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NPF hit by COVID pandemic

Written by
Eddie Osifelo
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General Manager for SINPF Mr Mike Wate

By EDDIE OSIFELO

SOLOMON Islands National Provident Fund (SINPF) has highlighted the economic impact caused by COVID-19 on its membership and activities.

Appearing before the Public Accounts Committee in Parliament, General Manager Michael Wate said in the 2020 financial year (ending 30 June 2020), new registered members declined to 6,182 against a good year in 2019 of 9,323 members.

However, Wate said the 2020 numbers though is consistent with recorded new member registrations in 2018 or 2017.

“We will expect new member registration to decline further in 2021,” he said.

Further to that, Wate said members with credit balances remain at the same level of 142,000 but with active members declining to 59,330 against 61,262 in 2019.

“We may expect the number of active members to decline as the economy continues to remain in recession and the borders closed in particular for the tourism and hospitality industries,” he said.

Wate said new employees registered declined to 223 in 2020 against 368 registered in 2019, they may expect this to decline further in 2021.

Furthermore, Wate said the 2020 COVID-19 exemption benefits were paid to 20,366 members for around $98.1 million.

He said their informal sector product youSave though has continued to expand considerably through youSave mobile and encouraged by the remit of the 10% sales tax on airtime that will be used for retirement savings.

Wate said the current membership has now reached 22,584 with more than $20 million in savings.

The PAC hearing continues today.

ADB funds solar projects here

Written by
Eddie Osifelo
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ADB

By EDDIE OSIFELO

ASIAN Development Bank (ADB) has supported Solar Development Project in five provinces in the country.

Elmir Elbling, Unit Head of ADB Solomon Islands Pacific Country Office in Honiara, confirmed this when he appeared before the Public Accounts Committee in Parliament.

PAC is scrutinising the 2021 National Budget of $3.9 billion.

Elbling said solar panels are established in Munda (Western province), Kirakira (Makira Ulawa), Malu’u (Malaita), Tulagi (Central Islands) and Lata (Temotu province).

According to ADB press release, the financing support for these five projects was approved in 2016.

The project was funded by a $2.24 million grant from ADB, $6.2 million grant from the Strategic Climate Fund, and $6.76 million from the Solomon Islands government.

The project was the first solar power project in Solomon Islands to install battery storage, which allow electricity to be stored from the sun during the day to power the provincial towns at night.

The project reduces the need for costly shipments of diesel to the provincial centers.

It install about 2 megawatt of solar power generation capacity, which consist of ground mounted rows of solar panels within or near the townships of Kirakira, Lata, Malu’u, Munda, and Tulagi. 

The project is part of a broader program by Solomon Power to expand electricity access to rural communities through renewable energy-based grids. 

The modular structure of solar power plants makes them suitable for future expansion to accommodate growing demand.

The project design includes oversized sites and connection equipment for future expansion, and Solomon Power staff training on solar plant operation and maintenance.

ADB has been supporting Solomon Islands since 1973 and has committed $174.4 million in loans, $219.0 million in grants, and $32.3 million in technical assistance. Cumulative loan and grant disbursements to Solomon Islands amount to $169.1 million.

Malaita tribe to conduct land recording exercise

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Paramount Chief Sade Gwailili with the confirmation letter

BALEOIASI Tribe One Discovery in Malaita is proposing to conduct a land recording exercise in Honiara this year.

Paramount Chief Sade Belo Gwalili said the exercise is important for all those that claimed the land area from Kafo Welu to Makweru, Kwairade and to Urasi Harbour Falitafolo.

He calls on the 35 tribal chiefs for these areas to listen out for update as to when the land recording will be held.

Under the Customary Land Record Part III, it states that any customary land holding group or any person, who claims an interest in any customary land may apply to Land Record Office in the province for the recording of such primary rights and the demarcation of the extend of the boundaries of such customary land.

Every application made under this shall be made in the prescribed from to the recording officer

Gwalili said Baleoiasi tribe already received confirmation from the National Recording on February this year to proceed with the land recording.

In a letter dated on Feb 18 it confirms the Baleoiasi tribes has shown expression of interest to record their customary land subjected to compliance with the Tender Requirements yet to be publicised and availability of funding under Ministry Development Budget for 2021.

Chief Sade said the main intention is to identify the rightful owner for the area.

“As paramount chief, it is my responsibility to settle different claims over this land to avoiding land disputes.

“Through land recording we will set the record straight so it is important for those who claim ownership of the land to attend the land recording,” he said.

Thirty-five tribal chiefs are expecting to attend the land recording.

The chiefs who are expected to attend the land recording are chiefs from Baleoiasi Tribe One discovery, Funa Fou Islands, Ofatabu, Rakao, Foteasi, Maneoba and Manuáu land discovery land.

Western Provincial Gov’t cautioned on budget cuts

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BY BEN BILUA

WESTERN Provincial Government (WPG) has been told to take heed of the National Government’s reduced budget support to the province.

In an interview, Speaker of Western Province, Adrian S Gina said Western Province is aware of the National Government COVID-19 Redirection Policy and is now taking measures to fill the gaps.

He said Western Provincial Executive have spent time last week and this week identifying the province’s priority areas and align the priorities with the cost cutting measures of the National Government COVID-19 redirection policy.

“It’s been a very tiring weeks for Western Provincial Executive as some of the plans came short due to COVID-19 direction policy of the National Government.

“We tried to align our budget with the national government’s shortfalls so that what we budgeted for will complement the national government,” Gina said.

“Western province has to go down to its level to see the national government budget cut and determine its own intervention to make sure its development aspirations and service delivery are not affected in the next financial year,” he added.

Gina said the provincial executive and the province’s planning division have already made amendments to the province’s budget so that both the provincial budget and national government allocation are on the same page.

Western Provincial Government (WPG) will kick off its Assembly meeting today at the Imagination Island Resort – an Island half a mile from Gizo town.

OUR $1.5B DEBT

Written by
Eddie Osifelo
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By EDDIE OSIFELO

SOLOMON Islands debt stock has risen to $1,450 million after government borrowed money from donors and state-owned enterprises and National Provident Fund to combat covid-19 last year.

The debt is equivalent to 12 percent of the Gross Domestic Product.

Central Bank of Solomon Islands Governor, Dr Luke Forau told the Public Accounts Committee in Parliament on Monday that external debt component has a bigger share of 69 percent ($998 million) underpinned by new loans from the Asian Development Bank and World Bank.

Forau said domestic debt represented 31 percent ($452 million) mainly attributed to borrowing from SOEs and the Solomon Islands National Provident Fund.

Further to that, Forau explained the country’s external trade (exports and imports) deteriorated in line with weak domestic and foreign demand as well as the impact of containment measures on tourism and infrastructure projects.

He said export dropped by 17 percent to $3,113 million driven largely by fall in round logs and canned tuna exports.

Forau said imports fell by 18 percent to $3,232 million reflecting slowdown in capital imports amidst low domestic investments during the year.

He said aided by favourable donor in-flows and the International Monetary Fund credit support, the country’s gross foreign reserves grew by 13 percent to $5.3 billion representing 13 months of import cover.

Further to that, Forau said monetary conditions during the year remained firmly in line with CBSI’s expansionary monetary policy.

He said money supply rose by seven percent to $5,418 million against December 2019, driven by increase in narrow money and other deposits.

Forau said this reflected the build-up in foreign reserves over the period.

Meanwhile, private sector credit at the end of December 2020 declined by one percent to $2,541 million.

Forau said the main sectors driving the fall in lending were personal loans, construction, tourism, transport and manufacturing.

He said conversely, credit to the forestry, distributions and professional and other service sectors grew over the year.

“The interest rate margin narrowed to 9.73 percent in 2020 from 10.23 percent in 2019.

“This mirrored a decline in the average weighted lending rates from 10.67 percent to 10.30 percent,” he said.

Forau said the average lending rates have come down; by comparison they are not far from their neighbours.

“However, I want to stress here that we need to address the issues that affect the financial systems in totality.

“The financial system is but only one component of the economy, and its functioning depends on several factors, one of which is the stability of our governing system and the robust enforcement of the relevant laws,” he said.

In the meantime, inflation remained muted in 2020 falling to minus 1.8 percent by end December 2020 despite spikes in the middle of the year whilst core inflation stood at minus 1.4 percent.

Captain pleads guilty to oil spill in Temotu

Written by
Jennifer Kusapa
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The bulk carrier Quebec's ship captain has pleaded guilty for spilling oil at the Graciosa Bay in Temotu Province

BY JENNIFER KUSAPA

The vessel master of bulk carrier Quebec has pleaded guilty to dumping around 1,000 litres of oil into the sea at Graciosa Bay, Temotu province.

He pleaded guilty to all five counts against him and will be sentenced on March 26 at the High Court.

The vessel master who is a Vietnamese national was charged with the following counts;

Count-one; discharge of pollutants contrary to regulation 9(2) and (3) of the Shipping (Marine Pollution) Regulations 2011.

Penalty: A fine not exceeding 5000 penalty units or to imprisonment for a term not exceeding 12 months, or both.

Count-two; Failing to comply with operational requirements of the International Convention for the Prevention of Pollution from Ships (MARPOL) 1973/1978 contrary to regulation 8(1) and (2)(a) of the Shipping (Marine Pollution) Regulations 2011.

Penalty: A fine not exceeding 5000 penalty units, and to imprisonment for a term not exceeding 12 months, or both

Count-six; Making a false report contrary to regulation 16(1) and (4)(b) of the Shipping (Marine Pollution) Regulations 2011

Penalty: A fine not exceeding 5000 penalty units or to imprisonment for a term not exceeding 6 months, or both.

Count-seven; Failing to comply with instructions contrary to regulation 27 and 29(1)(a) of the Shipping (Marine Pollution) Regulations 2011

Penalty: A fine not exceeding 5000 penalty units, and to an additional fine of 1000 penalty units for each day during which the offence continues

Count-nine; Taking an unsafe vessel to sea contrary to section 81(1)(e) and (2) of the Shipping Act 1998.

Penalty: A fine not exceeding sixty thousand dollars

Director of Public Prosecution Rachel Olutimayin said the vessel, when the incident happened, had carried 21 crews, all Vietnamese nationals.

Ms Olutimayin said the vessel was registered in Panama and is used to carry wooden logs from the Solomon Islands, and the vessel’s headquarter is in Singapore and they are represented here in the Solomon Islands by Sol fish limited.

She said the vessel MV Quebec, on January 20, 2021 anchored at Graciosa Bay in Lata. The heavy oil was discharged to the sea from the vessel’s engine room through the main fire line and this was witnessed by boarding agents whom they estimated that the spilling was set to 6 to 7 minutes between 500 to 1000 heavy oil and the discharge polluted about one kilometre of beach and mangrove at the bottom of Graciosa bay.

Olutimayin also submits that any penalty imposed should be a fine and will be paid to the Solomon Islands Marine Authority.

Meanwhile counsel for the defendant Wilson Rano also suggests to consider fine as an appropriate penalty for the defendant.

Fear not

Written by
Mavis Podokolo
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Blood clot is not related to AstraZeneca vaccine: WHO

BY MAVIS N PODOKOLO

Blood clots is no side effect of the AstraZeneca vaccine, assures World Health Organisation (WHO), Solomon Islands.

Simon Burggraaf of World Health Organisation (WHO) Solomon Islands elaborates, saying data from Europe and Asia-India all show the blood clot incidents to be coincidental with vaccine administration.

WHO Global Advisory Committee on Vaccine Safety (GACVS) COVID-19 subcommittee on safety signals related to the AstraZeneca COVID-19 vaccine in its latest statement, says:

“Based on a careful scientific review of the available information, the subcommittee came to the following conclusions and recommendations: 

“The AstraZeneca COVID-19 vaccine (including Covishield) continues to have a positive benefit-risk profile, with tremendous potential to prevent infections and reduce deaths across the world.

“The available data do not suggest any overall increase in clotting conditions such as deep venous thrombosis or pulmonary embolism following administration of COVID-19 vaccines. Reported rates of thromboembolic events after COVID-19 vaccines are in line with the expected number of diagnoses of these conditions. Both conditions occur naturally and are not uncommon. They also occur as a result of COVID-19.  The observed rates have been fewer than expected for such events.

“While very rare and unique thromboembolic events in combination with thrombocytopenia, have also been reported following vaccination with the AstraZeneca COVID-19 vaccine in Europe, a causal relationship between these rare events has not been established at this time.”

Economy set for comeback: CBSI

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

By EDDIE OSIFELO

CENTRAL Bank of Solomon Islands has projected the economy to recover to 1.5 percent this year in line with global growth and anticipated recovery in fisheries, construction sectors and key national projects in the pipeline.

The national projects are Tina Hydro and facilities for the Pacific Games in 2023.

Last year, the national economy contracted to minus 4.3 percent due to the impact of the coronavirus pandemic which affected key export and productive commodities and other related economic activities.

This happened after the government imposed the containment measures combined with the international travel restrictions led to disruptions in the production and supply chain in the domestic economy.

Appearing before the Public Accounts Committee in Parliament yesterday, CBSI Governor Dr Luke Forau over the medium term (2022-2025) growth is anticipated to pick up to an average of 3.5 percent with high growth concentrated ion 2022-2023 of between five percent and six percent from booming construction activities.

However, Forau said post Pacific Games in 2024 would be more challenging, as growth would drop considerably to around one percent when infrastructures and facilities are completed.

He said a gradual decline in forestry is also anticipated over the medium term.

“However, risks to this forecast are tilted to the downside especially with the ongoing pandemic related disruptions,” he said.

Further to that, Forau said CBSI expects inflation to remain low at -1.6% in the first half of this year consistent with on going depressed demand and to improve to 3% by end of 2021 to reflect upward pressures from food and fuel prices and transitory inflationary pressures of volatile items at the market.

The PAC has scrutinised the three billion, nine hundred and five million, nine hundred and fifty one thousand and three hundred and sixty dollars ($$3,905,951,360) budget.

The hearing continues today with the Australia High Commission, New Zealand High Commission, Japanese Embassy, Ministry of Finance and Treasury, Commodity Export Marketing Authority (CEMA), Solomon Islands Broadcasting Corporation, Solomon Islands Postal Corporation, Office of Prime Minister and Cabinet and Ministry of National Planning for Development Coordination.

2021 Bill hangs with $300m ‘dead money’

Written by
Eddie Osifelo
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CBSI Governor, Dr Luke Forau

By EDDIE OSIFELO

THE 2021 Appropriation Bill 2021 is proposing a deficit of around $300 million.

Central Bank of Solomon Islands Governor, Dr Luke Forau stated this when he appeared before the Public Accounts Committee (PAC) in Parliament on Monday.

PAC is scrutinising the three billion, nine hundred and five million, nine hundred and fifty-one thousand and three hundred and sixty dollars ($3,905,951,360) budget.

Mr Forau said in 2020, the fiscal position recorded an overall deficit of $308 million (or 2.5 percent of GDP), mainly driven by lower domestic (tax) revenue collections and covid-19 related expenses

He said the total revenue rose five percent to $3,800 million in 2020 attributable mainly to large grant receipts of $697 million primarily relating to covid-19 responses to support the economy.

However, Forau said this year’s budget is expecting a deficit of around $300 million.

“With the current revenue flow, there are at least two immediate risks to the fiscal outlook.

“First, is the government’s cash reserves is limited to finance the fiscal deficit,” he said.

Dr Forau said second, following from the first, the financing options would be crucial for the government.

However, the Governor said there is ‘dead money’ of around more than $300 million on the budget.

He said these are monies already due to the Government, but never been collected, these include taxes such as exercise tax, company tax, etc. and other fees.

“If the government collects all these monies this year, then the deficit is securely financed,” he said.

Further to that, Dr Forau said this year is the recovery phase of our economy.

“We really need to get the economic fundamentals right.

“The 1.5% growth projected for this year will not be sufficient enough to take the country back to pre- 2020 level.

“The economy needs to grow by at least 5% to 6% before we reach the pre-2020 level. By our estimation, this may occur in around 2024/2025,” he said.

Dr Forau said seeing that international travel and border restrictions remain uncertain to reopen soon, the Government should focus on spacing out its policy priorities into short to medium term and long term priorities.

He said in the short term, which is the recovery phase the focus should be on boosting the domestic demand.

“In the doing so, policy attention should focus on ensuring that the existing companies are supported to get back to their pre 2020 level.

“Simultaneously, policies relevant for medium to long term development should also be looked at to ensure continuity.

“While I haven’t seen the Government’s recent policy redirection, Iam sure it captures some of these things that I just mentioned,” he added.

The PAC hearing continues today.

Charges against One Link director may be amended

Written by
Jennifer Kusapa
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BY JENNIFER KUSAPA

One Link director, Gerrard Tauohu, may see charges against him amended.

This follows prosecution seeking adjournment to the case to allow them time to get statements from property owners after police recovered some properties and received a statement from Charles Dora.

Public Prosecutor Jonathan Auga told court yesterday police investigators have obtained statements from Mr Dora and recovered some properties in which the police needs to get statements from the property owners.

Auga said that with the new statements, they are looking at amending the charges against Mr Tauohu.

Deputy Chief Magistrate Ricky Iomea then adjourned the case for April 5.

Tauohu is faced with 38 counts of false pretence under the penal code, and one count of unlicensed financial institution under the Financial Institutions Act 1998.

He was arrested by police following complaints from One Link mentors and customers who did not receive their payments from the director.

Allegation said that Tauohu obtained more than $400,000 from the six mentors between December 2019 and February 2020 and failed to pay them their promised interests.

He then allegedly escaped to Malaita and was arrested after police received complaints from the scheme’s mentors and customers who had invested in the scheme last year but are yet to receive their payments.

One link Pacifica customers had allegedly invested a total of $56,440,4575 in the scheme but police had only managed to recover $336,891.20.

Jonathan Auga of the Office of the Director Public Prosecution appears for the crown while Ronald Dive represents the accused.

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