BY JOHN HOUANIHAU
Opposition leader Mathew Wale has urged provincial premiers to think seriously about the Special Economic Zone Bill 2024.
Appearing before the Bills and Legislation Committee (BLC) were Renbel, Malaita, Choiseul, Isabel, Makira, Western, Temotu and Central premiers and provincial government officials.
The purpose of the Bill is to foster economic growth and job creation through the establishment of special economic zones across the country.
Speaking before the premiers, Mr Wale provided examples how the bill would cost the country and its people if is not properly scrutinise.
“In terms of ports, for example, if one SEZ is established. There will be a necessity for a port facility, specifically an international port for export purposes. However, the current legislation does not address port regulation, nor does it identify the relevant authority, leaving it in a regulatory void.
“At present, the situation in Honiara is poorly managed. Although Solomon Ports operates an international port, political influences have led to a wharf being managed by a Chinese entity. This raises concerns about the port being a privately owned facility, which is not inherently negative, but it poses challenges for regulation and oversight,” Wale told the premiers.
He stressed that there are also significant social concerns, particularly regarding the influx of methamphetamine.
“The drug often enters through logging wharfs and we lack sufficient customs officers to ensure compliance across all port facilities utilized by companies. These issues have not been adequately addressed within this bill. When we discussed this with the Permanent Secretary, he acknowledged the existence of a gap, which is indeed a serious matter,’’ he said.
He said that this gap extends beyond regulatory and corporate concerns; it also encompasses social implications that could impact the surrounding community, especially if drugs are introduced.
“Fiji is currently grappling with similar challenges, as both Fiji and Tonga are experiencing crises related to methamphetamine and cocaine use, driven by transnational trafficking. Criminal organizations are utilizing transshipment routes from Colombia and Asia through Australia and New Zealand, exploiting the Pacific region due to insufficient law enforcement and customs coverage,’’ said Wale.
He told premiers that these issues are critical and it is their responsibility to address them should they arise in their province.
He also highlighted a report from the World Bank and IMF that highlights concerns regarding money laundering.
“An investor may begin with 40 million SBD, but this can facilitate criminal activities by allowing illicit funds to be laundered once invested. Money that enters through accounts in the Solomon Islands can be legitimized, enabling substantial investments without any genuine intention of creating value locally, effectively turning the region into a transit point for legitimizing illicit funds,’’ he said. He said that such incidents have occurred, presenting a challenge for the Solomon Islands.
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