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Inland Revenue still to collect $1.9B debt

Written by
Eddie Osifelo
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Ministry-Of-Finance-IRD

By EDDIE OSIFELO

THE Inland Revenue Division of Ministry of Finance and Treasury has an uncollected debt of $1.9 billion.

IRD Commissioner Joseph Dokekana told the Bills and Legislative Committee through a virtual on Tuesday that the debt started 20 years ago.

The Committee was inquiring into the Tax Administration Bill 2020 to provide for the administration of the tax laws of Solomon Islands, with the intention of providing a modern administrative basis for the tax system and ensuring that arrangements are consistent across the different taxes administered by the Commissioner.

Dokekana said IRD blamed the system of capturing wrong data since 2005.

“That system put some sort of data which is not correct.

“Then come up to now, we still have an issue with the system to determine the value,” he said.

Dokekana said the actual debt of IRD will not be like that.

He said the current system is corrupt.

Further to that, as part of the reform, Dokekana said the government engaged a Technical Advisor of Asian Development Bank to look at the system and correct it.

He said tax returns and payments do not reconciled.

The hearing continues this week.

TAX BILL TO PARL

Written by
Eddie Osifelo
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National Parliament of Solomon Islands

New law aims to bring in fairness

By EDDIE OSIFELO

MINISTRY of Finance and Treasury has presented the Tax Administration Bill 2022 to the Bills and Legislative Committee in Parliament on Tuesday.

Permanent Secretary, Dentana Mckini said the Bill provides a predictable tax system that improves clarity and certainty for tax payers with the need to plan for future seeking to avoid unexpected outcome

He said it is easy to work with the aims to control compliance costs for taxpayers

Further to that, Mckini said the bill is fair and appropriate to the state of our economy and paves the way for further developments and growth and it takes into consideration international best practices and local context.

Furthermore, Mckini clarified that the Solomon Islands’ current Tax system is outdated and complex, and relies on a very narrow base of compliant taxpayers.

“There is no overarching tax administration legislation, and individual tax laws are subject to different processes, timeframes and penalties for taxpayers creating an unnecessary administrative burden for Inland Revenue Division and compliance problems for taxpayers.

“The low rates of compliance and widespread discretionary exemptions create an uneven playing field for business,” he said.

The second session of the virtual hearing which was supposed to go page by page on the 175 clauses did not eventuate because of the objection by the Leader of the Opposition Matthew Wale to adjourn the inquiry.

The object of the Tax Administration Bill 2022 is to provide for the administration of the tax laws of Solomon Islands, with the intention of providing a modern administrative basis for the tax system and ensuring that arrangements are consistent across the different taxes administered by the Commissioner.

The Bill includes amendments to the Goods Tax Act (Cap 122), the Income Tax Act (Cap 123), the Sales Tax Act (Cap 125), the Stamp Duties Act (Cap 126) and the Public Financial Management Act 2013 that enable the administration of those Acts to be carried out under the Bill.

The Bill deals with the Inland Revenue Division, the Commissioner of Inland Revenue and tax officers, and their powers, functions and duties, and outlines the general obligations of taxpayers, tax representatives and tax agents under tax laws.

It also enables the Commissioner to make public and private rulings about how a tax law applies generally or to individuals and individual arrangements.

The Bill provides a right to object to tax decisions and appeal to the High Court and Court of Appeal, the powers for recovering tax and prosecuting offences, and the types of penalties for non-compliance, including late payment interest.

The Bill also sets up an electronic tax system enabling filing of returns and issuing of assessments electronically.

The Bill is part of the tax reform process of the tax arrangements in Solomon Islands which began in 2007.

Churches remain silent on Sino-SI security pact

Written by
Eddie Osifelo
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By EDDIE OSIFELO

TWO umbrella bodies of churches in the country are still to make their stand over the controversial security Pact with China.

Solomon Islands Christian Association (SICA) and Solomon Islands Full Gospel Association (SIFGA) have not issued any statement after Minister of Foreign Affairs and External Trade, Jeremiah Manele signed the Pact on 30 March 2022.

SIFGA told Island Sun it cannot make any informed stand until it sees the texts of the pact.

SICA, on the other hand, says it is still to meet to make a stand on this national issue.

However, there is confusion amongst the people of the Solomon Islands regarding the security pact with China, as details of the deal still remain unknown to the public.

Some still believe China will build a military base under the security agreement.

One tribal leader has shown concern that land belonging to his people could be taken away.

A chief of the Niteni tribe in the Rennell and Bellona province, Richard Pautangata, said his biggest concern was that people did not know what the deal encompassed.

Pautangata said there were fears that the treaty would allow China to establish a military base in Solomon Islands.

He said he was not sure which province would allow for that but suspects his province could be a target for China.

He said 70 per cent of land on Rennell Island was owned by the Solomon Islands Government, and most of it was leased to an Asian logging and mining company, Asia Pacific Investment Development.

Pautangata said despite the number of logging and mining activities on the island, not all landowners benefited.

He fears the geographical location of his island could see it being targeted.

Premier of the Malaita province, Daniel Suidani, said the treaty raised a lot of concerns.

Most in the province of Malaita are opposed to the Sogovare leadership and feel that the deal may allow the leader to engage Chinese police to extend his reign.

“I see the risks already of our new friend because we are not ready to stand on their ideology,” he said.

“Even Australia, Japan, New Zealand and the United States have expressed their concern of the security treaty.”

Malaita Province Youth Council are also concerned. Much of this has to do with not knowing what the deal will allow the government to do.

“We should not allow our place for military base. We are too small to create conflicts between superpowers,” the Council said.

“The youths are the future of the country and the government should have consulted with them first.”

However, Foreign Minister Manele told Parliament recently that the Government has nothing to hide.

He said this is a bilateral agreement and there is a confidentiality clause that ought to be respected.

“We will discuss this matter with the other Party, China,” he said.

Manele added the security agreement with China reaffirms respect for Solomon Islands sovereignty, territorial integrity and political independence.

He said the security agreement reinforces the foundation for peace, security and development.

“Security agreement are meant to grow peace through development.

“It builds bridges of confidence, and remove sources of danger so that our people can keep investing to improve their quality of lives.

“It gives confidence to business houses and allows the nation of Solomon Islands to prosper,” he added.

Mala carrying out survey on self determination

Written by
Samie Waikori
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A crowd in Auki welcoming Premier Suidani following a medical trip to Taiwan last year.

BY SAMIE WAIKORI

Auki

The Malaita provincial government is carrying out a survey on self-determination throughout the province.

Premier Daniel Suidani announced this during his recent visit to Malu’u substation in the northern region of Malaita province.

He said his government had passed, during one of its recent executive meetings, a pledge to carry out a self-determination survey for the province.

He said seeing that the covid-19 situation was easing; his executive gave the green light for the self-autonomy survey.

Suidani said they are looking forward to the survey being successfully completed by the end of June 2022 (next month).

He said MARA government is behind the survey and communities in the province and even abroad will be consulted in the survey.

Suidani said the issue of independence is not just an issue of his government, but a long time one that started during the times of Maasina Ruru.

He said since then the issue remains and according to findings successive provincial governments had also talked about it, but never put the matter into action.

Suidani said his government believes now is the right time to go and ask peoples’ views on the matter.

He said they saw that as a responsible government this is the right thing to do by bringing the issue to the people and allow them to have say on it.

Suidani said early this year a workshop was held to train participants to carry out the survey; however, it didn’t happen due to covid-19.

He said the pandemic had delayed the survey.

Suidani said the survey is to get people’s views and opinions not only on self-determination, but socioeconomic development and politics of the province.

He said the survey is also a road towards fulfilling the TPA signed by national government for Malaita and Guadalcanal provinces to look after their own affairs.

Schools urged to cut costs

Written by
Eddie Osifelo
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By EDDIE OSIFELO

MINISTRY of Education and Human Resources urges schools to charge reasonable tuition fees to students as only 27 of the 40 weeks in the annual calendar is left.

This came after Saint Nicholas Anglican College posted on its Facebook page to maintain the fees as schools prepare to resume semester on 30th May.

The School Admin states if you need any further clarification, do please come to the school and see Deputy Operation (Leslie Fono) or Deputy Academic (Jon Patteson).

But Permanent Secretary, Dr Franco Rodie said schools need to consider the range of school fees endorsed by the Minister in accordance with the Education Act.

“I understand the costs in the town where schools need to pay electricity and water which they might impose additional fees,” Rodie said.

“Also, the school grants are not enough, therefore they may maintain the schools fees as of last year,” he added.

However, Rodie said schools should reduce their costs to relief the economic burden on parents.

Suidani announces new framework to support landowners

Written by
Samie Waikori
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Former Malaita Premier, Daniel Suidani

BY SAMIE WAIKORI

Auki

MALAITA Provincial Government has set up a framework “Malautolo” to support tribal landowners in the province benefit while protecting of their forest.

Premier Daniel Suidani and his political adviser Celsius Talifilu announced this during an awareness programme held at Malu’u market over the weekend.

Suidani said his government recently passed an ordinance to strengthen the conservation law that discourages logging activity above 400m sea-level.

He said under this ordinance Malautolo was created to support tribal landowners by liaising with them with partners and developing their forest to protect them.

Explaining the framework, Talifilu said Malautolo was set up to fortify the conservation law that calls for a stop to logging activity above 400m sea-level.

He said the law was established for environmental reasons and MPG thought it’s important to take a step further by creating an ordinance to strengthen the law and its programme.

Also, with the ordinance and framework, they are to ensure a programme that can become a beneficial tool for development in Malaita province, Talifilu said.

He said with the idea, MPG developed the ordinance to strengthen its advocacy on the law and to find alternatives and non-destructive ways for people to benefit from their forests.

Talifilu said the establishment of Malautolo has created a pathway for MPG to work hand in glove with partners on carbon trading by facilitating development upon the ordinance.

“That’s how Malautolo framework has come about and lot of things to do with Winrock under the USAID SCALE-NRM program relate to the set-up,” he said.

Talifilu said there are people and institutions in the world that willing to support programs that deal with protection of forests. And there are markets in the world that willing to participate.

He said Malautolo framework is there and interested tribal landowners are call to work together with them to protect and benefit by looking after their resources.

On that note, Talifilu said the framework also created with ambition to try and look at ways on how to educate younger generations on cultural values and norm.

He said nowadays, responsibility to educate children on their cultures rests on parents, but it never happens.

Talifilu said MPG through Malautolo is looking at ways to educate younger generation on their traditional values that would go along with development.

SolAir honours nurses with scenic flight

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Press Release
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Solomon Airlines says ‘Tagio Tumas to our Nation’s Nurses’ on International Nurses Day, joining with eight other prominent Solomon Islands businesses and organisations to sponsor a VIP scenic flight for 18 dedicated nurses from the National Referral Hospital.

The 60-minute scenic flight operated by Solomon Airlines Twin Otter H4-SIC, took off at 9.20am yesterday from Henderson Airport flying over Central Province, across to Yandina and back along the coastline of Guadalcanal before landing again at Henderson.

On board are 18 nurses nominated for their exceptional efforts and dedication to care for patients during the COVID-19 pandemic.

Upon boarding, the nurses were welcomed and presented with a garland and refreshments, and upon their return, a souvenir certificate commemorating their flight.

To honour them, and recognise their incredible efforts as frontline workers during the pandemic, the following organisations have joined Solomon Airlines to make the flight possible – Solomon Island Ports Authority (SIPA), Solomon Power, Tourism Solomons, National Fisheries Developments (NFD), Solomon Island National Provident Fund (NPF), Heritage Park Hotel, Bank South Pacific (BSP) and South Pacific Oil.

“Together, on International Nurses Day we want to express our deep appreciation to nurses everywhere, and especially to our special guests and the National Referral Hospital, for keeping us safe, both through preventative measures, and in caring for those who are hospitalised,” said Mr. Brett Gebers, CEO of Solomon Airlines.

“Across the community we are indebted to them, and today we are showing our appreciation by treating them to a special experience we hope they will always remember,” he said.

“Solomon Airlines is also extremely grateful to our corporate partners. they answered our call to support the National Referral Hospital, and in doing so, have made this experience possible.

“So many of them, by the nature of their work and industries, are also at the frontlines of the COVID-19 pandemic and our national efforts to tackle it.”

Mr Gebers confirmed a special flight route had been planned to provide the finest possible views.

The aircraft departed Henderson, heading East over Oil Palms, flying towards Nuhu Island, tracking back towards Ngella and hugging the Southern Ngella coastline before turning North over Tulagi to view the Boromole Passage.

It will then turn West hugging the Northern Ngella coastline. From Sandfly Islands the flightpath will continue to fly over Savo Island for an aerial view over the volcano crater, and Russell Islands group before returning to Honiara via the Northern Guadalcanal coastline.

Kuku: we should not deal with bankrupt companies

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Hon. John Dean Kuku

The Leader of the Independent Group in Parliament has cautioned the Government against working with two bankrupt companies in Australia.

In a statement yesterday, John Dean Kuku says while he is happy to see the government working to resolve outstanding issues with Levers Solomon Ltd (LSL), he strongly cautions against dealing with Orbis Commodities Pty Ltd and Pacific Investments Holdings.

These two companies, owned by Willem Van Vlymen and his spouse Margriet Van Vlymen,  have been undergoing bankruptcy proceedings in Australia since 2017.

“It must be noted that Orbis and Pacific do not hold any legal title over any LSL or RIPEL land and properties in Solomon Islands, nor are they registered shareholders of LSL or RIPEL according to Company Haus records,” Kuku said.

His statement followed an article in the Island Sun newspaper that the Chief of Staff in the Office of the Prime Minister Robson Djokovic and the Attorney General John Muria Jnr are dealing with these companies through a Deed of Company Arrangement (DOCA) in order to acquire LSL and RIPEL properties in Solomon Islands.

Kuku explained:

“Orbis and Pacific Investments Holdings are connected to Pacific Investments, a third company registered in the Cook Islands, which is also under bankruptcy since 2017.

“On Company Haus records, Pacific Investments was under an appointed Receiver Manager from 15th March 2017.

“Through Pacific Investments, the Vlymens hold 50 percent shares in International Comtrade & Shipping (SI) Limited who holds 75.1% shares in both LSL and RIPEL.

“The remaining 24.9% shares are held by Lavukal Investment Limited.”

Kuku said it appears that the government has now shifted from its 2019 policy position, citing the OPMC statement in the Island Sun on Monday 9th April confirming that negotiations to acquire LSL only commenced in July 2021.

“In my recollection, in 2019 the government, through the RIPEL Cabinet Subcommittee mooted the idea of pursuing cross sectoral opportunities in development on areas that are not owned by Patrick Wong (the other shareholder in International Comtrade), LSL or RIPEL.

“In other words, LSL and RIPEL were to be excluded from the government’s proposal to develop areas that are free of LSL or RIPEL ownership.

“This is the preferred option because it circumvents any company liabilities and/or land related encumbrances.

“This begs the question whether the government has now abandoned that policy or is this yet another clever diversification of the same policy?

“It also raises questions on the status of the MOU signed in 2019 between the government and Russell Islands Investment Forum (RIIF), and the Central Islands Province under the previous policy.”

Setting aside the fact that Orbis and Pacific Investments Holdings do not hold any legitimate shares in LSL, hence do not own any properties in Solomon Islands, Kuku calls on the government to “clarify which LSL properties are to be acquired by the government under its proposed DOCA and what is the total value of those properties?”

“It is clear the DOCA deal would only serve the Vlymens beneficial interests above anything else.

“So what then is the ultimate aim of the DOCA and how does it benefit the Solomon Islands government?

“Is the government aiming to own shares in LSL and RIPEL (including liabilities) or is it only interested in acquiring the assets (excluding liabilities)?”

“If the government is only interested in acquiring land, then the DOCA is simply untenable and should be immediately abandoned,” Kuku said.

Court documents in the NSW Supreme Court revealed that the DOCA proposed by the Solomon Islands Government was “thought to be between AUD$15 million (SBD$83 million) and AUD$20 million (SBD$110,674,600), which would be enough to pay off all creditors of Orbis and Pacific Holdings in full.”

Kuku said:

“The Attorney General’s letter that recently appeared in the media has financial implications on the 2022 Budget though it did not appear in the Appropriation which immediately raises a series of questions on how the government is going to finance the arrangement.   

“There are better ways of dealing with the policy than the government’s present strategy of entering into negotiations with bankrupt foreign companies.

“It is no different to rioting and looting our national coffers.”

Canada supplies 16k level-3 face masks

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Group photo with consignment of face masks. L-R Dr Yogesh Choudhri MHMS Senior Advisor, Mrs. Pauline McNeil, MHMS Permanent Secretary, Mr. Mostyn Mangau Police Commissioner, Hon. Dr Culwick Togamana Health Minister, Cornelius Walegera Deputy Secretary Foreign Affairs and Wesley Kukutu Manager National Medical Store.

Canada has supported Solomon Islands with 16,800 level-three medical grade face masks.

This assistance has been described by the ministry of Health as a ‘boost’ to Solomons’ campaign against covid-19.

In a joint media statement yesterday, the ministry of Health (MHMS) and Police (RSIPF) hailed this support from Canada.

During a special event Health Minister Dr Culwick Togamana joined by Police Commissioner Mr Mostyn Mangau , Deputy Secretary Ministry of Foreign Affairs Cornelius Walegerea, Health officials and National Medical Store staff gathered yesterday afternoon for an official event with a Canadian flag as part of showing appreciation to the wonderful support received from Canada’s Novoshield company that donated the medical masks and to Air Canada cargo that freighted the cargo with support of Solomon Airlines into the country. 

“Thank you everyone for coming to this special event where we all, on behalf our government and people stand in great salutation to the people of Canada whose support has seen the delivering a sum of 16,800 Level 3 made in Canada medical grade surgical masks and N95 masks to support our ongoing fight against COVID-19,” Minister Togamana said.

From the 16,800 thousand face masks, 8000 masks are allocated for RSIPF officers working on the frontline against COVID-19 while the remaining will be distributed across the country’s health service points. 

In his brief remarks, Togamana said the country is still battling with COVID-19 with current efforts focusing on preventing further entry of new variants, mitigating further spread of the Omicron and Delta variants in country, managing the sick and preventing the further loss of lives. 

“In doing so, our COVID-19 workers both in Health, Police and other sectors are providing critical support in their effort to help combat COVID-19. Ensuring they remain healthy and any risks to their health and lives mitigated is paramount and therefore these supplies received from Canada will make a significant contribution towards the safety of our officers when discharging their duties, against COVID-19,” Togamana said.

Police Commissioner Mangau said that as a recipient, the force would also like to register their appreciation to the people of Canada and all those involved in facilitating the delivery of the masks to the benefit of first responders. 

“These face masks will surely help my officers who are supporting health frontliners at this time of COVID-19 community transmission and the force is looking forward to further its relationship with the police of Canada,” Mangau said. 

Both the Ministry of Health and Royal Solomon Islands Police Force acknowledged Mr Ashwant Dwivedi, the Solomon Islands Consul General to Canada who has been instrumental in liaising with Canadian organisations to seek their support.

“In expressing our appreciation, please allow me to single out Mr Ashwant Dwivedi, our Solomon Islands Honorary Consul General to Canada who has been instrumental in liaising with Novoshield, whose efforts have seen the delivery of the masks here today,” Togamana said.

Togamana also acknowledged and thanked Air Canada and Solomon Airlines management and workers for coordinating the freight of the cargo into Honiara as part of Humanitarian support. 

“Once again thank you to our Hon. Consul General to Canada Mr. Dwivedi who continues to seek Canadian support for our front-lineworkers, to Novoshield Company, Air Canada, and Solomon Airlines for the supplies that we now receive and will be deploying for our COVID-19 workers.” 

DBSI now an entity of GCF

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Chief Executive Officer of Development Bank of Solomon Islands (third from right) and staff, with the representatives of NDA, SPREP, and the Commonwealth Climate Finance Access Hub.

A MEETING to nominate the Development Bank of Solomon Islands (DBSI) to be an accredited entity to the Green Climate Fund (GCF) was held in Honiara recently.

Reps from the Secretariat of the Pacific Regional Environment Programme (SPREP) – Green Climate Fund (GCF) Solomon Islands Readiness project, National Designated Authority (NDA) of Solomon Islands, Ministry of Environment, Climate Change, Disaster Management & Meteorology attended the meeting.

They held discussions with the Chief Executive Officer and senior staff members of DBSI.

Speaking on behalf of the NDA representative during the meeting, Deputy Secretary Technical,

Chanel Iroi stated that the nomination to be an accredited entity to the GCF is critical and a priority for the SIG as the bank is supporting development at different scales in the country.

“It is also part of the Government efforts to effectively respond to the impacts of climate change and build the resilience of the country’s socio-economic sector as well as long-term climate-proof infrastructure developments,” Iroi said.

The GCF is a key funding mechanism under the Paris Climate Agreement that supports developing countries’ efforts to adapt their economies to the impacts of climate change through low-emission and climate-resilient investments.

SPREP’s Climate Finance Readiness Advisor, Fred Siho Patison who is based at the Pacific Climate Change Centre (PCCC), highlighted in the meeting that the accreditation process will take some time, but the support will initiate the process for DBSI to strengthen its fiduciary policies and processes to meet the GCF accreditation requirements.

He further re-iterated that such support is part of SPREP’s role as an accredited entity to the GCF in the region to support member countries.  

The DBSI board meeting later in April endorsed the support for accreditation and looks forward to collaborating with the SI GCF NDA and SPREP to get the accreditation process complete.

In welcoming the DBSI Board’s decision, Iroi thanked the CEO of DBSI, Nafitalai Cakacaka, saying “this accreditation will enable the Solomon Islands’ response to the threats of climate change further by opening access to GCF and climate financing to eligible stakeholders in the country”.

“Such access to climate financing mechanisms is critical for economic growth, security and the well-being of Solomon Islanders,” Iroi said.

The GCF Readiness 1 Solomon Island is strengthening the SI National Designated Authority (NDA) Capacity and Strategic Engagement with the GCF, which include support to national entities towards accreditation to the GCF.

The SI NDA support to DBSI is in addition to ongoing collaboration with the Ministry of Finance and Treasury and the National Transport Fund for accreditation to the GCF.

The SI SPREP GCF Readiness Support project is hosted by the Ministry of Environment, Climate Change, Disaster Management and Meteorology.

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