affected by climate change.

The film is directed and produced by Guus Schuijl (The Netherlands) and features magnificient drone footage from Iggy Pacanowski (Poland).

A member of the TV Crew, Iggy Pacanosky testing a drone on Ontong Java

In an interview with Schiijl via facebook yesterday, he said:

“I didn’t know anybody when I came to the Islands, but I told everybody that I was interested in Climate Change.

“From that point onwards, many people who felt compelled to share their experiences came to me.

“I tried to follow their lead and to learn from them”.

He said the film follows several people as they go about their daily lives on the Island. The effect of Climate Change unfolded through these casual experiences.

“To me, the most fulfilling part of this experience was to build close friendships in such a short period of time.”

Schiijl said the hospitality of the people surprised him.

Women on Ongtong Java

“But it’s easy to overlook that a silent and almost invisible tragedy is unfolding.

“It’s easy to stop seeing the effects of climate change when you’re in such a paradise,’’ Guus explained.

He said the documentary is partly set on the Ontong Java atoll and partly in the Lord Howe Settlement in Honiara.

“Roughly a quarter of the community has already relocated to the city.”

Schijl pointed out that the motivations of people to relocate is almost never cited to be climate change.

But more practical reasons such as work, education and to be with family members.

“The most valuable lesson I learned from climate change,” Guus says, “is that it works indirectly.

“It almost works like poison. It slowly enters a community and takes little things away. It’s not big, fast and dramatic. It’s easy to overlook and to ignore until it’s too late to do.”

TV producer Guus Schuijl at Ongtong Java

He said the film also features interviews with government officials and community leaders who are at the forefront of combatting these issues.

“People often tell me that the situation is hopeless, but I disagree. Just ask anybody in the community.

“The people of Ontong Java are resourceful and they have plenty of ideas.

“Some people are rethinking agriculture, others are building sea walls. I believe that Change start by constructive dialogue with chiefs.”

Climate change is real and it is happening right now. By the end of this century, the sea level will have risen with 1 meter.

And the main village on the atoll lies between 0.5 and 1.5 meter above the sea level.

The film can be watched for free on www.ontongjava.com.

Slow start for schools in Mala

Written by
Samie Waikori
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BY SAMIE WAIKORI

Auki

A week into date of resumption for schools across the country, and schools into Malaita are yet to settle down for classes.

Chief Education Officer (CEO) for Malaita Education Authority (Malaita EA), Andy Siarani told this to the paper yesterday.

He said his office is yet to receive reports from schools around the province on the beginning of their classes as the academic year begins.

Siarani said for schools in Auki, they are slowly beginning classes; he hopes classes will be fully operational next week.

He said all school heads, teachers, students and parents already know that the national ministry of education (MEHRD) had issued May 30 as the date for schools in the country to reopen.

He adds that there is no excuse for school heads, teachers and parents in Malaita because MEHRD had announced the date of resumption since April.

Siarani also said that school calendar for the year had also issued to help teachers organise their teaching lessons and programme for the year.

He call on teachers, students and parents that academic classes for the year begins and they should set in motion after the long school rest and be in schools.

Siarani said Malaita EA will continue to liaise through its Principal Education Officers (PEOs) from each regions of the province on other upcoming school programs for the year.

No pressure to explain land dealings: Suidani

Written by
Samie Waikori
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Former Malaita Premier, Daniel Suidani

BY SAMIE WAIKORI

AUKI

PREMIER Daniel Suidani says his office has no pressure to explain Ferakui land dealing as processes are there to pursue and explain the matter.

Suidani made the statement in response to a front page article carried by Solomon Star on Sunday, May 29, with the headline “Suidani under pressure to explain land sale offer”.

The premier explained the issue on the land had come about after interest sought with pressure by those interested in this public land at Ferakui/Dala old agriculture station.

He said that thereon he granted consent for the subdivision of 1.9HA of P/N 151-008-1 under his authority, which he later revoked it.

Suidani said the revocation came after his office received a letter from his Deputy Provincial Secretary on concerns raised on the matter.

He said in consequence to the letter and other areas that also considered the revocation letter was issued and effective on Thursday, May 26, 2022.

The revocation letter reads with the subject; “Revocation of consent for the subdivision of 1.9 HA of P/N 151-008-1.”

“I refer to the correspondence made by Andrew Billy and Jack Ometa to the Malaita Provincial Government on subject resulting in me granting consent for the subdivision of 1.9 HA of P/N 151-008-1.

“Whilst, I have the authority to grant such consent on Provincial Government land, the request had not been brought before the executive for approval.

“On that note, complaints have been raised by the public through the administration of the province resulting in me revoking the consent I have granted in my corresponding date 28/1/2022.

“However, the lease agreement for the Dala land will soon be expired and such arrangements can be made before renewing the lease agreement with the Malaita Provincial Government through the proper channel,” the letter reads.

Suidani said this is how the matter was dealt with and there is no pressure to explain it.

He said the matter is before his executive, and was left until right time to discuss it since lease agreement of the land will expire within the next couple of years

Suidani also denied any bit of the mater to have link to the failed motion of no confidence against his government as mention in the article.

He said he doesn’t know any of such things and it is no surprise to him that the allegation is part of continues attack to degrade his reputation as premier and his MARA government.

Churches talk out on secret bilateral MOUs

Written by
Irwin Angiki
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BY IRWIN ANGIKI

Churches have cautioned government on signing secret agreements with the country’s bilateral partners.

Transparency and public consultations must accompany any “international MOUs and MOAs with the Solomon Islands”, SICA (Solomon Islands Christian Association) said in a media statement on Wednesday.

SICA, which represents the main Christian denominations in the country, stresses that “proper consultations should be conducted prior the signing of any international documents”.

SICA made this call along with its announcement that the churches were against government’s proposal to extend parliament’s life from four to five years.

The DCGA government has been embroiled in secretive agreements with China, made known to the public only through leaked documents.

This has caused citizens and concerned regional and international communities to question the Sogavare-led government.

Both China and Solomon Islands governments have defended their actions by fronting the cliches of “respecting each country’s sovereignty” and “China helping Solomon Islands at the latter’s request”, not really answering why they secrecy surrounding the agreements.

The most recent is the controversial security deal between the two countries, which was also only made known after it was leaked in April this year.

Both governments, following the leak, went on ahead and signed the agreement despite the huge outcry both locally and abroad.

Contents of the signed document has not been disclosed by either country.

SICA says this should not be entertained by Solomon Islands’ government.

“The churches feel that there must be transparency for any international MOUs and MOAs with the Solomon Islands.

“These international documents should be made public before the actual signing.

“We feel that proper consultations should be conducted prior the signing of any international documents,” SICA says.

“The churches feel that it is part and parcel of their responsibilities to suggest avenues/ways that would bring about peace and unity to the citizens and residence in the Solomon Islands.

“The experiences encountered during the burning and looting of China Town in November 2021 and previous unrest made the churches feel that it should make this statement, because we (the churches) would not like to see any more civil unrest in this peaceful nation.

“We would like to bring about a peaceful unifying strategy so that we maintain the peace, love and unity of Christ in the Solomon Islands.

“Finally, we (the SICA Executive) are willing and are also open to any round table discussion with the government if requested.”

SICA says they are prepared to sit down and talk with the Government on these issues.

Churches say no to extension of parliament

Written by
Irwin Angiki
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National Parliament of Solomon Islands

BY IRWIN ANGIKI

Churches have come out voicing their opposition to government’s proposal to extend the life of parliament from four to five years.

The Solomon Islands Christian Association (SICA) warns that this proposal shows government’s willingness to let a regional sporting event trump the country’s constitution.

“We need to avoid that bad precedence,” SICA warns in a media statement yesterday.

SICA’s voice adds to the growing string of disapproval by peoples and organisations in the country toward’s DCGA government’s proposal.

Earlier this week, media reported that East Kwaio constituents had advised their member of parliament not to bother carrying out a planned visit to discuss the extension proposal.

The national council of women (SINCW), Transparency Solomon Islands, the parliamentary opposition and independent groups, the umbrella body of civil societies – the Development Services Exchange (DSE), and other prominent bodies and individual citizens have come out since April last year disagreeing with this DCGA proposal.

SICA, which represents the main Christian churches in the country, said the churches “do not welcome the idea of the extension of parliament from [four] to [five] years per term, but would like to see the National General Elections (NGE) taking place next year 2023, few months before the Pacific Games in November.

“We feel that the national constitution and the Pacific games if weighed on a scale, the national constitution would have more weight than the Pacific games. Therefore, we feel that only the Pacific games can be pushed forward to take place in 2024, but not the NGE.

“We feel that the Pacific games (or any other games for that matter), is not in a better position to influence and change our national constitution, we need to avoid that bad precedence.”

Last year’s November riots is one reasons SICA has decided to speak up on this issue.

“The experiences encountered during the burning and looting of China Town in November 2021 and previous unrest made the churches feel that it should make this statement, because we (the churches) would not like to see any more civil unrest in this peaceful nation.

“We would like to bring about a peaceful unifying strategy so that we maintain the peace, love and unity of Christ in the Solomon Islands.

“Finally, we (the SICA Executive) are willing and are also open to any round table discussion with the government if requested.”

The DCGA proposal to extend parliament life was leaked early April last year.

Government has since reasoned that it is to avoid costs of hosting the Pacific Games and the holding national general elections in one year – 2023.

Last week government ministers were reportedly set to visit their constituencies to discuss the proposal with their constituents.

Media reported last week that three had begun theirs: Stanley Sofu (MP for East Kwaio), Jeremiah Manele (Hograno-Kia-Havulei) and Frederick Kologeto (South Vella la Vella).

Other government ministers and MPs would follow suit, Solomon Star reported.

IRD to recruit more staff

Written by
Eddie Osifelo
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0
Ministry-Of-Finance-IRD

By EDDIE OSIFELO

INLAND Revenue Division (IRD) hopes to recruit about 238 staff in the next three years to boosts its tax collection work across the country.

This is part of Ministry of Finance and Treasury’s restructure programme to boost the resources in IRD and Customs.

IRD Commissioner Joseph Dokekana informed the Bills and Legislation Committee during the inquiry into the Tax Administration Bill on Monday that currently there is limited space to recruit more staff.

Dokekana said under the graduate programme, IRD should recruit 30 staff in the next three months with support from New Zealand aid.

Furthermore, Finance Permanent Secretary Mckini Dentana said the ministry is working with Public Service to address the issues and ensure efficiency and resource of IRD.

He said the proposal has been progress.

However, Dentana said IRD and Customs have been prioritised for the recruitment process this year.

“We have allocation for this year’s budget, to implement restructure and getting the officers and work with Public Service,” he added.

Chairman of House Committee Rick Hou has quested the sustainability of the graduate programme following experiences in other ministries where staff left after few years.

PS Dentana said why they go through the graduate programme is because there is no establishment of the positions in Public Service.

“We contract them within period of six months.

“If we can’t secure establishments in Pubolic Service, we will extend them for another six months,” he added.

Dentana said they are working with Public Service to absorb them in other positions and formalise a report to Public Service for formal appointment when funds secured.

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