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RISKS REMAIN…But CBSI boss predicts recovery

Written by
Brian Lezutuni
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Central Bank of Solomon Islands. Photo by CBSI

By BRIAN LEZUTUNI

The Governor of the Central Bank of Solomon Luke Forau predicts the economy will emerge from the COVID-induced economic recession next year, but warns that there are many risks ahead and challenges for government finances – including its cash flow crisis.

In an update to the media yesterday on the economy in the year to May 2021 ahead, Dr Forau congratulated the government for its success in containing the pandemic but warned of revenue and expenditure pressures.

‘It’s not yet over until it’s over!” Dr Forau said

As part of supporting the Government to promote businesses to recover, the Central Bank has relaxed some of its capital control.

“This became effective as of yesterday, Thursday 8th July,” Dr Forau said

“Later this 3rd quarter, the Central Bank will introduce an export finance facility to support small exporters once the export finance facility guidelines are finalized,” he added.

Latest CBSI figures show in the year to May the economy contracted by 4.3% and that a small turnaround is expected this year.

“This year we are projecting a recovery of a 1.5% growth on the back of key national infrastructure projects and recovery of some sectors such as the fishing and agriculture,” Dr Forau said.

Economic growth in 2022 to 2023 of around 5% and 6%.

“This will come mainly from the anticipated booming construction activities for the Pacific Games and other key national projects such as Tina Hydro.

“Despite this positive outlook, risks are skewed to the downside and remain highly uncertain.” Dr Forau said

The pain of the recession is still being felt in the job market.

The Central Bank Governor said labour market conditions have been slow, particularly in the construction sector and transport due to continued border closure and weakened exports.

The trade deficit widened with most export commodities, in particular round logs down as expected.

Despite slowdown in the economy in the year to May, the country’s gross foreign reserves remained high at 13.9 months of import cover- well above the 3-month minimum set by the bank.

“These high reserves are driven largely by donor inflows,” Mr Forau said.

The Governor said the Central Bank will continue to work closely with and support the Government as the country moves into the recovery phase.

On the economic front he warned that the government’s successful COVID containment measures have taken a toll on its finances.

Tax collections remain weak due to depressed economic conditions and non-tax revenue, particularly from fishing license fees, was significantly lower than expected.

Pressures for more government spending has led to cash flow challenges and in turn, payment rationing.

“If this trend persists into the second half of 2021, the fiscal deficit of 3% of GDP envisaged in this year’s budget could widen further,” the Governor warned.

“This calls for a closer scrutiny and warrant more on priority spending, the need for increased budget support or additional borrowing to finance the development budget.

The Governor said he sees two immediate fiscal risks:

  • depletion of cash reserves and
  • the potential adverse knock-on effect from government’s non-payment of service providers to our financial system.

“Late payments of service providers most of whom have mortgages (or loans) with the financial institutions leads to building up of non-performing loans, which could potentially destabilize the financial system if it becomes systemic.

“Over the medium term, fiscal pressures are expected to abound.

“More social services and physical infrastructures will be needed to sustain the country’s growing population. With fiscal position continuing to deteriorate and the economy growing at a slower pace, this could potentially lead to more debt financing.

“Although the nation takes pride in hosting the 2023 Pacific Games, it is a commitment that could put huge pressure on government finances if not managed well,” Mr Forau said

The Country’s outstanding debt balance rose to 1.6 billion dollars as of May-  an increase from $1.4 billion recorded in December 2020.

Although the debt-to-GDP ratio remains low (at 13%), it is expected increase once planned domestic borrowing to finance the National Government’s budget shortfalls and funding for Tina Hydro kicks in.

ENDS

Driver charged over death of five people

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Press Release
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The vehicle that was involved in the incident at the Tenaru bridge. PHOTO BENJAMIN AFUGA

POLICE at the Henderson Police Station have charged a suspect  with careless driving in relation to the fatal road accident at the Tenaru Bridge East of Honiara  on 7 July 2021 that took the lives of five people.

The accused has been charged for causing death by reckless and careless driving, contrary to section 38(1) of the Road and Transport Act after he was arrested yesterday 8 July 2021.

Supervising Provincial Police Commander, Guadalcanal Province, Superintendent Sevoa said the land cruiser was chased by a police vehicle for careless driving from the Burns Creek area.

On their way up to Tenaru Bridge, the driver of the land cruiser saw an incoming vehicle on the Bridge and a parked vehicle at the western end of the Bridge, so the driver of the land cruiser decided to drive through the old Tenaru Bridge where a fundraising was happening.

“The vehicle drove straight towards the crowd, hit several people and later stopped. The driver of the land cruiser escaped after the accident but was later arrested.

“It has been confirmed that the suspect was drunk. Some unknown person later burnt down the land cruiser into ashes.”

Supervising PPC Sevoa said a traffic case has been established and investigation is currently ongoing.

“I call on parties involved in this sad incident to refrain from taking the laws into their own hands and allow police to deal with the matter so that those responsible could face justice. A remand application has been prepared to remand the suspect.”

“Our condolences to the family and relatives of the deceased for the loss of their loved ones,” said PPC Sevoa.

High Commissioner Anga dies in PNG

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Admin
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THE Minister of Foreign Affairs and External Trade, Jeremiah Manele has formally announced the passing of Solomon Islands High Commissioner to Papua New Guinea, Barnaba Anga in Port Moresby yesterday.

In a broadcasted message to the Governor General and the Prime Minister, Minister Manele said:

“It is with great sadness, that I inform you all on the passing away of our High Commissioner to Papua New Guinea Barnabas Lauia Anga this morning in Port Moresby.”

High Commissioner Anga collapsed at his official residence at 8am in Port Moresby and was rushed to Aspen Medical Centre, where he was pronounced dead at 9am Port Moresby Time.

“On half of the government, I wish to acknowledge the tremendous service and contribution made by the late High Commissioner Anga to the government and people of Solomon Islands in promoting Solomon Islands interests in Papua New Guinea and also in elevating our bilateral relationship with Papua New Guinea,” Manele said

“I also wish to recognize the utmost dedication that the late High Commissioner Anga has done for the country as a long time public servant and senior government official in the respective offices that he held prior to his posting to Papua New Guinea.

“He has served with honour and distinction and dedicated his life tirelessly for his country Solomon Islands,” he added.

The Ministry of Foreign Affairs and External Trade will be making further announcements on the late High Commissioner Anga’s repatriation and funeral arrangements in consultation with his family.

“The Permanent Secretary, staff of my Ministry and the government and people of Solomon Islands join me in conveying our heartfelt condolence to the late Barnabas Anga’s wife Madam Joyce Kelani Anga and their three children, Lucy Gelifua Anga, Wilmah Lifunah Anga and Junior Anga.

“May our Good Lord comfort and give you strength during this difficult period.

“May the soul of our late High Commissioner His Excellency late Barnabas Anga rest in eternal peace with our Good Lord,” Manele said.

Agovaka blocking project funds from Malaita is shameful: Wale

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Press Release
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Hon Peter Shanel Agovaka

Leader of Opposition Matthew Wale has labelled statements by the Minister for Aviation, Peter Chanel Agoaka as misleading and inciteful.

The Island Sun newspaper ran an article in Wednesday’s paper (July 7, 2021) which quoted Mr Agovaka as saying that he is deferring a paper he intends to take to Cabinet to redirect SIRAP funding of USD31.7m away from Malaita to give Malaita MPs the opportunity to talk to the Malaita Premier and Provincial government.

Mr Wale said this statement by Agovaka is clearly intended as a threat to Malaita province to either accept China Harbour Engineering or nothing. He said this is shameful.

Wale said the World Bank’s procurement process that Agovaka claims to be insisting on has itself recommended the rejection of the bid submitted by China Harbour Engineering as non-compliant.

“In other words, under the current tender process, the bid by China Harbour Engineering cannot progress further.

“The statement by Hon Agovaka that the tender process is frustrated by Malaita provincial government’s position on the bidder is simply not true,” the Opposition Leader stressed.

Wale added that it does not make much sense to withdraw the entire funding for the roads and bridges, on the purported disagreement relating to the bridge only.

“In any case, this disagreement with the bidder is not even an issue in the tender procurement process as the bid itself has been determined by the World Bank to be non-compliant,” Wale added.

The Opposition Leader calls on Agovaka and the government to be rational about this matter and allow the World Bank procurement process to progress as it should in the case we now find ourselves in – that the bid is non-compliant, adding that the government should not interfere in this process.

–OPPOSITION PRESS

Review of Archives Act will strengthen public records

Written by
Brian Lezutuni
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PS Andrew Nihopara

BY JARED KOLI

THE Amendment of the ‘The Archives Act 1994’ will create a stronger obligation for government ministries to surrender sensitive public records to the National Archives of Solomon Islands (NASI).

This is according to the Permanent Secretary of the Ministry of Culture and Tourism Andrew Nihopara.

Mr Nihopara told Island Sun in an interview this week that the Government is currently working on reviewing Act.

He said his ministry is working to establish the National Archives Advisory committee, and then that committee will meet and document the necessary adjustment and amendment that they want for the current Act.

Mr Nihopara said since The Archives Act 1994 was in place, it provided for the establishment of the National Archives of Solomon Islands.

It also provided for the establishment of the Archives Advisory Committee or Council, that looks after all the affairs of the Archives.

“Anything Archives have to do need to be passed by the board, unfortunately the Act hasn’t been activated since it came in.

“So there has not been an establishment of a national Archives Advisory Committee. But the mandate to change the provisions within the Act or any mandate with regards to the work of the national archives has to be endorsed by the National Archives Advisory board,” Mr Nihopara said.

He said the new digital preservation that is currently carried out by NASI needs to be captured in the Archives Act when it amended.

“The other one is creating much stronger within the Archives Act to obligate ministries or government to surrender sensitive public records to the Archives because that is required by law.

“There are records that need to be kept here on what is known as 30-year rule. This means sensitive records cannot be disclosed to the public, but will be held at the National Archives for 30 years, before it can be made public.

“These are the provisions we want to strengthen in the Act. The other one is to make the Archives become more accessible centre for both domestic and international students that want to access historical record,” he said.

Nihopara said at the moment, government ministries do not comply with the Act to surrender government records to NASI which calls for its review and amendment.

“No ministry, even the Ministry of Finance, perhaps due to ignorance, know that there is an Archive Act that requires them to surrender public records to The National Archives.  

“There has been an awareness going on, we have partnered with the public service ministry to reach to other ministries to create awareness about the public records management.

“But that’s about the record management policy, then when it comes to some sensitive public service records which is what mention in the Act, no body seem to be aware of.

“So we probably make the necessary amendments in the act, and perhaps that would also give weight to us to reach out to them and say, you’re obligated under this act to surrender certain types of public records to the NASI,” Mr Nihopara said.

British High Commissioner visits the National Archives

Written by
Brian Lezutuni
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British High Commissioner to Solomon Islands His Excellency Brian Jones briefed about NASI's ongoing work during his visit to the National Archives

BY JARED KOLI

British High Commissioner to Solomon Islands His Excellency Brian Jones on Tuesday paid a visit to the National Archives of Solomon Islands (NASI) to see firsthand the work that is currently underway at NASI. 

NASI is currently digitising the country’s analogue records in its repository.

Mr Jones was received by the Permanent Secretary (PS) of the Ministry of Culture and Tourism Andrew Nihopara and Government Archivist Julian Chonigolo.

They briefed the British High Commissioner and gave him a tour to the digitising room, sorting room and later to the repository where all analogue records are kept. The visit was made after the British diplomat learned from a recent article published by this paper of the new digital preservation technology that NASI is currently using.      

Jones told PS Mr Nihopara and Government Archivist that the work that NASI is doing is vital.

“Especially to students to learn from the history and understand how all of that process took place. That is really vital if you look at everything, from individual learning all the way to the progression of state, and what is the future of the constitution, you have to know what has started from the beginning,” he said.

“My initial inspiration was the piece in the newspaper recently about digitising the records. And how you independently acquired the equipment to do this, and the hard work that was going on to protect these records,” Jones said.

Government Archivist Julian Chonigolo said the archives currently holds the British Solomon Islands Protectorate (BSIP) administrative records, which it is currently digitising as well as pre and post-independence and other private records.

Ms Chonigolo said the largest private holding belongs to the Church of Melanesia. 

“We also have some challenges, big challenges. We have problems with storage and need a bit of expansion.

“I won’t deny the Solomon Islands Government is very helpful under the digitisation project, but I think we need to continue from there,” she informed the British High Commissioner.

She said there was a small expansion in 2018 of the repository area, but they still need to equip it.

“That is also one of the challenges because we can’t find a lot of supplies here on the equipment we need.”

She told Jones that the most recent documents stored in the archives are the Townsville Peace Agreement and the controversial Report of the Solomon Islands Truth & Reconciliation Commission.

PS Nihopara informed the British High Commissioner that the Government is currently working on reviewing ‘The Archives Act 1994’. 

Nihopara said at the moment, government ministries do not comply with the Act to surrender government records to NASI, which calls for a review and amendment on the said Act.

“No ministry, even the Ministry of Finance, perhaps due to ignorance, know that there is an Archive Act that requires them to surrender public records to The National Archives.

“There has been an awareness going on, we have partnered with the public service ministry to reach to other ministries to create awareness about the public records management.

“But that’s about the record management policy, then when it comes to some sensitive public service records which is what mention in the Act, no body seem to be aware of.

“So we probably make the necessary amendments in the act, and perhaps that would also give weight to us to reach out to them and say, you’re obligated under this act to surrender certain types of public records to the NASI,” Nihopara said.

In response, HE Jones said to place a requirement for Government to archive certain documents is a valuable task that should be done.

“If it is digitised the right way, it makes it a global asset, researchers everywhere can look at it and make use of the service,” he said.

Nihopara said the plan is to make adjustment on the Act to enable research, and at the same time, make money out of it to contribute to the government coffers. Researchers wanting certain types of documents can pay to access it.

“But those have to be captured in the amendments to the Act,” he said.

The British High Commissioner took a tour around the building and noted the challenges and issues touched on.

If Delta covid-19 enters SI, we will suffer: PM

Written by
Mavis Podokolo
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Fiji braces for more cases as the Delta covid-19 variant wreaks havoc

BY MAVIS N PODOKOLO

PRIME Minister Manasseh Sogavare has warned that if the Delta variant of covid-19 gets to communities in Solomon Islands before they are vaccinated, people will suffer because it is highly transmissible.

Sogavare echoed this to encourage people to get vaccinated due to Delta variant, which WHO has described as the ‘fittest and fastest’ variant of covid-19, being highly active in our neighbour Fiji.

“The Delta variant is highly transmissible. If the Delta variant gets to our communities before they are vaccinated, our people will suffer. We will see not just an explosion of COVID-19 cases, but sadly, we will also see an explosion in deaths due to COVID-19 infection,” he said.

He said the current outbreak of the Delta Variant in Fiji started with just two people returning from India in April this year. At that time Fiji only had 67 cases and two deaths since the beginning of the Pandemic. However, from mid-April to yesterday, Fiji registered an additional 6,094 cases, 28 deaths (in two and a half months).

“Fellow citizens if COVID-19 breached our borders, our quarantine stations and get into the community, the picture in Solomon Islands would be much worse than what is occurring in Fiji right now.

“This is the reason we must all get vaccinated to ensure our population is safe even if COVID-19 breached our borders.

“If all adults in Solomon Islands are vaccinated, then we have a chance of protecting our population below 18 years of age that cannot be vaccinated.

“I encourage all those who have been vaccinated, to share your testimonies. Some will have had mild side effects. Stand up to give people the correct stories. Encourage all adults to get vaccinated. If you had some side effect with the first dose, there is much less side effect with the second dose,” Sogavare said.

He adds by urging people using social media to use the platforms to encourage people to get vaccinated, not to create doubts.

“As I had mentioned in my previous address, we only recorded 4 cases of reactions, which our health experts have treated on the spot. All four people are well and healthy. They are now protected against COVID-19,” Sogavare said.

Court acquits man over accident at Foxwood

Written by
Jennifer Kusapa
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BY JENNIFER KUSAPA

THE man who was arrested and charged over a traffic accident which occurred in 2020 at the Foxwood area has been acquitted.

Deputy Chief Magistrate Ricky Iomea acquitted the man charged with one count of Causing death by reckless and dangerous driving under the traffic offences Act.

The accused entered a plea of not guilty and a trial was conducted and the court found him not guilty and acquitted him.

This is the case against Simon Peter Sonithagea who police alleged to have caused the death of a man at the Foxwood Road area.

DCM Iomea in his judgment said prosecution failed to prove beyond reasonable doubt the charge against the accused.

“The existence and non-exclusion of those possibilities by the Prosecution lead only to one conclusion, that I am not satisfied beyond reasonable doubt that the accused caused the death of the deceased,” Iomea said.

Iomea said having assessed the evidence from the prosecution witnesses, what the three witnesses thought about the speed at which the accused was travelling based on the sound of the car engine at that time is not sufficient to assist the court in drawing the inference the accused was travelling at a very high speed which was dangerous to the public at that material time.

“It is unreliable and not safe to rely solely on that evidence to find that the accused was driving dangerously,” Iomea said.

Iomea also said the deceased was lying on the road and whether he was still alive or already dead before the accused ran over him remains unknown at the conclusion of evidence in the trial.

“The possibility that the deceased fell from another vehicle earlier or died from a natural cause or murdered by somebody and dumped on the road before the accused ran over him remains open and have not been excluded on the evidence by the prosecution at the conclusion of the entire evidence in the trial.”

False pretence case returns to court

Written by
Jennifer Kusapa
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BY JENNIFER KUSAPA

THE case of a man alleged of lying to a retired doctor for money will be mentioned in court before Principal Magistrate Felix Hollison.

This is the case of a 45-year-old man Sam Ngedea who was accused of obtaining more than $40,000 from a retired doctor in 2018 and 2019.

Prosecution charged the accused with 25 counts of false pretence and 21 counts of demanding with menace.

This is regarding the allegations occurred between December 3, 2018 and July 20, 2019 where he lied to an elderly doctor and obtained more than $40,000.

Prosecution said the accused collected the monies from the victim on various occasions as compensation, accusing the victim of trying to have sex with a woman he claimed was his mother.

Prosecution also alleged Ngedea during those times would appear using names such as George Ben, John Lake and Peter.

It was also alleged that the incident was a “make-up” by the accused, making prior arrangement with that woman to meet the victim on the case.

Steward Tonowane is appearing for the Crown while Lazarus Waroka from the Public Solicitor’s office is representing the accused.

Traffic incident halts meeting

Written by
Eddie Osifelo
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Turarana river, where the WinWin mining company is operating.

By EDDIE OSIFELO

THE traffic accident at Tenaru, east of Honiara, on Wednesday night which resulted in five people confirmed dead has affected the meeting between Win Investment Ltd and Turarana Landowners Taskforce and other leaders.

The meeting was scheduled at Henderson Police Post conference room from 10am to 12 noon yesterday.

However, the meeting could not take place because the vehicle involved in the accident belongs to a person in Turarana village.

Therefore, people in Turarana could not travel down town at this time to avoid any dispute with relatives of the deceased.

The so-called Taskforce called the meeting for the company to clarify outstanding issues and due payment need to be settled relating to the mining operation on Turarana tenement.

One of the Directors of Win Win, Charles Meke said a new date will be set for the meeting because of the traffic accident.

The taskforce said failure to meet with them, the company expect to see all four tribes would stage a road block on 13th July, which is the deadline of the 14 days’ notice issued on 29th June to Win Win.

Win Win does not recognize the existence of Taskforce as it was set up outside the 24 trustees of Turarana where Win Win signed the Surface Access Agreement and Surface Access Rights Agreement with them.

In a letter sent to the Managing Director of Win Win mining Company Ltd on 1st July, the four landowning tribes (Garavu, Lasi, Koe’naho and Manuki) tribes who owns the Turarana tenement where the company is operating, agreed on this during their extra ordinary meeting held at Turarana village on Wednesday 30th June.

Some of the log of claims which are dued payments are:

1.            Premium – $26,000 (Surface Access Agreement)

2.            Access fee – $250,000 (SAA)

3.            Rental payments – $1,000/square kilometer multiply 12 square kilometer – (2018-2021)

4.            Campsite payment – $3,000 per month from 2018-2021

5.            Pits

6.            Damages

However, Elemelek Vamule, mines officer in the Ministry of Mines, Energy and Rural Electrification confirmed the royalty payments of the landowners are still with Central Bank of Solomon Islands.

Vamule said CBSI can only release the payments once the landowners sorted out their land boundaries and open a bank account.

He said so far there were 19 shipments of the minerals made so far and the company overseas has already paid eight shipments to CBSI.

Vamule said this is in accordance with Mines and Mineral Act that payments must be made within three months on the day of shipment.

Further to that, he said regarding information of the company’s operation, no one can access it because of its confidentiality and its property.

Vamule said under the Mines and Mineral Act, the ministry cannot issue the information of the company until it loses its tenement and move out after three months.

Meke said Bred Bank has willing to help open accounts for the company, 24 trustees and the employees.

Meke said work is ongoing to sort out the land boundaries on the tenement as well.

Win Win has extracted alluvial deposits on the stream beds of Mamasa and Turarana to get the minerals, especially gold.

The company started operations on Mamasa in October 2019, however the company discovered the tenement had low alluvial deposits on its stream beds.

Win Win is now operating on Turarana which is believed to have high alluvial deposits.

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